Tca/114/2009 Of Commissioner Of Income Tax v. M/S Spencer Travel

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.11.2018 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case (Appeal) No.114 of 2009Commissioner of Income Tax,Chennai III. ... Appellant -vs-M/s.Spencer Travel Services Ltd.,Spencer Plaza, 4[th] Floor,769, Anna Salai, Chennai-600 002.... RespondentTax Case Appeal filed under Section 260A of theIncome Tax Act, 1961 against the order of the Income TaxAppellate Tribunal Chennai “C” Bench, dated 27.06.2008 inI.T.A.No.2431/Mds/2007, for the assessment year 2003-04against the order of the commisioner o Income TaX(Appeals)dated 27.08.2007 and made in ITA.NO.101/2006-2007 from theAssessment order of the Assistant commisioner of IncomeTax,Company Circle VI(4), Chennai. dt.24.03.06 for theassessment year 2002-2004. For Appellant:Mr.T.R.Senthil Kumar,Senior Standing Counsel:and M/s.K.G.Usha Rani,Junior Standing CounselFor Respondent:No Appearance ****** (Judgement of the Court was delivered by T.S.Sivagnanam, J.)This appeal, by the appellant/Revenue, is directedagainst the order dated 27.06.2008, passed by the IncomeTaxAppellateTribunalChennai“C”BenchinI.T.A.No.2431/Mds/2007, for the assessment year 2003-04. 2.Heard Mr.T.R.Senthil Kumar, learned SeniorStanding Counsel and M/s.K.G.Usha Rani, learned JuniorStanding Counsel for the Revenue. 3.This Appeal has been admitted on 08.04.2009, onthe following substantial question of law:- “Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe license fee paid to M/s R.P.G.Enterpriseswas allowable as business expenditure?” 4.We have perused the order of assessment as well asthe order passed by the Commissioner of Income Tax and wefind that the tax effect in this appeal is lesser than thethreshold limit mentioned in Circular No.3 of 2018, dated11.07.2018, issued by the Central Board of Direct Taxes,which fixes the monetary limit as Rs.50,00,000/- for theDepartment to pursue the matter. Furthermore, the Revenuehas not been able to point out any distinguishing features,by which the Circular No.3 of 2018, dated 11.07.2018,cannot be applied. 5.Thus, for the above reasons, the Revenue cannotpursue this appeal in view of the low tax effect. Hence,this Tax Case Appeal is dismissed and the substantialquestion of law, framed for consideration, is left open.No costs. The Revenue is at liberty to seek forrestoration of appeal if at a later point of time, it isfound that the tax effect is above the threshold limit orto fall under the exceptional clauses mentioned in theCircular. Sd/-/- Assistant Registrar(CS ) //True Copy// abr To The Income Tax Appellate Tribunal Chennai “C” Bench.2.The commisioner Income TaX(Appeals)-V,121,Mahatnma Gandhi Road,Chennai. 34. 3.The Assistant commisioner Income TaX, Company Circle VI()4, Chennai. 4.The commisioner Income TaX,Chennai III, Chennai. Chennai III, Chennai. 5.The Additional commisioner Income TaX, Company Range VI, Chennai. +1cc to Mr.T.R.Senthil Kumar, , Advocate SR.No. 76041T.C.(A).No.114 of 2009ASK(07/12/2018)