Commissioner Of Income Tax, Chennai v. M/S.shriram Chits Tamilnadu Pvt.ltd.,Greams Dugar, 4Th Floor,Egmore, Chennai 600 006

CORAMTHE HON'BLE DR.JUSTICE VINEET KOTHARI THE HON'BLE MR.JUSTICE KRISHNAN RAMASAMYT.C.A.No.885 of 2017 Commissioner of Income Tax, Chennai. ...Appellant -Vs- M/s.Shriram Chits Tamilnadu Pvt.Ltd.,Greams Dugar, 4th Floor,Egmore, Chennai 600 006...Respondent Prayer: Tax Case Appeal filed under Section 260-A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal Madras " B " Bench, dated 29.07.2016 inITA.No.732/Mds/2016 preferred against the order of theCommissioner of Income Tax(Appeals)-15, Chennai-34, made inI.T.A.No.240/CIT(A)-15/14-15, dated 24.09.2015, against theorder of the Deputy Commissioner of Income Tax, Corporate Circle6(1), Chennai, dated 20.02.2015, made in PAN.GIR.No. . JUDGMENT (Judgment of the Court was made by Dr.Vineet Kothari,J) The Court was held by Video Conference as per the Resolutionof the Full Court dated 03 July 2020, by Judges at therespective residence and the counsel, staff of the Courtappearing from their respective residences. Page 1 / 3 https://hcservices.ecourts.gov.in/hcservices/ 2. This Tax Case Appeal has been filed by the Revenue,calling in question the correctness of the order passed by theIncome Tax Appellate Tribunal, Madras " B " Bench, dated29.07.2016 in ITA.No.732/Mds/2016, by raising the followingsubstantial questions of law: "Whether on the facts and in thecircumstances of the case the tribunal wasright in holding that the royalty paid bythe assessee towards the copy right for useof logo is to be treated as revenueexpenditure without appreciating that as perthe section 32 w.eJ 1.4.99 read with expln3, the copyright is to be treated asintangible asset of capital nature andconsequently the royalty payment is acapital expenditure and the assessee isentitled for depreciation only?” 3. When the matter is taken up for hearing, learned StandingCounsel brought to our notice the Circular issued by the CentralBoard of Direct Taxes vide Circular No.17/2019 dated 8th August2019, wherein, it is stipulated that appeals shall not befiled/pursued by the Department before the High Court in caseswhere the tax effect does not exceed Rs.1,00,00,000/- (RupeesOne Crore). 4. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the Appeal filedby the Revenue is dismissed as withdrawn, keeping open thesubstantial questions of law for determination in appropriatecases. No costs. KST Page 2 / 3 To 1.The Income Tax Appellate Tribunal, Madras B Bench, Chennai. 2.The Deputy Commissioner of Income Tax,Corporate Circle 6(1) Chennai 3.The Commissioner of Income Tax(Appeals)-15Chennai-34 T.C.A.No.885 of 2017ssv(co)aa01/10/2020 Page 3 / 3