The Commissioner Of Income Tax, Chennai v. M/S.rentokil India Pvt. Ltd., Sreela Towers, 4Th Floor

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 28.08.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.370 of 2018 The Commissioner of Income Tax,Chennai. ...AppellantVs M/s.Rentokil India Pvt. Ltd.,Sreela Towers, 4th Floor, No.105,First Main Road, Gandhi Nagar, Adyar,Chennai - 600 020.PAN: ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 15.11.2017 made in ITA.No.2660/MDS/2016 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2011-12 as against the Order of theCommissioner of Income Tax (Appeals)-3, No.121, Mahatma GandhiRoad, Chennai -600 034, made in ITA No.88/2013-14/CIT(A)-3,dated30.05.2016 as against the Order of the Deputy Commissioner ofIncome Tax, Company Circle-V (3), Room No.407, Main Building,Aayakar Bhawan, M.G.Road, Nungambakkam, Chennai -34, made in PANNO.AADCR7629 E, dated 05.03.2014 for the Assessment Year 2011-12. For Appellant: Mr.T.Ravikumar, SSC and Ms.R.Hemalatha, SSC For Respondent: Mr.S.P.Chidambaram JUDGMENT(Judgment was delivered by T.S.Sivagnanam,J.) We have heard Mr.T.Ravikumar, learned Senior StandingCounsel, and Ms.R.Hemalatha, learned Senior Standing Counselappearing for the appellant/revenue and Mr.S.P.Chidambaram,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 dated https://hcservices.ecourts.gov.in/hcservices/ 15.11.2017 made in ITA.No.2660/MDS/2016 on the file of theIncome Tax Appellate Tribunal, Chennai 'B' Bench for theassessment year 2011-12. 3.The appeal was admitted on 10.07.2018 on the followingsubstantial questions of law :“i.Whether, in the case of take-over of anEntity by execution of a Business TransferAgreement depreciation can be claimed on the listof customers by treating the same as tangible orintangible asset under Section 32 of the Income TaxAct, 1961? ii.Whether claim of depreciation on customers'list can be allowed treating the same as intangibleasset, when there is no agreement or arrangementbetween the assessee and the customers of theEntity acquired?" 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. To 1.The Income Tax Appellate Tribunal,Chennai 'B' Bench, Chennai.Chennai 'B' Bench, Chennai. https://hcservices.ecourts.gov.in/hcservices/ 2.The Commissioner of Income Tax (Appeals)-3, No.121, Mahatma Gandhi Road, Chennai -600 034, 3.The Deputy Commissioner of Income Tax, Company Circle-V (3), Room No.407,Main Building,Aayakar Bhawan, M.G.Road, Nungambakkam, Chennai -34, +1cc to Mr.P.Chidambaram, Advocate, SR.No. 74233+1cc to Mr.T.Ravi Kumar, Advocate, SR.No.73653 TCA.No.370 of 2018Kak(30/10/2019)