New Santha Stores vs. The Deputy Commissioner of I

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TCA/315/2022HC Madras2022/MHC/146807 November 2022Bench: Hon`ble Mr Justice S. VAIDYANATHAN4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the Tax Case Appeal has become infructuous. This decision was based on the submission made by the learned counsel for the appellant and a memo filed on 07.11.2022. The memo indicated that a subsequent appeal filed by the Revenue before the Income Tax Appellate Tribunal (ITA No.1161/CHNY/2017) against an order that favoured the assessee had been decided in favour of the assessee by the ITAT's order dated 10.03.2021. This subsequent ITAT decision rendered the issue in the present appeal final and thus moot. Consequently, the High Court dismissed the appeal as infructuous, with no costs. No specific issue was left undecided; the appeal was disposed of on procedural grounds.

What were the facts?

The appellant, M/s. New Santha Stores, filed a Tax Case Appeal before the High Court of Judicature at Madras against an order dated 04.09.2015 passed by the Income Tax Appellate Tribunal (ITAT), Chennai. This ITAT order had allowed an appeal filed by the Revenue against an order dated 27.08.2014 of the CIT (Appeals)-II, Madurai. Subsequently, the Assessing Officer passed a fresh assessment order dated 30.11.2016 under Section 143(3) read with Section 263 of the Income Tax Act, 1961. An appeal against this fresh assessment order was allowed on 28.02.2017. The Revenue then challenged this latter order before the ITAT in ITA No.1161/CHNY/2017. By an order dated 10.03.2021, the ITAT ruled in favour of the assessee in that subsequent appeal.

What were the issues?

1. Whether the Tax Case Appeal filed by the assessee is infructuous in light of subsequent developments in the assessment proceedings, as per Section 260A of the Income Tax Act, 1961. Assessee's Contention: The assessee argued that the present appeal has become infructuous. This is because a subsequent appeal filed by the Revenue before the ITAT (ITA No.1161/CHNY/2017) against an order that allowed the assessee's appeal was decided in favour of the assessee by the ITAT's order dated 10.03.2021, making the issue final. A memo to this effect was filed before the High Court. Revenue's Contention: The judgment does not record any specific contention from the revenue regarding the infructuousness of the appeal. However, the appeal was filed against an ITAT order, and the subsequent events led to the dismissal of the present appeal.

Which sections of the Income-tax Act were involved?

Section 260A,Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

T.C.A No.315 of 2022 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 07.11.2022 CORAM : THE HONOURABLE MR. JUSTICE S.VAIDYANATHAN AND THE HONOURABLE MR. JUSTICE C.SARAVANAN Tax Case Appeal No.315 of 2022 M/s.New Santha Stores Cement Stockists No.9, Market Building Tiruchendur Road, Palayamkottai. PAN AACFN 4870 D

.. Appellant Versus

The Deputy Commissioner of Income-Tax, Circle-I, Tirunelveli. .. Respondent

Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras “C” Bench, Chennai dated 04.09.2015 passed in I.T.A. 3085/Mds/2014. For Appellant : Mr.G.Baskar

For Respondent : Mr.M.Swaminathan standing counsel. Page 1/4 https://www.mhc.tn.gov.in/judis T.C.A No.315 of 2022 J U D G M E N T This Tax Case Appeal has been filed by the Appellant / Assessee against the order dated 04.09.2015 passed by the Income Tax Appellate Tribunal, Bench 'C', Chennai ('the Tribunal', for brevity) in I.T.A. No.3085/Mds/2014 for the Assessment Year 2009-2010. 2. By the Impugned Order, the Tribunal have allowed Income Tax Appeal against the order dated 27.08.2014 of CIT (Appeals)-II, Madurai. It is represented by the learned counsel appearing for the Appellant that pursuant to the impugned order dated 04.09.2015, the Respondent/Assessing Officer has passed a fresh Assessment Order dated 30.11.2016 u/s. 143 (3) r.w.section.263. An Appeal filed against the said order was allowed vide order dated 28.02.2017. 2. It is further submitted that the Respondent/Assessing Officer challenged the order of the Commissioner of Income Tax before the Income Tax Appellate Tribunal in I.T.A.No.1161/CHNY/2017. The Tribunal by its order dated 10.03.2021 held the issue in favour of the Appellant. The issue Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A No.315 of 2022 has become final and hence the present Tax Case Appeal has become infructuous. A Memo dated 07.11.2022 to that effect has also been filed to that effect in the SR stage itself. 3. Recording the above submissions of the learned counsel appearing for the Appellant and also in view of the Memo dated 07.11.2022, this Appeal is dismissed as infructuous. No costs.

[S.V.N, J.] [C.S.N, J.] 07.11.2022 Internet : Yes

Index : Yes / No arr To To 1.The Income Tax Appellate Tribunal, Madras “C” Bench 2. The Deputy Commissioner of Income Tax, Circle-I, Tirunelveli. Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A No.315 of 2022 S.VAIDYANATHAN, J. and C.SARAVANAN, J. arr

T.C.A No.315 of 2022 07.11.2022 Page 4/4 https://www.mhc.tn.gov.in/judis

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