PRINCIPAL COMMISSIONER OF vs. M/S. SECOVA E-SERVICES LTD.,

T.C.A.No.596 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 18.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.596 of 2017 Principal Commissioner of Income Tax 6, No.121, Nungambakkam High Road, Chennai 600 034. ... Appellant Versus M/s. Secova E-Services Ltd., Merdian House, No.121/3, 1st Floor, Manickam Avenue, TTK Road, Alwarpet, Chennai - 600 018. PAN: AAH CS 3174 R ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 15.03.2017 passed by the Income Tax Appellate Tribunal, “B” Bench, Chennai, in I.T.A.No.2740/Mds/2016. For Appellant : Mr.J.Narayanaswamy Senior Standing Counsel For Respondent : Mr.R.Venkatanarayanan for M/s. Subbaraya Aiyar Page 1/4 https://www.mhc.tn.gov.in/judis T.C.A.No.596 of 2017

JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 15.03.2017 passed by the Income Tax Appellate Tribunal, “B” Bench, Chennai, in I.T.A.No.2740/Mds/2016, relating to the assessment year 2009-10.

2.By order dated 07.12.2017, this court admitted the aforesaid tax case appeal on the following substantial questions of law: “(i) Whether the Tribunal was justified in holding that deduction under Section 10A or 10AA of the Income Tax Act should first be excluded from the profits of the year, before set off or brought forward unabsorbed depreciation pertaining to the said unit? (ii) Whether the Tribunal erred in not following the decision in CIT vs Himatasingike Seide Ltd. (Kar) 286 ITR 255 which was upheld by the Hon'ble Supreme Court in 48 taxmann.com 357 (SC)? Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.No.596 of 2017 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 appeal 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. 4.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 case. No costs. (R.M.D., J.) (M.S.Q., J.) 18.08.2022

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Index : Yes / No av Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A.No.596 of 2017 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av To 1. The Income Tax Appellate Tribunal, “B” Bench, Chennai. 2. The Principal Commissioner of Income Tax 6, No.121, Nungambakkam High Road, Chennai 600 034.