M/S.gee Gee Holdings P. Ltd., Old v. The Income Tax Officer, Ward – 2 (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 No.446 of 2020 M/s.Gee Gee Holdings P. Ltd.,Old No.31, New No.6,Dr.Radhakrishnan Salai 9[th] Street,Mylapore, Chennai – 600 004.... Appellant/RespondentVs. The Income Tax Officer,Ward – 2 (1),Chennai.... Respondent/Appellant Appeal filed under Section 260A of the Income Tax Act, 1961against the order of the Income Tax Appellate Tribunal, Madras"B" Bench, dated 29.11.2019 passed in I.T.A.Nos.775/Chny/2013for the assessment year 2008-09. Agaisnt the proceedings of the Income Tax Appellate Tribunal,'B' Bench, Chennai in MP.No.153/mds/2017 in ITA.No. 775/mds/2013dated of order 12.01.2018 for the assessment Year 2008-09. Against the proceedings of the Income Tax Appellate Tribunal 'B'Bench, Chennai made in ITA.No. 775/mds/2013 and CO.No.94/mds2013dated 26/05/2016 for the assessment Year 2008-09. Against the proceedings of the Commissioner of Income Tax(Appeals)-1, Coimbatore made in Appeal No. 569/10/11 date oforder 07.01.2013 for the assessment Year 2008-09. Against the Assistant Commissioner of Income Tax Company CircleII (2), Nungambakkam, Chennai -34 made in PAN/GIR No. AABCH1035Ddate of order 16/12/2010 fo the Assessment Year 2008-09. For Appellant : Mr.M.Kaushik for Mr.S.Sridhar For Respondent : Mr.Karthick Ranganathan, Senior Standing Counsel https://hcservices.ecourts.gov.in/hcservices/ J U D G M E N T(Delivered by M.DURAISWAMY, J.) The appeal filed by the assessee under Section 260A of theIncome Tax Act, 1961 ('the Act' for brevity) are directedagainst the order dated 26.05.2016 passed by the Income TaxAppellate Tribunal "B" Bench, Chennai ('the Tribunal' forbrevity) in I.T.A.No.775/Chny/2013 for the assessment year 2008-09. 2.The above appeal was admitted on the followingSubstantial Questions of Law: “1)Whether the Appellate Tribunal was right inentertaining the issue of assessment of Rs.75,00,000/-despite the absence of ground of appeal forming partof the statutory form No.36 filed by the Revenue andaccepted by the departmental representative during thecourse of the hearing of the appeal in 01.10.2019? 2)whether the Appellate Tribunal was within itsjurisdiction in adjudicating an issue on meritsdespite an endorsement given by the departmentalrepresentative for not raising a ground on an issue inthe capacity of the appellant before them? 3)Whether the Appellate Tribunal was correct inaccepting the stand of the respondent/the AssessingOfficer in bringing to tax Rs.75,00,000/- being thepart of the arbitration award amount, which amount wasarising from the arbitration award dated 08.04.2006proving the sterilisation of source of income whilefortifying the stand of the appellant company ontreating such sum as capital receipt? 4)Whether the Appellate Tribunal was right inholding that the income of Rs.75,00,000/- had accruedduring the assessment year under consideration despitethe accepted position of the arbitration award dated08.04.2006 falling within the assessment year 2007-08while overlooking law declared consistently by theSupreme court on the principles of accrual accounting? 5)Whether the Appellate Tribunal is correct inconfirming the assessment of notional interest as partof the taxable total income pertaining to the belatedreceipt of arbitration award amount is defying theprinciples of real income theory?” 3.We have heard Mr.M.Kaushik, learned counsel for theappellant/ assessee and Mr.Karthick Ranganathan, learned SeniorStanding Counsel for the respondent/Revenue. 4.It may not be necessary for this Court to decide the 5)Whether the Appellate Tribunal is correct inconfirming the assessment of notional interest as partof the taxable total income pertaining to the belatedreceipt of arbitration award amount is defying theprinciples of real income theory?” 3.We have heard Mr.M.Kaushik, learned counsel for theappellant/ assessee and Mr.Karthick Ranganathan, learned SeniorStanding Counsel for the respondent/Revenue. 4.It may not be necessary for this Court to decide the Substantial 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. 5.We are informed by the learned counsel for the appellant/assessee that the assessee had already been issued with Form – 3on 02.03.2021 and the learned counsel for the appellant seekspermission of this Court to withdraw the appeal. 6.In view of the submission made by the learned counsel forthe appellant, the Tax Case Appeal stands dismissed aswithdrawn. No costs. Sd/- Assistant Registrar (CS-IX) //True Copy// Sub Assistant Registrar vaTo 1. Income Tax Appellate Tribunal, Madras "B" Bench 2.The Income Tax Officer, Ward – 2 (1), Chennai. 3.The Deputy Commissioner of Income Tax, Corporate Circle 2 (1), Chennai 34. 4.The Assistant Commissioner of Income Tax, Company Circle – II (2), Nungambakkam, Chennai 34. 5.The Section Officer, V.R. Section, High Court, Madras. +1cc to Mr.S.Sridhar, Advocate, S.R.No. 22661 Tax Case Appeal No.446 of 2020 AK I(CO)GN(04/05/2021)