Madras High Court
Commissioner Of Income Tax-Iii vs M/S.Rajkumar Impex Pvt. Ltd on 30 April, 2021
Tax Case Appeal No.516 of 2010
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 30.04.2021
CORAM
THE HON'BLE MR.JUSTICE M. DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
Tax Case Appeal No.516 of 2010
Commissioner of Income Tax-III,
Chennai. ... Appellant
Vs.
M/s.Rajkumar Impex Pvt. Ltd.,
B-603, Keshav Dugar Apartments,
No.1, East Avenue,
Keshav Perumal Puram,
R.A.Puram, Chennai – 600 028. ... Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act,
1961 against the order of the Income Tax Appellate Tribunal, Chennai
"B" Bench, dated 16.10.2009 passed in I.T.A.No.93/Mds/2009.
For Appellant : Mr.T.Ravikumar
Senior Standing Counsel
and Mrs.R.Hemalatha
Standing Counsel
For Respondent : Mr.R.Venkata Narayanan
for M/s.Subbaraya Aiyar Padmanabhan
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Tax Case Appeal No.516 of 2010
JUDGMENT
(Delivered by M.DURAISWAMY, J.)
This appeal filed by the Revenue under Section 260A of the
Income Tax Act, 1961 ('the Act' for brevity), is directed against the order
dated 16.10.2009 passed by the Income Tax Appellate Tribunal, Chennai
"B" Bench, ('the Tribunal' for brevity) in I.T.A.No.93/Mds/2009 for the
assessment year 2004-05. The above appeal has been admitted on
29.06.2010 on the following Substantial Questions of Law:
"1.Whether on the facts and in the circumstances of
the case, the Income Tax Appellate Tribunal was right in
holding that the assessee was entitled to the deduction
u/s.80IA on the disallowance made u/s.40A(3) even though
such disallowance could not be considered as income
'derived' from the eligible industrial undertaking in the light
of the decisions of Supreme Court in Cambay Electric
Supply Industrial Co. Ltd. v. Commissioner of Income Tax
(113 ITR 84). Pandian Chemicals Ltd. v. Commissioner of
Income Tax (262 ITR 278) and Commissioner of Income
Tax v. Sterling Foods (237 ITR 579)?
2.Whether on the facts and in the circumstances of
the case, the Income Tax Appellate Tribunal was right in
holding that the face value of DEPB is chargeable to tax on
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Tax Case Appeal No.516 of 2010
accrual basis and that the profit on sale of DEPB
representing the excess of sale proceeds of DEPB over its
face value is liable to be considered u/s.28(iiid) at the time
of its sale?
3.Whether on the facts and in the circumstances of
the case, the Income Tax Appellate Tribunal was right in
not holding that the scheme of DEPB is not an automatic
benefit to an exporter in the form of cash assistance; but
arises only on making application to the concerned
authority pursuant to exports and is in the nature of 'benefit
of perquisite arising out of business' and therefore is
chargeable to tax u/s.28(iv)?”
2. We have heard Mr.T.Ravikumar, learned Senior Standing
Counsel and Mrs.R.Hemalatha, learned Standing Counsel for the
appellant/Revenue and Mr.R.Venkata Narayanan for M/s.Subbaraya
Aiyar Padmanabhan, learned counsel for the respondent/assessee.
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.516 of 2010
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.Learned counsel for the respondent/assessee submitted that the
assessee had availed the Vivad Se Vishwas Scheme and that the
respondent/assessee had already been issued with Form–5 on
22.04.2021.
5.Since the respondent/assessee had been issued with Form-5,
nothing survives for adjudication in the above appeal. Recording the
submission made by the learned counsel for the respondent/assessee, the
Tax Case Appeal stands disposed of. No costs.
[M.D., J.] [R.H., J.]
30.04.2021
Index : Yes/No
Internet : Yes
mkn
To
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Tax Case Appeal No.516 of 2010
1. Income Tax Appellate Tribunal, Chennai "B" Bench
2.The Commissioner of Income Tax-III,
Chennai.
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Tax Case Appeal No.516 of 2010
M. DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
Tax Case Appeal No.516 of 2010
30.04.2021
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