Madras High Court
Principal Commissioner Of Income ... vs M/S.Intimate Fashions India Pvt. ... on 28 April, 2021
T.C.A.Nos.278 and 279 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 28.04.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.Nos.278 and 279 of 2021
and
C.M.P.No.7808 of 2021
Principal Commissioner of Income Tax,
Company Circle -II (3),
Room No.513, 5th Floor,
New Block, 121, M.G. Road,
Chennai- 600 034. ... Appellant
in all appeals
Vs.
M/s.Intimate Fashions India Pvt. Ltd.,
Thiruporur Kottamedu High Road,
Nadhivaram Village,
Guduvanchery – 603 032. ... Respondent
in all appeals
Tax Case Appeals in T.C.A.Nos.278 and 279 of 2021 preferred
under Section 260A of the Income Tax Act, 1961, against the order of the
Income Tax Appellate Tribunal, Madras, “D” Bench, dated 10.04.2017 in
I.T.A.Nos.1163/Mds/2014 and 1016/Mds/2014, respectively for the
Assessment Year 2009-10.
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T.C.A.Nos.278 and 279 of 2021
For Appellant : Mr.Karthik Ranganathan
Senior Standing Counsel
in all appeals
COMMON JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.Karthik Ranganathan, learned Senior Standing
Counsel for the appellant/Revenue.
2.The above appeals, filed by the Revenue under Section 260A of
the Income Tax Act, 1961 (for short, the Act), are directed against the
order dated 10.04.2017 made in I.T.A.Nos.1163/Mds/2014 and
1016/Mds/2014, on the file of the Income Tax Appellate Tribunal,
Madras, “D” Bench (for brevity, the Tribunal) for the Assessment Year
2009-10.
3.The appellant/Revenue has raised the following substantial
questions of law in the above appeals :
“1.Whether in the facts and in the circumstances of
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T.C.A.Nos.278 and 279 of 2021
the case and in law, the Hon'ble ITAT was justified and
correct in holding that travel expenses and internet
charges incurred in foreign currency to be excluded from
total turnover while computing the deduction u/s.10B when
the section does not provide for exclusion?
2.Whether in the facts and in the circumstances of
the case and in law, the Hon'ble ITAT was right in
determining the Arm Length's Price by aggregating the
different transactions of purchase of different raw
materials from different Associate Enterprises and setting
off negative variances in several transactions with positive
variances in other transactions, instead of following
transaction by transaction approach under Comparable
Uncontrolled price (CUP) method as prescribed under
Rule 10B(1)(a)(i) of the Income Tax Act Rule 1962?
3.Whether in the facts and in the circumstances of
the case and in law, the Hon'ble ITAT was right in
excluding the travel expenditure incurred in foreign
currency from the total turnover when the clause (iii) to
Explanation 2 to Section 10B specifically excludes the
same only from the export turnover?”
4.The learned Senior Standing Counsel for the appellant submits
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T.C.A.Nos.278 and 279 of 2021
that the above appeals are not pursued by the Revenue on account of the
Low Tax Effect in terms of Circular No.17/2019 dated 08.08.2019 issued
by the Central Board of Direct Taxes. By the said Circular, the monetary
limit for filing or pursuing an appeal before the High Court has been
increased to Rs.1 crore. It is further submitted that the tax effect in these
cases is less than the threshold limit.
5.In the light of the said submissions, the above Tax Case Appeals
are dismissed as withdrawn on account of the Low Tax Effect. The
substantial questions of law framed are left open. In the event the tax
effect in these cases is above the threshold limit fixed in the said
Circular, liberty is granted to the Revenue to make a mention to this
Court to restore the above appeals to be heard and decided on merits. No
costs. Consequently, connected miscellaneous petition is closed.
[M.D., J.] [R.H., J.]
28.04.2021
mkn
Index : Yes/No
Internet : Yes
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T.C.A.Nos.278 and 279 of 2021
To
1.The Income Tax Appellate Tribunal,
Madras, “D” Bench.
2.The Principal Commissioner of Income Tax,
Company Circle -II (3),
Room No.513, 5th Floor,
New Block, 121, M.G. Road,
Chennai- 600 034.
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T.C.A.Nos.278 and 279 of 2021
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.Nos.278 and 279 of 2021
28.04.2021
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