RANG BANDHEJ PVT LTD vs. COMMISSIONER OF INCOME TAX, AHMEDABAD - I

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TAXAP/1167/2010HC GujaratGJHC24046161201016 November 2021Bench: HONOURABLE THE CHIEF JUSTICE MS. JUSTICE SONIA GOKANI,HONOURABLE MS. JUSTICE NISHA M. THAKORE3 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court disposed of the Tax Appeal as withdrawn, without entering into the merits of the case or expressing any opinion on the questions of law. This decision was made to allow the appellant the opportunity to avail the benefits under the Vivad Se Vishwas Scheme. The Court noted that it would be open for the applicant to take legal recourse if they were unable to avail the benefit under the scheme. The Civil Application for withdrawal was also disposed of as it did not survive. The operative direction was to dispose of the Tax Appeal as withdrawn.

What were the facts?

The assessee, Rang Bandhej Pvt Ltd, filed a Tax Appeal before the High Court of Gujarat challenging an order passed by the Income Tax Appellate Tribunal for Assessment Year 2003-2004. The appeal was admitted, and two questions of law were framed. Subsequently, the assessee availed the Vivad Se Vishwas Scheme, 2020. The application under this scheme was approved by the Principal Commissioner of Income Tax. The assessee's counsel sought permission to withdraw the Tax Appeal to avail the benefits of the scheme, and the revenue did not object. The High Court, acceding to the request, disposed of the appeal without entering into its merits.

What were the issues?

The High Court was to decide two questions of law framed upon admission of the Tax Appeal: 1. Whether, by virtue of an Agreement to Sell premises in its favour, the Appellant would be considered the deemed owner of those premises under Section 53A of the Transfer of Property Act? 2. Whether the Appellant is not entitled to claim expenses incurred on repairs of premises taken on rent under Section 30(a) of the Income Tax Act? The Assessee's contention was that they had availed the Vivad Se Vishwas Scheme and sought permission to withdraw the Tax Appeal to avail its benefits. The Revenue's contention was that they had no objection to the withdrawal of the Tax Appeal.

Which sections of the Income-tax Act were involved?

Section 53A,Section 30(a)

AI-generated summary — verify with the full judgment below

C/TAXAP/1167/2010 ORDER DATED: 16/11/2021 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1167 of 2010 With CIVIL APPLICATION (FOR WITHDRAWAL OF MATTER) NO. 1 of 2021 In R/TAX APPEAL NO. 1167 of 2010 ========================================================== RANG BANDHEJ PVT LTD Versus COMMISSIONER OF INCOME TAX, AHMEDABAD - I ========================================================== Appearance: M/S WADIAGHANDY AND CO(5679) for the Appellant(s) No. 1 M R BHATT & CO.(5953) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS. JUSTICE SONIA GOKANI and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 16/11/2021

ORAL ORDER (PER : HONOURABLE MS. JUSTICE SONIA GOKANI) The applicant is before this Court challenging the order passed by the Tribunal for the Assessment year 2003-2004. 1.1 The said appeal is admitted by this Court upon framing two questions of law : (i) “Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that by virtue of an Agreement to Sell the premises in its favour, the Appellant would become the deemed owner of the said premises under Section 53 A of the Transfer of Property Act?” (ii) “Whether on the facts and in the circumstances of Page 1 of 3

C/TAXAP/1167/2010 ORDER DATED: 16/11/2021 the case, the Appellate Tribunal was right in law in holding that the Appellant is not entitled to the expenses incurred on repairs of the premises taken on rent by it under Section 30(a) of the Act ?” 2. The appellant has availed Vivad Se Vishwas Scheme in 2020 under the provisions of the Direct Tax Vivad Se Vishwas Act, 2020. The application preferred by the applicant under the said scheme has also been approved by the Principal Commissioner of Income Tax -3 and in furtherance of the same amendment has been made of the disputed tax as on tax on 15.9.2021. 3. According to learned Advocate Ms. Nisha Ojha appearing for M/S Wadiaghandy and Co. is seeking permission of withdrawal of the Tax Appeal for availing the benefit under the Vivad Se Vishwas Scheme. 4. Learned Senior Advocate Mr. M. R Bhatt appearing for the opponent has no objection to the Court permitting the Tax Appeal to be withdrawn. 5. On hearing both the sides acceding to the request of the appellant the Tax Appeal is being disposed of without entering into the merits without expressing any opinion to avail an opportunity to the appellant under the benefit under the Vivad Se Vishwas Scheme. 6. It shall be open for the applicant to take a legal Page 2 of 3

C/TAXAP/1167/2010 ORDER DATED: 16/11/2021 recourse available under the law if it is unable to avail the benefit under the Scheme. 7. This Tax Appeal is disposed of as withdrawn. 8. In view of the order passed in Tax Appeal Civil Application does not survive and is disposed of accordingly. 9. Direct Service is permitted. (SONIA GOKANI, J) (NISHA M. THAKORE,J) MARY VADAKKAN Page 3 of 3

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