THE TAMILNADU WAREHOUSING CO vs. THE ASSISTANT COMMISSIONER O

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TCA/290/2019HC Madras26 April 2021Bench: Hon`ble Mr Justice M.DURAISWAMY5 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court did not decide the substantial questions of law framed for consideration. This was due to subsequent developments, specifically the enactment of the Direct Tax Vivad Se Vishwas Act, 2020. The learned counsel for the appellant/assessee informed the Court that the assessee had been issued with Form-3 on 15.04.2021 under the said Act and sought permission to withdraw the appeal. In view of this submission, the Tax Case Appeal was dismissed as withdrawn. Therefore, there is no finding on the merits of the disallowance of service tax or the issue of double disallowance. The operative direction was to dismiss the appeal as withdrawn.

What were the facts?

The assessee, M/s. Tamil Nadu Warehousing Corporation Ltd., filed an appeal before the High Court of Judicature at Madras against an order dated 04.01.2019 passed by the Income Tax Appellate Tribunal (ITAT), Madras 'B' Bench. The appeal pertains to assessment year 2012-13 and challenges the disallowance of service tax paid in earlier years. The High Court admitted the appeal on substantial questions of law. Subsequently, the assessee informed the court that they had availed the Direct Tax Vivad Se Vishwas Act, 2020, and were issued Form-3 on 15.04.2021. Based on this development, the assessee sought permission to withdraw the appeal.

What were the issues?

1. Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal is right in law in upholding the disallowance of service tax, which were actually paid in earlier years? This question of law concerns the interpretation and application of relevant provisions of the Income Tax Act, 1961, regarding the deductibility of service tax paid in prior periods. 2. Whether the Income Tax Appellate Tribunal is right in upholding the disallowance in spite of noticing the fact that it amounts to double disallowance, which is not what is intended by the provisions of Section 43B of the Income Tax Act? Assessee's Contention: The assessee argued that the disallowance of service tax paid in earlier years was incorrect and that the ITAT's upholding of this disallowance led to a double disallowance, contrary to the intent of Section 43B of the Act. Revenue's Contention: The judgment does not record any specific arguments made by the Revenue on these issues.

Which sections of the Income-tax Act were involved?

Section 260A,Section 43B

AI-generated summary — verify with the full judgment below

Tax Case Appeal No.290 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.04.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMY AND THE HON'BLE MRS.JUSTICE R. HEMALATHA Tax Case Appeal No.290 of 2019 M/s.Tamil Nadu Warehousing Corporation Ltd., No.82, Anna Salai, Guindy, Chennai – 600 032.

... Appellant Vs.

The Assistant Commissioner of Income Tax, Corporate Circle – 3(1), New Block, 4th Floor, 121, M.G. Road, Nungambakkam, Chennai – 600 034. ... Respondent

Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras "B" Bench, dated 04.01.2019 passed in I.T.A.No.306/Chny/2017. For Appellant : Mr.G.Baskar For Respondent : Mrs.V.Pushpa

Standing Counsel Page 1/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.290 of 2019 J U D G M E N T (Delivered by M.DURAISWAMY, J.) This appeal filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), is directed against the order dated 04.01.2019 passed by the Income Tax Appellate Tribunal, Madras "B" Bench, ('the Tribunal' for brevity) in I.T.A.No.306/Chny/2017 for the assessment year 2012-13. The above appeal has been admitted on 17.06.2019 on the following Substantial Questions of Law: "1.Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal is right in law in upholding disallowance of service tax, which were actualy paid in earlier years? And 2.Whether the Income Tax Appellate Tribunal is right in upholding the disallowance in spite of noticing the fact that it amounts to double disallowance, which is not what is intended by the provisions of Section 43B of the Income Tax Act?” 2. We have heard Mr.G.Baskar, learned counsel for the appellant/assessee and Mrs.V.Pushpa, learned Standing Counsel for the respondent/Revenue. Page 2/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.290 of 2019 3. It may not be necessary for this Court to decide the Substantial Questions of Law framed for consideration on account of certain subsequent developments. The Government of India enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of 2020) to provide for resolution of disputed tax and for matters connected therewith or incidental thereto. The Act of the Parliament received the assent of the President on 17th March 2020 and published in the Gazette of India on 17th March 2020. 4. We are informed by the learned counsel for the appellant/ assessee that the assessee had already been issued with Form-3 on 15.04.2021 and the learned counsel for the appellant seeks permission of this Court to withdraw the appeal. 5. In view of the submission made by the learned counsel for the appellant, the Tax Case Appeal stands dismissed as withdrawn. No costs. [M.D., J.] [R.H., J.] 26.04.2021 mkn

Page 3/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.290 of 2019 Index : Yes/No

Internet : Yes

To 1. Income Tax Appellate Tribunal, Madras "B" Bench 2.The Assistant Commissioner of Income Tax, Corporate Circle – 3(1), New Block, 4th Floor, 121, M.G. Road, Nungambakkam, Chennai – 600 034. Page 4/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.290 of 2019 M. DURAISWAMY, J. and R. HEMALATHA, J. mkn Tax Case Appeal No.290 of 2019

26.04.2021 Page 5/5 https://www.mhc.tn.gov.in/judis/

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