Madras High Court
M/S.Tamilnadu Co-Operative vs The Assistant Commissioner Of ... on 18 January, 2021
TCA.Nos.17, 20, 21 & 26 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 18.01.2021
CORAM :
The Honourable Mr.Justice T.S.SIVAGNANAM
and
The Honourable Ms.Justice R.N.MANJULA
T.C.A.Nos.17, 20, 21 and 26 of 2021
and
C.M.P.Nos.255, 256 & 293 of 2021
M/s.Tamilnadu Co-operative
Marketing Federation Limited,
No.91, St.Mary Road,
R.A.Puram,
Chennai - 600 018.
PAN: AABAT4288M ...Appellant in all cases
Vs
The Assistant Commissioner of Income Tax,
Non Corporate Circle - 3,
Income Tax Department,
No.121, Mahatma Gandhi Road,
Chennai - 600 034. ...Respondent in all cases
APPEALS under Section 260A of the Income Tax Act, 1961 against
the common order dated 13.05.2019 made in ITA.Nos.2498, 2499, 2500 &
2501/Chny/2017 on the file of the Income Tax Appellate Tribunal, 'A'
Bench, Chennai for the assessment years 2009-10, 2010-11, 2012-13 and
2014-15.
https://www.mhc.tn.gov.in/judis/
TCA.Nos.17, 20, 21 & 26 of 2021
(in all cases)
For Appellant: Mr.A.S.Sriraman
For Respondent: Mr.T.Ravikumar
Senior Standing Counsel
COMMON JUDGMENT
(Delivered by T.S.Sivagnanam,J)
These appeals have been filed by the assessee under Section 260A of
the Income Tax Act, 1961 ('the Act' for brevity) challenging the common
order dated 13.05.2019 ITA.Nos.2498, 2499, 2500 & 2501/Chny/2017 on
the file of the Income Tax Appellate Tribunal, 'A' Bench, Chennai ('the
Tribunal' for brevity) for the assessment years 2009-10, 2010-11, 2012-13
and 2014-15.
2. T.C.A.No.17 of 2021 has been filed by raising the following
substantial questions of law for consideration:
“1. Whether the provisions of section 80P
of the Act would permit the claim for deduction
relatable to the income earned from the activities
pursued by the Appellant as per the bye-laws/
memorandum on the consideration of the
purposive interpretation of the statutory provision
https://www.mhc.tn.gov.in/judis/
TCA.Nos.17, 20, 21 & 26 of 2021
under consideration and further on the
consideration of rule of consistency?
2. Whether the provisions of section 80P of
the Act permit deduction on the rental income
earned from commercial space in the computation
of taxable total income on the consideration of
purposive legislation and further on the
consideration of real income theory?
3. Whether the provisions of section 80P of
the Act permit deduction on the interest income
earned from various sources including the staff
welfare advances in the computation of taxable
total income on the consideration of purposive
legislation and further on the consideration of
real income theory?
4. Whether the Appellate Tribunal is
justified in shifting the head of income, namely,
the rental and interest income earned from
various sources from income from business to
income from other sources despite the permitted
activities as per bye-laws/memorandum of the
Appellant which impacted the claim for
deductions under section 80P of the Act and the
claim for set-off of brought forward losses in the
computation of taxable total income?
https://www.mhc.tn.gov.in/judis/
TCA.Nos.17, 20, 21 & 26 of 2021
5. Whether the provisions of section 147 of
the Act permit the reopening of the proceedings
for making disallowance of the claim of
deductions made u/s 80P of the Act in the
computation of taxable total income in the
absence of fresh/tangible materials?
6. Whether the Appellate Tribunal is
entitled to ignore the validity of the re-assessment
completed within the scope of section 147 of the
Act while considering the correctness of the claim
for deductions u/s 80P of the Act made by the
Appellant in the computation of taxable total
income?"
3. T.C.A.No.20 of 2021 has been filed by raising the following
substantial questions of law for consideration:
“1. Whether the provisions of section 80P
of the Act would permit the claim for deduction
relatable to the income earned from the activities
pursued by the Appellant as per the bye-laws/
memorandum on the consideration of the
purposive interpretation of the statutory provision
under consideration and further on the
consideration of rule of consistency?
https://www.mhc.tn.gov.in/judis/
TCA.Nos.17, 20, 21 & 26 of 2021
2. Whether the provisions of section 80P of
the Act permit deduction on the rental income
earned from commercial space in the computation
of taxable total income on the consideration of
purposive legislation and further on the
consideration of real income theory?
3. Whether the provisions of section 80P of
the Act permit deduction on the interest income
earned from various sources including the staff
welfare advances in the computation of taxable
total income on the consideration of purposive
legislation and further on the consideration of
real income theory?
4. Whether the Appellate Tribunal is
justified in shifting the head of income, namely,
the rental and interest income earned from
various sources from income from business to
income from other sources despite the permitted
activities as per bye-laws/memorandum of the
Appellant which impacted the claim for
deductions under section 80P of the Act and the
claim for set-off of brought forward losses in the
computation of taxable total income?"
https://www.mhc.tn.gov.in/judis/
TCA.Nos.17, 20, 21 & 26 of 2021
4. T.C.A.No.21 of 2021 has been filed by raising the following
substantial questions of law for consideration:
“1. Whether the provisions of section 80P
of the Act would permit the claim for deduction
relatable to the income earned from the activities
pursued by the Appellant as per the bye-laws/
memorandum on the consideration of the
purposive interpretation of the statutory provision
under consideration and further on the
consideration of rule of consistency?
