THE COMMISSIONER OF INCOME T vs. M/S.CALIFORNIA SOFWARE COMPA

TCA.No.543 of 2015 In the High Court of Judicature at Madras Dated : 16.6.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.543 of 2015 The Commissioner of Income Tax, Chennai ...Appellant Vs M/s.California Software Company Ltd., Chennai-100 ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 28.10.2013 made in ITA.No.1246/Mds/2013 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench for the assessment year 2008-09. For Appellant: Mr.T.Ravikumar, SSC & Mrs.R.Hemalatha, SSC For Respondent: Mr.T.N.Seetharaman Judgment was delivered by

T.S.Sivagnanam,J

We have heard Mr.T.Ravikumar and Mrs.R.Hemalatha, learned Senior Standing Counsel appearing for the appellant – Revenue and Mr.T.N. Seetharaman, learned counsel appearing for the respondent – assessee. 1/4 http://www.judis.nic.in TCA.No.543 of 2015 2. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) is directed against the order dated 28.10.2013 made in ITA.No.1246/Mds/2013 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench (for brevity, the Tribunal) for the assessment year 2008-09. 3. The appeal has been admitted on 28.7.2015 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 holding that the expenditure incurred in foreign currency and short realization export sales in foreign currency has to be excluded both from the export turnover and total turnover while computing deduction under Section 10B? and 2. Whether the Tribunal was right in restricting the disallowance made under Section 14A to Rs.2 lakhs as against Rs.5,71,949/- made by the Assessing Officer by applying the provisions of Rule 8D without assigning any reasons ?" 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 Board of Direct Taxes. By the said Circular, the monetary limit for filing or 2/4 http://www.judis.nic.in TCA.No.543 of 2015 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. 16.6.2020 To The Income Tax Appellate Tribunal, Chennai 'B' Bench. RS 3/4 http://www.judis.nic.in TCA.No.543 of 2015 T.S.SIVAGNANAM,J AND PUSHPA SATHYANARAYANA,J RS TCA.No.543 of 2015 16.6.2020 4/4 http://www.judis.nic.in