Commissioner Of Income Tax Central I v. M/S.power Soaps P. Ltd.,R.s

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.03.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMYANDTHE HON'BLE MRS.JUSTICE T.V. THAMILSELVI Tax Case Appeal No.161 of 2016 Commissioner of Income Tax Central I,108, Nungambakkam High Road,Chennai – 600 034. ... Appellant/Appellant Vs. M/s.Power Soaps P. Ltd.,R.S.No.94/1, Embalam Main Road,Sembiambalayam Village,Korkadu PO, Pondicherry – 605 110.... Respondent/Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Chennai "A" Bench, dated 16.09.2015 passed inI.T.A.No.306/Mds/2015. Against the order of the commissioner of Income TaxAppeals-VI, Chennai, dated 17/07/2014 and made in ITA No.767/13-14/A-VI against the Assessment order of the Joint Commissionerof Income Tax, Pondicherry Range, Pondicherry dated 25/03/2013and made in PA.No.G.I.No.AABCN2036R for the Assessment Year2010-11. For Appellant : Mr.T.R.Senthil Kumar Senior Standing Counsel and Mrs.K.G.Usharani Standing Counsel For Respondent : Ms.Sri Niranjani Srinivasan for Mr.G.Baskar This appeal filed by the Revenue under Section 260A of theIncome Tax Act, 1961 ('the Act' for brevity), is directedagainst the order dated 16.09.2015 passed by the Income Tax https://hcservices.ecourts.gov.in/hcservices/ Appellate Tribunal, Chennai "A" Bench, ('the Tribunal' forbrevity) in I.T.A.No.306/Mds/2015 for the assessment year 2010-11. The Revenue has raised the following substantial questionsof law in the appeal : “1.Whether on the facts and circumstances of thecase, the Appellate Tribunal was right in holding thatthe amount paid to sister concern under the head tradediscount through book entry does not constitute as anexpenditure for the purpose of Section 40A(2)(a) ofthe Income Tax Act ? 2.Whether the return of income filed by theassessee under Section 139(1) of the Income Tax Actclaiming depreciation can be rated as exercising ofoption before the due date as prescribed in the SecondProviso to Rule 5(1A) of the Income Tax Rules?” The above appeal has been admitted on 23.02.2016 on the abovestated first question of law. 2.We have heard Mr.T.R.Senthil Kumar, learned SeniorStanding Counsel and Mrs.K.G.Usharani, learned Standing Counsel,for the appellant/Revenue and Ms.Sri Niranjani Srinivasan forMr.G.Baskar learned counsel for the respondent/assessee. 3. It may not be necessary for this Court to decide theSubstantial Questions of Law framed for consideration on accountof certain subsequent developments. The Government of Indiaenacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of2020) to provide for resolution of disputed tax and for mattersconnected therewith or incidental thereto. The Act of theParliament received the assent of the President on 17[th] March2020 and published in the Gazette of India on 17[th] March 2020. 4.Learned counsel for the respondent/assessee submittedthat the assessee had availed the Vivad Se Vishwas Scheme andthat the respondent/assessee had already been issued with Form– 3 on 16.12.2020. 5.Since the respondent/assessee had been issued with Form-3,nothing survives for adjudication in the above appeal.Recording the submission made by the learned counsel for therespondent/assessee, the Tax Case Appeal stands disposed of. Nocosts. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar mkn To 1.The Income Tax Appellate Tribunal, Chennai "A" Bench 2.The Commissioner of Income Tax Central I, 108, Nungambakkam High Road, Chennai – 600 034. 3. The Joint Commissioner of Income Tax Pondicherry Range,Pondicherry. 4.The Commissioner of Income Tax Appeal VI, Chennai. +1 cc to M/s.G.Baskara ,Advocate Sr.No. 12970+1 cc to M/s.T.R.Senthil kumar, Advocate Sr.No. 13494 GJ(CO)RMP(16/04/2021) Tax Case Appeal No.161 of 2016