M/S.gee Gee Holdings Chennai Pvt. Ltd., Old v. The Income Tax Officer, Company Ward – Ii (1), Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 09.04.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMYANDTHE HON'BLE MRS.JUSTICE R.HEMALATHA Tax Case Appeal Nos.361 & 362 of 2017 M/s.Gee Gee Holdings Chennai Pvt. Ltd.,Old No.31, New No.6,Dr.Radhakrishnan Salai 9[th] Street,Mylapore, Chennai – 600 004. ... Appellant/Respondent in both TCAsVs. The Income Tax Officer,Company Ward – II (1),Chennai.... Respondent/Appellant in both TCAsAppeals filed under Section 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal,Madras"B"Bench,dated26.05.2016passedinI.T.A.Nos.775/Mds/13andC.O.No.94/Mds/2013inI.T.A.No.775/Mds/13 for the assessment year 2008-09. Against the proceedings of the Commissioner of Income Tax(Appeals)-I, Coimbatore made in Appeal No. 569/10-11, date oforder 07.01.2013. Against the proceedings of Assistance Commissioner of IncomeTax, Company Circle -II (2), Chennai 34 made in PAN/GIRNo. dated 16/12/2010 for the assessment Year 2008-2009. For Respondent : Mr.Karthick Ranganathan, (in both TCAs) Senior Standing Counsel COMMON J U D G M E N T The appeals filed by the assessee under Section 260A of theIncome Tax Act, 1961 ('the Act' for brevity) are directed https://hcservices.ecourts.gov.in/hcservices/ against the order dated 26.05.2016 passed by the Income TaxAppellate Tribunal "B" Bench, Chennai ('the Tribunal' forbrevity) in I.T.A.Nos.775/Mds/13 and C.O.No.94/Mds/2013 inI.T.A.No.775/Mds/13 for the assessment year 2008-09. 2.In T.C.A.No.361 of 2017 the appellant has raised thefollowing Substantial Question of Law in the grounds of appeal:“Whether on the facts and in the circumstances ofthe case, the Tribunal was right in law in holdingthat the compensation awarded by the arbitrator forbreach of contract has to be treated as businessincome without appreciating that the compensationreceived by the appellant for giving up its right todevelop the property resulted in the loss of source ofincome which is in capital field and not taxable?” 3.In T.C.A.No.362 of 2017 the appellant has raised thefollowing Substantial Question of Law in the grounds of appeal: “1)Whether on the facts and in the circumstancesof the case, the Tribunal was right in law in holdingthat loss from trading of shares was speculative lossand not business loss? 2)Whether on the facts and in the circumstancesof the case, the Tribunal was right in holding thatexplanation to Section 73 of the Act will apply thoughthe main source of income for the assessee during theyear is only income from other sources as businessloss is to be ignored?” 4.We have heard Mr.M.Kaushik, learned counsel for theappellant/ assessee and Mr.Karthick Ranganathan, learned SeniorStanding Counsel for the respondent/Revenue. 5.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. 6.We are informed by the learned counsel for the appellant/assessee that the assessee had already been issued with Form – 3on 02.03.2021 in both the Tax Case Appeals and the learnedcounsel for the appellant seeks permission of this Court towithdraw the appeals. 7.In view of the submission made by the learned counsel forthe appellant, both the Tax Case Appeals stand dismissed aswithdrawn. No costs. Sd/-Assistant Registrar (CS-IX)//True Copy// Va To 1. Income Tax Appellate Tribunal, Madras "B" Bench. Sub Assistant Registrar 2.The Income Tax Officer, Company Ward – II (1), Chennai. 3.The Income Tax (Appeals)-I, Coimbatore. 6.We are informed by the learned counsel for the appellant/assessee that the assessee had already been issued with Form – 3on 02.03.2021 in both the Tax Case Appeals and the learnedcounsel for the appellant seeks permission of this Court towithdraw the appeals. 7.In view of the submission made by the learned counsel forthe appellant, both the Tax Case Appeals stand dismissed aswithdrawn. No costs. Sd/-Assistant Registrar (CS-IX)//True Copy// Va To 1. Income Tax Appellate Tribunal, Madras "B" Bench. Sub Assistant Registrar 2.The Income Tax Officer, Company Ward – II (1), Chennai. 3.The Income Tax (Appeals)-I, Coimbatore. 4.The Assistance Commissioner of Income Tax, Company Circle – 11(2), Chennai-34. 5. The Section Officer, V.R. Section, High Court, Madras. +1cc to Mr.S.Sridhar, Advocate, S.R.No. 22662 Tax Case Appeal Nos.361 & 362 of 2017 AK I(CO)GN(04/05/2021)