The Commissioner Of Income Tax,Chennai v. M/S.international Bakery Products Ltd.,New

In the High Court of Judicature at Madras Dated : 27.08.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.808 to 815 of 2015 The Commissioner of Income Tax,Chennai....Appellant/Respondent Vs M/s.International Bakery Products Ltd.,New No.34, Old No.78, 2A, II Floor,C.S.Tower, Bazullah Road, T.Nagar,Chennai - 600 001. ...Respondent/ Appellant APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 31.10.2012 made in ITA.Nos.1418to 1420/Mds/2011, 1421 to 1424/Mds/2011 and 1601/Mds/2012 on thefile of the Income Tax Appellate Tribunal, Chennai 'B' Bench forthe assessment years 1998-99 to 2000-01, 2002-03 to 2005-06 and2001-02 against the order dated 10/06/2011 made in ITANo.543/2005-06 and 753/05-06, 754/06-07, 755/06-07, 362/07-08,756/06-07, 363/06-07 respectively dated 10.06.11 and ITA TRNo.352/04-05/ITA No.182/04/05 dated 14.03.06 passed by theCommissioner of Income tax (Appeals) III, and XI respectivelyChennai-34 and against the order dated 28/12/2005 11/12/2006,11/12/2006, 29/3/2004 11/12/2006, 27/11/2007, 11/12/2006 and27/11/2007, passed by the Assistant Commissioner of Income Tax,Company circle II(3), Chennai-34 in G.I No/PA No.1x3-078/AAAC13548C. For Appellant: Mr.Karthik Ranganathan, SSC assisted byM.S.Rajesh, SCFor Respondent:Mr.R.Saravana KumarCOMMON JUDGMENT(Judgment was delivered by T.S.Sivagnanam,J) We have heard Mr.Karthik Ranganathan, learned Senior StandingCounsel assisted by Mr.S.Rajesh, learned Standing Counselappearing for the appellant – Revenue and Mr.R.Saravana Kumar,learned counsel appearing for the respondent - assessee. https://hcservices.ecourts.gov.in/hcservices/ 2.These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961, are directed against the common orderdated 31.10.2012 made in ITA.Nos.1418 to 1420/Mds/2011, 1421 to1424/Mds/2011 and 1601/Mds/2012 on the file of the Income TaxAppellate Tribunal, Chennai 'B' Bench for the assessment years1998-99 to 2000-01, 2002-03 to 2005-06 and 2001-02. 3.The appeals were admitted on 21.12.2015 on the followingsubstantial questions of law : “1.Whether, on the facts and in thecircumstances of the case, the Income Tax AppellateTribunal was right in holding that the addition ofRs.25 lakhs made on account of goodwill (restrictivecovenant) is to be allowed as deferred revenueexpenditure? 2.Whether, on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in holding that the amount of Rs.250 lakhsthough termed as "goodwill" was in fact non competefee paid by the assessee even though the assessee isnot a party to the agreement and doing job work forthe Auro Food Ltd. and Britannia Industries Ltd?" 4.The learned Senior Standing Counsel for the appellantsubmits that the above appeals are 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 the respectivecases is less than the threshold limit. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. Sd/-Assistant Registrar(CS-IV) //True copy// cse Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2. The Commissioner of Income Tax (Appeals) III, Chennai. 3. The Commissioner of Income Tax (Appeals) XI, Chennai. 5. In the light of the said submissions, the above tax caseappeals are dismissed on account of the low tax effect. Thesubstantial questions of law framed are left open. In the eventthe tax effect in the respective cases is above the thresholdlimit fixed in the said circular, liberty is granted to theRevenue to make a mention to this Court to restore the appealsto be heard and decided on merits. No costs. Sd/-Assistant Registrar(CS-IV) //True copy// cse Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, Chennai 'B' Bench. 2. The Commissioner of Income Tax (Appeals) III, Chennai. 3. The Commissioner of Income Tax (Appeals) XI, Chennai. 4. The Assistant Commissioner of Income Tax, Company Circle II(3), Chennai-34 Company Circle II(3), Chennai-34 TCA.Nos.808 to 815 of 2015 SAI(CO)GMY(06/11/2019)