PRINCIPAL COMMISSIONER OF vs. SHRI S.GIRIDHARAN

TCA.No.26 of 2017 In the High Court of Judicature at Madras Dated : 21.8.2019 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.26 of 2017 Principal Commissioner of Income Tax-2, Chennai ...Appellant Vs Shri.S.Giridharan ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 01.8.2016 made in ITA.No.2951/Mds/2014 on the file of the Income Tax Appellate Tribunal, Chennai 'D' Bench for the assessment year 2008-09. For Appellant: Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani, SC Judgment was delivered by

T.S.Sivagnanam,J

We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel assisted by Ms.K.G.Usharani, learned Standing Counsel appearing for the appellant – Revenue.

1/4 http://www.judis.nic.in TCA.No.26 of 2017 2. This appeal, filed by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 01.8.2016 made in ITA.No. 2951/Mds/2014 on the file of the Income Tax Appellate Tribunal, Chennai 'D' Bench for the assessment year 2008-09. 3. The Revenue has filed this appeal by raising the following substantial questions of law : “i. Whether, in the facts and circumstances of the case, the Tribunal was correct in treating the receipt as short term capital gain as against the business income treated under Section 28(1)(va) of the Act ? and ii. Whether, in the facts and circumstances of the case, the Appellate Tribunal was correct in not treating the receipt as non compete fee as held by the Assessing Officer in terms of the MoU entered into by the assessee and the transferee company?” 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. By the said Circular, the monetary limit for filing or pursuing an appeal before the High Court has been increased to Rs.1 Crore. It is further submitted that the tax effect in this case is less than the threshold limit. 2/4 http://www.judis.nic.in TCA.No.26 of 2017 5. In the light of the said submissions, the above tax case appeal is dismissed on account of the low tax effect. The substantial questions of law raised are left open. 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.

21.8.2019 Internet: Yes To The Income Tax Appellate Tribunal, Chennai 'D' Bench. RS 3/4 http://www.judis.nic.in TCA.No.26 of 2017 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS TCA.No.26 of 2017 21.8.2019 4/4 http://www.judis.nic.in