The Commissioner Of Income Tax, Chennai v. M/S.intimate Fashions (India) Pvt.ltd., Guduvanchery

In the High Court of Judicature at Madras Dated : 21.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.450 of 2012 The Commissioner of Income Tax, Chennai...Appellant/Appellant Vs M/s.Intimate Fashions (India) Pvt.Ltd., Guduvanchery-603002....Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 26.7.2012 made in ITA.No.840/Mds/2012 on thefile of the Income Tax Appellate Tribunal, Chennai 'C' Bench forthe assessment year 2004-05. against the order passed by the Commissioner of Income Tax(Appeal) III Chennai – 34, made in ITA.No. 07/07-08/ A-III,dated 17.01.2012 against the assessment order passed by theAssistant Commissioner of Income Tax Company Circle II (3),Chennai-34 made in G.I.No/PA.No. AAC12706C dated 22/12/2006. For Appellant:Mr.Karthik Ranganathan, SSCFor Respondent:Mr.N.V.Balaji Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.Karthik Ranganathan, learned Senior StandingCounsel appearing for the appellant – Revenue and Mr.N.V.Balaji,learned counsel appearing for the respondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated26.7.2012 made in ITA.No. 840/Mds/2012 on the file of the IncomeTax Appellate Tribunal, Chennai 'C' Bench for the assessment https://hcservices.ecourts.gov.in/hcservices/ year 2004-05. 3. The appeal was admitted on 25.2.2013 on the followingsubstantial questions of law :“i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe foreign exchange fluctuation gain willform part of export turnover for the purposeof computing deduction allowable underSection 10B of the Income Tax Act ? andii. Whether, on the facts and in thecircumstances of the case, the foreignexchange fluctuation gain could be treatedas profit derived out of export business asit has only a second degree connection withthe export activity ?” 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. Sd/-Assistant Registrar (CS-III)//True Copy// Sub Assistant Registrar RSTo 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench. 2.The Commissioner of Income Tax, (Appeal) III, Chennai – 34. https://hcservices.ecourts.gov.in/hcservices/ 3.The Assistant Commissioner of Income Tax, Company Circle II (3), Chennai 34. Company Circle II (3), Chennai 34. TCA.No.450 of 2012 BS(CO)GN(16/10/2019)