Madras High Court
M/S. Nagaraj & Company Pvt. Ltd vs The Assistant Commissioner Of ... on 18 February, 2021
Tax Case Appeal No.809 of 2016
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 18.02.2021
CORAM
THE HON'BLE MR.JUSTICE M. DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V. THAMILSELVI
Tax Case Appeal No.809 of 2016 and
C.M.P.No.17862 of 2016
M/s. Nagaraj & Company Pvt. Ltd.,
156, Developed Industrial Estate,
Perungudi,
Chennai - 600 096
PAN AAACBN2265K ... Appellant
v.
The Assistant Commissioner of Income Tax,
Company Circle-IV(4)
Chennai - 600 034. ... 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 02.08.2016 passed in ITA.No.450/Mds/2016 for
the Assessment Year 2007.08.
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Tax Case Appeal No.809 of 2016
For Appellant : Mr. R. Srinivasan
For Respondent : Mr. Karthik Ranganathan,
Standing Counsel
JUDGMENT
(Judgment was Delivered by M.DURAISWAMY, J)
This appeal filed by theassessee under Section 260A of the
Income Tax Act, 1961 ('the Act' for brevity), is directed against the order
dated 02.08.2016 passed by the Income Tax Appellate Tribunal, “C”
Bench, Chennai ('the Tribunal' for brevity) in I..TA.No.450/Mds/2016
for the Assessment Year 2007.08.
2. The appeal was admitted on 21.11.2016 on the following
Substantial Question s of Law:
“(i) Whether on the facts and in the circumstances of
the case, the Appellate Tribunal was right in holding that
the capital profit on the sale of the fixed assets of the
company cannot be taken directly to the reserves and
surplus in the balance sheet and the same has to be routed
through the profit and loss account to arrive at the correct
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Tax Case Appeal No.809 of 2016
book profits under section 115JB of the Act? and
(ii) Whether on the facts and in the circumstances
of the case, the Tribunal was right in reworking the
profits under section 115JB as Rs.3,58,79,307/- on the
ground that the profit on the sale of land credited to the
capital reserves by the appellant are to be treated as
normal profits for arriving at book profits under section
115JB? "
.3. We have heard Mr. R. Srinivasan, learned counsel for the
appellant and Mr. Karthik Ranganathan, learned Standing Counsel for
the respondent.
4. 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 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
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Tax Case Appeal No.809 of 2016
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
29.12.2020 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
appellant, the Tax Case Appeal stands dismissed as withdrawn. No costs.
Consequently, the connected Miscellaneous Petition is closed.
[M.D., J.] [T.V.T.S., J.]
18.02.2021
Index : Yes/No
Internet : Yes
Rj
To
1. The The Income Tax Appellate Tribunal,
Chennai “C” Bench
2. The Assistant Commissioner of Income Tax,
Company Circle-IV(4)
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Tax Case Appeal No.809 of 2016
Chennai - 600 034.
M. DURAISWAMY, J.
and
T.V. THAMILSELVI, J.
Rj
Tax Case Appeal No.809 of 2016 and
C.M.P.No.17862 of 2016
18.02.2021
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