The Commissioner Of Income Tax Tamil Nadu Viii, Chennai v. M/S.international Services, Harbour Gate House, 44-45, Rajaji Salai, Chennai 600 001

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 1.2.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE DR.JUSTICE ANITA SUMANTH Tax Case Appeal No.1022 of 2009 The Commissioner of Income Tax Tamil Nadu VIII, Chennai ...Appellant/Appellant Vs. M/s.International Services, Harbour Gate House, 44-45, Rajaji Salai, Chennai 600 001.PAN No.AAAF10228E...Respondent/Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras 'A' Bench, Chennai, dated 19.3.2009 made in ITANo.1895/Mds/2006 and this Appeal preferred against theCommissioner of Income Tax (Appeals)XI, No.121, Mahatma GandhiRoad, Chennai-34, dated 10.4.2006 made in ITA 174/2005-2006 forthe Assessment Year 1998-99 and this appeal preferred againstthe Joint Commissioner of Income Tax Special Range VII, Chennaidated 21.3.2001 made in PAN/GIR No.AAAF10228E for the AssessmentYear 1998-99. For Appellant : Mr.M.Swaminathan Senior Standing Counsel For respondent : Mr.A.S.Sivaraman for Mr.S.Sridhar This Tax Case Appeal has been filed by the Revenue callingin question the correctness of the order passed by the IncomeTax Appellate Tribunal, 'A' Bench, Chennai, dated 19.3.2009 madein ITA No.1895/Mds/2006, by raising the following substantialquestion of law: "Whether on the facts and in the circumstances ofthe case, the Appellate Tribunal was right in law in https://hcservices.ecourts.gov.in/hcservices/ holding that the non-compete fee received by theassessees was a capital receipt to the tune of1,00,000 US$, 7,50,000 US$ respectively, even thoughit should be treated as revenue receipt as per thedecision of the Madras High Court in the case ofK.Ramaswamy Vs. Commissioner of Income Tax reportedin 261 ITR 356 in an identical issue?" 2. When the matter is taken up for admission, the learnedStanding Counsel brought to our notice the Circular instructionissued by the Central Board of Direct Taxes vide CircularNo.3/2018 dated 11.7.2018 wherein it is stipulated that appealsshall not be filed/pursued by the Department before the HighCourt in cases where the tax effect does not exceed Rs.50 lakhs. 3. In the instant case, the tax effect is said to be lessthan the monetary limit imposed and therefore, the appeal filedby the Revenue is dismissed as not pressed, keeping open thesubstantial question of law for determination in an appropriatecase. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar ssk. 1. The Commissioner of Income Tax (Appeals) XI No.121, Mahatma Gandhi Road, Chennai-34. 2. Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai 3. The Joint Commissioner of Income Tax, Special Range VII, Chennai-34. +1cc to Mr.M.Swaminathan, Advocate sr.8626+1cc to Mr.S.Sridhar, Advocate Sr.9848 TCA No.1022 of 2009 kj[co]srg 1/3/2019 https://hcservices.ecourts.gov.in/hcservices/