Madras High Court
M/S.Sundaravel Match Industries ... vs The Deputy Commissioner Of Income ... on 27 April, 2021
Tax Case Appeal No.52 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 27.04.2021
CORAM
THE HON'BLE MR.JUSTICE M. DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
Tax Case Appeal No.52 of 2020
M/s.Sundaravel Match Industries Pvt. Ltd.,
No.69, ASK Thangaiah Nadar Road,
Sivakasi – 626 123. ... Appellant
Vs.
The Deputy Commissioner of Income Tax,
Corporate Circle-2,
Madurai. ... Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act,
1961 against the order of the Income Tax Appellate Tribunal, Madras
"A" Bench, dated 31.01.2019 passed in I.T.A.No.2988/Chny/2018.
For Appellant : Mr.M.A.Mudi Mannan
For Respondent : Mr.M.Swaminathan
Senior Standing Counsel
and Ms.S.Premalatha
Standing Counsel
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Tax Case Appeal No.52 of 2020
JUDGMENT
(Delivered by M.DURAISWAMY, J.)
This appeal filed by the assessee under Section 260A of the
Income Tax Act, 1961 ('the Act' for brevity), is directed against the order
dated 31.01.2019 passed by the Income Tax Appellate Tribunal, Madras
"A" Bench, ('the Tribunal' for brevity) in I.T.A.No.2988/Chny/2018 for
the assessment year 2013-14. The above appeal has been admitted on
30.01.2020 on the following Substantial Questions of Law:
"1.Whether on the facts and in the circumstances of
the case, the Tribunal erred in law in not deleting the
disallowance made under Sec.14A of the Act, despite
holding that the Assessing Officer had failed to (i) record
his satisfaction in terms of Section 14(A)(2)(3) and (ii)
establish direct/proximate nexus of expenses with the
earning of exempt divident income?
2.Whether on the facts and in the circumstances of
the case, the Tribunal erred in law whether invoking the
Rule 8D is right without the A.O. Records his
dissatisfaction regarding the correctness of the claim in
relation to expenditure incurred to earn an exempt
income?
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Tax Case Appeal No.52 of 2020
3.Whether under facts and circumstances of the
case, the Tribunal was right in not adjudicating the
correctness of the disallowance after agreeing the
appellant has more than the sufficient share and reserves
and there was no loan funds used for such investments in
shares?
4.Whether the Tribunal is right in not properly
appreciating the facts of the case on hand and the same
issue is already decided by the Hon'ble Apex Court in
Godrej & Boyce Manufacturing Co. Ltd. v. Deputy
Commissioner of Income Tax and another (2017) 394 ITR
449 (SC) and not followed the same?”
2. We have heard Mr.M.A.Mudi Mannan, learned counsel for the
appellant/assessee and Mr.M.Swaminathan, learned Senior Standing
Counsel and Ms.S.Premalatha, learned Standing Counsel for the
respondent/Revenue.
3. 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 Vishwas Act, 2020 (Act 3 of 2020) to provide for
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Tax Case Appeal No.52 of 2020
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.
4. We are informed by the learned counsel for the appellant/
assessee that the assessee had already been issued with Form-3 on
01.01.2021 and the learned counsel for the appellant seeks permission of
this Court to withdraw the appeal.
5. In view of the submission made by the learned counsel for the
appellant, the Tax Case Appeal stands dismissed as withdrawn. No costs.
[M.D., J.] [R.H., J.]
27.04.2021
Note :
Registry is directed to issue the order copy on 29.04.2021.
mkn
Index : Yes/No
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Tax Case Appeal No.52 of 2020
Internet : Yes
To
1. Income Tax Appellate Tribunal, Madras "A" Bench
2.The Deputy Commissioner of Income Tax,
Corporate Circle-2,
Madurai.
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Tax Case Appeal No.52 of 2020
M. DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
Tax Case Appeal No.52 of 2020
27.04.2021
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