Madras High Court
M/S.Fenner (India) Limited vs The Addl. Commissioner Of Income ... on 26 August, 2021
Tax Case Appeal No.440 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 26.08.2021
CORAM :
THE HON'BLE MR. JUSTICE T.S. SIVAGNANAM
AND
THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP
Tax Case Appeal No.440 of 2021
M/s.Fenner (India) Limited,
No.3, Madurai Melakkal Road,
Kochadai,
Madurai – 625 016. ... Appellant
Vs.
The Addl. Commissioner of Income Tax,
Range I,
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 "D"
Bench, dated 25.02.2013 passed in I.T.A.No.1023/Mds/2012.
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Tax Case Appeal No.440 of 2021
For Appellant : Mr.R.Vijayaraghavan
for M/s.Subbaraya Aiyar Padmanabhan
For Respondent : Mr.M.Swaminathan
Senior Standing Counsel
and Ms.V.Pushpa
Standing Counsel
JUDGMENT
(Judgment was delivered by T.S. SIVAGNANAM, 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
25.02.2013 passed by the Income Tax Appellate Tribunal, Madras "D"
Bench, ('the Tribunal' for brevity) in I.T.A.No.1023/Mds/2012 for the
assessment year 2002-03. The appellant/assessee has raised the following
substantial questions of law in this appeal :
“1.Whether on the facts and in the circumstances of the
case, the Tribunal was right in holding that the royalty income
received for providing know-how, secret formula
manufacturing process and methods in respect of goods
manufactured by the subsidiary and exported by the assessee is
not eligible for deduction u/s.80HHC of the Act?
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Tax Case Appeal No.440 of 2021
2.Whether on the facts and in the circumstances of the
case, the Tribunal was right in holding that 90% of the royalty
receipts should be excluded from the profits of the business for
the purpose of computation of deduction u/s.80HHC of the
Act?”
2. We have heard Mr.R.Vijayaraghavan for M/s.Subbaraya Aiyar
Padmanabhan, learned counsel appearing for the appellant/ assessee and
Mr.M.Swaminathan, learned Senior Standing Counsel and Ms.V.Pushpa,
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 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.
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Tax Case Appeal No.440 of 2021
4. We are informed by the learned counsel for the appellant/ assessee
that the assessee has availed the benefit of Vivad Se Vishwas Scheme and
the assessee had already been issued with Form-3 on 13.01.2021.
5. 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 the
appeal pending. At the same time, 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, is to be safeguarded. Accordingly, the Tax Case Appeal stands
disposed of on the ground that the assessee has already been issued with
Form-3 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 the appeal
in the event the ultimate decision to be taken on the declaration filed by the
assessee under Section 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
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Tax Case Appeal No.440 of 2021
insisting upon any application to be filed for condonation of delay in
restoration of the appeal 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.
6. With this observation, this Tax Case Appeal stands disposed of with
the aforementioned liberty, and consequently, the Substantial Questions of
Law are left open. No costs.
(T.S.S., J.) (S.S.K., J.)
26.08.2021
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mkn
Internet : Yes
Index : Yes / No
To
1. Income Tax Appellate Tribunal, Madras "D" Bench
2.The Additional Commissioner of Income Tax,
Range I,
Madurai.
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Tax Case Appeal No.440 of 2021
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Tax Case Appeal No.440 of 2021
T.S. SIVAGNANAM, J.
and
SATHI KUMAR SUKUMARA KURUP, J.
mkn
Tax Case Appeal No.440 of 2021
26.08.2021
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