M/S.leo Fasteners,Rep., By Its v. Asst. Commissioner Of Income Tax,Circle I, Pondicherry

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mr.Justice SATHI KUMAR SUKUMARA KURUP M/s.Leo Fasteners,Rep., by its Partner,A-27A, Industrial Estate,Thattanchavady,Pondicherry-9.PAN – .. Appellant in both Appeals -vs- Asst. Commissioner of Income Tax,Circle I, Pondicherry... Respondent in both AppealsAppeals under Section 260A of the Income Tax Act, 1961againsttheorderdated29.05.2015madeinI.T.A.No.1223/Mds/2014 and I.T.A.No.3097/Mds/2014 on the file ofthe Income Tax Appellate Tribunal 'A' Bench, Chennai for theassessment years 2005-06 and 2006-07 respectively. Prayer in TCA 1014/15:1. Appeal against the order of the Commissioner of IncomeTax (Appeals), Pondicherry made in ITA No.749/13-14 dated27.11.2014 PAN No. , Assessment year 2006-07. 2. Appeal against the order of the Assistant Commissionerof Income Tax Circle-I, Pondicherry made in PAN No. /L-303, order dated 28.03.2013, Assessment year 2006-07. Prayer in TCA 1013/15: 1. Appeal against the order of the Commissioner of IncomeTax (Appeals)-VI, 121, Mahatma Gandhi Road, Chennai-34 made inITA.No.675/13-14/A-VI dated 25.03.2014, PAN No. ,Assessment year 2005-06. 2. Appeal against the order of the Assistant Commissionerof Income Tax Circle-I, Pondicherry made in PAN No. /L-303, order dated 31.12.2012, Assessment year 2005-06. https://hcservices.ecourts.gov.in/hcservices/ For Appellant:Ms.Vardini Karthik(In both Appeals)For Respondent:J.Narayanasamy,(In both Appeals)Senior Standing Counsel COMMON JUDGMENT(Delivered by T.S.Sivagnanam, J.) These appeals, by the appellant/assessee, filed underSection 260A of the Income Tax Act, 1961 are directed againstthe order dated 29.05.2015 made in I.T.A.No.1223/Mds/2014 andI.T.A.No.3097/Mds/2014 on the file of the Income Tax AppellateTribunal 'A' Bench, Chennai for the assessment years 2005-06 and2006-07 respectively.2.C.M.A.No.1013 of 2015 has been admitted on 17.11.2015, onthe following substantial questions of law:- “1.Whether on the facts and circumstances ofthe case, the Tribunal was right in holding thatthe re-assessment is valid in law on a perversefinding of fact that the details came into lightas a result of search, when there was no suchsearch in the case of the appellant? 2.Whether on the facts and circumstances ofthe case, the Tribunal was right in holding thatthe re-opening was valid in law when the re-assessment order itself was framed only on thefigures declared by the appellant in itscomputation of income filed along with the returnof income, when the same is a mere change ofopinion? 3.Whether on the facts and circumstances ofthe case, the Tribunal was right in excluding theinterest income from the deduction claimed underSection 80IB, when the income earned by theappellant was from the margin money depositswhich were inextricably linked to the business ofthe appellant? and 4.Whether the Tribunal was right in upholdingthe exclusion of the gross interest income fromthe computation of deduction under Section 80IBby way of re-assessment, when the assessingofficer had accepted the inclusion of netinterest in the regular assessment?” 3.C.M.A.No.1014 of 2015 has been filed raising the followingsubstantial questions of law:- “1.Whether on the facts and circumstances ofthe case, the Tribunal was right in holding thatthe re-assessment beyond four years is valid inlaw on a perverse finding of fact that thedetails came into light as a result of search,when there was no such search in the case of theappellant? 2.Whether on the facts and circumstances ofthe case, the Tribunal was right in holding thatthe re-opening beyond four years was valid in lawwhen the re-assessment order itself was framedonly on the figures declared by the appellant inits computation of income filed along with thereturn of income, when there is no allegation ofsuppression of facts? 3.C.M.A.No.1014 of 2015 has been filed raising the followingsubstantial questions of law:- “1.Whether on the facts and circumstances ofthe case, the Tribunal was right in holding thatthe re-assessment beyond four years is valid inlaw on a perverse finding of fact that thedetails came into light as a result of search,when there was no such search in the case of theappellant? 2.Whether on the facts and circumstances ofthe case, the Tribunal was right in holding thatthe re-opening beyond four years was valid in lawwhen the re-assessment order itself was framedonly on the figures declared by the appellant inits computation of income filed along with thereturn of income, when there is no allegation ofsuppression of facts? 3.Whether on the facts and circumstances ofthe case, the Tribunal was right in excluding theinterest income from the deduction claimed underSection 80IB, when the income earned by theappellant was from the margin money depositswhich were inextricably linked to the business ofthe appellant? and 4.Whether the Tribunal was right in upholdingthe exclusion of the gross interest income fromthe computation of deduction under Section 80IBby way of re-assessment, when the assessingofficer had accepted the inclusion of netinterest in the regular assessment?” 4.Heard Ms.Vardini Karthik, learned counsel for theappellant/assessee and Mr.J.Narayanasamy, learned SeniorStanding Counsel for the respondent/Revenue. 5.The learned counsel for the appellant/assessee hascirculated a letter dated 03.08.2021, stating that the appealshave become infructuous, as the Tribunal in the rectificationpetitions filed by the assessee, has allowed the appeals infavour of the assessee for the assessment years underconsideration. 6.The submission made by the learned counsel for theassessee is placed on record and the tax case appeals aredismissed as infructuous. No costs. Consequently, connectedmiscellaneous petition is closed. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar abr To 1.The Income Tax Appellate Tribunal 'A' Bench, Chennai. Chennai. 2.Assistant Commissioner of Income Tax, Circle-I, Pondicherry. Circle-I, Pondicherry. 3.Commissioner of Income Tax (Appeals) Pondicherry. Pondicherry. 4.Commissioner of Income Tax (Appeals)VI, 121, Mahatma Gandhi Road, Chennai-34. T.C.A.Nos.1013 & 1014 of 2015 SRII (CO)PR (02/09/2021)