The Commissioner Of Income Tax, Chennai v. K.muruganandam

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 20.8.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NO.595 OF 2010 The Commissioner of Income Tax, Chennai Vs K.Muruganandam...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 30.10.2009 made in ITA.No.797/Mds/2008 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Bench forthe assessment year 2004-05. filed against the Order of theCommissioner of Income Tax (Appeal 1) Coimbatore dated11.02.2008 made in Appeal No.268/06-07 preferred against theAssessment order dated 27.11.2006 by the Deputy Commissioner ofIncome Tax Circle II, Coimbatore 18 for the Assessment year2004-05, in PAN.NO.AEUPMO847D. For Appellant:Mr.T.Ravikumar, SSC For Respondent:Mr.A.S.Sriraman Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.Ravikumar, learned Senior Standing Counselappearing for the appellant – Revenue and Mr.A.S.Sriraman,learned counsel appearing for the respondent – assessee. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 is directed against the order dated30.10.2009 made in ITA. No.797/Mds/2008 on the file of theIncome Tax Appellate Tribunal, Chennai 'A' Bench for theassessment year 2004-05. 3. The appeal was admitted on 02.8.2010 on the followingsubstantial questions of law : https://hcservices.ecourts.gov.in/hcservices/ “i. Whether, on the facts andcircumstances of the case, the Tribunal wasright in holding that the amount of noncompete fee received by the assessee was nottaxable as it was capital receipt ? and ii. Whether the Tribunal was right in notconsidering Section 28(va) of the Income TaxAct, 1961 ?” 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. 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 IV) //True Copy// Sub Assistant Registrar RSTo1.The Assistant Registrar, The Income Tax Appellate Tribunal, Chennai 'A' Bench. 2.The Commissioner of Income Tax (Appeal I), Coimbatore. 3.The Deputy Commissioner of Income Tax,Circle II, Coimbatore-18 +1cc to Mr.T.R.Senthil Kumar, Advocate, S.R.No.70999 +1cc to Mr.S.Sridhar, Advocate, S.R.No.70616 TCA.No.595 of 2010 RSI(CO)CS/24/10/2019 https://hcservices.ecourts.gov.in/hcservices/