M/S.BHAVANI DISTILLERIES AND vs. THE ASSISTANT COMMISSIONER O

Tax Case Appeal No.458 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 14.09.2021 CORAM : THE HON'BLE MR. JUSTICE T.S. SIVAGNANAM AND THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP Tax Case Appeal No.458 of 2021 M/s. Bhavani Distillers and Chemicals Ltd., Old No.16/New.No.4, I,Cross Street, R.A.Puram, Chennai – 600 028.

... Appellant Vs.

The Assistant Commissioner of Income Tax, Circle-I(2) Chennai. ... Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Chennai “C” Bench, dated 14.11.2017, in I.T.A.No.888/Mds./2010. For Appellant : Mr.R.Sivaraman For Respondent : Mr.T.Ravikumar Senior Standing Counsel Page 1/6 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.458 of 2021 J U D G M E N T (Judgment was delivered by T.S. SIVAGNANAM, J.) The above appeal filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), is directed against the order dated 14.11.2017 passed by the Income Tax Appellate Tribunal, Chennai Bench “C” ('the Tribunal' for brevity) in I.T.A.No.888/Mds./2010 for the Assessment Year 2007-2008. The assessee has raised the following substantial question of law in this appeal : “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 agricultural income only to the extent of estimated value of standing crops that existed on the agricultural land at the time of cancellation of JVF agreement and to treat the balance compensation as income under the head 'Short Term Capital Gains'?” Page 2/6 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.458 of 2021 2.We have heard Mr.R.Sivaraman, learned Counsel for the appellant/assessee and Mr.T.Ravikumar, learned Senior Standing counsel for the respondent/Revenue. 3. It may not be necessary for this Court to decide the Substantial Question 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 has already filed the requisite Forms 1 & 2 on 30.01.2021 under Section 4 of the Act. Page 3/6 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.458 of 2021 5. In the light of the fact that the assessee has already availed the benefit under the Act, no useful purpose would be served in keeping this appeal pending. At the same time, it is necessary to safeguard the interest of the assessee in the event the order to be passed by the Department under the Act is not in favour of the assessee. Accordingly, the Tax Case Appeal is disposed of on the ground that the assessee has already filed the requisite Forms 1 & 2 and the Department shall process the application at the earliest in accordance with the said Act and communicate the decision to the assessee at the earliest. As observed, 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 Division Bench for orders. Page 4/6 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.458 of 2021 6. With this observation, the Tax Case Appeal stands disposed of with the aforementioned liberty and consequently, the substantial question of law is left open. No costs. (T.S.S., J.) (S.S.K., J.) 14.09.2021

jeni/mkn

Internet : Yes

Index : Yes / No To 1.The Income Tax Appellate Tribunal, Chennai Bench “C” 2.The Assistant Commissioner of Income Tax, Circle-I(2), Chennai. Page 5/6 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.458 of 2021 T.S. SIVAGNANAM, J. and SATHI KUMAR SUKUMARA KURUP, J. jeni/mkn Tax Case Appeal No.458 of 2021

14.09.2021 Page 6/6 https://www.mhc.tn.gov.in/judis/