The Commissioner Of Income Tax, Coimbatore v. Shri K.muruganandan

In the High Court of Judicature at MadrasDated : 15.6.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.627 of 2013 The Commissioner of Income Tax, Coimbatore ...Appellant Vs Shri K.Muruganandan...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 18.2.2013 made in ITA.No.1773/Mds/2011 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment year 2003-04, against the Appellate order of theCommissioner of Income Tax(Appeals)-1, Coimbatore, dt.24-08-2011nad made in PAN/GIR No: for the Assessment year 2003-04; and against the Assessment order of the Deputy Commissioner ofIncome Tax, Company Circle-1(3), Coimbatore, dt.17-08-2010 andmade in PAN/GIR No: for the Assessment year 2003-04.For Appellant:Mr.T.R.Senthilkumar, SSC &Ms.K.G.Usharani, SCFor Respondent:Mr.A.S.Sriraman Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel and Ms.K.G.Usharani, learned Standing Counsel appearingfor the appellant – Revenue and Mr.A.S.Sriraman, learned counselappearing for the respondent. Page numbers https://hcservices.ecourts.gov.in/hcservices/ 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainst the order dated 18.2.2013 made in ITA.No.1773/Mds/2011on the file of the Income Tax Appellate Tribunal, Chennai 'B'Bench (for brevity, the Tribunal) for the assessment year 2003-04. 3. The appeal has been admitted on 28.10.2013 on thefollowing substantial questions of law :“i. Whether, in law and in the facts andcircumstances of the case, the Tribunal wasright in holding that the amount received bythe assessee under the non compete agreementwas not chargeable to tax since the same hadaccrued to the assessee at the time ofsigning the non compete agreement ? and2. Whether, in law and in the facts andcircumstances of the case, the Tribunal wasright in not considering applicability ofSection 28(Va) to the case of the assesseefor the assessment year in appeal ?” 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 //True Copy// Sub Assistant Registrar RS Page numbers https://hcservices.ecourts.gov.in/hcservices/ To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. Chennai 'B' Bench. 2.The Commissioner of Income-Tax(Appeals)-1, Coimbatore. Coimbatore. 3.The Deputy Commissioner of Income-Tax, Company Circle-1(3), Coimbatore. Company Circle-1(3), Coimbatore. 4.The Commissioner of Income-Tax, Coimbatore. Coimbatore. TCA.No.627 of 2013PA(CO)CB(12/10/2020) Page numbers