The Commissioner Of Income Tax, Chennai-34 v. M/S.changepond Technologies Pvt.ltd., Chennai-603 103

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN The Commissioner of Income Tax, Chennai-34...Appellant Vs M/s.Changepond Technologies Pvt.Ltd., Chennai-603 103 ...Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 08.4.2015 made inITA.Nos.1674/Mds/2013 and 876/ Mds/2014 on the file of theIncome Tax Appellate Tribunal, Chennai 'B' Bench respectivelyfor the assessment years 2007-08 and 2006-07. Against the Order of the Commissioner of Income Tax(Appeals)-I, IV, Chennai, dated 24.12.2013 & 22.01.2013 made inITA.Nos.613/08-09/A1 & 120/12-13, for the Assessment Years 2008-07 & 2007-08 respectively against the order of the AssistantCommissioner of Income Tax, Company Circle – I (3), Chennai – 34order dated 26.12.2008 & 21.12.2009 in GIR/PAN No. . We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learnedSenior Standing Counsel appearing for the appellant – Revenue. 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 08.4.2015 made in ITA.Nos.1674/Mds/2013 and 876/ Mds/2014 https://hcservices.ecourts.gov.in/hcservices/ on the file of the Income Tax Appellate Tribunal, Chennai 'B'Bench respectively for the assessment years 2007-08 and 2006-07. 3. The appeals were admitted on 14.3.2016 on the followingsubstantial questions of law :“Common Questions of law in bothTCA.Nos. 156 & 157 of 2016 :"(i) Whether on the facts andcircumstances of the case, the Tribunal wasright in holding that the exclusion of theestablishment and maintenance expensespertaining to foreign branches is to be madefrom the export turnover while claimingrelief under Section 10 for the assessmentyear 2006-07 ?(ii) Whether on the facts andcircumstances of the case, the Tribunal wasright in holding that 50% of thetelecommunication expenses is to be deductedboth from the export turnover and the totalturnover is to be made while computing thededuction under Section 10A? And (iii) Is not the finding of theTribunal bad by granting deduction underSection 10A without set off of broughtforward loses especially when Section 2(45)of the Income Tax Act clearly defines thetotal income as an amount referred to inSection 5, which is to be worked out aftergiving effect to the provisions of Sections71 and 72 as contained in Chapter VI of theIncome Tax Act ? AndAdditional Question of Law inTCA.No.156 of 2016 :(iv) Whether on the facts andcircumstances of the case, the Tribunal wasright in deleting the disallowance madeunder Section 14A read with Rule 8D ? andAdditional QuestionofLawinTCA.No.157 of 2016 : (v) Whether on the facts andcircumstances of the case, the Tribunal wasright in deleting the disallowance made onspeculation loss on foreign exchangeespecially when such notional losses cannotbe allowed as expenditure ?" 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019 https://hcservices.ecourts.gov.in/hcservices/ dated 08.8.2019 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 the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. Sd/-Assistant Registrar (CCC)//True Copy// To https://hcservices.ecourts.gov.in/hcservices/ dated 08.8.2019 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 the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. Sd/-Assistant Registrar (CCC)//True Copy// To Sub Assistant Registrar 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2.The Commissioner of Income Tax (Appeals) – I, 121, Mahatma Gandhi Road, Chennai – 34. 3.The Commissioner of Income Tax (Appeals)-I, 121, Mahatma Gandhi Road, Chennai – 34. 4.The Assistant Commissioner of Income Tax, Company Circle – I (3), Chennai-34. +1cc to Mr. T.Ravi Kumar, Advocate, S.R.No. 75255 TCA.Nos.156 & 157 of 2016 CP(CO)GN(08/11/2019) https://hcservices.ecourts.gov.in/hcservices/