The Commissioner Of Income Tax - Iii,Chennai v. M/S.nippo Batteries Company Ltd.,Pottipatti Plaza, 4[Th] Floor

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM: THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI The Commissioner of Income Tax - III,Chennai.... Appellant in all 6 TCAs Vs. M/s.Nippo Batteries Company Ltd.,Pottipatti Plaza, 4[th] Floor,77, Nungambakkam High Road,Chennai – 600 034. ... Respondent in all 6 TCAs Appeals preferred under Section 260A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, Madras, "B" Bench, dated 30.03.2010 in I.TA.Nos.593to 595, 1453, 1454 & 1457/Mds/2009 Assessment Year 2000-01,2001-02, 2002-03, 2000-01, 2002-03 & 2001-02 and against theorder of the Commissioner of Income Tax (Appeals)-V, Chennai,dated 16.01.2009 and made in ITA No.253, 252 and 243/07-08,and against the order under section 43(3) read with section(4) of the Income Tax 1961, dated 14/12/2007 on the file ofthe Assistant Commissioner of Income Tax Company circle IV(4),Chennai. For Appellant : Mr.Karthick Ranganathan,(in all 6 TCAs) Senior Standing CounselFor Respondent: Mr.R.Venkatanarayanan (in all 6 TCAs) COMMON JUDGMENT (Judgment was delivered by M.DURAISWAMY, J.) We have heard Mr.Karthick Ranganathan, learned SeniorStandingCounselfortheappellant/RevenueandMr.R.Venkatanarayanan,learnedcounselfortherespondent/assessee.https://hcservices.ecourts.gov.in/hcservices/ 2.The appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) are directedagainst the order dated 30.03.2010 made in I.TA.Nos.593 to595, 1453, 1454 & 1457/Mds/2009 on the file of the Income TaxAppellate Tribunal, Chennai, "B" Bench (for brevity, theTribunal) for the Assessment Year 2000-01, 2001-02, 2002-03,2000-01, 2002-03 & 2001-02. 3.The appeals were admitted on 24.01.2011 on thefollowing substantial question of law: “Whether on the facts and circumstances ofthe case, the Income Tax Appellate Tribunal wasright in holding that the entire royaltypayments made by the assessee Company includingthe portion relatable to the sales turnover totheir foreign collaborator were to be treatedas revenue expenditure?” 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are not pursued by the Revenueon account of the Low Tax Effect in terms of CircularNo.17/2019 dated 08.08.2019 issued by the Central Board ofDirect Taxes. By the said Circular, the monetary limit forfiling or pursuing an appeal before the High Court has beenincreased to Rs.1 crore. It is further submitted that the taxeffect in these cases are less than the threshold limit. 5.In the light of the said submissions, the above TaxCase Appeals are dismissed as withdrawn on account of the LowTax Effect. The substantial question of law framed is leftopen. In the event the tax effect in this case is above thethreshold limit fixed in the said Circular, liberty isgranted to the Revenue to make a mention to this Court torestore the appeals to be heard and decided on merits. Nocosts. 1.The Income Tax Appellate Tribunal, Chennai, "B" Bench. 2.The Commissioner of Income Tax-III, Cehnnai. https://hcservices.ecourts.gov.in/hcservices/ 3.The Commissioner of Income Tax Appeals-V, Company Circle, Cehnnai-34. Company Circle, Cehnnai-34. 4.The Assistant commissioner of Income Tax, Company circle IV(4), Chennai. Company circle IV(4), Chennai. 5.The Additional Commissioner of Income Tax, Company Range-IV, Chennai. Company Range-IV, Chennai. +1cc to M/s.Subbraya Aiyar, Advocate, SR.No.0833. T.C.A.Nos.1293 to 1298 of 2010GP(CO)CSR 23.03.2021