M/S.l.g.balakrishnan & Bros. Ltd v. The Jt. Commissioner Of Income Tax,Range Iv,Coimbatore

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 30.04.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMYANDTHE HON'BLE MRS.JUSTICE R. HEMALATHATax Case Appeal No.276 of 2014 M/s.L.G.Balakrishnan & Bros. Ltd.,C/o.Shri Philip George, Advocate,New # 6, Old # 10, Seetha Nagar I Street,Nungambakkam,Chennai – 600 034. ...Appellant Vs. The Jt. Commissioner of Income Tax,Range IV,Coimbatore. ... 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 19.06.2013 passed inI.T.A.No.1802/Mds/2012 for the Assessment Year 2009-10. Appeal against the order of the Commissioner of Income Tax(Appeals) Coimbatore made in PA No.AAACL3740D order dated09/08/2012 for the Assessment Year 2009-2010, appeal against theorder of the Joint Commissioner of Income Tax Range IV,Coimbatore made in P.A.No.AAACL3740D order dated 15/12/11 forthe Assessment Year 2009-10. This appeal filed by the assessee under Section 260A of theIncome Tax Act, 1961 ('the Act' for brevity), is directedagainst the order dated 19.06.2013 passed by the Income Tax https://hcservices.ecourts.gov.in/hcservices/ Appellate Tribunal, Madras "C" Bench, ('the Tribunal' forbrevity) in I.T.A.No.1802/Mds/2012 for the assessment year2009-10. The above appeal has been admitted on 11.08.2014 on thefollowing Substantial Questions of Law: "1.Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in law in holding that receipt of saleconsideration of industrial undertaking in respect ofbusiness contracts, business rights, business know-how and business information, being part and parcelof the capital of the undertaking as revenue receipttaxable as business income under Section 28(va) ofthe Income Tax Act, 1961? 2.Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in law in holding that sale of businesscontracts, business rights, business know-how andbusiness information with restrictive covenantsshould be treated as business income under Section 28(va) of the Income Tax Act, 1961? 3. Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in law in upholding that the additionalconsideration received under the terms of businesstransfer agreement should be treated as revenue innature assessable as business income?” 2. We have heard Mr.M.P.Senthil Kumar, learned counsel forthe appellant/assessee and Mr.T.R.Senthil Kumar, learned SeniorStanding Counsel and Mrs.K.G.Usha Rani, learned Standing Counselfor the respondent/Revenue. 3. 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. 4. We are informed by the learned counsel for the appellant/assessee that the assessee had already been issued with Form-3on 01.04.2021 and the learned counsel for the appellant seekspermission of this Court to withdraw the appeal. 5. In view of the submission made by the learned counsel forthe appellant, the Tax Case Appeal stands dismissed aswithdrawn. No costs. Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrarmkn To 1. The Income Tax Appellate Tribunal, Madras "C" Bench 2.The Joint Commissioner of Income Tax, Range IV, Coimbatore. 3.The Commissioner of Income Tax (Appeals), Coimbatore.4.The Joint Commissioner of Income Tax, Range IV, Coimbatore. +1cc to M/s.T.R.Senthilkumar, Advocate Sr.26519 Tax Case Appeal No.276 of 2014 4. We are informed by the learned counsel for the appellant/assessee that the assessee had already been issued with Form-3on 01.04.2021 and the learned counsel for the appellant seekspermission of this Court to withdraw the appeal. 5. In view of the submission made by the learned counsel forthe appellant, the Tax Case Appeal stands dismissed aswithdrawn. No costs. Sd/- Assistant Registrar(CCC) //True Copy// Sub Assistant Registrarmkn To 1. The Income Tax Appellate Tribunal, Madras "C" Bench 2.The Joint Commissioner of Income Tax, Range IV, Coimbatore. 3.The Commissioner of Income Tax (Appeals), Coimbatore.4.The Joint Commissioner of Income Tax, Range IV, Coimbatore. +1cc to M/s.T.R.Senthilkumar, Advocate Sr.26519 Tax Case Appeal No.276 of 2014 sr II[co]srg 29/06/2021 https://hcservices.ecourts.gov.in/hcservices/