Commissioner Of Income Tax-I vs A B Mauri India Pvt. Ltd
2021 Latest Caselaw 5060 Mad

                                                                            T.C.A.No.1342 of 2009

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED : 25.02.2021

                                                      CORAM

                                    THE HON'BLE MR. JUSTICE M.DURAISWAMY
                                                     AND
                                   THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI

                                                T.C.A.No.1342 of 2009

                     Commissioner of Income Tax-I,
                     Chennai.                                               ... Appellant
                                                         Vs.


                     A B Mauri India Pvt. Ltd.,
                     2/15, Ganapathy Colony,
                     Teynampet,
                     Chennai – 600 018.                                     ... Respondent

                               Appeal preferred under Section 260A of the Income Tax Act,
                     1961, against the order of the Income Tax Appellate Tribunal, Chennai,
                     “A” Bench, dated 20.05.2009 in I.TA.No.1520/Mds/2007, Assessment
                     Year 2001-02.


                               For Appellant    : Mr.T.Ravikumar
                                                  Senior Standing Counsel

                               For Respondent   : Mr.Venkata Narayanan
                                                  for M/s.Subbaraya Aiyar



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                                                                                T.C.A.No.1342 of 2009



                                                     JUDGMENT

(Judgment was delivered by M.DURAISWAMY, J.)

We have heard Mr.T.Ravikumar, learned Senior Standing Counsel

for the appellant/Revenue and Mr.Venkata Narayanan for M/s.Subbaraya

Aiyar, learned counsel for the respondent/assessee.

2.The appeal, filed by the Revenue under Section 260A of the

Income Tax Act, 1961 (for short, the Act) is directed against the order

dated 20.05.2009 made in I.TA.No.1520/Mds/2007 on the file of the

Income Tax Appellate Tribunal, Chennai, “A” Bench (for brevity, the

Tribunal) for the Assessment Year 2001-02.

3.The appeal was admitted on 07.12.2009 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 the assessee company was entitled to depreciation under clause (ii) of Section 32(1) of the Income Tax Act on the non complete fee paid to Tracstal

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Investment P. Limited, wrongly interpreting the rule of ejusdern generis and considering the non-complete fee as of the same nature of intangible assets like know-how, patents, copyrights, trade arks and other rights of similar nature mentioned in clause (ii) of Section 32(1) of the Income Tax Act ?”

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 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

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restore the appeal to be heard and decided on merits. No costs.

                                                                  [M.D., J.]     [T.V.T.S., J.]
                     Index : Yes/No                                     25.02.2021
                     Internet : Yes                                        (1/2)
                     mkn


                     To

1.The Income Tax Appellate Tribunal, Chennai, “A” Bench

2.The Commissioner of Income Tax-I, Chennai.

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M.DURAISWAMY, J.

and T.V.THAMILSELVI, J.

mkn

T.C.A.No.1342 of 2009

25.02.2021 (1/2)

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