Tca/907/2014 Of Commissioner Of Income Tax v. M/S Sherston Educational

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMand THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.907 of 2014 M/s.Sherston Educational Software Pvt. Ltd.,Chandragiri Technopark,Trivandrum-695 581...Respondent/ Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 13.06.2013, made in I.T.A.No.1866/Mds/2012 onthe file of the Income Tax Appellate Tribunal 'D' Bench, Chennaifor the assessment year 2004-05 against the Order dated24.01.2012 made in ITA No.204/2010-11 on the file ofCommissioner of Income Tax (A)-VI, Chennai against the orderdated 03.12.2007 PAN No.AAECS 65654R GIR No.SH 40 on the file ofIncome Tax Officer (CSD) Company Circle-VI (2) chennai for theAssessment Year 2004-05. JUDGMENT (Delivered by T.S.Sivagnanam, J.) This appeal, filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated13.06.2013, made in I.T.A.No.1866/Mds/2012 on the file of theIncome Tax Appellate Tribunal 'D' Bench, Chennai for theassessment year 2004-05. 2.The above appeal was admitted on 18.11.2014, on thefollowing substantial questions of law:-“(i) Whether under the facts and circumstancesof the case, the Tribunal was right in holdingthat the business loss of the non STPI Unit of theassessee is to be set off only after grant of https://hcservices.ecourts.gov.in/hcservices/ deduction under Section 10A of the Income Tax Act?(ii) Whether under the facts and circumstancesof the case, the Tribunal was right inadjudicating whether loss from non STPI unit ofthe assessee is to be set off before or aftercomputing deduction under Section 10A of theIncome Tax Act, though such issue was not beforethe Commissioner of Income Tax (Appeals)?” 3.Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Ms.K.G.Usharani, learned Standing Counsel for theappellant – and Mr.A.S.Sriraman, learned counsel forMr.S.Sridhar, learned counsel for the respondent. 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.17/2019,dated 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 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. 1.The Income Tax Appellate Tribunal 'D' Bench, Chennai. 2. The Commissioner of Income Tax (A)-VI, Chennai 3. The Income Tax Officer (CSD) Company Circle-VI (2) Chennai +1cc to Mr.S.Sridhar, Advocate, SR.No.72501/19+1cc to Mr.T.R.Senthil Kumar, Advocate, SR.No.72913/19 https://hcservices.ecourts.gov.in/hcservices/