Commissioner Of Income Tax, Chennai v. M/S.samalpatti Power Co (P) Ltd., First Floor

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 02.03.2021 Tax Case Appeal No.185 of 2014 Commissioner of Income Tax,Chennai. ...Appellant/AppellantVs. M/s.Samalpatti Power Co (P) Ltd.,First Floor, No.14, III Cross Street,Raja Annamalaipuram,Chennai – 600 028....Respondent/Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras “C” Bench, dated 26.07.2013 passed inI.T.A.No.827/Mds/2013 against the order of the Commissioner ofIncome Tax (Appeals V) Chennai dated 31.01.2013 and made inI.T.A.No.273/2011-2012 against the assessment order dated14.12.2011 of the Assistant Commissioner of Income Tax, CompanyCircle VI(1) Chennai made in PAN for the Assessmentyear 2009-2010. For Appellant : Mr.J.Narayanaswamy Senior Standing CounselFor Respondent : Ms.Sri Niranjani Srinivasan The above appeal filed by the Department under Section 260Aof the Income Tax Act, 1961 ('the Act' for brevity), is directedagainst the order dated 26.07.2013 passed by the Income TaxAppellate Tribunal, Madras “C” Bench, Chennai ('the Tribunal'for brevity) in I.T.A.No.827/Mds/2013 for the Assessment Year2009-10. The above appeal was admitted on 16.04.2014 on thefollowing substantial question of law : “Whether under the facts and circumstances of thecase, whether the Tribunal was right in holding thatthe income of Rs.6,95,29,212/- did not accrue to the https://hcservices.ecourts.gov.in/hcservices/ assessee on invoices raised by it on TNEB towardsstart up fuel costs, though the assessee was followingmercantile system of accounting?” 2. We have heard Mr.J.Narayanaswamy, learned Senior StandingCounsel for the appellant/ Revenue and Ms.Sri NiranjaniSrinivasan, learned Counsel for the respondent/assessee. 3. It may not be necessary for this Court to decide theSubstantial Question 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. We are informed by the learned counsel for therespondent/assessee that the assessee has already filed therequisite Forms 1 & 2 on 29.01.2021 under Section 4 of the Act. 5. In the light of the fact that the assessee has alreadyavailed the benefit under the Act, no useful purpose would beserved in keeping this appeal pending. At the same time,safeguarding the interest of the assessee in the event the orderto be passed by the Department under the Act is not in favour ofthe assessee. Accordingly, the Tax Case Appeal stands disposedof on the ground that the assessee has already filed therequisite Forms 1 & 2 and the Department shall process theapplication at the earliest in accordance with the said Act andcommunicate the decision to the assessee at the earliest. Asobserved, the assessee is given liberty to restore this appealin the event the ultimate decision to be taken on thedeclaration filed by the assessee under Section 4 of the saidAct is not in favour of the assessee. If such a prayer is made,the Registry shall entertain the prayer without insisting uponany application to be filed for condonation of delay inrestoration of the appeal and on such request made by theassessee by filing a Miscellaneous Petition for Restoration, theRegistry shall place such petition before the Division Bench fororders. 6. With this observation, the Tax Case Appeal standsdisposed of with the aforementioned liberty and consequently,the substantial question of law is left open. No costs. s/d- Assistant Registrar True Copy Sub-Assistant Registrar mkn To 1.The Income Tax Appellate Tribunal, Madras “C” Bench 6. With this observation, the Tax Case Appeal standsdisposed of with the aforementioned liberty and consequently,the substantial question of law is left open. No costs. s/d- Assistant Registrar True Copy Sub-Assistant Registrar mkn To 1.The Income Tax Appellate Tribunal, Madras “C” Bench 2.The Commissioner of Income Tax, Chennai. Chennai. GJ(CO) SP(18/03/2021) Tax Case Appeal No.185 of 2014