M/S RAJKUMAR IMPEX PVT.LTD., vs. THE INCOME TAX OFFICER

TCA.No.145 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 16.2.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MS.JUSTICE R.N.MANJULA Tax Case Appeal No.145 of 2019

M/s.Rajkumar Impex Pvt. Ltd., Chennai-18. ...Appellant Vs The Income Tax Officer, Business Ward III(3), Chennai-34. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 26.8.2015 passed by the Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai made in I.T.A.No.518/Mds/2014 for the assessment year 2009-10. For Appellant: Mr.R.Sivaraman For Respondent: Mr.R.Hemalatha, SSC Judgment was delivered by

T.S.SIVAGNANAM

This appeal has been filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) challenging the order dated 26.8.2015 made in I.T.A.No.518/Mds/2014 on the file of the 1/4 https://www.mhc.tn.gov.in/judis/ TCA.No.145 of 2019 Income Tax Appellate Tribunal, Chennai, 'D' Bench ('the Tribunal' for brevity) for the assessment year 2009-10. 2. The assessee has filed this appeal by raising the following substantial questions of law : “1. Whether, on the facts and circumstances of the case, the Tribunal was right in directing the Assessing Officer to hold the force contracts, exceeding the total export turnover to be speculative in nature, where ‘The Sale of Goods Act’ specifically excludes cash from the definition of goods, thus making foreign currency or any other currency, neither a commodity nor a share? 2. Whether, on the facts and circumstances of the case, the Tribunal was right in just restricting the benefit to export turnover, when the assessee has forex exposure on both export and import transactions? And 3. Whether, on the facts and circumstances of the case, the Tribunal was right in law in holding that forward contract in respect of forex transaction entered into by the appellant with banks will fall under the definition of speculative transaction and thus 2/4 https://www.mhc.tn.gov.in/judis/ TCA.No.145 of 2019 the appellant is not entitled to claim such loss as business loss?” 3. We have heard Mr.R.Sivaraman, learned counsel appearing for the appellant/assessee and Mrs.R.Hemalatha, learned Senior Standing Counsel appearing for the respondent/Revenue. 4. The learned counsel for the assessee submits that the assessee already filed the declaration/undertaking under the Vivad Se Vishwas Scheme and orders were passed on 08.12.2020 in Form No.3. 5. In the light of the subsequent event, the assessee is given liberty to restore this appeal in the event the ultimate decision taken on the declaration filed by the assessee under Section 4 of the said Act is not in favour of the assessee. If such a prayer is made, the Registry shall entertain the prayer without insisting upon any petition to be filed for condonation of delay in restoration of the appeal and on such request made by the assessee by filing a miscellaneous petition for restoration, the Registry shall place such petition before the appropriate Division Bench for orders. 3/4 https://www.mhc.tn.gov.in/judis/ TCA.No.145 of 2019 T.S.SIVAGNANAM,J AND R.N.MANJULA,J RS 6. The tax case appeal stands disposed of with the aforementioned liberty. Consequently, the substantial questions of law raised are left open. No costs. 16.2.2021 To 1.The Income Tax Appellate Tribunal, 'D' Bench, Chennai. 2.The Income Tax Officer, Business Ward III(3), Chennai-34.

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