The Commissioner Of Income Taxchennai v. M/S.reynolds Pens India Pvt Ltdplot

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 01.10.2024 CORAM THE HON'BLE MR.JUSTICE R.SURESH KUMARANDTHE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case Appeal No.650 of 2017 The Commissioner of Income TaxChennai...Appellant Vs. M/s.Reynolds Pens India Pvt LtdPlot No.21, SIPCOT Industrial ComplexIrungattukottai, Pennallur POChennai 602 105. ...Respondent ----- Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai, dated 29.07.2016 made in ITA No.2269/MDS/2015. For Appellant : Mrs.V.Pushpa Senior Standing Counsel For Respondent : Mr.S.P.Chidambaram J U D G M E N T (Delivered by R.SURESH KUMAR, J.) This Tax Case Appeal has been filed by the Revenue calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, 'C' Bench, Chennai and the appeal was admitted on the following substantial question of law: "“i. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the receipt of fixed charges recovery, discount receipts, foreign exchange gains, export entitlements, sale of scrap and reversal of excess provision are to be allowed while calculating deduction under Section 10B even though the same are not profits from the eligible business? ii. Is not the finding of the Tribunal bad especially when the receipt of export entailment or incentive which flow from the scheme framed by the Central Government or under Section 75 of the Customs Act and are not profits derived from the eligible business but are only ancillary profits as held by the Apex Court in the case of Liberty India Ltd. ? And iii. Whether on the facts and in the circumstances of the case, the Tribunal was right in not considering the fact that income from fixed recovery charges, discount receipt, foreign exchange gains, export entitlement, sale of scraps and reversal of excess provisions are only attributable to business and not derived from eligible business while calculating deduction under Section 10B ?”" 2. It is brought to our notice by the learned Standing Counsel for the appellant Revenue that in the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the appeal filed by the Revenue can be disposed of, keeping the substantial questions of law raised in this appeal open for adjudication at a later point of time. https://www.mhc.tn.gov.in/judis 3. Recording the said submission, this Tax Case Appeal is dismissed for low tax effect, keeping open the substantial questions of law for adjudication at appropriate stage. No costs. NCS : Yes/NoIndex : Yes/NoKST (R.S.K.,J.) (C.S.N.,J.) 01.10.2024 To The Income Tax Appellate Tribunal'C' Bench, Chennai. T.C.A.No.650 of 2017 R.SURESH KUMAR, J.ANDC.SARAVANAN, J. KST T.C.A.No.650 of 2017 01.10.2024