Tca/500/2018 Of Commissioner Of Income Tax v. M/S.sensiple Software Solution

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR. JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MR. JUSTICE N. SATISH KUMAR Tax Case Appeal No.500 of 2018 The Commissioner of Income Tax,Chennai ... Appellant -vs- M/s.Sensiple Software Solution Pvt. Ltd.,C.o.S.Venkatram & Co.,Chartered Accountants,218, TTK Road, Alwarpet,Chennai - 600 018. ... Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax Appellate TribunalMadras 'D' Bench, dated 07.10.2016 in ITA No.556/Mds/2015, forthe Assessment year 2010-11. For Appellant: Mrs.Usha Rani for Mr.T.R.Senthil KumarFor Respondent : No appearance [Judgment of the Court was delivered by T.S.Sivagnanam, J.] This appeal by the appellant/Revenue is directedagainst the order passed by the Income Tax Appellate Tribunal,Madras 'D' Bench, dated 07.10.2016 in ITA No.556/Mds/2015, forthe Assessment year 2010-11. 2. Heard Mrs.K.G.Usha Rani for Mr.T.R.Senthil Kumar, learnedStanding Counsel for the appellant/Revenue. https://hcservices.ecourts.gov.in/hcservices/ 3. This Appeal has been filed raising the followingSubstantial Question of Law:-"Whether on the facts and in thecircumstances of the case the Tribunal was rightin holding that the expenses relating to internetexpenses and foreign travel expenses spend inforeign currency outside India, had to beexcluded from export turnover as well as Totalturnover while computing deduction u/s 10B?". 4. We have perused the order of Assessment as well as theOrder passed by the Commissioner of Income Tax and we find thatthe tax effect in this appeal is lesser than the threshold limitmentioned in Circular No.3 of 2018, dated 11.07.2018, issued bythe Central Board of Direct Taxes, which fixes the monetarylimit as Rs.50,00,000/- for the Department to pursue the matter.Furthermore, the Revenue has not been able to point out anydistinguishing features, by which the Circular No.3 of 2018,dated 11.07.2018, cannot be applied. 5.Thus, for the above reasons, the Revenue cannot pursue this Appeal in view of the low tax effect. Hence, the Appeal isdismissed and the Substantial Question of Law, framed forconsideration, is left open. No costs. The Revenue is atliberty to seek for restoration of appeal, if at a later pointof time, it is found that the tax effect is above the thresholdlimit. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal Madras 'D' Bench. 2.The Additional Commissioner of Income Tax Corporation of Range-6, Chennai-34. Tax Corporation of Range-6, Chennai-34. 3.The Deputy Commissioner of Income Tax Company Circle VI(2), Chennai-34. Chennai-34. T.C.A.No.500 of 2018vg ii[co]srg 31/12/2018