Madras High Court
The Commissioner Of Income Tax vs M/S. John Crane Sealing Systems ... on 17 December, 2021
T.C.A. Nos. 534, 533 and 539 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 17.12.2021
CORAM :
THE HON'BLE MR. JUSTICE R. MAHADEVAN
and
THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ
T.C.A. Nos. 534, 533 and 539 of 2021
and
C.M.P. Nos. 19253 and 19276 of 2021
T.C.A. No. 534 of 2021:-
The Commissioner of Income Tax
Chennai. ... Appellant
Vs.
M/s. John Crane Sealing Systems India Pvt. Ltd.
1, Ground Floor, 'Casa Blanca'
No.6, Casa Major Road, Egmore
Chennai – 600 008
PAN : AAA CJ 2131J ... Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
against the order dated 17.11.2016 passed by the Income Tax Appellate
Tribunal, Madras “C” Bench, in I.T.A. No. 1914/Mds/2015 for the assessment
year 2010-11.
For Appellant : Mr. T.Ravi Kumar
Senior Standing Counsel
T.C.A. No. 533 of 2021:-
The Commissioner of Income Tax
Chennai. ... Appellant
https://www.mhc.tn.gov.in/judis
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T.C.A. Nos. 534, 533 and 539 of 2021
Vs.
M/s. John Crane Sealing Systems India Pvt. Ltd.
1, Ground Floor, 'Casa Blanca'
No.6, Casa Major Road, Egmore
Chennai – 600 008
PAN : AAA CJ 2131J ... Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
against the order dated 17.11.2016 passed by the Income Tax Appellate
Tribunal, Madras “C” Bench, in I.T.A. No. 1913/Mds/2015 for the assessment
year 2009-10.
For Appellant : Mr. T.Ravi Kumar
Senior Standing Counsel
T.C.A. No. 539 of 2021:-
The Commissioner of Income Tax
Chennai. ... Appellant
Vs.
M/s. John Crane Sealing Systems India Pvt. Ltd.
1, Ground Floor, 'Casa Blanca'
No.6, Casa Major Road, Egmore
Chennai – 600 008
PAN : AAA CJ 2131J ... Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
against the order dated 17.11.2016 passed by the Income Tax Appellate
Tribunal, Madras “C” Bench, in I.T.A. No. 1912/Mds/2015 for the assessment
year 2008-09.
For Appellant : Mr. T.Ravi Kumar
Senior Standing Counsel
https://www.mhc.tn.gov.in/judis
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T.C.A. Nos. 534, 533 and 539 of 2021
COMMON JUDGMENT
(Judgment was delivered by R. MAHADEVAN, J.)
These tax case appeals have been filed by the appellant / Revenue,
calling in question the correctness of the order dated 17.11.2016 passed by the
Income Tax Appellate Tribunal, 'C' Bench, Chennai, in I.T.A. Nos. 1912 to
1914/Mds/2015, relating to the assessment years 2008-09 to 2010-11, by
raising the following substantial questions of law:-
“(i) Whether on the facts and in the circumstances of the
case, the Tribunal was right in holding that the payments towards
royalty is to be allowed as a revenue expenditure and not
capital?
(ii) Is not the finding of the Tribunal bad especially when
the entire payment of royalty was capital in nature as it was for
an acquisition of a technical knowhow license and was therefore
capital in nature and only depreciation is to be allowed in view
of Explanation 4 to Section 32(1)(ii) of the Income Tax Act?”
2. When the matters were 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,
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T.C.A. Nos. 534, 533 and 539 of 2021
wherein, it is stipulated that appeals 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 these appeals are less than the threshold limit.
3. In the light of the aforesaid submissions made by the learned counsel
for the appellant / Revenue, the present appeals, wherein, the tax effect is said
to be less than the monetary limit imposed, are dismissed as withdrawn,
keeping open the substantial questions of law for determination in an
appropriate cases. No costs. Consequently, connected miscellaneous petitions
are closed.
[R.M.D,J.] [M.S.Q, J.]
17.12.2021
Internet : Yes
Index : Yes / No
Maya
To
1. The Commissioner of Income Tax
Chennai.
2. The Income Tax Appellate Tribunal,
Chennai 'C' Bench.
https://www.mhc.tn.gov.in/judis
4/5
T.C.A. Nos. 534, 533 and 539 of 2021
R. MAHADEVAN, J.
AND
MOHAMMED SHAFFIQ, J.
Maya
T.C.A. Nos. 534, 533 and 539 of 2021
Dated : 17.12.2021
https://www.mhc.tn.gov.in/judis
