Principal Commissioner Of Income Tax-2 v. M/S.i Soft R & D Ltd

THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.No.123 of 2017 Principal Commissioner of Income Tax-2,No.121, Mahatma Gandhi Road,Nungambakkam, Chennai. ... AppellantVs. M/s.i Soft R & D Ltd.,No.19, Hafiz Court,Dr.MGR Salai, Nungambakkam,Chennai – 600 034.... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, "A" Bench, dated 20.07.2016 in I.TA.No.661/Mds/2016Assessment Year 2007-08 filed against the order of theCommissioner of Income Tax (Appeals)-6, Chennai dated 13/01/2016in ITA No.442/CIT(A)-6/2013-14 filed against the assessmentorder dated 20/12/2020 for the Assessment year 2007-2008 forPAN.No.AAAC17884D. For Appellant : Mr.Karthick Ranganathan, Senior Standing CounselFor Respondent : Ms.Sriniranjani Srinivasan for M/s.G.Baskar JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthick Ranganathan, learned SeniorStanding Counsel for the appellant/Revenue and Ms.SriniranjaniSrinivasan, learned counsel for the respondent/assessee. 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 20.07.2016 made in I.TA.No.661/Mds/2016 on thefile of the Income Tax Appellate Tribunal, Chennai, "A" Bench(for brevity, the Tribunal) for the Assessment Year 2007-08. https://hcservices.ecourts.gov.in/hcservices/ 3.The appellant/Revenue has raised the following substantialquestions of law in the grounds of appeal:“1)Whether on the facts and circumstances ofthe case, the Hon'ble ITAT is correct in holdingthat telecommunication charges and expensesincurred in foreign currency to be excluded fromtotal turnover while computing the deduction u/s10A of the Income Tax Act, when the section doesnot provide for such exclusion? 2)Whether on the facts and circumstances ofthe case, the order of the Tribunal directing toexclude telecommunication charges and expensesincurred in foreign currency from the totalturnover is perverse and against all accountingprinciples, when these items being expenses arenever part of turn over?” 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 08.08.2019 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 these cases areless than the threshold limit. 5.In the light of the said submissions, the above Tax CaseAppeal is dismissed as withdrawn on account of the Low TaxEffect. The substantial question of law framed is left open. Inthe event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar va To1.The Income Tax Appellate Tribunal, Chennai, "A" Bench https://hcservices.ecourts.gov.in/hcservices/ 2.The Commissioner of Income Tax (Appeals)-6Chennai-34.Chennai-34. 3.The Deputy Commissioner of Income Tax, Corporate Circle II(3), Chennai-34. Corporate Circle II(3), Chennai-34. +1 cc to M/s.G.Baskar, Advocate Sr.No. 11741 GMI(CO)RMP(18/03/2021) T.C.A.No.123 of 2017