Commissioner Of Income Tax vs M/S Shriram Chits Tamilnadu ...
2022 Latest Caselaw 14436 Mad

                                                                                T.C.A.No.381 of 2013




                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                               DATED : 12.08.2022

                                                      CORAM :

                           THE HONOURABLE MR. JUSTICE R. MAHADEVAN
                                              AND
                         THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ

                                              T.C.A.No.381 of 2013


                  Commissioner of Income Tax,
                  Chennai.                                                      ... Appellant

                                                       Versus

                  M/s Shriram Chits Tamilnadu Private Ltd.,
                  Greams Dugar 4th Floor,
                  149 Greams Road,
                  Chennai - 600 006.                                          ... Respondent

                            Appeal preferred under Section 260A of the Income Tax Act, 1961,
                  against the order dated 04.12.2012 passed by the Income Tax Appellate
                  Tribunal, “A” Bench, Chennai, in I.T.A.No.1740/Mds/2012.


                            For Appellant         :      Mr.J.Narayanaswamy
                                                         Standing Counsel

                            For Respondent        :      Mr.R.Sivaraman




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                                                                                      T.C.A.No.381 of 2013


                                                     JUDGMENT

(Judgment of the Court was delivered by R.MAHADEVAN, J.)

This tax case appeal has been filed by the appellant / Revenue,

challenging the order dated 04.12.2012 passed by the Income Tax Appellate

Tribunal, “A” Bench, Chennai, in I.T.A.No.1740/Mds/2012, relating to the

assessment year 2009-10.

2.By order dated 26.07.2013, this court admitted the aforesaid tax case

appeal on the following substantial question of law:

“Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was correct in holding that the payment of royalty is not towards acquisition of intangible asset and is revenue expenditure, following its earlier order in ITA.No.1512/Mds/2010, which has not attained finality?"

3.When the matter was 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,

wherein, it is stipulated that appeal shall not be filed/pursued by the

Department before the High Court in cases where the tax effect does not

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exceed Rs.1,00,00,000/- (Rupees One Crore). It is also submitted that the tax

effect in this appeal is less than the threshold limit.

4.In the light of the aforesaid submissions made by the learned counsel

for the appellant / Revenue, the present appeal, wherein, the tax effect is said

to be less than the monetary limit imposed, is dismissed as withdrawn,

keeping open the substantial question of law for determination in an

appropriate case. No costs.

                                                                     (R.M.D., J.)    (M.S.Q., J.)
                                                                              12.08.2022

                  Internet : Yes
                  Index : Yes / No
                  av

                  To

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

2. The Commissioner of Income Tax, Chennai.

3. The Assistant Commissioner of Income - tax, Company Circle-VI(2), Chennai - 34.

4. The Commissioner of Income Tax (Appeals) - V, Chennai.

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R. MAHADEVAN, J.

and MOHAMMED SHAFFIQ, J.

av

T.C.A.No.381 of 2013

12.08.2022

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