Shri P.Sukumar vs The Income Tax Officer
2021 Latest Caselaw 22158 Mad

                                                                            Tax Case Appeal No.571 of 2017

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                    DATED : 11.11.2021

                                                        CORAM :

                                   THE HON'BLE MR. JUSTICE R. MAHADEVAN
                                                          AND
                              THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ

                                            Tax Case Appeal No.571 of 2017

                  Shri P.Sukumar                                                    ... Appellant

                                                           Vs.

                  The Income Tax Officer,
                  Ward-1(1)
                  Salem                                                            ...   Respondent


                            Tax Case Appeal filed under Section 260A of the Income Tax Act,
                  1961 against the order of the Income Tax Appellate Tribunal, Chennai "D"
                  Bench, dated 17.03.2017 passed in I.T.A.No.442/Mds/2013.


                                    For Appellant      : Mr.S.Sridhar

                                    For Respondent     : Mrs.V.Pushpa,
                                                         Standing Counsel




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                                                                             Tax Case Appeal No.571 of 2017


                                                   JUDGMENT

(Judgment was delivered by R. MAHADEVAN,J.)

This Tax Case Appeal has been filed by the appellant / Assessee

challenging the order dated 17.03.2017 passed by the Income Tax Appellate

Tribunal, Bench 'D', Chennai ('the Tribunal', for brevity) in

I.T.A.No.442/Mds/2013 for the assessment year 2009-10 raising the

following substantial questions of law :

"1.Whether the Appellate Tribunal is correct in ignoring the return of income filed for the Assessment Year 2009-10 applying the principles of diversion of income by overriding title in reporting the sale of the property/capital asset directly by the bank in appropriating the sale proceeds against the liability created by the company in which the appellant was the substantial stake holder?

2. Whether the Appellate Tribunal is correct in not considering the scope of section 48 of the Act in the context of determining the quantum of sale consideration for the purpose computing Long Term Capital Gains on the facts of the case while further not considering the alternative claim for allowing the appropriated amount as expenses incurred in connection with the transfer by assigning wider meaning to the statutorily incorporated terms in the said section 48 of the Act?

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3. Whether the Appellate Tribunal is correct in not considering the second alternate scenario of the appellant incurring loss in the capital field consequent to the sale of the capital asset directly by the bank which loss in any event should be set off against the computed Long Term Capital Gains independently by the Respondent/ Assessing Officer?”

2.When the matter was taken up for consideration, the learned counsel

appearing for the appellant / assessee submitted that during the pendency of

this tax case appeal, the assessee has filed the requisite Forms 1 and 2 under

Section 4 of the Direct Tax Vivad Se Vishwas Act, 2020, which were

accepted and Form 5 was issued to the assessee on 25.3.2021 by the Income

Tax Department. The learned counsel has also filed memo, dated 21.10.2021

to that effect.

3.The aforesaid submission made by the learned counsel for the

appellant/assessee has also been fairly conceded by the learned standing

counsel appearing for the respondent/ Revenue.

4.This court heard the submissions made by the learned counsel on

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either side, as per which, the assessee has already availed the benefit

conferred under the beneficial legislation viz., the Direct Tax Vivad Se

Vishwas Act, 2020, enacted for resolution of disputed tax and for matters

connected therewith or incidental thereto, which came into force with effect

from 17.03.2020; and the declarations submitted by assessee were also

accepted and Form 5 was also issued to them by the Income Tax Department.

In view of such development, it is unnecessary for this court to decide the

substantial question of law arisen in this tax case appeal.

5.Therefore, recording the submissions so made by the learned counsel

on either side, this appeal stands disposed of, directing the department to

process the application at the earliest in accordance with the Act and

communicate the decision to the assessee at the earliest. No costs.

                                                                     (R.M.D.,J.)     (M.S.Q.,J.)
                                                                             11.11.2021

                  msr
                  Internet : Yes
                  Index : Yes / No

                  To

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                                                                    Tax Case Appeal No.571 of 2017

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

2.The Income Tax Officer, Ward-1(1) Salem

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R. MAHADEVAN, J & MOHAMMED SHAFFIQ, J.

msr

Tax Case Appeal No.571 of 2017

11.11.2021

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