Madras High Court
M/S.Oriental Hotels Ltd vs The Joint Commissioner Of Income ... on 17 February, 2021
Tax Case Appeal No.1922 of 2008
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 17.02.2021
CORAM
THE HON'BLE MR.JUSTICE M. DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V. THAMILSELVI
Tax Case Appeal No.1922 of 2008
M/s.Oriental Hotels Ltd.,
17, M.G. Road,
Chennai – 600 034. ... Appellant
Vs.
The Joint Commissioner of Income Tax,
Special Range – VIII,
Chennai. ... Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961
against the order of the Income Tax Appellate Tribunal, Madras “B” Bench,
dated 30.06.2005 passed in I.T.A.No.1963/Mds/2002.
For Appellant : Mr.Venkata Narayanan
for M/s.Subbaraya Aiyar
For Respondent : Mr.T.Ravikumar
Senior Standing Counsel
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Tax Case Appeal No.1922 of 2008
JUDGMENT
(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 30.06.2005
passed by the Income Tax Appellate Tribunal, Madras "B" Bench, Chennai
('the Tribunal' for brevity) in I.T.A.No.1963/Mds/2002 for the Assessment Year
1998-1999. The above appeal has been admitted on 27.01.2009 on the
following Substantial Questions of Law:
"1.Whether on the facts and in the circumstances of the
case the Tribunal was right in confirming the reopening of the
assessment made on the basis of mere change of opinion?
2.Whether on the facts and in the circumstances of the case,
the tribunal was right in not appreciating that the appellant has
fully and truly disclosed all particulars and materials and as such
the reopening of the assessment could not be made beyond the
period of four years as per proviso to Section 147?
3.Whether on the facts and circumstances of the case, the
Tribunal was right in holding that the receipts in respect of export
of construction material made to Maldives and Colombo should
not form part of profits of business but should form part of the
total turnover for computing relief under Section 80 HHD?
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Tax Case Appeal No.1922 of 2008
4.Whether on the facts and in the circumstances of the case,
the tribunal was right in law in holding that the construction work
carried out by the appellant overseas will not attract the provisions
of Sec. 80HHD of the Act since the receipts are not on account of
services provided to foreign tourists?
5.Whether on the facts and in the circumstances of the case,
the tribunal was right in holding that the appellant is not entitled
to deduction u/s 80 O as the service rendered by it to a foreign
hotel cannot be construed as "professional services" or "technical
services” ?
6.Whether on the facts and in the circumstances of case, the
tribunal was right confirming the restriction of deduction under
Section 80 HHD by excluding interest income and amount
received from British Airways for the stay of their crew members
and profit generated from export of goods?'
2. We have heard Mr.Venkata Narayanan for M/s.Subbaraya Aiyar,
learned counsel for the appellant/ assessee and Mr.T.Ravikumar, learned Senior
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
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Tax Case Appeal No.1922 of 2008
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 17 th March 2020 and
published in the Gazette of India on 17th March 2020.
4. We are informed by the learned counsel for the appellant/assessee that
the assessee has already filed the requisite Forms 1 & 2 on 28.12.2020 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 Appeal No.1922 of 2008
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.]
17.02.2021
(6/7)
Index : Yes/No
Internet : Yes
mkn
To
1.The Income Tax Appellate Tribunal, Madras “B” Bench
2.The Joint Commissioner of Income Tax,
Special Range – VIII,
Chennai.
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Tax Case Appeal No.1922 of 2008
M. DURAISWAMY, J.
and
T.V. THAMILSELVI, J.
mkn
Tax Case Appeal No.1922 of 2008
17.02.2021
(6/7)
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