Tax Case Appeal No. 140 of 2009
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 21.09.2022
CORAM :
THE HONOURABLE MR. JUSTICE S.VAIDYANATHAN
AND
THE HONOURABLE MR. JUSTICE C.SARAVANAN
Tax Case Appeal No.140 of 2009
Commissioner of Income Tax
Chennai. .. Appellant
Versus
M/s.California Software Co Ltd
T.S.No.140, Block 2 & 9
5th Floor, Elnet Software City
C.P.T.Road, Taramani,
Chennai 600 113. .. Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
against the order dated 24.07.2008 passed by the Income Tax Appellate Tribunal,
Madras “A” Bench, in I.T.A.No.2049/Mds/2006.
For Appellant : Mr.Ravi Kumar
Senior standing Counsel
For Respondent : Mr.R.Kumar
***
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Tax Case Appeal No. 140 of 2009
JUDGMENT
S.VAIDYANATHAN, J and C.SARAVANAN, J This tax case appeal has been filed by the Appellant / Revenue, calling in question the correctness of the order dated 24.07.2008 passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai, in I.T.A.No.2049/Mds/2006, relating to the assessment year 2002-03.
2.By order dated 22.06.2009, this court admitted the aforesaid tax case appeal on the following substantial question of law:
“Whether on the facts and circumstances of the case, the Tribunal was right in holding that the foreign currency fluctuation on the working capital loan was only notional and as such not to be treated as income of the assessee?”
3. When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/-
(Rupees One Crore). It is also submitted that the tax effect in this appeal is less than the threshold limit.
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3. In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial question of law for determination in an appropriate cases. No costs.
[S.V.N, J.] [C.S.N, J.]
21.09.2022
Internet : Yes
Index : Yes / No
arr
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AND C.SARAVANAN, J.
arr To
1. The Income Tax Appellate Tribunal, Madras “A” Bench.
2.The Commissioner of Income Tax (Appeals)-XII, Chennai.
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