The Appeal Was Admitted On 27.06.2019 On The Followingsubstantial Questions Of Law v. Https://Hcservices.ecourts.gov.in/Hcservices

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 23.02.2021 The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Ms.Justice R.N.MANJULA M/s.Indus Finance Ltd.,4[th] Floor, Kothari Building,114, M.G.Road, Nungambakkam,Chennai - 600 034... Appellant The Deputy Commissioner ofIncome Tax, Corporate Circle - 2(2), Chennai. .. Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 03.05.2018 made in ITA.No.1348/Chny/2017 on thefile of the Income Tax Appellate Tribunal, 'A' Bench, Chennaifor the assessment year 2012-13. against The Commissioner of Income Tax (Appeals)-6, RoomNo.221, 121, MG Road Nungambakkam ,Chennai 600 034, in ITANo.121/CIT(A)-6/2015-16 dated 26/04/2017 for the assessment year2012-2013, against the order of the Deputy Commissioner ofIncome Tax Corporate Circle-2(2), Room No.512, 5[th] floor “ WANAPARTHY BLOCK “ No.121, Mahadma Gandhi Road Nungambakkam, Chennai600 034, dated 31/03/2015 made in PAN No. for theAssessment year 2012-2013. This appeal, filed by the assessee, is directed against theorder dated 03.05.2018 made in ITA.No.1348/Chny/2017 on the fileof the Income Tax Appellate Tribunal, 'A' Bench, Chennai ('theTribunal' for brevity) for the assessment year 2012-13. https://hcservices.ecourts.gov.in/hcservices/ 2. The appeal was admitted on 27.06.2019 on the followingsubstantial questions of law: "i. Whether the annual accounts/financialstatements adopted under the Companies Act, 1956could be altered/adjusted in making additionsunder the books profits regime under Section115JB of the Act other than the permittedadjustments prescribed therein by the AssessingOfficer/respondent in computing book profits fortaxation under the Act? ii. Whether the disclosure for charginghigher depreciation for book purposes under theCompanies Act, 1956 could be considered asadequate on the plain reading of the annualreport of the appellant while overlooking themanagement's perspective of charging higher rateof depreciation based on the performance of theasset? iii. Whether the additional conditions ondisclosure in the circular issued could overridethe prescription for the preparation of thefinancial statements as per Section 205 readwith Schedule XIV of the Companies Act, 1956?iv. Whether the Appellate Tribunal iscorrect in approving the addition of excessdepreciation quantified under Section 115JB ofthe Act despite the acceptance of the right ofthe appellant/assessee under the Companies Act,1956 for charging different rate of depreciationwhile compiling the financial statements for theassessment year under consideration? and v. Whether the interpretation of Section 43B(d) of the Act is correct in the context of theinterest payable on the loan taken on thesecurity of the key-man insurance policies forconsidering the correctness of the deductionclaimed in relation thereto while such charge ofinterest would fall within the ambit of Section37(1) of the Act?" 3. We have heard Mr.A.S.Sriraman, learned counsel for theappellant and Mr.R.Karthik Ranganathan, learned Senior StandingCounsel appearing for the respondent-Revenue. 4. The learned counsel for the appellant-assessee submitsthat theappellant-assesseehasalreadyfiledthedeclaration/undertaking under the Vivad Se Vishwas Scheme on30.01.2021 and is awaiting orders to be passed in Form No.3. https://hcservices.ecourts.gov.in/hcservices/ v. Whether the interpretation of Section 43B(d) of the Act is correct in the context of theinterest payable on the loan taken on thesecurity of the key-man insurance policies forconsidering the correctness of the deductionclaimed in relation thereto while such charge ofinterest would fall within the ambit of Section37(1) of the Act?" 3. We have heard Mr.A.S.Sriraman, learned counsel for theappellant and Mr.R.Karthik Ranganathan, learned Senior StandingCounsel appearing for the respondent-Revenue. 4. The learned counsel for the appellant-assessee submitsthat theappellant-assesseehasalreadyfiledthedeclaration/undertaking under the Vivad Se Vishwas Scheme on30.01.2021 and is awaiting orders to be passed in Form No.3. https://hcservices.ecourts.gov.in/hcservices/ 5. In the light of the subsequent event, the CompetentAuthority shall process the application/declaration inaccordance with the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3of 2020) and pass appropriate orders as expeditiously aspossible. The assessee is given liberty to restore this appealin the event the ultimate decision to be taken on thedeclaration filed by the assessee under Section 4 of the saidAct is not in favour of the assessee. If such a prayer is made,the Registry shall entertain the prayer without insisting uponany application to be filed for condonation of delay inrestoration of the appeal and on such request made by theassessee by filing a miscellaneous petition for restoration, theRegistry shall place such petition before the appropriateDivision Bench for orders. 6. The tax case appeal stands disposed of with theaforementioned liberty and consequently, the substantialquestions of law framed are left open. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar hvk To 1. The Income Tax Appellate Tribunal, 'A' Bench, Chennai. 2. The Deputy Commissioner of Income Tax, Corporate Circle - 2(2), Chennai. 3.The Commissioner of Income Tax(Appeals)-6,Room 221, 121, MG Road NungambakkamChennai 600 034. +1 cc to M/s.S.Sridhar, Advocate Sr.No. 11088 VSNII(CO)RMP(18/03/2021) TCA.No.769 of 2018