The Commissioner Of Income Tax, Chennai v. M/S.originwave Tehsoft Ltd., Chennai-4

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.470 of 2012 The Commissioner of Income Tax, Chennai...Appellant/RespondentVsM/s.Originwave Tehsoft Ltd.,Chennai-4....Respondent/Appellant APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 19.7.2012 made in ITA.No.1997/Mds/2011 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2008-09. against the order passed by the Commissioner of Income Tax(Appeals) V, Chennai 34, made in Appeal No. (IT(A)-V /IT.No.119/2010-11 dated 30/09/2011 and against the Income Tax Officer,Company Ward V (i), Chennai made in PAN AAA(C) 1347R, dated12.11.2010.For Appellant:Mr.T.Ravikumar, SSC &Mrs.R.Hemalatha, SSCFor Respondent:Mr.R.Venkatanarayanan forM/s.Subbarayar Aiyer Padmanabhan We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learnedSenior Standing Counsel appearing for the appellant – Revenueand Mr.R. Venkatanarayanan, learned counsel appearing for therespondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated19.7.2012 made in ITA.No. 1997/Mds/2011 on the file of theIncome Tax Appellate Tribunal, Chennai 'D' Bench for the https://hcservices.ecourts.gov.in/hcservices/ assessment year 2008-09. 3. The appeal was admitted on 21.12.2012 on the followingsubstantial questions of law :“i. Whether, under the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe assessee is entitled for deduction underSection 10A ?ii. Whether, under the facts andcircumstances of the case, the Tribunal wasright in concluding that the assessee hascomplied with the conditions laid down underSection 10A(2)(iii) ? iii. Whether, under the facts andcircumstances of the case, the Tribunal wasright in deleting the disallowance made bythe Assessing Officer under Section 40(a)(ia) ? Andiv. Whether, under the facts andcircumstances of the case, the Tribunal wasright in holding that the amendment made toSection 40(a)(ia) by the Finance Act, 2010would apply retrospectively though theamendment is made with effect from 01.4.2010?” 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 (CO) //True Copy// RS Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'D' Bench, Chennai. Chennai 'D' Bench, Chennai. 2.The Commissioner of Income Tax (Appeals) V, Chennai-34. Chennai-34. 3.The Income Tax Officer, Company Ward V (I), Chennai. Company Ward V (I), Chennai. +1cc to Mr.Subbarayar Aiyar Padmanabhan, Advocate, S.R.No.71729 TCA.No.470 of 2012BS(CO)GN(13/11/2019)