The Commissioner Of Income Tax - Ivno v. M/S.mainetti India Pvt. Ltd.,3[Rd] Floor, Florida Towers

IN THE HIGH COURT OF JUDICATURE AT MADRASDATE: 27.07.2021 CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE R.HEMALATHA T.C.A.No.610 of 2016 The Commissioner of Income Tax - IVNo.121, Nungambakkam High Road,Chennai – 600 034.... Appellant Vs. M/s.Mainetti India Pvt. Ltd.,3[rd] Floor, Florida Towers,No.138/30, Nelson Manickam Road,Chennai – 600 029.... 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 30.06.2015 in I.TA.No.616/Mds/2015 forthe Assessment Year 2010-11. Against the order of the Deputy Commissioner of Income Tax,Chennai dated 30.01.2015 PAN/GIR No. in theAssessment year 2010-2011. Against the order of the Dispute Resolution Panel, Chennaidated 28.11.2014 F.No. DRP/CHE/26/2014-2015 in the Assessmentyear AY 2010-2011.For Appellant : Mr.Karthik Ranganathan, Senior Standing CounselFor Respondent : Mr.R.Sivaraman JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.)We have heard Mr.Karthik Ranganathan, learned SeniorStanding Counsel for the appellant/Revenue and Mr.R.Sivaraman,learned counsel for the respondent/assessee. 2.The appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) is directed againstthe order dated 30.06.2015 made in I.TA.No.616/Mds/2015 on thefile of the Income Tax Appellate Tribunal, Chennai, "D" Bench(for brevity, the Tribunal) for the Assessment Year 2010-11. https://hcservices.ecourts.gov.in/hcservices/ 3.The above Tax Case Appeal was admitted on the followingsubstantial question of law:“Whether on the facts and circumstances ofthe case and in law, the Income Tax AppellateTribunal was right in holding that expenditureincurred in foreign currency which are excludedfrom the export turn over, should also beexcluded from total turnover, in order to grantrelief under Section 10AA of the Income Tax Act,1961?” 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 is left open. Inthe 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. Assistant Registrar(CS-IX) vaTo 1.The Assistant RegistrarIncome Tax Appellate Tribunal,Rajaji BhavanBesant Nagar, Chennai "D" BenchChennai 90. 2.The Deputy Commissioner of Income TaxCorporate Circle 4(1)No. 121, Mahathma Gandhi RoadChennai 34. 3.The Dispute Resolution PanelRoom No. 705, VII FloorAayakar Bhavan AnnexeNo. 121 M.G. Road, Chennai 34. MG(CO)SP(18/08/2021) T.C.A.No.610 of 2016