Madras High Court
Commissioner Of Income Tax - I vs M/S. Sensortronics Sanmar Ltd on 7 February, 2022
T.C.A.Nos.1488 and 1489 of 2007
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 07.02.2022
CORAM :
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
AND
THE HONOURABLE MR. JUSTICE J.SATHYA NARAYANA PRASAD
T.C.A.Nos.1488 and 1489 of 2007
and
M.P.No.1 of 2007
Commissioner of Income Tax - I,
Chennai. ... Appellant in both TCAs
Versus
M/s. Sensortronics Sanmar Ltd.,
Survey No.33 & 38/2A,
Old Mahabalipuram Road,
Perungudi, Chennai - 96. ... Respondent in both TCAs
Tax Case Appeals filed under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Chennai, “B”
Bench, dated 16.06.2006 in I.TA.Nos.1977 & 1978/Mds/2003.
For Appellant : Mr.J.Narayanaswamy in both TCAs
For Respondent : Mr.R.Venkata Narayanan in both TCAs
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T.C.A.Nos.1488 and 1489 of 2007
JUDGMENT
(Judgment of the Court was delivered by R. MAHADEVAN, J.)
These tax case appeals have been filed by the appellant / Revenue,
challenging the order dated 16.06.2006 passed by the Income Tax Appellate
Tribunal, Bench 'B', Chennai, in I.TA.Nos.1977 & 1978/Mds/2003, relating to
the assessment years 1999-2000 and 2000-01.
2.By order dated 18.12.2007, this court admitted the aforesaid tax case
appeals on the following substantial questions of law:
“1. Whether on the facts and in circumstances of the case,
the Tribunal was right in holding that Service Income, Exchange
Gain, Insurance claim, Reversal of Excess provision should be
treated as income derived out of business for computation of
deduction under section 80HHC of the Act, especially when these
were not treated as part of the total turnover?
2. Whether on the facts and in circumstances of the case,
the Tribunal was right in holding that 90% of Service Income,
Exchange gain, Insurance claim, Reversal of Excess provision
should not be deducted from the business profits under
explanation (baa)?"
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T.C.A.Nos.1488 and 1489 of 2007
3. When the matters were 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
these appeals is less than the threshold limit.
4. In the light of the aforesaid submissions made by the learned counsel
for the appellant / Revenue, the present appeals, wherein, the tax effect is said
to be less than the monetary limit imposed, are dismissed as withdrawn, keeping
open the substantial questions of law for determination in appropriate cases. No
costs. Consequently, connected miscellaneous petition is closed.
(R.M.D., J.) (J.S.N.P., J.)
07.02.2022
av
Internet : Yes
Index : Yes / No
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T.C.A.Nos.1488 and 1489 of 2007
R. MAHADEVAN, J.
and
J.SATHYA NARAYANA PRASAD, J.
av
To
1. Commissioner of Income Tax - I,
Chennai.
2. The Income Tax Appellate Tribunal,
Bench 'B', Chennai
3. The Assistant Commissioner of Income Tax
Company Circle VI (2), Chennai - 600 034.
T.C.A.Nos.1488 and 1489 of 2007
07.02.2022
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