M/S. Udevar Eswtate Investments,Parry House, V Floor v. The Addl. Commissioner Of Income Tax,Business Range,Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 02.02.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMYANDTHE HON'BLE MRS.JUSTICE T.V. THAMILSELVI Tax Case Appeal No.259 of 2010 M/s. Udevar Eswtate Investments,Parry House, V Floor,#. 43, Moore Street,Chennai - 600 001. ... Appellant v. The Addl. Commissioner of Income Tax,Business Range,Chennai. ... Respondent Tax Case Appeal filed under Section 260A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal, “C” Bench, Chennai dated 08.05.2008 passed inITA.No.1331/Mds/2008 for the Assessment Year 2005-06, againstorder made in ITA No.204/07-08 dated 18.03.2008 on the file ofthe Commissioner of Income Tax(Appeals IX), 121 MahathmaGandhi Raod, Chennai-34 against PAN No. on the fileof Additional Commissioner of Income tax, Business Range, IX,Chennai-06. This appeal filed by the assessee under Section 260A ofthe Income Tax Act, 1961 ('the Act' for brevity), is directedagainst the order dated 08.05.2008 passed by the Income TaxAppellate Tribunal, “C” Bench, Chennai ('the Tribunal' forbrevity) in I..TA.No.1331/Mds/2008 for the Assessment Year2005-06. https://hcservices.ecourts.gov.in/hcservices/ 2. The appeal was admitted on 15.03.2010 on the followingSubstantial Questions of Law: “ (i) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in law in holdingthat redemption of mutual fund units and sale ofshares was in the nature of business and the gainarising out of the redemption should be assessed asbusiness income and not as capital gains? (ii) Whether on the facts and in thecircumstances of the case, the Income Tax AppellateTribunal was right in law in holding that theappellant was not holding the mutual fund units andshares as investment merely on the fact that theappellant had switched over from certain mutualfunds by redeeming the same within few days for amarginal profit? (iii) Whether on the facts and in thecircumstances of the case, the Income Tax AppellateTribunal was right in law in holding that profit onsale of shares should also be treated as businessincome, when the Department had not raised anyground before the Tribunal with regard to treatmentof profit arising out of sale of shares? (iv) Whether the Income Tax Appellate Tribunalhad exceeded the scope of appeal filed by thedepartment, in holding that profit on sale ofshares should also be treated as business incomewhen no such ground was raised by the Departmentbefore the Tribunal?” 3. We have heard Mr. M.P. Senthil Kumar, learned counselfor the appellant and Ms. V. Pushpa, learned StandingCounsel for the respondent. 4. It may not be necessary for this Court to decide theSubstantial Questions of Law framed for consideration onaccount of certain subsequent developments. The Government ofIndia enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3of 2020) to provide for resolution of disputed tax and formatters connected therewith or incidental thereto. The Act ofhttps://hcservices.ecourts.gov.in/hcservices/the Parliament received the assent of the President on 17[th] March 2020 and published in the Gazette of India on 17[th] March2020. 5. We are informed by the learned counsel for theappellant that the assessee has already been issued with Form– 3 on 29.01.2021 and the learned counsel for the appellantseeks permission of this Court to withdraw the appeal. 6. In view of the submission made by the learned counselfor the appellant, the Tax Case Appeal stands dismissed aswithdrawn. No costs. Sd/- Assistant Registrar(CS VII)//True Copy// Sub Assistant RegistrarRjTo1. The Income Tax Appellate Tribunal, Tax, Chennai “C” Bench.2. The Commissioner of Income Tax(Appeals IX), 121 Mahathma Gandhi Raod, Chennai-34 3. The Addl. Commissioner of Income Tax, Business Range, Chennai. +1cc to Mr.Philip George, Advocate, SR.No.5234. March 2020 and published in the Gazette of India on 17[th] March2020. 5. We are informed by the learned counsel for theappellant that the assessee has already been issued with Form– 3 on 29.01.2021 and the learned counsel for the appellantseeks permission of this Court to withdraw the appeal. 6. In view of the submission made by the learned counselfor the appellant, the Tax Case Appeal stands dismissed aswithdrawn. No costs. Sd/- Assistant Registrar(CS VII)//True Copy// Sub Assistant RegistrarRjTo1. The Income Tax Appellate Tribunal, Tax, Chennai “C” Bench.2. The Commissioner of Income Tax(Appeals IX), 121 Mahathma Gandhi Raod, Chennai-34 3. The Addl. Commissioner of Income Tax, Business Range, Chennai. +1cc to Mr.Philip George, Advocate, SR.No.5234. Tax Case Appeal No.259 of 2010RGN(CO)CSR 19.03.2021