The Commissioner Of Income Tax, Coimbatore v. M/S.karthi Kirshna Exports, Tirupur

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.1.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMAND THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR TAX CASE APPEAL NO.691 OF 2015 The Commissioner of Income Tax, Coimbatore...Appellant/Appellant Vs M/s.Karthi Kirshna Exports, Tirupur...Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 03.9.2014 in ITA No.1521/Mds/2014 on thefile of the Income Tax Appellate Tribunal Madras 'D' Bench forthe assessment year 2006-07. For Appellant : Mr.T.R.Senthilkumar, SSC ORDERJudgment was delivered by T.S.SIVAGNANAM,JHeard the learned Standing Counsel for the appellant. 2. This appeal by the Revenue challenges the order passed bythe Income Tax Appellate Tribunal, which decided the issue infavour of the assessee. The appeal was admitted on 25.8.2015 onthe following substantial questions of law : “i. Whether, while computing reliefunder Section 10B, expenditure incurred bythe assessee has to be excluded from itstotal turnover also, if the same is reducedfrom export turnover ? And ii. Whether the definition of totalturnover, as defined in Section 80HHC, whichwas subsequently inserted vide amendment,can be imported for the purpose of applyingthe formula prescribed by Sub-Section (4) of https://hcservices.ecourts.gov.in/hcservices/ Section 10B, when the Legislature hasintentionally omitted the definition of theterm 'for the purpose of Section 10B' ?” 3. The Revenue seeks to withdraw this appeal on account oflow tax effect in terms of Circular No.3 of 2018 dated 11.7.2018issued by the Central Board of Direct Taxes. 4. In the light of the above, the appeal is dismissed aswithdrawn and the substantial questions of law framed are leftopen. In the event the tax effect is above the threshold limitfixed in the said circular under exceptional clauses mentionedin the circular, liberty is granted to the Revenue to make amention to this Court to restore the appeal to be heard anddecided on merits. rsTo Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar 1.The Income Tax Appellate Tribunal, Madras 'D' Bench. 2.The Commissioner of Income Tax(Appeals)-II, Coimbatore.3.The Income Tax Officer,Ward 1(4), Tirupur. +1cc to Mr.T.R.Senthilkumar, Advocate, S.R.No.211+1cc to Mr.R.Hemalatha, Advocate, S.R.No.284 TCA.No.691 of 2015 SSD(CO)CS/19/02/2019