M/S.tamilnadu Civil Supplies Corporation Ltd., Chennai-10 v. The Income Tax Officer, Non Corporate Circle 10(5), Chennai-34

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 17.12.2020 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.528 of 2019 M/s.Tamilnadu Civil SuppliesCorporation Ltd., Chennai-10 ...Appellant/AppellantVsThe Income Tax Officer, Non Corporate Circle 10(5),Chennai-34 ...Respondent/Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 25.2.2019 passed by the Income TaxAppellate Tribunal, Madras 'B' Bench, Chennai made inI.T.A.No.1116/Chny/2017 for the assessment year 2013-14 againstthe order passed by the Commissioner of Income Tax (Appeals)-12,121, Mahathma Gandhi Road, Chennai 600 034 made inI.T.A.No.126/CIT(A)-12/2015-2016 dated 28.02.2017.against the order passed by the Income Tax officer, NonCorporate Ward-10(5), 121 Uthamar Gandhi Salai, Chennai 34 madein PAN/GIR No. date of order 18.02.2016 for theAssessment year 2013-2014. For Appellant : Mr.A.S.SriramanFor Respondent: Mr.M.Swaminathan, SSC assisted by Ms.V.Pushpa, JSC Judgment was delivered by T.S.SIVAGNANAM,J This appeal has been filed by the assessee under Section260A of the Income Tax Act, 1961 ('the Act' for brevity)challengingtheorderdated25.2.2019madeinI.T.A.No.1116/Chny/2017 on the file of the Income Tax AppellateTribunal, Chennai, 'B' Bench ('the Tribunal' for brevity) forthe assessment year 2013-14. 2. The appeal was admitted on 05.8.2019 on the followingsubstantial questions of law :“i. Whether the provisions of Section43B(f) of the Act is constitutionally validin view of lack of reasons shown forinserting the said provisions in the Statute https://hcservices.ecourts.gov.in/hcservices/ to overcome the law declared by the ApexCourt in the case of M/s.Bharath EarthMovers Ltd. ? ii. Whether the Appellate Tribunal iscorrect in not following the only decisionavailable on the validity of the provisionsin Section 43B(f) of the Act rendered by theCalcutta High Court despite the interimorders passed by the Apex Court in relationthereto? And iii. Whether the claim of deduction ofthe provision for leave encashment made inthe computation of taxable total income bythe appellant is proper and justified?” 3. We have heard Mr.A.S.Sriraman, learned counsel for theappellant/assessee and Mr.M.Swaminathan, learned Senior StandingCounsel assisted by Ms.V.Pushpa, learned Junior Standing Counselappearing for the respondent/Revenue. 4. The learned counsel on behalf of the assessee submitsthat the assessee already filed the declaration/undertakingunder the Vivad Se Vishwas Scheme and orders were passed on09.12.2020 in Form No.3. 5. In the light of the subsequent event, the assessee isgiven liberty to restore this appeal in the event the ultimatedecision taken on the declaration filed by the assessee underSection 4 of the said Act is not in favour of the assessee. Ifsuch a prayer is made, the Registry shall entertain the prayerwithout insisting upon any application to be filed forcondonation of delay in restoration of the appeal and on suchrequest made by the assessee by filing a miscellaneous petitionfor restoration, the Registry shall place such petition beforethe appropriate Division Bench for orders. 6. The tax case appeal stands disposed of with theaforementioned liberty. Consequently, the substantial questionsof law framed are left open. No costs. RS To https://hcservices.ecourts.gov.in/hcservices/ 2.The Income Tax Officer, Non Corporate Circle 10(5), Chennai-34 3.The Commissioner of Income Tax (Appeals)-12121, Mahathma Gandhi RoadChennai 600 034.121, Mahathma Gandhi RoadChennai 600 034. +1 CC to Mr.M.Swaminathan, Advocate sr 42339. TCA.No.528 of 2019 AK(CO)SP(20/01/2021)