Madras High Court
Commissioner Of Income Tax vs M/S.Mainetti India Pvt. Ltd on 6 July, 2021
T.C.A.No.277 of 2012
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 06.07.2021
CORAM
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
T.C.A.No.277 of 2012
Commissioner of Income Tax,
Chennai. ... Appellant
Vs.
M/s.Mainetti India Pvt. Ltd.,
3rd Floor, Florida Towers,
138/30, Nelson Manickam Road,
Chennai – 600 029. ... Respondent
Appeal preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
“B” Bench, dated 16.03.2012 in I.TA.No.1789/Mds/2011, Assessment
Year 2007-08.
For Appellant : Mr.Karthik Ranganathan
Senior Standing Counsel
For Respondent : Mr.R.Sivaraman
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T.C.A.No.277 of 2012
JUDGMENT
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.Karthik Ranganathan, learned Senior Standing
Counsel for the appellant/Revenue and Mr.R.Sivaraman, learned counsel
for the respondent/assessee.
2.The appeal, filed by the Revenue under Section 260A of the
Income Tax Act, 1961 (for short, the Act) is directed against the order
dated 16.03.2012 made in I.TA.No.1789/Mds/2011 on the file of the
Income Tax Appellate Tribunal, Chennai, “B” Bench (for brevity, the
Tribunal) for the Assessment Year 2007-08.
3.The appeal was admitted on 24.09.2012 on the following
substantial questions of law:
“1.Whether under the facts and circumstances
of the case, the Income Tax Appellate Tribunal was
correct in holding that the deduction under Section
10AA of the Income Tax Act, 1961 is allowable after
the inclusion of the foreign exchange gain or loss to
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T.C.A.No.277 of 2012
the export turnover?
2.Whether under the facts and circumstances
of the case, the Income Tax Appellate Tribunal was
correct in holding that the Arm's Length Price
should be determined after taking into account the
net effect of the purchase and sale of the goods
between the Associate and Non Associated
Enterprises?”
4.The learned Senior Standing Counsel for the appellant submits
that the above appeal is 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 this
case is less than the threshold limit.
5.In the light of the said submissions, the above Tax Case Appeal
is dismissed as withdrawn on account of the Low Tax Effect. The
substantial questions of law framed are left open. In the event the tax
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T.C.A.No.277 of 2012
effect in this case 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 appeal to be heard and decided on merits. No costs.
[M.D., J.] [R.H., J.]
06.07.2021
Index : Yes/No
Internet : Yes
mkn
To
The Income Tax Appellate Tribunal, Chennai, “B” Bench
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T.C.A.No.277 of 2012
M.DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A.No.277 of 2012
06.07.2021
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