TCA.Nos.1134-1136/2010 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.1134 to 1136 of 2010 Commissioner of Income Tax I, Tiruchirapalli ...Appellant Vs M/s.R.K.Textiles, Karur. ...Respondent APPEALS under Section 260A of Income Tax Act, 1961 against common order dated 17.2.2010 made respectively in ITA.Nos.426 to 428/ Mds/2009 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench for assessment years 2001-02, 2002-03 and 2004-05. For Appellant: Mr.M.Swaminathan, SSC assisted by Ms.V.Pushpa, SC For Respondent: Mr.N.Quadir Hoseyn COMMON JUDGMENT (Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.M.Swaminathan, learned Senior Standing Counsel assisted by Ms.V.Pushpa, learned Standing Counsel appearing for appellant Revenue and Mr.N.Quadir Hoseyn, learned counsel appearing for respondent assessee. 1/4 http://www.judis.nic.in TCA.Nos.1134-1136/2010 2. These appeals, filed by Revenue under Section 260A of Income Tax Act, 1961, are directed against common order dated 17.2.2010 made respectively in ITA.Nos.426 to 428/Mds/2009 on file of Income Tax Appellate Tribunal, Chennai 'C' Bench for assessment years 2001-02, 2002-03 and 2004-05. 3. appeals were admitted on 18.1.2011 on following substantial questions of law : i. Whether, on facts and in circumstances of case, Appellate Tribunal was right in holding that assessee, supporting manufacturer, was entitled to deduction under Section 80HHC in respect of DEPB and duty drawback disclaimed in its favour by exporter ? ii. Whether, on facts and in circumstances of case, Appellate Tribunal was right in holding that assessee, supporting manufacturer, was entitled to deduction under Section 80HHC in respect of DEPB and duty drawback disclaimed in its favour by exporter without taking note of Third Proviso to Sub-Section (3) of Section 80HHC and difference between provisions of Sub-Sections (3) and (3A) of Section 80HHC ? iii. Whether, on facts and in circumstances of case, Appellate Tribunal 2/4 http://www.judis.nic.in TCA.Nos.1134-1136/2010 had any material to come to conclusion that DEPB and duty drawback benefit received by assessee by virtue of disclaimer issued by exporter in its favour, should be regarded as part of sale consideration when such benefits could not be treated as export benefits under Section 28(iiia) etc., ? And iv. Whether, on facts and in circumstances of case, Appellate Tribunal was right in holding that decision of Supreme Court in case of CIT Vs. Baby Marine Exports [reported in 290 ITR 323] was applicable to assessee's case without noticing that said case related to export premium whereas in assessee's case, issue related to DEPB and duty drawback disclaimed in its favour by exporter? 4. learned Senior Standing Counsel for appellant submits that 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. 3/4 http://www.judis.nic.in TCA.Nos.1134-1136/2010 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS 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 'C' Bench. TCA.Nos.1134 to 1136 of 2010 4/4 http://www.judis.nic.in Commissioner of Income-tax-I, Tiruchirapalli v. R.K. Textile