The Commissioner Of Income Tax, Chennai v. M/S.professional Access Software Development Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI T.C.A.No.215 of 2014 The Commissioner of Income Tax,Chennai. ... Appellant/AppellantVs. M/s.Professional Access Software Development Pvt. Ltd., 7H-Century Plaza, 560-562, Anna Salai,Teynampet, Chennai – 600 018. ... Respondent/Respondent Appeal preferred under Section 260A of the Income Tax Act,1961, against the order of the Income Tax Appellate Tribunal,Madras, “D” Bench, dated 11.01.2012 in I.TA.No.1388/Mds/2011,Assessment Year 2005-06. Against the order of the Commissioner of Income Tax(Appeals)V Chennai-34 in ITA No.331/07-08 dated 05.05.11 in theassessment year 2005-06.Against the order of the Income Tax Officer (OSD) CompanyCircle v(2) Chennai dated 26.12.07 PAN in theassessment year 2005-06. For Appellant : Mr.Karthik Ranganathan Senior Standing Counsel For Respondent : No appearance JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel for the appellant/Revenue. https://hcservices.ecourts.gov.in/hcservices/ 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 11.01.2012 made in I.TA.No.1388/Mds/2011 on thefile of the Income Tax Appellate Tribunal, Chennai, “D” Bench(for brevity, the Tribunal) for the Assessment Year 2005-06. 3.The appeal was admitted on 14.07.2014 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 theexpenditure incurred in foreign currency towardscommunication expenses if excluded from theexport turnover has also to be excluded from thetotal turnover? 2.Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal failed to consider thespecific grounds raised by the department on setoff of non STP loss against STP profit and non-consideration of the same amounts to question oflaw as held by the Madras High Court in the caseof South India Surgical reported in 263 ITR 5?” 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 thresholdlimit 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 III) //True Copy// Sub Assistant Registrar MKN To 1.The Income Tax Appellate Tribunal, Chennai, “D” Bench, Chennai 34. Chennai, “D” Bench, Chennai 34. 2.The Commissioner of Income Tax, Chennai-34 Chennai-34 3.The Income Tax Officer, 121, Mahatma Gandhi Road, Nungumbakkam, Chennai-34. 4.The Income Tax Appeals V, Chennai-34. 5.The Income Tax Officer(OSD) Company Circle V(2) Chennai. MG (CO) TE (19/04/2021) T.C.A.No.215 of 2014