THE COMMISSIONER OF INCOME vs. M/S. A.R. HOUSING (P) LTD.,

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TCA/502/2016HC Madras20 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. It noted that the Direct Tax Vivad Se Vishwas Act, 2020, was enacted to provide for the resolution of disputed tax. The learned counsel for the respondent/assessee submitted that the assessee had availed the Vivad Se Vishwas Scheme and had been issued Form-3 on December 10, 2020. Since the assessee had been issued Form-3, the High Court held that nothing survived for adjudication in the appeal. The Tax Case Appeal was disposed of on this basis, with no costs.

What were the facts?

The Revenue, Commissioner of Income Tax, Chennai, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated September 11, 2015, passed by the Income Tax Appellate Tribunal, Chennai "C" Bench. The appeal pertains to assessment year 2007-08. The High Court admitted the appeal on substantial questions of law. During the pendency of the appeal, the assessee, M/s. A.R. Housing (P) Ltd., availed the Direct Tax Vivad Se Vishwas Act, 2020, and was issued Form-3 on December 10, 2020. Consequently, the High Court noted that nothing further survived for adjudication.

What were the issues?

The High Court was to decide four substantial questions of law: 1. Whether the Tribunal's finding that capital gains tax paid by the Estate of Meera Dawson should be considered as tax paid by the assessee was proper. 2. Whether the Tribunal's finding was proper, considering the receipt in the assessee's hands as a confirming party was in the nature of business income and liable to be taxed as determined by the CIT(A). 3. Whether the Tribunal's finding was wrong and perverse by introducing the fiction of Section 50C, especially when this issue was not discussed in the assessment or CIT(A) orders. 4. Whether the Tribunal's finding was proper, given the assessee's claim for exemption stating that the profit on sale of property was to be taxed separately as AOP without providing its claim. The Revenue argued for the appeal. The Assessee argued that they had availed the Vivad Se Vishwas Scheme.

Which sections of the Income-tax Act were involved?

Section 260A,Section 50C

AI-generated summary — verify with the full judgment below

Tax Case Appeal No.502 of 2016 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 20.04.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMY AND THE HON'BLE MRS.JUSTICE R. HEMALATHA Tax Case Appeal No.502 of 2016 The Commissioner of Income Tax, Chennai. ... Appellant Vs.

M/s.A.R.Housing (P) Ltd., No.32, Nathamuni Street, Naduvankarai, Anna Nagar East, Chennai – 600 040.

... 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 11.09.2015 passed in I.T.A.No.623/Mds/2015. For Appellant : Mr.T.Ravikumar Senior Standing Counsel For Respondent : Mr.R.Venkata Narayanan for M/s.Subbaraya Aiyar Page 1/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.502 of 2016 J U D G M E N T (Delivered by M.DURAISWAMY, J.) This appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), is directed against the order dated 11.09.2015 passed by the Income Tax Appellate Tribunal, Chennai "C" Bench, ('the Tribunal' for brevity) in I.T.A.No.623/Mds/2015 for the assessment year 2007-08. The above appeal has been admitted on 27.07.2016 on the following Substantial Questions of Law: "1.Whether the finding of the Tribunal is proper by holding that the capital gains tax paid Estate of Meera Dawson is to be considered as tax paid by the assessee? 2.Whether the finding of the Tribunal is proper especially when the receipt in the hands of the assessee in the capacity as confirming party is in the nature of business income and liable to be taxed as determined by the CIT(A)? 3.Is not the finding of the Tribunal wrong and perverse by introducing the fiction of Section 50 C especially when the said issue was not all discussed in the assessment order nor in the CIT (A) order? Page 2/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.502 of 2016 4.Whether the finding of the Tribunal is proper especially when the assessee has claimed exemption stating that the profit on sale of property is to be taxed separately as AOP and that too without providing its claim?” 2. We have heard Mr.T.Ravikumar, learned Senior Standing Counsel for the appellant/Revenue and Mr.R.Venkata Narayanan for M/s.Subbaraya Aiyar, learned counsel for the respondent/assessee. 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. Page 3/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.502 of 2016 4.Learned counsel for the respondent/assessee submitted that the assessee had availed the Vivad Se Vishwas Scheme and that the respondent/assessee had already been issued with Form–3 on 10.12.2020.

5.Since the respondent/assessee had been issued with Form-3, nothing survives for adjudication in the above appeal. Recording the submission made by the learned counsel for the respondent/assessee, the Tax Case Appeal stands disposed of. No costs. [M.D., J.] [R.H., J.] 20.04.2021

Index : Yes/No

Internet : Yes

mkn To 1. Income Tax Appellate Tribunal, Chennai "C" Bench 2.The Commissioner of Income Tax, Chennai. M. DURAISWAMY, J. Page 4/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.502 of 2016 and R. HEMALATHA, J. mkn Tax Case Appeal No.502 of 2016

20.04.2021 Page 5/5 https://www.mhc.tn.gov.in/judis/

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