Commissioner Of Income Tax v. M/S.isoft R&D Pvt. Ltd

In the High Court of Judicature at Madras The Honourable Mr.Justice T.S.SIVAGNANAMand The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Commissioner of Income Tax,No.121, Nungambakkam High Road,Chennai - 600 034. ..Appellant/Appellant Vs. M/s.iSoft R&D Pvt. Ltd.,No.19, Hafiz Court, Kodambakkam High Road,Nungambakkam, Chennai - 600 006.PAN: ...Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 31.10.2014 made in ITA.No.1970/MDS/2014 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2007-08, as against the order of theCommissioner of Income Tax (Appeals)-II, Chennai -34, made inITA.No.422/2013-14, dated 29/01/2014 as against the order of theDeputy Commissioner of Income Tax Company Circle II(3),Chennai -34 (D.C.I.T.Co.) in PAN/GIR.No. , dated20/12/2010 for the Assessment year 2007-08.For Appellant: Mr.Karthik Ranganathan, SSC assisted by Mr.S.Rajesh, SC For Respondent: Mr.G.Baskar We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel, assisted by Mr.S.Rajesh, learned StandingCounsel appearing for the appellant/revenue and Mr.G.Baskar,learned counsel appearing for the respondent/assessee. 2.This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated https://hcservices.ecourts.gov.in/hcservices/ 31.10.2014 made in ITA.No.1970/MDS/2014 on the file of theIncome Tax Appellate Tribunal, Chennai 'B' Bench for theassessment year 2007-08.3.The appeal was admitted on 21.09.2015 on the followingsubstantial questions of law : “(i) Whether, on the facts and in thecircumstances of the case, the Honourable ITAT iscorrect in directing the Assessing Officer toreduce the expenses relating to travel expenditurein foreign currency from the total turnover forcomputing deduction under section 10A of the IncomeTax Act, 1961? (ii) Whether, on the facts and in thecircumstances of the case, the Honourable ITAT isright in excluding the travel expenditure incurredin foreign currency from the total turnover whenthe clause (iv) to Explanation 2 to Section 10Aspecifically excludes the same only from the exportturnover?" 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 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 this case is lessthan the threshold limit. 5.In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Assistant Registrar //True Copy// To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income Tax Appeal -II,121, Mahatma Gandhi Road, Nungambakkam, Chennai -34.3.The Deputy Commissioner of Income Tax – Co. Circle-II(3)Chennai -34.+1 cc to M/s.G.Baskar, Advocate Sr.No.73844AKM/14.11.19/2P-5C / TCA.No.801 of 2015