Principal Commissioner Of Income ... vs M/S. South India Corporation Ltd
2022 Latest Caselaw 10034 Mad

                                                                                  T.C.A.No.848 of 2016

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                   DATED : 14.06.2022

                                                        CORAM :

                           THE HONOURABLE MR. JUSTICE R. MAHADEVAN
                                              AND
                         THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ

                                                   T.C.A.No.848 of 2016


                  Principal Commissioner of Income Tax Central - I
                  No.108, Mahatma Gandhi Road,
                  Chennai 600 034.                                                                 ...
                  Appellant
                                                   Versus

                  M/s. South India Corporation Ltd.,
                  No.603, Rani Seethai Hall,
                  Anna Salai, Chennai.
                  PAN:AAD CS 3193 C
                                                                                     ...
                  Respondent

                            Appeal preferred under Section 260A of the Income Tax Act, 1961,
                  against the common order of the Income Tax Appellate Tribunal, Cochin
                  Bench, dated 17.02.2016 in I.TA.No.230/COCHIN/2015.


                                   For Appellant            :     Mr.J.Narayanasamy
                                                                  Standing Counsel

                                   For Respondent           :     Mr.A.S.Sriram

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                                                                                        T.C.A.No.848 of 2016

                                                                     for Mr.S.Sridhar


                                                     JUDGMENT

(Judgment of the Court was delivered by R.MAHADEVAN, J.)

This tax case appeal has been filed by the appellant / Revenue,

challenging the common order dated 17.02.2016 passed by the Income

Tax Appellate Tribunal, Cochin Bench, Chennai, in

I.T.A.No.230/COCHIN/2015, relating to the assessment year 2009 - 10.

2. By order dated 25.01.2017, this court admitted the aforesaid tax

case appeal on the following substantial questions of law:

“(i) Whether, on the facts and in the circumstances of the case and in law, the Appellate Tribunal was correct in remitting the issue of disallowance under section 14A of the Income Tax Act to the file of the Assessing Officer with the directions to re-compute the same in a specific manner which is not in consonance with the provisions contained in Rule 8D of the Income Tax Rules, 1962?

(ii) Whether, on the facts and in the circumstances of the case and in law, the Income Tax Appellate Tribunal is

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correct in deleting the addition of Rs.7,65,74,554/- made by the Assessing Officer under Section 37 of the Income Tax Act without appreciating the fact that there exists no business expediency in advancing to/ investing in Debentures of M/s.Chettinad International Coal Terminal Pvt. Ltd. and the expenditure was incurred not wholly and exclusively for the purpose of business?"

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

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

this tax case appeal, the assessee has availed the benefit conferred under the

Direct Tax Vivad Se Vishwas Act, 2020 and filed necessary declarations,

which were accepted and Form 5 / order for full and final settlement of tax

arrears, was also issued by the Income tax department, on 07.12.2021. The

learned counsel has also filed Form 5 dated 07.12.2021 to that effect.

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

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

counsel appearing for the appellant/ Revenue.

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5.In view of the subsequent development, this court is of the opinion

that nothing survives for adjudication in this appeal. Recording the

submission so made by the learned counsel on either side, the Tax Case

Appeal stands disposed of. No costs.

                                                                  (R.M.D., J.)     (M.S.Q., J.)
                                                                            14.06.2022


                  Internet : Yes
                  Index : Yes / No
                  av


                  To

1. The Income Tax Appellate Tribunal, Cochin Bench, Chennai,

2. Principal Commissioner of Income Tax Central - I No.108, Mahatma Gandhi Road, Chennai 600 034.

3. The Deputy Commissioner of Income Tax Central Circle 3(2), Chennai.

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R. MAHADEVAN, J.

and MOHAMMED SHAFFIQ, J.

av

T.C.A.No.848 of 2016

14.06.2022 (1/2)

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