Tca/308/2013 Of Commissioner Of Income Tax v. M/S Five Star Audio

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.08.2019 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMand THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.308 of 2013 Commissioner of Income Tax IV,121, M.G.Road, Chennai-600 034... Appellant/Appellant-vs- M/s.Five Star Audio,No.3/66, Sree Sayee Nagar,Virugambakkam, Chennai-600 092.PAN: AAA FF 1470 D.. Respondent/Respondent Appeal under Section 260A of the Income-tax Act, 1961,against the order dated 15.01.2013 on the file of the Income-taxAppellate Tribunal 'A' Bench, Chennai in I.T.A.No.1921/Mds/2012for the assessment year 2004-05. against the order of theCommissioner of Income Tax (Appeals)-VI dated 26.07.2012 andmade in ITA.NO.195/2011-12 and against the Assessment order ofthe Income Tax Officer media ward -1, Chennai dated 05.12.2011for the Assessment year 2004-2005. For Appellant:Ms.V.Pushpa,Junior Standing Counsel:for Mr.M.Swaminathan,Senior Standing Counsel For Respondent :Mr.K.Ravi JUDGMENT (Delivered by T.S.Sivagnanam, J.) This appeal filed by the appellant/Revenue under Section 260Aof the Income-tax Act, 1961, is directed against the order dated15.01.2013, passed by the Income-tax Appellate Tribunal 'A'Bench, Chennai, in I.T.A.No.1921/Mds/2012 for the assessmentyear 2004-05. 2.The above appeal was admitted, on 23.07.2013, on thefollowing substantial questions of law:- https://hcservices.ecourts.gov.in/hcservices/ “(i) Whether on the facts and in thecircumstances of the case, the Appellate Tribunalwas right in holding that the expenditure incurredby the assessee in acquisition of audio rights andCD & DVD rights are revenue in nature andallowable as expenditure in the profit and lossaccount? (ii) Whether on the facts and in thecircumstances of the case, the Appellate Tribunalwas right in not considering the fact that theacquisition of audio rights was an intangibleasset which is capital in nature and depreciationis allowable on such purchases? (iii) Whether on the facts and in thecircumstances of the case, the Appellate Tribunalwas right in following Tribunal order when thejurisdictional High Court had reversed the orderof the Tribunal in the case of M.Subramaniam whichis reported in 272 ITR 525 (Mds)?” 3.Heard Ms.V.Pushpa, learned Junior Standing Counsel forMr.M.Swaminathan, learned Senior Standing Counsel for theappellant and Mr.K.Ravi, learned counsel for the respondent. 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.17/2019,dated 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 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. Thesubstantial 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// abr https://hcservices.ecourts.gov.in/hcservices/ To 1. The Income Tax Officer, Media Ward I, Chennai. Media Ward I, Chennai. 2. The Commissioner of Income Tax (Appeals)-VI, 121, Mahatma Gandhi Road, Chennai-600 034. 121, Mahatma Gandhi Road, Chennai-600 034. 3. The Income-tax Appellate Tribunal 'A' Bench, Chennai. +1cc to Mr.M.Swaminathan, Advocate, S.R.No.72338 Tax Case Appeal No.308 of 2013 MP(CO)CS/30/10/2019