Tca/1042/2010 Of Commissioner Of Income Tax v. M/S Spencer And Amp Co Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 07.07.2020 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE KRISHNAN RAMASAMY T.C.A.No.1042 of 2010 Commissioner of Income Tax Chennai ...Appellant .Vs. M/s. Spencer & Co. LtdSpencer Plaza 4th Floor,769 Anna salai, Chennai-02 ...Respondent Appeal under Section 260A of the Income Tax Act, 1961 againstthe order of the Income Tax Appellate Tribunal, Chennai ‘B’Bench dated 18.12.2009 in ITA No.1603/Mds/2009. As against the order of the Commissioner of Income Tax(Appeals)-v, 121, Mahatma Gandhi Road, Chennai-34 made in ITANos.275/2007-08 dated 12.12.2008 as against the order of theAssistant Commissioner of Income Tax Company Circle V(94), 7[th]Floor, New Block, Room No.705, 121, Mahatma Gandhi Road,Chennai-34 in PAN/GIR No. /SP-14 dated 26.12.2007 forthe assessment year 2005-06. For Appellant : Mr.J.Narayanaswamy, Senior Standing Counsel For Respondent: Mr.Venkatanarayanan For M/s.SubbarayaAiyerPadmanabhan (Judgment of the Court was delivered by Dr.VineetKothari,J.) The Court was held by Video Conference as per the Resolutionof the Full Court dated 03 July 2020, by Judges at therespective residence offices and the counsel, staff of the Courtappearing from their respective residences. 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 dated 18.12.2009in ITA No. 1603/Mds/09, by raising the following substantialquestions of law: "1. Whether on the facts and circumstancesof the case, the Tribunal was right inupholdingtheCIT(A)'sdeletionofdisallowance of licence fee paid to RPGEnterprises? 2.Whether on the facts and circumstances ofthe case, the Tribunal was right inupholdingthe CIT(A)'s deletion of 2.56 Cr. byinvoking the provision of section 14A r/wRule 80?.3.Whether on the facts and circumstances ofthe case, the Tribunal was right inupholdingthe direction of CIT(A) to Assessing officerto adopt Rs. 255.05 asthe sale price of ZCCBas against the revenue's valuation at 45.05whilecomputing the long term capital gain? 3. When the matter is taken up for hearing, learned StandingCounsel brought to our notice the Circular instruction issued bythe Central Board of Direct Taxes vide Circular No.17/2019 dated8th August 2019, wherein, it is stipulated that appeals shallnot be filed/pursued by the Department before the High Court incases where the tax effect does not exceed Rs.1,00,00,000/-(Rupees One 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. Sd/- Assistant Registrar(CS III) //True Copy// To 1. Income Tax Appellate Tribunal, 'B' Bench, Chennai. 2. The Commissioner of Income Tax Appeals-V, 121, Mahatma Gandhi Road, Chennai 600 034. Mahatma Gandhi Road, Chennai 600 034. 3. The Assistant Commissioner of Income Tax, Company Circle VI(4), 7[th] Floor, New Block, Room No.705, 121, Mahatma Gandhi Road, Chennai-34. Company Circle VI(4), 7[th] Floor, New Block, Room No.705, 121, Mahatma Gandhi Road, Chennai-34. T.C.A.No.1042 of 2010 rr ii (02/12/2020)