Commissioner of Income-tax, Chennai v. Spencer & Co. Ltd
[Citation -2020-LL-0707]
| Citation | 2020-LL-0707 |
|---|---|
| Appellant Name | Commissioner of Income-tax, Chennai |
| Respondent Name | Spencer & Co. Ltd. |
| Court | HIGH COURT OF MADRAS |
| Relevant Act | Income-tax |
| Date of Order | 07/07/2020 |
| Judgment | View Judgment |
| Keyword Tags | monetary limit • licence fee • sale price • tax effect |
| Bot Summary: | 1042 of 2010 For Appellant : Mr.J.Narayanaswamy, Senior Standing Counsel For Respondent : Mr.Venkatanarayanan For M/s.SubbarayaAiyerPadmanabhan JUDGMENT The Court was held by Video Conference as per the Resolution of the Full Court dated 03 July 2020, by Judges at the respective residence offices and the counsel, staff of the Court appearing from their respective residences. This Tax Case Appeal has been filed by the Revenue, calling in question the correctness of the order passed by the Income Tax Appellate Tribunal, Madras B Bench dated 18.12.2009 in ITA No. 1603/Mds/09, by raising the following substantial questions of law: 1. Whether on the facts and circumstances of the case, the Tribunal was right inupholding the CIT(A)'s deletion of disallowance of licence fee paid to RPGEnterprises 2.Whether on the facts and circumstances of the case, the Tribunal was right inupholding the CIT(A)'s deletion of 2.56 Cr. by invoking the provision ofsection 14A r/w Rule 80. 1042 of 2010 the case, the Tribunal was right inupholding the direction of CIT(A) to Assessing officer to adopt Rs. 255.05 asthe sale price of ZCCB as against the revenue's valuation at 45.05 whilecomputing the long term capital gain 3. When the matter is taken up for hearing, learned Standing Counsel brought to our notice the Circular instruction issued by the Central Board of Direct Taxes vide Circular No.17/2019 dated 8th August 2019, wherein, it is stipulated that appeals shall not be filed/pursued by the Department before the High Court in cases where the tax effect does not exceed Rs.1,00,00,000/-. In the instant case, the tax effect is said to be less than the monetary limit imposed and therefore, the Appeal filed by the Revenue is dismissed as withdrawn, keeping open the substantial questions of law for determination in appropriate cases. |