The Commissioner Of Income Tax, Chennai v. M/S.greenland Exports Private Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 19.03.2021 CORAM THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.No.456 of 2012 The Commissioner of Income Tax,Chennai.... AppellantVs. M/s.Greenland Exports Private Ltd.,14, Sir Theyagaraya Road,T.Nagar, Chennai – 600 017.... Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “B” Bench, dated 19.07.2012 in I.TA.No.2107/Mds/2011,Assessment Year 2006-07, filed against the Assesment Order ofthe Assistant Commissioner of Income Tax, Company Circle II(2),Chennai in PAN No. dated 28.10.2011 for the assessmentyear 2006-2007. For Appellant : Mr.Karthik Ranganathan Senior Standing CounselFor Respondent : Mr.R.Vijayaragavan for M/s.Subbaraya Aiyar JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthik Ranganathan, learned SeniorStandingCounselfortheappellant/RevenueandMr.R.Vijayaragavan, learned counsel appearing for therespondent/assessee. 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 19.07.2012 made in I.TA.No.2107/Mds/2011 on the https://hcservices.ecourts.gov.in/hcservices/ file of the Income Tax Appellate Tribunal, Chennai, “B” Bench(for brevity, the Tribunal) for the Assessment Year 2006-07. 3.The appeal was admitted on 02.01.2013 on the followingsubstantial questions of law: “1.Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding that thereopening of the assessment under Section 147suffered from the fundamental law of going to theroots and vitiating the reassessment process? 2.Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in restricting thequantum of upward revision by adopting ALP atRs.10.50 lakhs as against Rs.1.25 croresdetermined by the AO? 3.Is not the finding of the Tribunalperverse in holding Internal TNMM(TransactionalNet Margin Method) could be taken for justifyingthe ALP determination wherein the uncontrolledentities maintained by the assessee areassociate enterprise of the group companies whichis hit by Section 92A(2)(j) of the I.T.Act? 4.Whether the Tribunal was right in notconsidering the fact that while computing ALPtransaction with related party had been takeninto account which is against the provisions ofthe statute?” 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 08.08.2019 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 as withdrawn on account of the Low TaxEffect. The substantial questions of law framed are left open.In the event the tax effect in this case is above the threshold https://hcservices.ecourts.gov.in/hcservices/ limit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appeal tobe heard and decided on merits. No costs. Sd/- Assistant Registrar(CS VII) //True Copy// Sub Assistant RegistrarmknTo1.The Income Tax Appellate Tribunal, Chennai, “B” Bench2.The Commissioner of Income Tax, Chennai.3.The Assistant Commissioner of Income Tax, Company Circle II(2), Chennai.4.The Section Officer, VR Section, High Court, Madras.+1cc to Mr.Subbaraya Aiyar, Advocate, S.R.No.18130T.C.A.No.456 of 2012GMI(CO)KM(27/04/2021)