The Commissioner Of Income Tax vs M/S.Rajkumar Impex Pvt. Ltd
2021 Latest Caselaw 13583 Mad

                                                                      Tax Case Appeal No.250 of 2016

                              IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED: 08.07.2021

                                                     CORAM

                                   THE HON'BLE MR.JUSTICE M. DURAISWAMY
                                                    AND
                                   THE HON'BLE MRS.JUSTICE R.HEMALATHA

                                           Tax Case Appeal No.250 of 2016


                     The Commissioner of Income Tax,
                     Chennai.                                                  ... Appellant

                                                        Vs.


                     M/s.Rajkumar Impex Pvt. Ltd.,
                     Old No.93, New No.119,
                     4th Floor, St.Mary's Road,
                     Abhiramapuram,
                     Chennai – 600 018.                                        ... Respondent

                               Appeal filed under Section 260A of the Income Tax Act, 1961
                     against the order of the Income Tax Appellate Tribunal, Madras "D"
                     Bench, dated 26.08.2015 passed in I.T.A.Nos.518/Mds/2014.
                               For Appellant    : Mrs.R.Hemalathan,
                                                  Senior Standing Counsel

                               For Respondent   : Mr.R.Sivaraman




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                                                                               Tax Case Appeal No.250 of 2016

                                                        JUDGMENT

(Delivered by M.DURAISWAMY, J.) The above appeal filed by the Department under Section 260A of

the Income Tax Act, 1961 ('the Act' for brevity), is directed against the

order dated 26.08.2015 passed by the Income Tax Appellate Tribunal,

Madras "D" Bench, ('the Tribunal' for brevity) in I.T.A.No.528/Mds/

2014 for the Assessment Year 2009-10.

2.The above appeal was admitted on the following Substantial

Questions of Law:

“1)Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the forward contract in respect of Forex transaction entered by the assessee with the bank would not fall under the definition of speculative transaction?

2)Is not the finding of the Appellate Tribunal bad especially when the assessee has booked substantially higher amount of forward contract than the impex orders but had also cancelled 96% of the forward contracts entered by it,would clearly indicate that it was a speculative activity indulged by the assessee is foreign exchange?”

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3.We have heard Mrs.R.Hemalatha, learned Senior Standing

counsel for the appellant/Revenue and Mr.R.Sivaraman, learned counsel

for the respondent/assessee.

4. It may not be necessary for this Court to decide the Substantial

Questions 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

17th March 2020.

5.The learned counsel for the respondent/assessee submitted that

the respondent/assessee had availed Vivad Se Vishwas Scheme and that

the Department had also issued Form – 3 on 08.12.2020 and the assessee

had filed Form – 4 on 05.05.2021.

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6.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 of 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 been issued with

Form – 3 and that the assessee has also filed Form – 4 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 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 Petitino for restoration, the Registry

shall place such petition before the Division Bench for orders.

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7.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.

                     Index          : Yes/No                      [M.D., J.]   [R.H., J.]
                     Internet       : Yes                              08.07.2021
                     va


                     To

1. Income Tax Appellate Tribunal, Madras "D" Bench

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M. DURAISWAMY, J.

and R.HEMALATHA , J.

va

Tax Case Appeal No.250 of 2016

08.07.2021

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