Deputy Commissioner Of Income Tax vs M/S.Regen Powertech Pvt Ltd
2024 Latest Caselaw 19793 Mad

Madras High Court

Deputy Commissioner Of Income Tax vs M/S.Regen Powertech Pvt Ltd on 21 October, 2024

Bench: R.Suresh Kumar, C.Saravanan

                                                                                    T.C.A.No.233 of 2024

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED: 21.10.2024

                                                         CORAM

                                    THE HON'BLE MR.JUSTICE R.SURESH KUMAR
                                                     AND
                                     THE HON'BLE MR.JUSTICE C.SARAVANAN

                                           Tax Case Appeal No.233 of 2024


                   Deputy Commissioner of Income Tax
                   Corporate Circle 5(1), Chennai 600034.                  ....    Appellant

                                                           Vs.

                   M/s.Regen Powertech Pvt Ltd.,
                   Sivnanandam, No.1, Pulla Avenue
                   Shenoy Nagar, Chennai 600 030
                   PAN AADCR 5531 M                                        ....    Respondent
                                                          -----
                             Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
                   against the order of the Income Tax Appellate Tribunal, 'B' Bench Chennai,
                   dated 07.12.2022 made in I.T.A.No.571/Chny/2021.


                                   For Appellant       : Mrs.V.Pushpa
                                                         Senior Standing Counsel
                                                          -----

                                                    JUDGMENT

(Delivered by R.SURESH KUMAR, J.)

This Tax Case Appeal has been filed by the Revenue calling in question

the correctness of the order passed by the Income Tax Appellate Tribunal,

Chennai by raising the following substantial questions of law:

"(i) Whether on the facts and in the circumstances of the case

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the Tribunal was justified in holding that the license fee paid for non-transferable and exclusive license of know-how and sublicense the same to affiliates of the Assessee as revenue in nature and not a capital expenditure with enduring benefit?

(ii) Whether on the facts and in the circumstances of the case the Tribunal has fallen in error in ignoring the fact that the Assessee had paid the license fee in one lump sum and retained substantial rights which has an enduring benefit and therefore capital in nature?

2. It is brought to our notice by the learned Standing Counsel for the

appellant Revenue that in the instant case, as per the CBDT's Circular No.9 of

2024 dated 17.09.2024 the tax effect is said to be less than the monetary limit

imposed and therefore, the appeal can be disposed of, keeping the substantial

questions of law raised in this appeal open for adjudication at a later point of

time.

3. Recording the aforesaid submission made by the learned Standing

Counsel for the appellant Revenue, this Tax Case Appeal is dismissed for low

tax effect, keeping open the substantial questions of law for adjudication at

appropriate stage. No costs.

                                                                      (R.S.K.,J.)    (C.S.N.,J.)
                                                                            21.10.2024
                   NCS : Yes/No
                   KST

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To

The Income Tax Appellate Tribunal 'B' Bench, Chennai.

https://www.mhc.tn.gov.in/judis

R.SURESH KUMAR, J.

AND C.SARAVANAN, J.

KST

21.10.2024

https://www.mhc.tn.gov.in/judis