COMMISSIONER vs. M/S.CLASSIC LINENS

TCA.No.539 of 2015 In the High Court of Judicature at Madras Dated : 27.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.539 of 2015 Commissioner of Income Tax, Chennai. ...Appellant Vs M/s.Classic Linens International Pvt. Ltd., Unit 13 & 14, SDF-III, Phase II, MEPZ, Tambaram, Chennai - 600 045. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 14.08.2013 made in ITA.No.947/MDS/2013 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2009-10. For Appellant : Mr.T.Ravikumar, SSC and Ms.R.Hemalatha, SSC For Respondent : Mr.S.Krishnan JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.T.Ravikumar, learned Senior Standing Counsel, and Ms.R.Hemalatha, learned Senior Standing Counsel appearing for the 1/4 http://www.judis.nic.in TCA.No.539 of 2015 appellant/revenue and Mr.S.Krishnan, learned counsel appearing for the respondent/assessee. 2.This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 14.08.2013 made in ITA.No.947/MDS/2013 on the file of the Income Tax Appellate Tribunal, Chennai 'C' Bench for the assessment year 2009-10. 3.The appeal was admitted on 04.08.2015 on the following substantial questions of law : “1.Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in deleting the disallowance u/s.40(a)(i) in respect of commission paid to foreign concerns without deduction of tax at source? 2.Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that for the purpose of applying the formula under sub-section (4) of section 10B, the freight, or expenses, if any, incurred in foreign exchange in providing the technical services outside India ought to be excluded both from the export turnover and from total turnover even though the statue has provided for such exclusion only from the export turnover?" 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 08.8.2019 issued by the Central 2/4 http://www.judis.nic.in TCA.No.539 of 2015 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 on account of the low tax effect. The substantial questions of law framed are left open. In the event the tax effect 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. (T.S.S.J.) (V.B.S.J.) 27.08.2019 cse Speaking (or) Non Speaking Order Index : Yes (or) No To 1.M/s.Classic Linens International Pvt. Ltd., Unit 13 & 14, SDF-III, Phase II, MEPZ, Tambaram, Chennai - 600 045. 2.The Income Tax Appellate Tribunal, Chennai 'C' Bench. 3/4 http://www.judis.nic.in TCA.No.539 of 2015 T.S.SIVAGNANAM,J. AND V.BHAVANI SUBBAROYAN,J. cse TCA.No.539 of 2015 27.08.2019 4/4 http://www.judis.nic.in