The Commissioner Of Income Tax-I, Tiruchirapalli v. M/S.heritage Clothing Inc. 33/53, C-3, Iii Cross, Kamarajapuram North Karur

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED:02.02.2017 CORAM: THE HON'BLE MR.JUSTICE HULUVADI G.RAMESHANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH TAX CASE APPEAL No.486 of 2010 The Commissioner of Income Tax-I,Tiruchirapalli ... Appellant/RespondentVersus M/s.Heritage Clothing inc.33/53, C-3, III Cross,Kamarajapuram NorthKarur ... Respondent/Appellant Tax Case Appeal file under Section 260-A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal "C" Bench, Chennai dated 09.10.2009 passed inI.T.A.No.1846/Mds/2008, and against the Order of theCommissioner of Income Tax(Appeals), Tiruchirapalli dated21.07.2008 in I.T.A.No.490/2006-07 and against the Order ofthe Deputy Commissioner of Income Tax, Circle II,Tiruchirapalli dated 27.12.2006 in PAN/GIR No. . For Appellant : Mr.J.Narayanaswamy For Respondent : served, No appearance JUDGMENT The Tax Case Appeal filed by the Revenue calling inquestion the correctness of the order passed by the Income TaxAppellate Tribunal, "C" Bench, Chennai dated 9.10.2009 inITA.No.1846 /Mds/2008 has been admitted on 22.06.2010for consideration of the following substantial questions of law: "(i). Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe face value of DEPB is chargeable to tax onaccrual basis and that the profit on sale ofDEPB representing the excess of sale proceedsof DEPB over its face value is liable to beconsidered under section 28(iii)(d) at the timehttps://hcservices.ecourts.gov.in/hcservices/of its sale? (ii) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in not holdingthat the scheme of DEPB is not an automaticbenefit to an exporter in the form of cashassistance; but arises only on makingapplication to the concerned authority pursuantto exports and is in the nature of "benefit ofperquisite arising out of business" andtherefore is chargeable to tax under Section 28(iv)?" 2. Circular instruction issued by the Central Board ofDirect Taxes No.21/2015, dated 10.12.2015 stipulates thatappeals shall not be filed/pursued by the Department beforethe High Court in cases where the tax effect does not exceedRs.20 lakhs. In the instant case, the tax effect is less thanthe monetary limit imposed and the appeal is hence, dismissedas not pressed, preserving the substantial questions of lawfor determination in an appropriate case. No costs. Sd/- Assistant Registrar(CS VII) //True Copy// msr Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench. Chennai 'C' Bench. 2.The Commissioner of Income Tax(Appeals), Tiruchirapalli. Tiruchirapalli. 3.The Deputy Commissioner of Income Tax, Circle II, Thiruchirapalli. +1cc to Mr.J.Narayanaswamy, Advocate, S.R.No.6610 TAX CASE APPEAL No.486 of 2010 KK(CO)CA(03/04/2017)