The Commissioner Of Income Tax, Chennai v. M/S.pradeep Stainless India P.ltd., Chennai-45

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NO.291 OF 2012 The Commissioner of Income Tax, Chennai Vs M/s.Pradeep Stainless India P.Ltd., Chennai-45....Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 30.4.2012 made in ITA.No.143/Mds/2011 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe assessment year 2005-06. against the Order of theCommissioner of Income Tax (A)-V, Chennai-34 in ITA.No.369/07-08dated 25.10.2010 as against the proceedings of the Income TaxOfficer (OSD), Company circle V(2), Chennai dated 26.12.2007made in PAN.No. . We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learnedSenior Standing Counsel appearing for the appellant – Revenueand Mr.R.Parthiban, 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 dated30.4.2012 made in ITA.No. 143/Mds/2011 on the file of the IncomeTax Appellate Tribunal, Chennai 'A' Bench for the assessmentyear 2005-06. https://hcservices.ecourts.gov.in/hcservices/ 3. The appeal was admitted on 03.10.2012 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 would be eligible for deductionunder Section 10A in respect of profits ongoods exported by it, which it did notmanufacture ? And ii. Whether, under the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in holding that'manufacture' referred to in Section 10A isrelevant only for the purpose of reckoningthe period deduction and not for computingthe quantum of export turnover ?” 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) RS 1.The Registrar,The Income Tax Appellate Tribunal, Chennai 'A' Bench. 2.The Commissioner of Income Tax(A)-V, Chennai-34Chennai-34 3.The Income Tax Officer (OSD),Company Circle V(2),ChennaiCompany Circle V(2),Chennai +1cc to Mr.R.Parthiban, Advocate, S.R.No.71362 PPA(CO)CS/25/10/2019 TCA.No.291 of 2012