2. Whether the provisions of section 80P of
the Act permit deduction on the rental income
earned from commercial space in the computation
of taxable total income on the consideration of
purposive legislation and further on the
consideration of real income theory?
3. Whether the provisions of section 80P of
the Act permit deduction on the interest income
earned from various sources including the staff
welfare advances in the computation of taxable
total income on the consideration of purposive
legislation and further on the consideration of
real income theory?
https://www.mhc.tn.gov.in/judis/
TCA.Nos.17, 20, 21 & 26 of 2021
4. Whether the Appellate Tribunal is
justified in shifting the head of income, namely,
the rental and interest income earned from
various sources from income from business to
income from other sources despite the permitted
activities as per bye-laws/memorandum of the
Appellant which impacted the claim for
deductions under section 80P of the Act and the
claim for set-off of brought forward losses in the
computation of taxable total income?
5. Whether the provisions of section 147 of
the Act permit the reopening of the proceedings
for making disallowance of the claim of
deductions made u/s 80P of the Act in the
computation of taxable total income in the
absence of fresh/tangible materials?
6. Whether the Appellate Tribunal is
entitled to ignore the validity of the re-assessment
completed within the scope of section 147 of the
Act while considering the correctness of the claim
for deductions u/s 80P of the Act made by the
Appellant in the computation of taxable total
income?"
https://www.mhc.tn.gov.in/judis/
TCA.Nos.17, 20, 21 & 26 of 2021
5. T.C.A.No.26 of 2021 has been filed by raising the following
substantial questions of law for consideration:
“1. Whether the provisions of section 80P
of the Act would permit the claim for deduction
relatable to the income earned from the activities
pursued by the Appellant as per the bye-laws/
memorandum on the consideration of the
purposive interpretation of the statutory provision
under consideration and further on the
consideration of rule of consistency?
2. Whether the provisions of section 80P of
the Act permit deduction on the rental income
earned from commercial space in the computation
of taxable total income on the consideration of
purposive legislation and further on the
consideration of real income theory?
3. Whether the provisions of section 80P of
the Act permit deduction on the interest income
earned from various sources including the staff
welfare advances in the computation of taxable
total income on the consideration of purposive
legislation and further on the consideration of
real income theory?
https://www.mhc.tn.gov.in/judis/
TCA.Nos.17, 20, 21 & 26 of 2021
4. Whether the Appellate Tribunal is
justified in shifting the head of income, namely,
the rental and interest income earned from
various sources from income from business to
income from other sources despite the permitted
activities as per bye-laws/memorandum of the
Appellant which impacted the claim for
deductions under section 80P of the Act and the
claim for set-off of brought forward losses in the
computation of taxable total income?
5. Whether the provisions of section 147 of
the Act permit the reopening of the proceedings
for making disallowance of the claim of
deductions made u/s 80P of the Act in the
computation of taxable total income in the
absence of fresh/tangible materials?
6. Whether the Appellate Tribunal is
entitled to ignore the validity of the re-assessment
completed within the scope of section 147 of the
Act while considering the correctness of the claim
for deductions u/s 80P of the Act made by the
Appellant in the computation of taxable total
income?"
https://www.mhc.tn.gov.in/judis/
TCA.Nos.17, 20, 21 & 26 of 2021
6. We have heard Mr.A.S.Sriraman, learned counsel appearing for the
appellant/assessee and Mr.T.Ravikumar, learned Senior Standing Counsel
appearing for the respondent/Revenue.
7. The learned counsel for the appellant/assessee submits that the
appellant/assessee has already filed the declaration/undertaking under the
Vivad Se Vishwas Scheme and is awaiting orders to be passed in Form
No.3.
8. 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 these
appeals 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 appeals and on such request made by the assessee by
https://www.mhc.tn.gov.in/judis/
TCA.Nos.17, 20, 21 & 26 of 2021
filing a miscellaneous petition for restoration, the Registry shall place such
petition before the appropriate Division Bench for orders.
9. The tax case appeals stand disposed of with the aforementioned
liberty and the substantial questions of law framed are left open. No costs.
Consequently, connected miscellaneous petitions are closed.
(T.S.S.,J.) (R.N.M.,J.)
18.01.2021
Index: Yes/No
Internet:Yes/No
Speaking Judgment/Non speaking Judgment
hvk
To
1. The Income Tax Appellate Tribunal,
'A' Bench, Chennai.
2. The Assistant Commissioner of Income Tax,
Non Corporate Circle - 3,
Income Tax Department,
No.121, Mahatma Gandhi Road,
Chennai - 600 034.
https://www.mhc.tn.gov.in/judis/
TCA.Nos.17, 20, 21 & 26 of 2021
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
hvk
T.C.A.Nos.17, 20, 21 and 26 of 2021
and
C.M.P.Nos.255, 256 & 293 of 2021
18.01.2021
https://www.mhc.tn.gov.in/judis/
