Commissioner Of Income Tax v. M/S. Jouve India Pvt. Ltd.,[Formerly Known As Tex Tech International Pvt. Ltd.]Ground Floor, Stpiu Building,5, Rajiv Gandhi Salai,Taramani, Chennai – 600 113

THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI Commissioner of Income Tax,No.121, Nungambakkam High Road,Chennai - 600 034. ... Appellant in both TCAs v. M/s. Jouve India Pvt. Ltd.,[Formerly known as Tex Tech International Pvt. Ltd.]Ground Floor, STPIU Building,5, Rajiv Gandhi Salai,Taramani, Chennai – 600 113.PAN : AAC CT 1855 H ... Respondent in both TCAs Appeals preferred under Section 260A of the Income Tax Act,1961, against the common order of the Income Tax AppellateTribunal,Madras,“A”Bench,dated08.04.2015inITA.Nos.2602/Mds/2014 & 2645/Mds/2014 for the Assessment Year2009-2010, appeal as against the order of Commissioner of IncomeTax Appeals-III, 121, Mahatma Gandhi Road, Chennai-600 034 dated07/07/2014 and made in ITA.NO.1440/13-14 for the Assessment year2009-2010 and against the order of the Assistant Commissioner ofIncome Tax, Company Circle-III(2), Chennai-600 034 dated30/12/2011 and made in PAN.NO. for the Assessment year2009-2010. We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel for the appellant/Revenue and Mr. R.VenkatNarayanan, learned counsel for the respondent. https://hcservices.ecourts.gov.in/hcservices/ 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) are directedagainst the order dated 08.04.2015 made inITA.Nos.2602/Mds/2014 & 2645/Mds/2014 on the file of the IncomeTax Appellate Tribunal, Chennai, ''A'' Bench (for brevity, theTribunal) for the Assessment Year 2009-2010. 3. T.C.A.No.1222 of 2015 was admitted on the followingsubstantial questions of law: “(i) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding that thededuction under section 10A has to be allowedwithout setting off of brought forwardunabsorbed losses and depreciation as against theCBDT Circular in F.No.279/Misc./M.116/2012-ITJdated 16.7.2013? (ii) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in directing theassessing officer to include the addition ordisallowance of various payments and added backas indeed business income, when the saiddisallowance was not forming part of the currentyear's expenditure of the assessee?” 4. T.C.A.No.1223 of 2015 was admitted on the followingsubstantial questions of law:“(i) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthere was no technical knowledge or skill orexperience was made available to the assessee inthe Marketing Agreement and Overseas ServiceAgreement and was not liable to deduction tax atsource under section 40(a)(i) read with section195 of the Act? (ii) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in excluding thetravel expenditure incurred in foreign currencyfro the total turnover when clause (iv) toExplanation 2 to section 10a specificallyexcludes the same only from the exportturnover?” 5. The learned Standing Counsel appearing for the appellantsubmits that the above appeals are not pursued by the Revenue on account of the Low Tax Effect in terms of Circular No.17/2019dated 08.08.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 crore.It is further submitted that the tax effect in respective casesis less than the threshold limit. (ii) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in excluding thetravel expenditure incurred in foreign currencyfro the total turnover when clause (iv) toExplanation 2 to section 10a specificallyexcludes the same only from the exportturnover?” 5. The learned Standing Counsel appearing for the appellantsubmits that the above appeals are not pursued by the Revenue on account of the Low Tax Effect in terms of Circular No.17/2019dated 08.08.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 crore.It is further submitted that the tax effect in respective casesis less than the threshold limit. 6. In the light of the said submissions, the above Tax CaseAppeals are dismissed on account of the Low Tax Effect. Thesubstantial questions of law framed is left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant RegistrarRjTo1.The Income Tax Appellate Tribunal, Chennai, ''A'' Bench2.The Commissioner of Income Tax Appeals-III, 121 Mahatma Gandhi Road, Chennai-600 034.3.The Assistant Commissioner of Income Tax, Company Circle-III(2), Chennai-600 034. +1cc to Mr.Subbaraya Aiyar, Advocate Sr.No.20525 T.C.A.Nos.1222 & 1223 of 2015 KV(CO)NR 17/04/2021