The Commissioner Of Income Tax, Chennai v. M/S.california Software Company Ltd., Chennai-100

In the High Court of Judicature at MadrasDated : 16.6.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.543 of 2015 The Commissioner of Income Tax, Chennai...AppellantVsM/s.California Software Company Ltd.,Chennai-100...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 28.10.2013 made in ITA.No.1246/Mds/2013 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2008-09, appeal against the order dated21.02.2013 made in ITA No.766/11-12 on the file of theCommissioner of Income Tax (Appeals)-IX, Chennai -34 for theAssessment Year 2008-09 and as against the order dated26.12.2011 made in GIR /PAN on the file of theAssistant Commissioner of Income Tax, Company Circle-1(3),Chennai-34, for the Assessment year 2008-09, and as against theOrder dated 26.12.2008 made in GIR/PAN AA13CC8506B on the fileof the Assistant Commissioner of Income Tax, Company Circle -I(3), Chennai-34, for the Assessment year 2005-06. For Appellant : Mr.T.Ravikumar, SSC & Mrs.R.Hemalatha, SSC For Respondent: Mr.T.N.Seetharaman Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learnedSenior Standing Counsel appearing for the appellant – Revenueand Mr.T.N. Seetharaman, learned counsel appearing for therespondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainst the order dated 28.10.2013 made in ITA.No.1246/Mds/2013 https://hcservices.ecourts.gov.in/hcservices/ on the file of the Income Tax Appellate Tribunal, Chennai 'B'Bench (for brevity, the Tribunal) for the assessment year 2008-09. 3. The appeal has been admitted on 28.7.2015 on the followingsubstantial questions of law :“1. Whether, on the facts and in thecircumstances of the case, the AppellateTribunal was right in holding that theexpenditure incurred in foreign currency andshort realization export sales in foreigncurrency has to be excluded both from theexport turnover and total turnover whilecomputing deduction under Section 10B? and 2. Whether the Tribunal was right inrestricting the disallowance made underSection 14A to Rs.2 lakhs as againstRs.5,71,949/- made by the Assessing Officerby applying the provisions of Rule 8Dwithout assigning any reasons ?" 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 08.8.2019 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 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. RS https://hcservices.ecourts.gov.in/hcservices/ 2.The Commissioner of Income Tax (Appeals)-IX,Chennai-34.Chennai-34. 3.The Assistant Commissioner of Income Tax, Company Circle -1(3), Chennai-34. Company Circle -1(3), Chennai-34. TCA.No.543 of 2015 LN(CO)RMP(03/09/2020)