Madras High Court
The Commissioner Of Income Tax vs M/S.Elgi Equipments Ltd on 3 February, 2021
Tax Case No.1153 of 2009
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.1153 of 2009
The Commissioner of Income Tax,
Coimbatore. ... Appellant
Vs.
M/s.Elgi Equipments Ltd.,
Elgi Industrial Complex,
Trichy Road, Singanallur,
Coimbatore. ... 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 27.07.2005 passed in I.T.A.No.1917/Mds/2000.
For Appellant : Mr.T.R.Senthil Kumar,
Senior Standing Counsel
For Respondent : Mr.N.V.Balaji
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Tax Case No.1153 of 2009
JUDGMENT
(Delivered by M. DURAISWAMY, J)
This appeal filed by the Department under Section 260A of the Income
Tax Act, 1961 ('the Act' for brevity), is directed against the order dated
27.07.2005 passed by the Income Tax Appellate Tribunal, Madras "D" Bench,
Chennai ('the Tribunal' for brevity) in I.T.A.No.1917/Mds/2000 for the
Assessment Year 1996-97. The Department has raised the following
Substantial Question of Law for consideration:
“Whether on the facts and in the circumstances of the case,
the Appellate Tribunal was right in law in holding that the
expenditure incurred by the assessee during the accounting year,
on the replacement of machineries are revenue expenditure?”
2. We have heard Mr.T.R.Senthil Kumar, learned senior standing counsel
for the appellant/ Revenue and Mr.N.V.Balaji, learned Counsel for the
respondent/assessee.
3. It may not be necessary for this Court to decide the Substantial
Question of Law framed for consideration on account of certain subsequent
developments. The Government of India enacted the Direct Tax Vivad Se
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Tax Case No.1153 of 2009
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.
4. We are informed by the learned counsel for the respondent/assessee
that the assessee has already filed the requisite Forms 1 & 2 on 25.11.2020
under Section 4 of the Act.
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 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 the requisite Forms 1 & 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
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Tax Case No.1153 of 2009
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 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, 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.]
Index : Yes/No 03.02.2021
Internet : Yes
va
To
1. Income Tax Appellate Tribunal, Madras “D” Bench
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Tax Case No.1153 of 2009
M. DURAISWAMY, J.
and
T.V. THAMILSELVI, J.
va
Tax Case Appeal No.1153 of 2009
03.02.2021
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