M/S.SUNDARAVEL MATCH INDUSTR vs. THE DEPUTY COMMISSIONER OF I

Tax Case Appeal No.52 of 2020 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 27.04.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMY AND THE HON'BLE MRS.JUSTICE R. HEMALATHA Tax Case Appeal No.52 of 2020 M/s.Sundaravel Match Industries Pvt. Ltd., No.69, ASK Thangaiah Nadar Road, Sivakasi – 626 123.

... Appellant Vs.

The Deputy Commissioner of Income Tax, Corporate Circle-2, Madurai. ... Respondent

Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras "A" Bench, dated 31.01.2019 passed in I.T.A.No.2988/Chny/2018. For Appellant : Mr.M.A.Mudi Mannan For Respondent : Mr.M.Swaminathan

Senior Standing Counsel and Ms.S.Premalatha Standing Counsel Page 1/6 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.52 of 2020 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 31.01.2019 passed by the Income Tax Appellate Tribunal, Madras "A" Bench, ('the Tribunal' for brevity) in I.T.A.No.2988/Chny/2018 for the assessment year 2013-14. The above appeal has been admitted on 30.01.2020 on the following Substantial Questions of Law: "1.Whether on the facts and in the circumstances of the case, the Tribunal erred in law in not deleting the disallowance made under Sec.14A of the Act, despite holding that the Assessing Officer had failed to (i) record his satisfaction in terms of Section 14(A)(2)(3) and (ii) establish direct/proximate nexus of expenses with the earning of exempt divident income? 2.Whether on the facts and in the circumstances of the case, the Tribunal erred in law whether invoking the Rule 8D is right without the A.O. Records his dissatisfaction regarding the correctness of the claim in relation to expenditure incurred to earn an exempt income? Page 2/6 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.52 of 2020 3.Whether under facts and circumstances of the case, the Tribunal was right in not adjudicating the correctness of the disallowance after agreeing the appellant has more than the sufficient share and reserves and there was no loan funds used for such investments in shares? 4.Whether the Tribunal is right in not properly appreciating the facts of the case on hand and the same issue is already decided by the Hon'ble Apex Court in Godrej & Boyce Manufacturing Co. Ltd. v. Deputy Commissioner of Income Tax and another (2017) 394 ITR 449 (SC) and not followed the same?” 2. We have heard Mr.M.A.Mudi Mannan, learned counsel for the appellant/assessee and Mr.M.Swaminathan, learned Senior Standing Counsel and Ms.S.Premalatha, learned Standing Counsel for the respondent/Revenue. 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 Page 3/6 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.52 of 2020 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 01.01.2021 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.] 27.04.2021 Note : Registry is directed to issue the order copy on 29.04.2021. mkn

Index : Yes/No

Page 4/6 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.52 of 2020 Internet : Yes

To 1. Income Tax Appellate Tribunal, Madras "A" Bench 2.The Deputy Commissioner of Income Tax, Corporate Circle-2, Madurai. Page 5/6 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal No.52 of 2020 M. DURAISWAMY, J. and R. HEMALATHA, J. mkn Tax Case Appeal No.52 of 2020

27.04.2021 Page 6/6 https://www.mhc.tn.gov.in/judis/