The Commissioner of Income-tax, Coimbatore v. K.Muruganandan - 2020-LL-0615-33

Citation	2020-LL-0615-33
Appellant Name	The Commissioner of Income-tax, Coimbatore
Respondent Name	K.Muruganandan
Court	HIGH COURT OF MADRAS
Relevant Act	Income-tax
Date of Order	15/06/2020
Assessment Year	2003-04
Judgment	View Judgment
Keyword Tags	monetary limit • low tax effect
Bot Summary:	1773/Mds/2011 on the file of the Income Tax Appellate Tribunal, Chennai 'B' Bench for the assessment year 2003-04. For Appellant: Mr.T.R.Senthilkumar, SSC Ms.K.G.Usharani, SC For Respondent: Mr.A.S.Sriraman Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel and Ms.K.G.Usharani, learned Standing Counsel appearing for the appellant Revenue and Mr.A.S.Sriraman, learned counsel appearing for the respondent. The appeal has been admitted on 28.10.2013 on the following substantial questions of law : i. Whether, in law and in the facts and circumstances of the case, the Tribunal was right in holding that the amount received by the assessee under the non compete agreement was not chargeable to tax since the same had accrued to the assessee at the time of signing the non compete agreement and 2. Whether, in law and in the facts and circumstances of the case, the Tribunal was right in not considering applicability of Section 28(Va) to the case of the assessee for the assessment year in appeal 4. The learned Senior Standing Counsel for the appellant submits that the above appeal is not pursued by the Revenue on account of the low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by the Central Board of Direct Taxes. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. In the event the tax effect is above the threshold limit fixed in the said circular, liberty is granted to the Revenue to make a mention to this Court to restore the appeal to be heard and decided on merits.

TCA.No.627 of 2013 In High Court of Judicature at Madras Dated : 15.6.2020 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.627 of 2013 Commissioner of Income Tax, Coimbatore ...Appellant Vs Shri K.Muruganandan ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 18.2.2013 made in ITA.No.1773/Mds/2011 on file of Income Tax Appellate Tribunal, Chennai 'B' Bench for assessment year 2003-04. For Appellant: Mr.T.R.Senthilkumar, SSC & Ms.K.G.Usharani, SC For Respondent: Mr.A.S.Sriraman Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel and Ms.K.G.Usharani, learned Standing Counsel appearing for appellant Revenue and Mr.A.S.Sriraman, learned counsel appearing for respondent. 1/4 http://www.judis.nic.in TCA.No.627 of 2013 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 (for short, Act) is directed against order dated 18.2.2013 made in ITA.No.1773/Mds/2011 on file of Income Tax Appellate Tribunal, Chennai 'B' Bench (for brevity, Tribunal) for assessment year 2003-04. 3. appeal has been admitted on 28.10.2013 on following substantial questions of law : i. Whether, in law and in facts and circumstances of case, Tribunal was right in holding that amount received by assessee under non compete agreement was not chargeable to tax since same had accrued to assessee at time of signing non compete agreement ? and 2. Whether, in law and in facts and circumstances of case, Tribunal was right in not considering applicability of Section 28(Va) to case of assessee for assessment year in appeal ? 4. learned Senior Standing Counsel for appellant submits that above appeal is not pursued by Revenue on account of low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by Central Board of Direct Taxes. By said Circular, monetary limit for filing or 2/4 http://www.judis.nic.in TCA.No.627 of 2013 pursuing appeal before High Court has been increased to Rs.1 Crore. It is further submitted that tax effect in this case is less than threshold limit. 5. In light of said submissions, above tax case appeal is dismissed on account of low tax effect. substantial questions of law framed are left open. In event tax effect is above threshold limit fixed in said circular, liberty is granted to Revenue to make mention to this Court to restore appeal to be heard and decided on merits. No costs. 15.6.2020 To Income Tax Appellate Tribunal, Chennai 'B' Bench. RS 3/4 http://www.judis.nic.in TCA.No.627 of 2013 T.S.SIVAGNANAM,J AND PUSHPA SATHYANARAYANA,J RS TCA.No.627 of 2013 15.6.2020 4/4 http://www.judis.nic.in Commissioner of Income-tax, Coimbatore v. K.Muruganandan

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