Madras High Court
M/S.Viswams vs The Deputy Commissioner Of Income ... on 24 June, 2021
Tax Case Appeal Nos.904 and 905 of 2019
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 24.06.2021
CORAM
THE HON'BLE MR.JUSTICE M. DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE R. HEMALATHA
Tax Case Appeal Nos.904 and 905 of 2019
M/s.Viswams
176F, Trivandrum Road,
Tirunelveli – 627 003. ... Appellant
in all appeals
Vs.
The Deputy Commissioner of Income Tax,
Central Circle – IV(1),
Chennai. ... Respondent
in all appeals
Tax Case Appeals in T.C.A.Nos.904 and 905 of 2019 filed under
Section 260A of the Income Tax Act, 1961 against the order of the
Income Tax Appellate Tribunal, Chennai "B" Bench, dated 28.08.2015
passed in I.T.A.Nos.1777/Mds/2014 and 1778/Mds/2014 respectively.
For Appellant : Mr.R.Venkata Narayanan
for M/s.Subbaraya Aiyar Padmanabhan
in all appeals
For Respondent : Mr.M.Swaminathan
Senior Standing Counsel
and Ms.V.Pushpa, Standing Counsel
in all appeals
https://www.mhc.tn.gov.in/judis/
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Tax Case Appeal Nos.904 and 905 of 2019
COMMON JUDGMENT
(Delivered by M.DURAISWAMY, J.)
The above appeals filed by the assessee under Section 260A of the
Income Tax Act, 1961 ('the Act' for brevity), are directed against the
order dated 28.08.2015 passed by the Income Tax Appellate Tribunal,
Chennai "B" Bench, ('the Tribunal' for brevity) in
I.T.A.Nos.1777/Mds/2014 and 1778/Mds/2014 for the assessment years
2006-07 and 2007-08 respectively. The above appeals were admitted on
18.11.2019 on the following substantial questions of law :
T.C.A.No.904 of 2019 :
“1.Whether on the facts and circumstances of the
case and in law the assessment made u/s.153A r.w.s.153C of
the Act is valid in the absence of any incriminating material
discovered in the course of search?
2.Whether on the facts and circumstances of the case,
the Tribunal was right in law in rejecting the valuation of
closing stock consistently followed by the appellant at “cost
or realisable value whichever is less” ?
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Tax Case Appeal Nos.904 and 905 of 2019
3.Whether on the facts and circumstances of the case,
the Tribunal was right in law in holding that appellant has
changed the valuation of closing stock consequent to search
without appreciating that the return of income for
Assessment Years 2006-07 to 2008-09 were filed much
earlier to date of search viz 18.12.2009 when the value of
closing stock and income admitted in the returns filed prior
to after the search were the same ?
4.Whether on the facts and circumstances of the case,
the Tribunal erred in not appreciating that the appellant
had valued the unsold stock by discounting the purchase
price of fixed percentage considering the age of stock and
their realisability which was consistently followed every
year?
5.Whether on the facts and circumstances of the case,
the Tribunal erred in not appreciating that there is no
income escaping since the actual sale value gets captured in
the year of sale?”
T.C.A.No.905 of 2019 :
“1.Whether on the facts and circumstances of the
case, the Tribunal was right in law in rejecting the
valuation of closing stock consistently followed by the
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Tax Case Appeal Nos.904 and 905 of 2019
appellant at “cost or realisable value whichever is less” ?
2.Whether on the facts and circumstances of the case,
the Tribunal was right in law in holding that appellant has
changed the valuation of closing stock consequent to search
without appreciating that the return of income for
Assessment Years 2006-07 to 2008-09 were filed much
earlier to date of search viz 18.12.2009 when the value of
closing stock and income admitted in the returns filed prior
to after the search were the same ?
3.Whether on the facts and circumstances of the case,
the Tribunal erred in not appreciating that the appellant
had valued the unsold stock by discounting the purchase
price of fixed percentage considering the age of stock and
their realisability which was consistently followed every
year?
4.Whether on the facts and circumstances of the case,
the Tribunal erred in not appreciating that there is no
income escaping since the actual sale value gets captured in
the year of sale?”
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Tax Case Appeal Nos.904 and 905 of 2019
2. We have heard Mr.R.Venkata Narayanan for M/s.Subbaraya
Aiyar Padmanabhan, learned counsel for the appellant/assessee and
Mr.M.Swaminathan, learned Senior Standing Counsel and Ms.V.Pushpa,
learned Standing Counsel for the respondent/Revenue.
3. 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.
4. We are informed by the learned counsel for the appellant/
assessee that the assessee had already been issued with Form-3 on
23.04.2021 and the learned counsel for the appellant seeks permission of
this Court to withdraw the above appeals.
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Tax Case Appeal Nos.904 and 905 of 2019
5. In view of the submission made by the learned counsel for the
appellant/assessee, the above Tax Case Appeals stand dismissed as
withdrawn. No costs.
[M.D., J.] [R.H., J.]
24.06.2021
(2/2)
Index : Yes/No
Internet : Yes
mkn
To
1. Income Tax Appellate Tribunal, Chennai "B" Bench
2.The Deputy Commissioner of Income Tax,
Central Circle – IV(1),
Chennai.
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Tax Case Appeal Nos.904 and 905 of 2019
M. DURAISWAMY, J.
and
R. HEMALATHA, J.
mkn
T.C.A. Nos.904 and 905 of 2019
24.06.2021
(2/2)
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