K.A.Manshoor v. The Assistant Commissioner

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 15.12.2021

CORAM:

THE HON'BLE MR.JUSTICE R.MAHADEVAN AND THE HON'BLE MR.JUSTICE MOHAMMED SHAFFIQ TAX CASE APPEAL NO.842 OF 2016 K.A.Manshoor ... Appellant/Respondent .Vs.

The Assistant Commissioner of Income Tax, Company Circle-I (3), Chennai - 600 034.

... Respondent/Appellant PRAYER:- Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras "B" Bench, Chennai dated 31.05.2016 passed in I.T.A.No.1412/Mds/2013.

Against the order of Commissioner of Income Tax (Appeals)- IX, Chennai, dated 28/03/2013 in I.T.A.No.303/2011-2012 against the assessment order, dated 21/12/2011 and made in G.I.R/PAN No.AADPM7538C for the Assessment Year 2009-2010. For Appellant : Mr.K.Prasad For Respondent : Mr.T.Ravikumar Senior Standing Counsel

J U D G M E N T

(Judgment was delivered by R.MAHADEVAN, J.) This Tax Case Appeal has been filed by the appellant/ Assessee challenging the order dated 31.05.2016 passed by the Income Tax Appellate Tribunal, Bench 'B', Chennai ('the Tribunal', for brevity) in I.T.A.No.1412/Mds/2013 for the Assessment Year 2009-10.

2. The assessee has raised the following substantial questions of law in the above tax case appeal: "1. Whether on the facts and circumstances of the case, the Tribunal was right in set aside the order of the Hon'ble Commissioner of Income Tax (Appeals) in respect of the addition made towards 'Treating Long Term Capital Gains as Business Profits' when Section 2(47) clause iii of the Income Tax Act, 1961 stipulates that transfer'' in relation to a capital asset, includes (i) the sale, exchange or relinquishment of the asset; or (ii) the extinguishment of any rights therein; or (iii) the compulsory acquisition thereof under any law etc.,?

2. Whether on the facts and circumstances of the case, the Tribunal was right in setting aside the addition made towards ''Treating the Long Term Capital Gains as Business Profits'' by treating the same as ''Business Prfits'' when the Appellant/ Assessee had duly disclosed the same as ''Fixed Assets in the Balance Scheet''?"

3. 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 3 was issued to the assessee on 27.01.2021 by the Income Tax Department. The learned counsel has also filed a memo to that effect.

4. The aforesaid submission made by the learned counsel for the appellant/assessee has also been fairly conceded by the learned senior standing counsel appearing for the respondent/ Revenue.

5. This court heard the submissions made by the learned counsel on 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 the assessee were also accepted and Form 3 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 questions of law arisen in this tax case appeal.

6. 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 in accordance with the Act and communicate the decision to the assessee at the earliest. No costs.

Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrar Maya To 1.

The Income Tax Appellate Tribunal, Madras "B" Bench.

2.

The Assistant Commissioner of Income Tax, Company Circle-I (3), Chennai - 600 034.

3.

The Commissioner of Income Tax(Appeals)-IX, Chennai - 600 034.

+1cc to Mr.K.Prasad, Advocate, S.R.No.66856 +1cc to Mr.T.Ravikumar, Senior Standing Counsel for Income Tax, S.R.No.67707 TAX CASE APPEAL NO.842 OF 2016 GJ(CO) PBS/03/01/2022