Madras High Court
M/S. Udevar Eswtate Investments vs The Addl. Commissioner Of Income ... on 2 February, 2021
T.C.A.No.259 of 2010
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 02.02.2021
CORAM
THE HON'BLE MR.JUSTICE M. DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V. THAMILSELVI
Tax Case Appeal No.259 of 2010
M/s. Udevar Eswtate Investments,
Parry House, V Floor,
#. 43, Moore Street,
Chennai - 600 001. ... Appellant
v.
The Addl. Commissioner of Income Tax,
Business Range,
Chennai. ... Respondent
Tax Case Appeal filed under Section 260A of the Income Tax
Act, 1961 against the order of the Income Tax Appellate Tribunal, “C”
Bench, Chennai dated 08.05.2008 passed in ITA.No.1331/Mds/2008 for
the Assessment Year 2005-06.
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T.C.A.No.259 of 2010
For Appellant : Mr. M.P. Senthil Kumar,
For Respondent : Ms. V. Pushpa
Standing Counsel
JUDGMENT
(Judgment was 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 08.05.2008 passed by the Income Tax Appellate Tribunal, “C”
Bench, Chennai ('the Tribunal' for brevity) in I..TA.No.1331/Mds/2008
for the Assessment Year 2005-06.
2. The appeal was admitted on 15.03.2010 on the following
Substantial Questions of Law:
“ (i) Whether on the facts and in the circumstances
of the case, the Income Tax Appellate Tribunal was right
in law in holding that redemption of mutual fund units and
sale of shares was in the nature of business and the gain
arising out of the redemption should be assessed as
business income and not as capital gains?
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T.C.A.No.259 of 2010
(ii) Whether on the facts and in the circumstances of
the case, the Income Tax Appellate Tribunal was right in
law in holding that the appellant was not holding the
mutual fund units and shares as investment merely on the
fact that the appellant had switched over from certain
mutual funds by redeeming the same within few days for a
marginal profit?
(iii) Whether on the facts and in the circumstances
of the case, the Income Tax Appellate Tribunal was right in
law in holding that profit on sale of shares should also be
treated as business income, when the Department had not
raised any ground before the Tribunal with regard to
treatment of profit arising out of sale of shares?
(iv) Whether the Income Tax Appellate Tribunal had
exceeded the scope of appeal filed by the department, in
holding that profit on sale of shares should also be treated
as business income when no such ground was raised by the
Department before the Tribunal?”
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T.C.A.No.259 of 2010
.3. We have heard Mr. M.P. Senthil Kumar, learned counsel for the
appellant and Ms. V. Pushpa, learned Standing Counsel for the
respondent.
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 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. We are informed by the learned counsel for the
appellant that the assessee has already been issued with Form – 3 on
29.01.2021 and the learned counsel for the appellant seeks permission of
this Court to withdraw the appeal.
6. In view of the submission made by the learned counsel for the
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T.C.A.No.259 of 2010
appellant, the Tax Case Appeal stands dismissed as withdrawn. No costs.
[M.D., J.] [T.V.T.S., J.]
02.02.2021
Index : Yes/No
Internet : Yes
Rj
To
1. The Income Tax Appellate Tribunal, Tax,
Chennai “C” Bench .
2. The Addl. Commissioner of Income Tax,
Business Range,
Chennai.
M. DURAISWAMY, J.
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T.C.A.No.259 of 2010
and
T.V. THAMILSELVI, J.
Rj
Tax Case Appeal No.259 of 2010
02.02.2021
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