The High Court dismissed the Revenue's Tax Case Appeal under Section 260A of the Income Tax Act due to the Low Tax Effect threshold defined in Circular No. 17/2019, leaving the substantial question of law open.
The Tax Case Appeal is dismissed on account of the Low Tax Effect.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 17.08.2021
CORAM :
THE HON'BLE MR.JUSTICE T.S.SIVAGNANAM AND THE HON'BLE MR.JUSTICE SATHI KUMAR SUKUMARA KURUP
T.C.A.No.152 of 2011
Commissioner of Income Tax – I, Chennai. ...Appellant
Vs. M/s.Foster Wheeler India P. Ltd. No.184-187, 9th Floor, Temple Steps Anna Salai, Little Mount, Chennai – 600 015. ...Respondent
Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Madras, “B” Bench, dated 16.11.2010 in I.T.A.No.1126/Mds/2010, Assessment Year 2002-03 as against the order of Commissioner of Income Tax (Appeals)-III, Chennai-34 dated 07.04.2010 made in ITA.No.423/05-06/A-III and against the order of the Deputy Commissioner of Income Tax company Circle II(1), Chennai–34 dated 22.09.2005 in G.I.No.AAACF3204C for the Assessment year 2002-2003.
For Appellant : Mr.T.Ravi Kumar Senior Standing Counsel
For Respondent : Ms.Sri Niranjani Srinivasan for M/s.G.Baskar
J U D G M E N T (Judgment was delivered by T.S. SIVAGNANAM, J.)
We have heard Mr.T.Ravi Kumar, learned Senior Standing Counsel for the appellant/Revenue and Ms.Sri Niranjani Srinivasan, learned counsel appearing for the respondent/ assessee.
2.The appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (“the Act” for brevity) is directed against the order dated 16.11.2010 made in I.T.A.No.1126/Mds/2010 on the file of the Income Tax Appellate Tribunal, Chennai, “B” Bench (“the Tribunal” for brevity) for the Assessment Year 2002-03.
3.The appeal was admitted on 05.04.2011 on the following
substantial question of law:
“Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that no penalty under Section 271AA could be levied merely because the Transfer Pricing Officer had not made any adjustments in respect of international transactions?”
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 08.08.2019 issued by the Central 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 question of law framed is left open. In the event the tax effect in this case 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.
Sd/-
Assistant Registrar(CS VII)
//True Copy//
Sub Assistant Registrar
mkn
To
T.C.A.No.152 of 2011
AJS(CO) RGA(16/09/2021)
Commissioner of Income Tax – I, Chennai
M/s. Foster Wheeler India P. Ltd.
T.S. Sivagnanam
Sathi Kumar Sukumara Kurup
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
