Madras High Court
Commissioner Of Income Tax vs M/S.Indian Additives Limited on 22 February, 2021
T.C.A.Nos.1375 to 1381 of 2010
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATE: 22.02.2021
CORAM:
THE HON'BLE MR. JUSTICE M.DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI
T.C.A.Nos.1375 to 1381 of 2010
Commissioner of Income Tax,
Chennai. ... Appellant in all 7 TCAs
Vs.
M/s.Indian Additives Limited,
Express Highway,
Manali, Chennai. ... Respondent in all 7 TCAs
Appeals preferred under Section 260A of the Income Tax Act,
1961, against the order of the Income Tax Appellate Tribunal, Madras,
"A" Bench, dated 13.11.2009 in I.TA.Nos.2138/Mds/2008, 700 to 702,
971 to 973/Mds/2009, Assessment Year 1999-00, 2000-01, 2001-02,
2002-03, 2000-01, 2001-02 & 2002-03.
For Appellant : Mr.Karthick Ranganathan,
(in all 7 TCAs) Senior Standing Counsel
For Respondent : Ms.Sriniranjani Srinivasan
(in all 7 TCAs)
COMMON JUDGMENT
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T.C.A.Nos.1375 to 1381 of 2010
(Judgment was delivered by M.DURAISWAMY, J.)
We have heard Mr.Karthick Ranganathan, learned Senior Standing
Counsel for the appellant/Revenue and Ms.Sriniranjani Srinivasan,
learned counsel for the respondent/assessee.
2.The appeals, filed by the Revenue under Section 260A of the
Income Tax Act, 1961 (for short, the Act) are directed against the order
dated 13.11.2009 made in I.TA.Nos.2138/Mds/2008, 700 to 702, 971 to
973/Mds/2009 on the file of the Income Tax Appellate Tribunal,
Chennai, "A" Bench (for brevity, the Tribunal) for the Assessment Year
1999-00, 2000-01, 2001-02, 2002-03, 2000-01, 2001-02 & 2002-03.
3.The appeals were admitted on 22.03.2011 on the following
substantial question of law:
“Whether on the facts and circumstances of the
case, the Income Tax Appellate Tribunal was right in
that the “running royalty” paid by the assessee to the
foreign company is allowable as revenue
expenditure?”
4.The learned Senior Standing Counsel for the appellant submits
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T.C.A.Nos.1375 to 1381 of 2010
that the above appeals are 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 these
cases are less than the threshold limit.
5.In the light of the said submissions, the above Tax Case Appeals
are dismissed as withdrawn 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 appeals to be heard and decided on merits. No costs.
Index : Yes/No [M.D., J.] [T.V.T.S., J.]
Internet : Yes 22.02.2021
va
To
The Income Tax Appellate Tribunal, Chennai, "A" Bench
M.DURAISWAMY, J.
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T.C.A.Nos.1375 to 1381 of 2010
and
T.V.THAMILSELVI, J.
va
T.C.A.Nos.1375 to 1381 of 2010
22.02.2021
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