Madras High Court
The Union Company Motors Private ... vs The Income Tax Officer on 3 February, 2021
Tax Case No.2310 of 2008
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 03.02.2021
CORAM
THE HON'BLE MR.JUSTICE M. DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V. THAMILSELVI
Tax Case Appeal No.2310 of 2008
The Union Company Motors Private Limited,
SPP Complex,
324, Anna salai, Nandanam,
Chennai - 600 035. ... Appellant
v.
The Income Tax Officer,
Company Ward III(1),
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 08.08.2008 passed in I.T.A.No.730/Mds/2007 for the
assessment year 2003-04.
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Tax Case No.2310 of 2008
For Appellant : Mr. R.Sivaraman
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
08.08.2008 passed by the Income Tax Appellate Tribunal, “C” Bench,
Chennai ('the Tribunal' for brevity) in I.T.A.No.730/Mds/2007 for the
assessment year 2003-04.
2. The appeal was admitted on 17.12.2008 on the following
Substantial Questions of Law:
" (i) Whether on the facts and circumstances of the
case, the Tribunal was right in holding that the loss
sustained by the appellant on account of standing guarantee
to Union Motor Services Ltd., ( in liquidation), should not
be allowed as a deduction in the course of carrying on their
business?
(ii) Whether on the facts and circumstances of the
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Tax Case No.2310 of 2008
case, the Appellate Tribunal is right in law in disallowing
the claim of Rs.50 lakhs paid as compensation for eviction
of its ;tenant was not for commercial expediency?
(iii) Whether on the facts and circumstances of the
case, the Appellate Tribunal is right in law in holding that
the income derived by the appellant by sale of Car Parking
space is a sale of building units and hence would represent
business income?"
3. We have heard Mr. R.Sivaraman, 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.
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Tax Case No.2310 of 2008
5. We are informed by the learned counsel for the appellant/assessee
that the assessee has already filed the requisite Forms 1 and 2 on
29.01.2021 under Section 4 of the Act.
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 this
appeal 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 Appeal stands
disposed of on the ground that the assessee has already filed requisite
Forms 1 and 2 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 this 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 insisting upon any application to be filed for
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Tax Case No.2310 of 2008
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.
7. With these observations, the Tax Case Appeal stands disposed of
with the aforementioned liberty and Consequently, the Substantial
Questions of Law are left open. No costs.
(M.D.,J.) (T.V.T.S.,J.)
03.02.2021
Index : Yes/No
Internet : Yes
Rj
To
1. The Income Tax Appellate Tribunal,
Chennai “C” Bench .
2. The e Income Tax Officer,
Company Ward III(1),
Chennai.
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Tax Case No.2310 of 2008
M. DURAISWAMY, J.
and
T.V. THAMILSELVI, J.
Rj
Tax Case Appeal No.2310 of 2008
03.02.2021
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