Tca/571/2017 Of P. Sukumar v. The Income Tax Officer

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 11.11.2021 CORAM : THE HON'BLE MR. JUSTICE R. MAHADEVANAND THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ Tax Case Appeal No.571 of 2017 Shri P.Sukumar ... Appellant The Income Tax Officer,Ward-1(1)Salem... Respondent Tax Case Appeal filed under Section 260A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal, Chennai "D" Bench, dated 17.03.2017 passed inI.T.A.No.442/Mds/2013 for the Assessment Year 2009-10 againstthe order of the Commisioner of Income Tax(Appeals) Salem 7,dated 04.01.2013 passed in ITA.NO.245/2011-12 for theAssessment Year 2009-10 against the order of the Income TaxOfficer Ward I (1),Salem dated 30.12.2011 passed in PAN: for the Assessment Year 2009-10. For Appellant : Mr.S.SridharFor Respondent : Mrs.V.Pushpa, Standing Counsel J U D G M E N T This Tax Case Appeal has been filed by the appellant /Assessee challenging the order dated 17.03.2017 passed by theIncome Tax Appellate Tribunal, Bench 'D', Chennai ('theTribunal', for brevity) in I.T.A.No.442/Mds/2013 for theassessment year 2009-10 raising the following substantialquestions of law : "1.Whether the Appellate Tribunal is correctin ignoring the return of income filed for theAssessment Year 2009-10 applying the principles ofdiversion of income by overriding title inreporting the sale of the property/capital assetdirectly by the bank in appropriating the saleproceeds against the liability created by thecompany in which the appellant was the substantialstake holder?https://hcservices.ecourts.gov.in/hcservices/ 2. Whether the Appellate Tribunal is correctin not considering the scope of section 48 of theAct in the context of determining the quantum ofsale consideration for the purpose computing LongTerm Capital Gains on the facts of the case whilefurther not considering the alternative claim forallowing the appropriated amount as expensesincurred in connection with the transfer byassigning wider meaning to the statutorilyincorporated terms in the said section 48 of theAct? 3. Whether the Appellate Tribunal is correct innot considering the second alternate scenario of theappellant incurring loss in the capital fieldconsequent to the sale of the capital asset directlyby the bank which loss in any event should be setoff against the computed Long Term Capital Gainsindependently by the Respondent/ Assessing Officer?” 2.When the matter was taken up for consideration, thelearned counsel appearing for the appellant / assesseesubmitted that during the pendency of this tax case appeal,the assessee has filed the requisite Forms 1 and 2 underSection 4 of the Direct Tax Vivad Se Vishwas Act, 2020, whichwere accepted and Form 5 was issued to the assessee on25.3.2021 by the Income Tax Department. The learned counselhas also filed memo, dated 21.10.2021 to that effect. 3.The aforesaid submission made by the learned counselfor the appellant/assessee has also been fairly conceded bythe learned standing counsel appearing for the respondent/Revenue. 4.This court heard the submissions made by the learnedcounsel on either side, as per which, the assessee has alreadyavailed the benefit conferred under the beneficial legislationviz., the Direct Tax Vivad Se Vishwas Act, 2020, enacted forresolution of disputed tax and for matters connected therewithor incidental thereto, which came into force with effect from17.03.2020; and the declarations submitted by assessee werealso accepted and Form 5 was also issued to them by the IncomeTax Department. In view of such development, it is unnecessaryfor this court to decide the substantial question of lawarisen in this tax case appeal. 5.Therefore, recording the submissions so made by thehttps://hcservices.ecourts.gov.in/hcservices/learned counsel on either side, this appeal stands disposed 4.This court heard the submissions made by the learnedcounsel on either side, as per which, the assessee has alreadyavailed the benefit conferred under the beneficial legislationviz., the Direct Tax Vivad Se Vishwas Act, 2020, enacted forresolution of disputed tax and for matters connected therewithor incidental thereto, which came into force with effect from17.03.2020; and the declarations submitted by assessee werealso accepted and Form 5 was also issued to them by the IncomeTax Department. In view of such development, it is unnecessaryfor this court to decide the substantial question of lawarisen in this tax case appeal. 5.Therefore, recording the submissions so made by thehttps://hcservices.ecourts.gov.in/hcservices/learned counsel on either side, this appeal stands disposed of, directing the department to process the application at theearliest in accordance with the Act and communicate thedecision to the assessee at the earliest. No costs. Sd/- Assistant Registrar(CS VI) //True Copy// Sub Assistant Registrar msr To 1. Income Tax Appellate Tribunal, Chennai "D" Bench 2.The Income Tax Officer, Ward-1(1) Salem. 3. The Commissioner of Income Tax(Appeals) Salem 7. +1 cc to Mr.M.Swaminathan, Advocate Sr.NO. 58317Tax Case Appeal No.571 of 2017 vbm(CO) A.SK(03.01.2022)