The Commissioner Of Income Tax,Chennai v. M/S.lason India Pvt Ltd.,Dowlath Towers,8-12, Floors

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN The Commissioner of Income tax,Chennai... Appellant -vs- M/s.Lason India Pvt Ltd.,Dowlath Towers,8-12, Floors No.59, 61 & 63,Taylors Road, Kilpauk,Chennai-600 010... Respondent APPEAL under Section 260A of the Income-tax Act, 1961 against the order dated 02.04.2012, made in I.T.A.No.1696(Mds)/2011 on the file of the Income Tax Appellate Tribunal 'D' Bench,Chennai for the assessment year 2004-05, against the order dated15/07/2011 made in ITA.No.740/06-07/A-III on the file of theCommissioner of Income Tax Appeals III, 121, Mahatma GandhiRoad, Chennai -34 against the order dated 28/12/2006 videPAN.No.AABCV3563H on the file of the Commissioner of Income Tax,Company Circle -II(4), Chennai – 34 for the Assessment year2004-05. This appeal filed by the Revenue under Section 260A of theIncome-tax Act, 1961 is directed against the order dated02.04.2012, made in I.T.A.No.1696(Mds)/2011 on the file of theIncome Tax Appellate Tribunal 'D' Bench, Chennai for theassessment year 2004-05. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeal was admitted on 25.09.2014, on thefollowing substantial questions of law:- “(i) Whether on the facts and circumstancesof the case, the Income Tax Appellate Tribunal wasright in not considering the provisions of Section10B(6)(ii) of the Income Tax Act which wasspecifically inserted with retrospective effectfrom 01.04.2001 debarring the claim of carriedforward of losses? (ii) Whether on the facts and circumstancesof the case, the Tribunal was right in coming tothe conclusion that “such loss relates to thebusiness of the undertaking” in Section 10B(6)(ii)as export business and not the domestic tradingactivity for the purpose of carried forward oflosses? (iii) Whether on the facts and circumstancesof the case, the Tribunal was right in upholdingthe order of the CIT(A) in allowing the claim ofset off of losses pertaining to domestic unit forthe Assessment Year 1997-98 to 2000-01 amountingto Rs.88.77 lakhs as against the current yearprofit of the undertaking?” 3.Heard Mr.Karthik Ranganathan, learned Senior StandingCounsel assisted by Mr.S.Rajesh, learned Standing Counsel forthe appellant – and Mr.R.Venkatanarayan, learned counsel forM/s.Subbaraya Aiyar, Padmanabhan and Ramamani, for therespondent. 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.17/2019,dated 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 on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention to https://hcservices.ecourts.gov.in/hcservices/ this Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal 'D' Bench, Chennai. 2.The Commissioner of Income Tax Appeals-III, 121, Mahatma Gandhi Road, Chennai -34 3.The Assistant Commissioner of Income Tax,Company Circle -II(4), Chennai 34. +1cc to M/s.Subbaraya Aiyar, Advocate Sr.No.73377AKM/19.11.19/3P-5C/ T.C.A.No.769 of 2014