Madras High Court
The Commissioner Of Income Tax – Ii vs M/S.Life Cell International P. ... on 21 April, 2021
Tax Case Appeal Nos.1017 to 1019 of 2015
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 21.04.2021
CORAM
THE HON'BLE MR.JUSTICE M. DURAISWAMY
AND
THE HON'BLE MR.JUSTICE KRISHNAN RAMASAMY
Tax Case Appeal Nos.1017 to 1019 of 2015
The Commissioner of Income Tax – II
121, Nungambakkam High Road,
Chennai – 600 034. ... Appellant in all 3 TCAs
Vs.
M/s.Life Cell International P. Ltd.,
No.26, Vandalur Kelambakkam Road,
Keelkottaiyur,
Chennai – 600 048. ... Respondent in all 3 TCAs
Appeals filed under Section 260A of the Income Tax Act, 1961 against
the orders of the Income Tax Appellate Tribunal, Madras "D" Bench, dated
08.04.2015 passed in I.T.A.Nos.2849 to 2851/Mds/2014.
For Appellant : Mr.S.Rajesh,
(in all 3 TCAs) Standing Counsel
For Respondent : Mr.R.Sivaraman
(in all 3 TCAs)
COMMON JUDGMENT
(Delivered by M.DURAISWAMY, J.)
The appeals filed by the Department under Section 260A of the
Income Tax Act, 1961 ('the Act' for brevity), are directed against the orders
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Tax Case Appeal Nos.1017 to 1019 of 2015
dated 08.04.2015 passed by the Income Tax Appellate Tribunal, Madras "D"
Bench, ('the Tribunal' for brevity) in I.T.A.Nos.2849 to 2851/Mds/2014 for
the assessment year 2005-06, 2007-08 and 2009-10.
2.The above appeals were admitted on the following Substantial
Questions of Law:
“1)Whether on the facts and circumstances of the
case, the Appellate Tribunal is correct in holding that the
storage fee collected by the assessee in lumpsum cannot be
treated as income of the year of receipt which is contrary to
Section 5(1) of the Income Tax Act?
2)Whether on the facts and in the circumstances of the
case and in law, the Tribunal is correct in holding that the
lumpsum fee collected for 21 years is to be taxed on pro rata
basis when the assessee is following Mercantile System of
accounting?”
3.We have heard Mr.S.Rajesh, learned Standing counsel for the
appellant/Revenue and Mr.R.Sivaraman, learned counsel for the
respondent/assessee.
4. It may not be necessary for this Court to decide the Substantial
Questions of Law framed for consideration on account of certain subsequent
developments. The Government of India enacted the Direct Tax Vivad Se
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Tax Case Appeal Nos.1017 to 1019 of 2015
Vishwas Act, 2020 (Act 3 of 2020) to provide for resolution of disputed tax
and for matters connected therewith or incidental thereto. The Act of the
Parliament received the assent of the President on 17th March 2020 and
published in the Gazette of India on 17th March 2020.
5.The learned counsel for the respondent/assessee submitted that the
respondent/assessee had availed Vivad Se Vishwas Scheme and that the
Department had also issued Form – 3 on 30.12.2020 in all the three Tax Case
Appeals.
6.In the light of the fact that the assessee has already availed the
benefit under the Act, no useful purpose would be served in keeping thes
appeals pending. At the same time, safeguarding the interest of the
assessee in the event the order to be passed by the Department under the
Act is not in favour of the assessee. Accordingly, the Tax Case Appeals stand
disposed of on the ground that the assessee has already been issued with
Form - 3 in all the three Tax Case Appeals and the Department shall process
the application at the earliest in accordance with the said Act and
communicate the decision to the assessee at the earliest. As observed, the
assessee is given liberty to restore these appeals in the event the ultimate
decision to be taken on the declaration filed by the assessee under Section
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Tax Case Appeal Nos.1017 to 1019 of 2015
4 of the said Act is not in favour of the assessee. If such a prayer is made,
the Registry shall entertain the prayer without insisting upon any
application to be filed for condonation of delay in restoration of the
appeals and on such request made by the assessee by filing a Miscellaneous
Petition for Restoration, the Registry shall place such petition before the
Division Bench for orders.
7.With this observation, the Tax Case Appeals stand disposed of with
the aforementioned liberty and consequently, the Substantial Questions of
Law are left open. No costs.
Index : Yes/No [M.D., J.] [K.R., J.]
Internet : Yes 21.04.2021
va
To
1. Income Tax Appellate Tribunal, Madras "D" Bench
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Tax Case Appeal Nos.1017 to 1019 of 2015
M. DURAISWAMY, J.
and
KRISHNAN RAMASAMY, J.
va
Tax Case Appeal Nos.1017 to 1019 of 2015
21.04.2021
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