The Commissioner Of Income Tax Tamil Nadu-I, Madras v. M/S.karmen International (P) Ltd.,Plot

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 5.9.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case No.606 of 2008 The Commissioner of Income Tax Tamil Nadu-I, Madras. Appellant Vs. M/s.Karmen International (P) Ltd.,Plot No.12, Ponniamman Nagar Road,Ayanambakam, Chennai 600 095. Respondent Tax Case filed under Section 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal,'B' Bench, Chennai, dated 7.12.2007 made in ITANo.550/Mds/2007 and against the Commissioner of Income Tax(Appeals)-III, Chennai -34 and made in ITA.No.1/2006-07 dated09/10/2006 and against the order of Income Tax Officer,Company Ward II(1), Chennai -34 and PAN./GIR.No. ,dated 15/03/2006. For Appellant : Mr.Karthik Ranganathan Senior Standing CounselFor Respondent : Mr.S.Sridhar JUDGMENT(Delivered by DR.VINEET KOTHARI,J) This Tax Case has been filed by the Revenue, calling inquestion the correctness of the order passed by the Income TaxAppellate Tribunal, 'B' Bench, Chennai, dated 7.12.2007 madein ITA No.64/Mds/2007, for the Assessment Year 2003-2004, byraising the following substantial question of law: "Whether on the facts and in the circumstances ofthe case the Appellate Tribunal was right inholding, since the assessee was maintainingseparate books of accounts in respect of exportunit, deduction under Section 80 HHC should be https://hcservices.ecourts.gov.in/hcservices/ allowed without setting off the loss of thedomestic unit against the profit of the exportunit is valid in law?" 2. When the matter is taken up for hearing, learnedSenior Standing Counsel brought to our notice the Circularinstruction issued by the Central Board of Direct Taxes videCircular No.17/2019 dated 8th August 2019, wherein, it isstipulated that appeals shall not be filed/pursued by theDepartment before the High Court in cases where the tax effectdoes not exceed Rs.1,00,00,000/- (Rupees One Crore). 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Appealfiled by the Revenue is dismissed, as withdrawn, keeping openthe substantial question of law for determination inappropriate cases. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar To 1. The Commissioner of Income Tax Tamil Nadu-I, Madras. 2. Income Tax Appellate Tribunal, 'B' Bench, Chennai. 3. The Income Tax Officer (OSD) Company Circle-II(4) Chennai. +1 cc to M/s.S.Sridhar,Advocate Sr.No. 76657 AKM/08.11.19/2P-5C / T.C.No.606 of 2008