PRINCIPAL COMMISSIONER OF vs. M/S.SHRIRAM CREDIT COMPANY

T.C.A.No.824 of 2017 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 23.08.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.824 of 2017 Principal Commissioner of Income Tax 6 No.121, Nungambakkam High Road, Chennai 600 034. ... Appellant

Versus M/s. Shriram Credit Company Ltd., Mookambika Complex, No.4, Lady Desikachary Road, Mylapore, Chennai - 600 004. PAN: AAG CS 4497 N ... Respondent Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order dated 08.06.2017 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.2895/Mds/2016. For Appellant : Mr.J.Narayanaswamy Standing Counsel Page 1/4 https://www.mhc.tn.gov.in/judis T.C.A.No.824 of 2017 For Respondent : Mr.R.Sivaraman JUDGMENT (Judgment of the Court was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant / Revenue, challenging the order dated 08.06.2017 passed by the Income Tax Appellate Tribunal, “C” Bench, Chennai, in I.T.A.No.2895/Mds/2016, relating to the assessment year 2013-14. 2.By order dated 13.02.2018, this court admitted the aforesaid tax case appeal on the following substantial questions of law: “(i) Whether royalty of Rs.97,89,965/- paid for using the copyright logo pursuant to an agreement could have been treated as revenue expenditure? (ii) Whether the learned Tribunal erred in law in interpreting Explanation 3 to Section 32(1) of the Income Tax Act, 1961 and holding that the royalty paid for use of copyright is an intangible depreciable asset and is capital in nature? (iii) Whether the learned Tribunal erred in law in holding that the investment made in sister concerns was not liable for disallowance under Section 14A of the Income Tax Act, 1961 and in doing so, whether the Appellate Tribunal considered and Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.No.824 of 2017 correctly interpreted Rule 8D of the Income Tax Rules? (iv) Whether the learned Tribunal erred in law in deleting the addition made to book profits under Section 115JB of the Income Tax Act, 1961?" 3.When the matter was taken up for consideration, the learned counsel for the appellant / Revenue brought to the notice of this court the Circular No.17/2019 dated 08.08.2019 issued by the Central Board Direct Taxes, wherein, it is stipulated that appeal 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/- (Rupees One Crore). It is also submitted that the tax effect in this appeal is less than the threshold limit. 4.In the light of the aforesaid submissions made by the learned counsel for the appellant / Revenue, the present appeal, wherein, the tax effect is said to be less than the monetary limit imposed, is dismissed as withdrawn, keeping open the substantial questions of law for determination in an appropriate case. No costs. (R.M.D., J.) (M.S.Q., J.) 23.08.2022

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Index : Yes / No Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A.No.824 of 2017 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. av To 1. The Income Tax Appellate Tribunal, “C” Bench, Chennai. 2. Principal Commissioner of Income Tax 6 No.121, Nungambakkam High Road, Chennai 600 034. 3. The Deputy Commissioner of Income-tax, Corporate Circle-6 (1), Chennai. 4. The Commissioner of Income Tax (Appeals)-15, Chennai. T.C.A.No.824 of 2017 23.08.2022 Page 4/4 https://www.mhc.tn.gov.in/judis