The Commissioner Of Income Tax,Chennai v. M/S.rajkumar Impex Pvt. Ltd.,Old

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 08.07.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMYANDTHE HON'BLE MRS.JUSTICE R.HEMALATHA Tax Case Appeal No.250 of 2016 The Commissioner of Income Tax,Chennai.... Appellant/Appellant Vs. M/s.Rajkumar Impex Pvt. Ltd.,Old No.93, New No.119,4[th] Floor, St.Mary's Road,Abhiramapuram,Chennai – 600 018.... Respondent/Respondent Appeal filed under Section 260A of the Income Tax Act, 1961against the order of the Income Tax Appellate Tribunal, Madras"D" Bench, dated 26.08.2015 passed in I.T.A.Nos.518/Mds/2014,and against O/o The Commissioner of Income-Tax(Appeals-V),Nungambakkam, Chennai-34, and made in ITA.No.107/13-14(A)-V,order dated 22/11/2013 and against the O/o AssistantCommissioner of Income tax Company Circle-V(3), Chennai and madeon PAN/GIR.No. order dt.28/03/2013 for the Assessmentyear 2009-10. For Appellant : Mrs.R.Hemalathan,for Ravikumar. Senior Standing Counsel For Respondent : Mr.R.Sivaraman J U D G M E N T (Delivered by M.DURAISWAMY, J.) The above appeal filed by the Department under Section 260Aof the Income Tax Act, 1961 ('the Act' for brevity), is directedagainst the order dated 26.08.2015 passed by the Income TaxAppellate Tribunal, Madras "D" Bench, ('the Tribunal' forbrevity) in I.T.A.No.528/Mds/ 2014 for the Assessment Year2009-10. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeal was admitted on the followingSubstantial Questions of Law: “1)Whether on the facts and in the circumstancesof the case, the Tribunal was right in holding thatthe forward contract in respect of Forex transactionentered by the assessee with the bank would not fallunder the definition of speculative transaction? 2)Is not the finding of the Appellate Tribunalbad especially when the assessee has bookedsubstantially higher amount of forward contract thanthe impex orders but had also cancelled 96% of theforward contracts entered by it,would clearly indicatethat it was a speculative activity indulged by theassessee is foreign exchange?” 3.We have heard Mrs.R.Hemalatha, learned Senior Standingcounsel for the appellant/Revenue and Mr.R.Sivaraman, learnedcounsel for the respondent/assessee. 4. 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. 5.The learned counsel for the respondent/assessee submittedthat the respondent/assessee had availed Vivad Se Vishwas Schemeand that the Department had also issued Form – 3 on 08.12.2020and the assessee had filed Form – 4 on 05.05.2021. 6.In the light of the fact that the assessee has alreadyavailed the benefit under the Act, no useful purpose would beserved in keeping this appeal pending. At the same time,safeguarding the interest of the assessee, in the event, theorder of the Department under the Act is not in favour of theassessee. Accordingly, the Tax Case Appeal stands disposed of onthe ground that the assessee has already been issued with Form –3 and that the assessee has also filed Form – 4 and theDepartment shall process the application at the earliest inaccordance with the said Act and communicate the decision to theassessee at the earliest. As observed, the assessee is givenliberty to restore this appeal in the event the ultimatedecision to be taken on the declaration filed by the assessee under Section 4 of the said Act is not in favour of theassessee. If such a prayer is made, the Registry shall entertainthe prayer without insisting upon any application to be filedfor condonation of delay in restoration of the appeal and onsuch request made by the assessee by filing a MiscellaneousPetitino for restoration, the Registry shall place such petitionbefore the Division Bench for orders. 7.With this observation, the Tax Case Appeal stands disposedof with the aforementioned liberty and consequently, theSubstantial Questions of Law are left open. No costs. Sd/- Assistant Registrar(CS-IX) //True Copy// Sub Assistant Registrar va To 1.Income Tax Appellate Tribunal, Madras "D" Bench. Madras "D" Bench. 2.The Commissioner of Income Tax (Appeals-V), Nungambakkam, Chennai-34. (Appeals-V), Nungambakkam, Chennai-34. 3.The Assistant Commissioner of Income Tax Company Circle-V(3), Chennai. Income Tax Company Circle-V(3), Chennai. +1cc to Mr.T.Ravikumar, Sr.Standing Counsel, S.R.No.32212 Tax Case Appeal No.250 of 2016 RR(CO)CB(06/08/2021)