Madras High Court
M/S.Inchcape Shipping Services ... vs The Dy. Commissioner Of Income Tax on 25 January, 2021
TCA.No.530 of 2018
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 25.01.2021
CORAM :
The Honourable Mr.Justice T.S.SIVAGNANAM
and
The Honourable Ms.Justice R.N.MANJULA
Tax Case Appeal No.530 of 2018
M/s.Inchcape Shipping Services SSC
Private Limited,
Block No.3, A3 and A4 Basement to 10,
North Phase Olympia National Tower,
Guindy Industrial Estate,
Chennai - 600 032.
(amended suo motu by us vide
order dated 25.01.2021) ...Appellant
Vs
The Dy. Commissioner of Income Tax,
Corporate Circle - 6(1),
Chennai - 600 034. ...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against the
order dated 28.04.2017 made in ITA.No.3404/Mds/2016 on the file of the
Income Tax Appellate Tribunal, 'D' Bench, Chennai for the assessment year
2012-13.
For Appellant: Mr.R.Venkata Narayanan
for Mr.Subbaraya Aiyar Padmanabhan
For Respondent: Mr.J.Narayanaswamy
Senior Standing Counsel
1/6
https://www.mhc.tn.gov.in/judis/
TCA.No.530 of 2018
JUDGMENT
(Delivered by T.S.Sivagnanam,J)
This appeal has been filed by the assessee under Section 260A of
the Income Tax Act, 1961 ('the Act' for brevity) challenging the order dated
28.04.2017 made in ITA.No.3404/Mds/2016 on the file of the Income Tax
Appellate Tribunal, 'D' Bench, Chennai ('the Tribunal' for brevity) for the
assessment year 2012-13.
2. The appeal was admitted on 15.11.2018 on the following
substantial questions of law:
"1. Whether, on the facts and in the
circumstances of the case, the Tribunal has erred
in holding that for the purpose of Section 92C of
the Income Tax Act read with Sub-Rule (1) of Rule
10B of the Income Tax Rules, while making the
selection of comparables, the turnover filter is not
a relevant criterian for selection and accordingly
erred in not excluding such comparables?
2. Whether, on the facts and circumstances
of the case, the Tribunal was right in including
certain comparables and excluding certain
comparables for the purpose of Section 92C of the
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TCA.No.530 of 2018
Income Tax Act read with Sub-Rule (3) of Rule
10B of the Income Tax Rules without appreciating
the fact that the aforesaid comparables materially
affect the profitability of the appellant company?
and
3. Whether, on the facts and circumstances
of the case, the Tribunal was right in disallowing
depreciation adjustment charged in excess of
Schedule IV of the Companies Act and unutilized
capacity adjustment, which were required to be
made in order to make the assessee company
comparable as per Section 92C of the Income Tax
Act read with Rule 10B(3)?"
3. We have heard Mr.R.Venkata Narayanan, learned counsel
appearing on behalf for the appellant/assessee and Mr.J.Narayanaswamy,
learned Senior Standing Counsel appearing for the respondent/Revenue.
4. The learned counsel for the appellant/assessee submits that the
assessee has opted for Vivad Se Vishwas Scheme and appellant/assessee has
already filed the declaration/undertaking on 29.12.2020 and is awaiting
orders to be passed in Form No.3.
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TCA.No.530 of 2018
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.
6. The learned counsel for the appellant has brought to the notice
of this Court that since the assessee's name has been changed to
M/s.Inchcape Shipping Services SSC Private Limited, Form-1 and Form-2
declarations have been filed in the said name and prayed that the cause title
in the present appeal has to be amended.
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TCA.No.530 of 2018
7. Though the assessee has not filed a separate application for
amending the cause title, since we are inclined to dispose of the appeal on
account of the fact that the assessee has opted for Vivad Se Vishwas
Scheme, we direct the cause title to be amended. Office to carry out
necessary amendment before issuing order copies.
8. 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.)
25.01.2021
Index: Yes/No
Internet:Yes/No
Speaking Judgment/Non speaking Judgment
hvk
(Note: Office is directed to amend the cause title
before issuing order copies)
To
1. The Income Tax Appellate Tribunal,
'D' Bench, Chennai.
2. The Dy. Commissioner of Income Tax,
Corporate Circle - 6(1),
Chennai - 600 034.
https://www.mhc.tn.gov.in/judis/
TCA.No.530 of 2018
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
hvk
TCA.No.530 of 2018
25.01.2021
https://www.mhc.tn.gov.in/judis/
