M/S.oriental Hotels Limited v. The Assistant Commissioner Of Income Tax, Company Circle – V, Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE MR.JUSTICE M. DURAISWAMYANDTHE HON'BLE MRS.JUSTICE R. HEMALATHA M/s.Oriental Hotels Limited,37, M.G. Road, Nungambakkam, Chennai – 600 034. ...AppellantVs. The Assistant Commissioner of Income Tax,Company Circle – V,Chennai. ... Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras "B" Bench, dated 04.09.2009 passed inI.T.A.No.1923/Mds/2008, against the order of the Commissioner ofIncome Tax(Appeals)-V, Chennai in ITA.No.658/06-07 dt 22/02/2008against the Assessment order dt 26/12/2006 by the DeputyCommissioner of Income Tax, Company circle V(1) Chennai for theAssessment year 2004-05. This appeal filed by the assessee under Section 260A of theIncome Tax Act, 1961 ('the Act' for brevity), is directedagainst the order dated 04.09.2009 passed by the Income TaxAppellate Tribunal, Madras "B" Bench, ('the Tribunal' forbrevity) in I.T.A.No.1923/Mds/2008 for the assessment year2004-05. The above appeal has been admitted on 15.03.2010 on thefollowing Substantial Questions of Law: "1.Whether the Appellate Tribunal was right inlaw in holding that the appellant is not entitled to https://hcservices.ecourts.gov.in/hcservices/ deduction under Section 35D as hotel industry cannotbe regarded as an industrial undertaking withoutappreciating that hotel falls within the definitionof "industry"? 2.Whether the Appellate Tribunal was right inlaw in denying deduction under Section 35D when thesame has been allowed in the initial assessment year1995-96? 3.Whether on the facts and in the circumstancesof the case, the Tribunal was right in law in holdingthat interest income earned on deposits, loansadvanced to subsidiary companies and inter corporatedividends which were in the course of and for thepurpose of business should be assessed as income from'other sources' and not under the head profits andgains of the business? 4.Whether on the facts and in the circumstancesof the case, the Tribunal was right in law in holdingthat the amount received from British Airlinestowards settlement of the bills of stay of their crewshould not be included in the foreign exchangereceipts of the appellant for the purpose ofcomputation of deduction under Section 80HHD? 5.Whether on the facts and in the circumstancesof the case, the Tribunal was right in holding thatthe appellant is not entitled to set off of broughtforward Long Term Capital Loss on sale of shareswhich were acquired in the course of amalgamation?” 2. We have heard Mr.R.Venkata Narayanan for M/s.SubbarayaAiyar Padmanabhan, learned counsel for the appellant/assesseeand Mr.T.Ravikumar, learned Senior Standing Counsel for therespondent/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 15.04.2021 and the learned counsel for the appellant seekspermission of this Court to withdraw the appeal. https://hcservices.ecourts.gov.in/hcservices/ 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 //True Copy// Sub Assistant Registrar mkn 4. We are informed by the learned counsel for the appellant/assessee that the assessee had already been issued with Form-3on 15.04.2021 and the learned counsel for the appellant seekspermission of this Court to withdraw the appeal. https://hcservices.ecourts.gov.in/hcservices/ 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 //True Copy// Sub Assistant Registrar mkn To1. Income Tax Appellate Tribunal, Madras "B" Bench 2.The Assistant Commissioner of Income Tax, Company Circle – V, Chennai.3.The Commissioner of Income Tax(Appeals)-V, Chennai.4.The Deputy Commissioner of Income Tax Company Circle V(1) Chennai.+1cc to M/s.Subbaraya Aiyar, Advocate SR.26510+1cc to M/s.T.Ravi kumar, Advocate SR.26249Tax Case Appeal No.174 of 2010SS(CO)CB(13/07/2021)