JAYANTHI BALAJI, vs. THE INCOME TAX OFFICER,

TCA.No.443 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 02.9.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MR.JUSTICE SATHI KUMAR SUKUMARA KURUP Tax Case Appeal No.443 of 2021 Smt.Jayanthi Balaji ...Appellant Vs The Income Tax Officer, Business Ward X(2), Chennai. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 13.11.2017 passed by the Income Tax Appellate Tribunal, 'C' Bench, Chennai made in I.T.A.No. 1196/Mds/2011 for the assessment year 2007-08. For Appellant : Mr.R.Sivaraman For Respondent : Mr.M.Swaminathan, SSC assisted by Ms.V.Pushpa, JSC 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 1/4 https://www.mhc.tn.gov.in/judis/ TCA.No.443 of 2021 dated 13.11.2017 made in I.T.A.No.1196/Mds/2011 on the file of the Income Tax Appellate Tribunal, Chennai, 'C' Bench ('the Tribunal' for brevity) for the assessment year 2007-08. 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 Appellate Tribunal having held that the lands belonging to the Appellant are 'agricultural lands' was right in holding that the extinguishment of farming rights over the said lands tantamount to a 'commercial right'? and 2. Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in holding that the additional compensation received by the Appellant for foregoing their 'farming rights' over agricultural land is to be treated as income under the head 'capital gains'?” 3. We have heard Mr.R.Sivaraman, learned counsel for the appellant/assessee and Mr.M.Swaminathan, learned Senior Standing Counsel assisted by Ms.V.Pushpa, learned Junior Standing Counsel accepting notice for the respondent/Revenue. 4. The learned counsel appearing for the assessee submits that 2/4 https://www.mhc.tn.gov.in/judis/ TCA.No.443 of 2021 the assessee already filed the declaration/undertaking under the Vivad Se Vishwas Scheme on 27.1.2021 and is awaiting orders to be passed in Form No.3. 5. In the light of the subsequent event, the Competent Authority shall process the application/declaration in accordance with the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of 2020) and pass appropriate orders as expeditiously as possible. The assessee is given liberty to restore this appeal in the event the ultimate decision to be 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 application 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. 6. The tax case appeal stands disposed of with the aforementioned liberty. Consequently, the substantial questions of law raised are left open. No costs. 02.9.2021

3/4 https://www.mhc.tn.gov.in/judis/ TCA.No.443 of 2021 T.S.SIVAGNANAM,J AND SATHI KUMAR SUKUMARA KURUP,J mka To 1.The Income Tax Appellate Tribunal, 'C' Bench, Chennai. 2.The Income Tax Officer, Business Ward X(2), Chennai. TCA.No.443 of 2021 02.9.2021 4/4 https://www.mhc.tn.gov.in/judis/