Commissioner Of Income Tax, Chennai v. M/S.indian Additives Limited, Express Highway, Manali, Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI Commissioner of Income Tax,Chennai.... Appellant in all 7 TCAsVs. 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 against theorder passed by the Commissioner of Income Tax (Appeals)III inI.T.A. No. 884/06-07/A-III dated 26.08.2008, I.T.A. No. 453/07-08/A-III dated 25.02.2009, I.T.A. No. 454/07-08/A-III dated25.02.2009, and I.T.A. No. 455/07-08/A-III dated 25.02.2009 asagainst the proceedings of the Assistant Commissioner of IncomeTax, Company Circle II(3), Chennai 34 in G.I.No./P.A. No. 2002-1/AAAC11445G, 10.12.2007, 10.12.2007, 22.11.2007 and 11.12.2006for the assessment year 2002-2003, 2001-2002, 2000-2001 and1999-2000 respectively. We have heard Mr.Karthick Ranganathan, learned SeniorStanding Counsel for the appellant/Revenue and Ms.SriniranjaniSrinivasan, learned counsel for the respondent/assessee. https://hcservices.ecourts.gov.in/hcservices/ 2.The appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) are directedagainsttheorderdated13.11.2009madeinI.TA.Nos.2138/Mds/2008, 700 to 702, 971 to 973/Mds/2009 on thefile 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 followingsubstantial question of law:“Whether on the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in that the “running royalty” paid by theassessee to the foreign company is allowable asrevenue expenditure?” 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenue onaccount of the Low Tax Effect in terms of Circular No.17/2019dated 08.08.2019 issued by the Central Board of Direct Taxes. Bythe said Circular, the monetary limit for filing or pursuing anappeal before the High Court has been increased to Rs.1 crore.It is further submitted that the tax effect in these cases areless than the threshold limit. 5.In the light of the said submissions, the above Tax CaseAppeals are dismissed as withdrawn on account of the Low TaxEffect. The substantial question of law framed is left open. Inthe event the tax effect in this case is above the thresholdlimit fixed in the said Circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. s/d- Assistant Registrar True Copy Sub-Assistant Registrar To1.The RegistrarThe Income Tax Appellate Tribunal, Chennai, "A" Bench 2.The Commissioner of Income Tax (Appeals)III, Chennai 34. 3.The Assistant Commissioner of Income TaxCompany Circle II93) Chennai 34Company Circle II93) Chennai 34 4.The Commissioner of Income Tax, Chennai +1 CC to Mr.G. Baskar, Advocate sr 10555. T.C.A.Nos.1375 to 1381 of 2010 PPA(CO)SP(16/03/2021)