Commissioner Of Income Tax,Coimbatore v. M/S.sri Baba Theatres Pvt Ltd

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.577 of 2014 Commissioner of Income Tax,Coimbatore. ...Appellant -vs- M/s.Sri Baba Theatres Pvt Ltd.,No.36/52, Devanga High School Road,R.S.Puram, Coimbatore. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 07.12.2012 made in I.T.A.No.478/Mds/2012 on thefile of the Income Tax Appellate Tribunal 'B' Bench, Chennai forthe assessment year 2008-09, against the order of the office ofthe Commissioner of the Income Tax (Appeals)-1, Coimbatore PANNo.AAACB4551K, assessment year 2008-09, dated 26/12/2011. Against the order of the Deputy Commissioner of Income TaxCompany Circle -1(3),Coimbatore, PA No.AACS4551K, assessmentyear, 2008-09, order dated 30/02/2010. For Appellant: Mr.T.R.Senthil Kumar, Senior Standing Counsel & Ms.K.G.Usha Rani, Standing Counsel (Judgment of the Court was delivered by T.S.Sivagnanam, J.) We have heard Mr.T.R.Senthil Kumar, learned Senior StandingCounsel and Ms.K.G.Usha Rani, learned Standing Counsel appearingfor the appellant-Revenue and Mr.R.Sivaraman, learned counselfor the respondent-assessee. https://hcservices.ecourts.gov.in/hcservices/ 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated07.12.2012, made in I.T.A.No.478/Mds/2012 on the file of theIncome Tax Appellate Tribunal 'B' Bench, Chennai for theassessment year 2008-09. 3. The appeal was admitted on 27.10.2014 on the followingsubstantial questions of law:- “1. Whether on the facts and in thecircumstances of the case, the Tribunal wasright in holding that there is no incomeaccrued from the purchase and sale ofsatellite rights through an irrevocableagreement for a period of 99 years? 2.Whether on the facts and in thecircumstances of the case, the Tribunal wasright in holding that the income fromtransfer of satellite rights does not arisein the year of transfer but in a later yearonly? 3.whether on the facts and in thecircumstances of the case, the Tribunal wasright in holding that the accrual of incomewill take place only after the date ofrelease, though there is actual purchase andsale of rights on which consideration wasreceived? 4.Whether on the facts and in the circumstances of the case, the Tribunal wasright in not holding that the income accruedin purchase and sale of satellite right inthe year of transfer of right, when theassessee is following mercantile system ofaccounting?” 4. The learned Senior Standing Counsel for the appellantsubmits that the above appeal is not pursued by the Revenue onaccount of the low tax effect in terms of Circular No.17/2019dated 08.8.2019 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 this case is lessthan the threshold limit. 5. In the light of the said submissions, the above tax caseappeal is dismissed on account of the low tax effect. The https://hcservices.ecourts.gov.in/hcservices/ substantial questions of law framed are left open. In the eventthe tax effect is above the threshold limit fixed in the saidcircular, liberty is granted to the Revenue to make a mention tothis Court to restore the appeal to be heard and decided onmerits. No costs. Sd/- Assistant Registrar(CS III) //True Copy// Sub Assistant RegistrarabrTo1.The Income Tax Appellate Tribunal 'B' Bench, Chennai.2.The income Tax (Appeals)-1, Coimbatore.3.The Deputy Commissioner of Income Tax Company Circle-1(3)Coimbatore.TCA.No.577 of 2014PP(CO)RMP(15/09/2020)