Principal Commissioner Of Income Tax 2 v. M/S.inautix Technologies India Pvt. Ltd.,10[Th] Floor

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.No.580 of 2016 Principal Commissioner of Income Tax 2,No.121, Mahatma Gandhi Road,Chennai – 600 034. ... Appellant/Respondent Vs. M/s.iNautix Technologies India Pvt. Ltd.,10[th] Floor, No.4, Tidal Park,Canal Bank Road,Taramani, Chennai – 600 113. ... Respondent/Appellant Tax Case Appeal preferred under Section 260A of the IncomeTax Act, 1961, against the order of the Income Tax AppellateTribunal,Chennai,“D”Bench,dated19.02.2016 inM.P.No.152/Mds/2015 in I.T.A.No.2277/Mds/2014, Assessment Year2008-09, as against the order passed by the Commissioner ofIncome Tax (Appeals)II, Chennai in ITA No.1501/2013-14 dated19.05.2014 for the Assessment Year 2008-09 as against the orderpassed by the Assistant Commissioner of Income Tax Co., CircleII (3) Chennai-34 in PAN/GIR No.AAAC161771C, dated 23.12.2011for the Assessment Year 2008-09. For Respondent : Mr.N.V.Balaji We have heard Mr.Karthik Ranganathan, learned StandingCounsel for the appellant/Revenue and Mr.N.V.Balaji, learnedcounsel 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 against https://hcservices.ecourts.gov.in/hcservices/ the order dated 19.02.2016 made in M.P.No.152/Mds/2015 inI.T.A.No.2277/Mds/2014 on the file of the Income Tax AppellateTribunal, Chennai, “D” Bench (for brevity, the Tribunal) for theAssessment Year 2008-09. 3.The appeal was admitted on 22.08.2016 on the followingsubstantial questions of law: “1.Whether on the facts and in the circumstancesof the case, the Appellate Tribunal was right in lawin deleting the disallowance made under Section 14 Aread with Rule 8 D of the Income Tax Act for theassessment year 2008-09 for the purpose of computingbook profit under Section 115 JB of the Act ? 2.Whether on the facts and in the circumstances ofthe case, the Appellate Tribunal was right in ignoringthe Explanation 1 (f0 to Section 115 JB(2) of theIncome Tax Act where such disallowances made are to beincreased for the purpose of computing book profit?” 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 this case is lessthan 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 questions of law framed are left open.In the 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. Assistant Registrar(CS IV) mknTo Sub Assistant Registrar 1.The Income Tax Appellate Tribunal, Chennai, “D” Bench. Chennai, “D” Bench. https://hcservices.ecourts.gov.in/hcservices/ 2.The Commissioner of Income Tax(Appeals) II, Chennai. Chennai. 3.The Assistant Commissioner of Income Tax Co., Circle II(3), Chennai-34. Circle II(3), Chennai-34. 4.The Principal Commissioner of Income Tax (2), Chennai. Chennai. +1cc to M/s.N.V.Balaji, Advocate Sr.11937 T.C.A.No.580 of 2016ajb[co]srg 16/03/2021