TCA.Nos.713 & 714/2010 In High Court of Judicature at Madras Dated : 19.8.2019 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.713 & 714 of 2010 Commissioner of Income Tax I, Chennai ...Appellant Vs M/s.Baer Shoes (India) Pvt. Ltd., Chennai-7 ...Respondent APPEALS under Section 260A of Income Tax Act, 1961 against common order dated 26.11.2009 made in ITA.Nos.1210 and 1211/Mds/2008 on file of Income Tax Appellate Tribunal, Chennai 'A' Bench for assessment years 2003-04 and 2004-05. For Appellant: Mrs.R.Hemalatha, SSC For Respondent: Mr.A.S.Sriraman COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mrs.R.Hemalatha, learned Senior Standing Counsel appearing for appellant Revenue and Mr.A.S.Sriraman, learned counsel appearing for respondent assessee. 1/4 http://www.judis.nic.in TCA.Nos.713 & 714/2010 2. These appeals, filed by Revenue under Section 260A of Income Tax Act, 1961, are directed against common order dated 26.11.2009 made in ITA.Nos.1210 and 1211/Mds/2008 on file of Income Tax Appellate Tribunal, Chennai 'A' Bench for assessment years 2003-04 and 2004-05. 3. appeals were admitted on 26.7.2010 on following substantial questions of law : i. Whether, on facts and in circumstances of case, Income Tax Appellate Tribunal was right in holding that face value of DEPB is chargeable to tax on accrual basis and that profit on sale of DEPB representing excess of sale proceeds of DEPB over its face value is liable to be considered under Section 28(iiid) at time of its sale? And ii. Whether, on facts and in circumstances of case, Income Tax Appellate Tribunal was right in not holding that scheme of DEPB is not automatic benefit to exporter in form of cash assistance, but arises only on making application to concerned Authority pursuant to exports and is in nature of 'benefit of perquisite arising out of business' and therefore, is chargeable to tax under Section 28(iv)? 4. learned Senior Standing Counsel for appellant submits that 2/4 http://www.judis.nic.in TCA.Nos.713 & 714/2010 above appeals are not pursued by Revenue on account of low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by Central Board of Direct Taxes. By said Circular, monetary limit for filing or pursuing appeal before High Court has been increased to Rs.1 Crore. It is further submitted that tax effect in respective cases is less than threshold limit. 5. In light of said submissions, above tax case appeals are dismissed on account of low tax effect. substantial questions of law framed are left open. In event tax effect in respective cases is above threshold limit fixed in said circular, liberty is granted to Revenue to make mention to this Court to restore appeals to be heard and decided on merits. No costs. 19.8.2019 Internet: Yes To Income Tax Appellate Tribunal, Chennai 'A' Bench. RS 3/4 http://www.judis.nic.in TCA.Nos.713 & 714/2010 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS TCA.Nos.713 & 714 of 2010 19.8.2019 4/4 http://www.judis.nic.in Commissioner of Income-tax I, Chennai v. Baer Shoes (India) Pvt. Ltd