Madras High Court
The Commissioner Of Income Tax vs M/S.Caterpillar India Private ... on 23 February, 2021
TCA.No.215 of 2018
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 23.02.2021
CORAM :
The Honourable Mr.Justice T.S.SIVAGNANAM
and
The Honourable Ms.Justice R.N.MANJULA
Tax Case Appeal No.215 of 2018
The Commissioner of Income Tax,
Chennai. ...Appellant
Vs
M/s.Caterpillar India Private Limited,
(formerly known as Caterpillar Commercial
Private Limited and since merged)
7th Floor, International Tech Park,
Chennai Taramani Road, Taramani,
Chennai - 600 113.
PAN: AABCC4615K ...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against the
order dated 17.02.2017 made in ITA.No.1722/Mds/2012 on the file of the
Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai for the
assessment year 2007-08.
For Appellant: Mr.T.Ravi Kumar
Senior Standing Counsel
For Respondent: Mr.R.Vijayaraghavan
for M/s.Subbaraya Aiyar Padmanabhan
1/4
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TCA.No.215 of 2018
JUDGMENT
(Delivered by T.S.Sivagnanam,J)
This appeal, filed by the Revenue, is directed against the order
dated 17.02.2017 made in ITA.No.1722/Mds/2012 on the file of the Income
Tax Appellate Tribunal, Madras 'C' Bench, Chennai ('the Tribunal' for
brevity) for the assessment year 2007-08.
2. The Revenue has raised the following substantial questions of
law for consideration:
"1. Whether the Tribunal was correct in allowing
the deduction of ESOP expenses especially when the
said scheme benefited only 3 persons and not all
employees and therefore the same is to be treated as
colorable device adopted for evading taxes?
2. While computing book profits under Section
115JB, provision made for wealth-tax is to be added
back to the book profits as per Explanation 1(a) 1(i) to
Section 115JB on the ground that it is unascertained
liability?"
3. We have heard Mr.T.Ravi Kumar, learned Senior Standing
Counsel appearing for the appellant-Revenue and Mr.R.Vijayaraghavan,
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TCA.No.215 of 2018
appearing for M/s.Subbaraya Aiyar Padmanabhan, learned counsel for the
respondent/assessee.
4. The learned counsel for the respondent/assessee submits that
the respondent/assessee has already filed the declaration/undertaking under
the Vivad Se Vishwas Scheme and is awaiting orders to be passed in Form
No.3.
5. In the light of the subsequent event, the Competent Authority
shall process the application/declaration in accordance with the Direct Tax
Vivad Se Vishwas Act, 2020 (Act 3 of 2020) and pass appropriate orders as
expeditiously as possible. 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 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 appropriate Division Bench for orders.
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TCA.No.215 of 2018
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
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6. The tax case appeal stands disposed of with the aforementioned
liberty and consequently, the substantial questions of law framed are left
open. No costs.
(T.S.S.,J.) (R.N.M.,J.)
23.02.2021
Index:Yes/No
Internet:Yes/No
hvk
To
1. The Income Tax Appellate Tribunal,
Madras 'D' Bench, Chennai.
2. The Income Tax Officer,
Corporate Ward - 3(4),
Chennai - 34.
TCA.No.215 of 2018
https://www.mhc.tn.gov.in/judis/
