Tca/984/2014 Of Commissioner Of Income Tax v. M/S Dresser Valve India P Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.984 of 2014 Commissioner of Income Tax,Coimbatore... Appellant/Respondent-vs- M/s.Dresser Valve India P Ltd.,SF 608, Chettipalayam Road,Eachanari Post,Coimbatore-641 021. Coimbatore-641 021... Respondent/AppellantAppeal under Section 260A of the Income-tax Act, 1961,againsttheorderdated05.08.2013,madeinI.T.A.No.2103/Mds/2011 on the file of the Income-tax AppellateTribunal 'B' Bench, Chennai for the assessment year 2007-08.T.C.A.No.984 of 2014:As the against the order of the Income Tax Department,Assistant Commissioner of Income Tax, Company Circle-1(1)Coimbatore, P.A. No./GIR. No. AACD7199L, Assessment year 2007-2008 dated as order 13.10.2011, as against the order of theGovernment of India, Ministry of Finance, Income Tax DepartmentDispute Resolution Panel(DRP) Chennai PAN No. AAACD2199LAssessment year 2007-2008 order dated 14.09.2011. This appeal, filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated05.08.2013, made in I.T.A.No.2103/Mds/2011 on the file of theIncome-tax Appellate Tribunal 'B' Bench, Chennai for theassessment year 2007-08. 2.The above appeal was admitted on 02.12.2014, on thefollowing substantial questions of law:-“Whether under the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in holding that no adjustment of Arms Lengthprice is called for in respect of global sourcingcharges and agency commission receipts of theassessee?” 3.Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Ms.K.G.Usharani, learned Standing Counsel for theappellant – and Mr.Sandeep Bagmar, learned counsel for therespondent. 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 question of law framed is 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 'B' Bench, Chennai.2.M/s.Dresser Valve India P Ltd., SF 608, Chettipalayam Road, Eachanari Post, Coimbatore-641 021.+1 CC to Mr. Sandeep Bagmar, Advocate sr 73873.+1 CC to Mr.T.R.Senthil Kumar, Advocate sr 72914. https://hcservices.ecourts.gov.in/hcservices/