M/S.Spel Semiconductor Ltd v. The Deputy Commissioner Of

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 05-03-2026

CORAM

THE HON'BLE DR JUSTICE G. JAYACHANDRAN AND THE HON'BLE MR.JUSTICE SHAMIM AHMED TC(Appeal). No. 1410 of 2008 M/s.SPEL Semiconductor Ltd No.5, CMDA Industrial Estate, Maraimalai Nagar, Chennai-603 209.

.. Appellant Vs The Deputy Commissioner Of Income Tax, Company Circle V(1), Chennai-34.

..Respondent(s) For Petitioner(s):

M/s.Subbaraya Iyer For Respondent(s):

M/s.S.Sathiya Narayanan, Senior Standing Counsel

JUDGMENT

(The Judgment of the Court was delivered by Dr.G.Jayachandran, J) The Assessee being aggrieved by the order passed by the Income Tax Appellate Tribunal, Madras "C" Bench, dated 27.07.2007 in I.T.A.No.1594/Mds/2005, has preferred this Tax Case (Appeal) and the same is pending since 2008. In the meanwhile, the Assessee also applied for rectification of the assessment and that was pending in the Income Tax Department for consideration years together. Under such circumstances, this Court, on 03.12.2025 , taking note of the fact that the appellant has made

application and filed declaration in Form-1 under Direct Tax Vivad Se Vishwas Scheme, 2024, gave one month's time to the Department for processing the application and pass order in accordance with law. On 03.12.2025, the order was passed by this Court directing the Department to issue Form-2, in view of the rectification application submitted by the Assessee. Since there was delay in considering the rectification application, this Court imposed costs of Rs.50,000/- payable to the High Court Legal Services Committee for noncompliance of the directions under Order dated 05.02.2026.

2. Today, the learned Standing Counsel for the Income Tax Department submitted that due to certain technical reasons, the Legal Services Authority declined to accept the cheque of Rs.50,000/- towards the costs imposed by this Court, and therefore, the learned Standing Counsel seeks leave of the Court to draw Demand Draft in favour of the Legal Services Authority and submit it. The said request is accepted. The Department shall remit the costs before the said Legal Services Authority within a period of five working days.

3. As far as the merits of the case is concerned, after filing of this Tax Case, several events had happened subsequently and it is now brought to the notice of this Court that the rectification application submitted by the Assessee, was considered and orders were passed on 20.02.2026 and the rectification order was passed and it was also given effect to, by proceedings dated 20.02.2026 of the Income Tax Department.

4. Learned Standing Counsel appearing for the Department submitted that

in view of the order passed in the rectification application and effect was also given to the Assessee, nothing further survives for consideration in this case.

5. Recording the above submission of the learned Standing Counsel for the Department, this Tax Case Appeal is disposed of. (Dr.G.J.,J.) (S.S.A.,J.) 05-03-2026 Index: Yes/No Speaking/Non-speaking order cs To

1. The Registrar, Income Tax Appellate Tribunal, Chennai.

2. Deputy Commissioner of Income Tax, Company Circle V(1), Chennai-600034.

Dr.G.JAYACHANDRAN, J.

AND SHAMIM AHMED, J.

CS 05-03-202 6