VISWAMS vs. THE DEPUTY COMMISSIONER OF I

Tax Case Appeal Nos.15 & 16 of 2022 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 12.01.2022 CORAM : THE HONOURABLE MR. JUSTICE R. MAHADEVAN AND THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ Tax Case Appeal Nos.15 & 16 of 2022 and C.M.P. No. 160 & 168 of 2022 M/s.Viswams 176F, Trivandrum Road Tirunelveli – 627 003 (PAN: AADFV6501A)

.. Appellant in both TCAs Versus

The Deputy Commissioner of Incometax Central Circle – IV (1) Chennai .. Respondent in both TCAs

Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961 against the common order of the Income Tax Appellate Tribunal, Chennai “B” Bench, dated 28.08.2015 passed in I.T.A.No.1779/Mds/2014 & I.T.A.No. 1877/Mds/2014. Page 1/6 https://www.mhc.tn.gov.in/judis Tax Case Appeal Nos.15 & 16 of 2022 For Appellant : Mr.R.Venkata Narayanan (in both cases) for M/s.Subbarayar Aiyar Padmanabhan For Respondent : Mr.M.Swaminathan (in both cases) Senior Standing Counsel Mrs.V.Pushpa Junior Standing Counsel COMMON JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) These Tax Case Appeals have been filed by the appellant challenging the common order dated 28.08.2015 passed by the Income Tax Appellate Tribunal, Bench 'B', Chennai ('the Tribunal', for brevity) in I.T.A.No.1779/Mds/2014 & I.T.A.No. 1877/Mds/2014 relating to the assessment year 2008-2009, by raising the following substantial questions of law : TCA.No.15 of 2022 “1.Whether on the facts and in the circumstances of the case, the Tribunal was right in law in rejecting the valuation of closing stock consistently followed by the Appellant at “cost or realisable value whichever is less”? 2. Whether on the facts and circumstances of the case the Tribunal was right in law in holding that appellant has changed the valuation of closing stock consequent to search Page 2/6 https://www.mhc.tn.gov.in/judis Tax Case Appeal Nos.15 & 16 of 2022 without appreciating that the return of income for Assessment years 2006-07 to 2008-09 were filed much earlier to date of search viz 18.02.2009 when the value of closing stock and income admitted in the returns filed prior to after the search were the same? 3. Whether on the facts and circumstances of the case the Tribunal erred in not appreciating that the appellant had valued the unsold stock by discounting the purchase price at fixed percentage considering the age of stock and their realisability which was consistently followed every year? 4. Whether on the facts and circumstances of the case the Tribunal erred in not appreciating that there is no income escaping since the actual sale value gets captured in the year of sale.? TCA.No.16 of 2022 Whether on the facts and circumstances of the case the Tribunal was right in law in remitting the matter to assessing officer for fresh consideration without following the order of the Tribunal in the assessee's own case for the AY 2003-04 in ITA No.1460 & 2164/MDS/2007 dt 14.03.2008 wherein the claim of expenditure towards repairs and renovation on leased premises was allowed as revenue expenditure? Page 3/6 https://www.mhc.tn.gov.in/judis Tax Case Appeal Nos.15 & 16 of 2022 3.When these matters were taken up for consideration, the learned counsel appearing for the appellant / assessee submitted that during the pendency of these tax case appeals, the assessee has availed the benefit conferred under the Direct Tax Vivad Se Vishwas Act, 2020 and filed necessary declarations, which were accepted and Form 3 was also issued by the Income tax department, on 23.04.2021. The learned counsel has also filed a memo dated 17.11.2021 to that effect. 4.The aforesaid submission made by the learned counsel for the appellant/assessee has also been fairly conceded by the learned senior standing counsel appearing for the respondent/ Revenue. 5.This court heard the submissions made by the learned counsel on either side, as per which, the assessee has already availed the benefit conferred under the beneficial legislation viz., the Direct Tax Vivad Se Vishwas Act, 2020, enacted for resolution of disputed tax and for matters connected therewith or incidental thereto, which came into force with effect from 17.03.2020; and the declarations submitted by the assessee were also Page 4/6 https://www.mhc.tn.gov.in/judis Tax Case Appeal Nos.15 & 16 of 2022 accepted and Form 3 was also issued to them by the Income Tax Department. In view of such development, it is unnecessary for this court to decide the substantial questions of law arisen in these tax case appeals.

6.Therefore, recording the submissions so made by the learned counsel on either side, these appeals stand disposed of, directing the department to process the application in accordance with the Act and communicate the decision to the assessee at the earliest. No costs. Consequently, connected civil miscellaneous petitions are closed. [R.M.D,J.] [M.S.Q, J.] 12.01.2022

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Internet : Yes

Index : Yes / No Page 5/6 https://www.mhc.tn.gov.in/judis Tax Case Appeal Nos.15 & 16 of 2022 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. dhk To 1.The Income Tax Appellate Tribunal, Madras “B” Bench 2.The Deputy Commissioner of Incometax Central Circle – IV (1) Chennai TCA Nos. 15 & 16 of 2022 12.01.2022 Page 6/6 https://www.mhc.tn.gov.in/judis