Commissioner Of Income Tax vs M/S.California Software Co Ltd
2022 Latest Caselaw 15611 Mad

                                                                                 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.

https://www.mhc.tn.gov.in/judis

Tax Case Appeal No. 140 of 2009

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

https://www.mhc.tn.gov.in/judis

Tax Case Appeal No. 140 of 2009

S. VAIDYANATHAN, J.

AND C.SARAVANAN, J.

arr To

1. The Income Tax Appellate Tribunal, Madras “A” Bench.

2.The Commissioner of Income Tax (Appeals)-XII, Chennai.

TCA No. 140 of 2009

21.09.2022

https://www.mhc.tn.gov.in/judis