M.CT.M.GLOBAL INVESTMENTS P. vs. THE DEPUTY COMMISSIONER OF I

T.C.A.Nos.601, 602 & 603 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATE: 22.04.2021 CORAM: THE HON'BLE MR.JUSTICE M. DURAISWAMY AND THE HON'BLE MR.JUSTICE KRISHNAN RAMASAMY T.C.A.Nos.601, 602 & 603 of 2019 M.Ct. M. Global Investments (P) Ltd., 761, Anna Salai, Chennai - 600 002 PAN : AABCM9738K ... Appellant in all TCAs v. The Deputy Commissioner of Income Tax. Company Circle - 4(1) Now Corporate Circle - 4(1), Now Corporate Circle -4(1) Chennai - 600 034.

... Respondent in all TCAs

Appeals preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Chennai, "B"Bench, dated 08.08.2008 in ITA.Nos.1164, 1165 & 1166/Chny/2017 for the Assessment Years 2010-2011, 2011-2012 and 2012-2013.. Page 1/8 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.601, 602 & 603 of 2019 For Appellant : Mr. Venkat Narayanan

(in all TCAs)

For Respondent : Karthik Ranganathan,

(in all TCAs) Standing Counsel COMMON JUDGMENT (Judgment was delivered by M. DURAISWAMY, J.) These appeals, filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) are directed against the order dated 08.08.2008 made in ITA.Nos.1164, 1165 & 1166/Chny/2017 on the file of the Income Tax Appellate Tribunal, Chennai, "B"Bench (for brevity, the Tribunal) for the Assessment Years 2010-2011, 2011-2012 and 2012-2013. 2.The appeals were admitted on the following substantial questions of law: “Taxability of income earned in Malaysia: i. Whether, on the facts and Page 2/8 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.601, 602 & 603 of 2019 circumstances of the case, the Income Tax Appellate Tribunal is right in law in holding that the income earned by Malaysian Branch of the appellant company is taxable in India and not taxable in Malaysia ? Allowability

expenditure incurred by Malaysia Branch : ii. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in holding that the expenditure incurred by Malaysian Branch cannot be treated as allowable expenditure even if income from Malaysian Branch was treated as taxable income in India ? iii. Whether, on the facts and in the circumstances of the case, expenditure incurred for earning an income has to be allowed either under the head 'business' or under the head 'other sources' according to the treatment of the income under the head 'business' or under the head 'other sources' in accordance with Page 3/8 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.601, 602 & 603 of 2019 Section 37 or under Section 56 of the Income Tax Act, 1961 respectively ? Heads of Income – Interest : iv. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in holding that the income by way of interest had to be classified as 'income from other sources' and not 'income from business', even if the appellant is the non banking financial company and the interest income earned in the course of its business activity ? Heads of Income – Dividend : v. Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal is right in law in holding that the dividend income is liable to be taxed under the head 'income from other sources' and not under the head 'income from business'? And Business Income : vi. Whether, on the facts and in the circumstances of the case, the Income Page 4/8 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.601, 602 & 603 of 2019 Tax Appellate Tribunal is right in law in rejecting the claim of the appellant that the income derived in Malaysia constitutes business income, even when the appellant is systematically and continuously carrying on business of purchase/sale of investments ?” .3. We have heard Mr. Venkat Narayanan, learned counsel for the appellant and Karthik Ranganathan, learned Standing Counsel for the respondent. 4. 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 5/8 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.601, 602 & 603 of 2019 5. We are informed by the learned counsel for the appellant that in respect of T.C.A.Nos.601 & 602 of 2019, the assessee has already been issued with Form – 3 on 31.01.2021 and in respect of T.C.A.No.603 of 2019, the assessee has already been issued with Form – 3 on 27.01.2021, hence, the learned counsel for the appellant seeks permission of this Court to withdraw the appeals. 6. In view of the submission made by the learned counsel for the appellant, the Tax Case Appeals are dismissed as withdrawn. No costs. [M.D., J.] [K.R., J.] 22.04.2021

Index : Yes/No Internet : Yes Rj Page 6/8 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.601, 602 & 603 of 2019 To 1. The The Deputy Commissioner of Income Tax. Company Circle - 4(1) Now Corporate Circle - 4(1), Now Corporate Circle -4(1) Chennai - 600 034. 2. The Income Tax Appellate Tribunal, Chennai, "B"Bench. Page 7/8 https://www.mhc.tn.gov.in/judis/ T.C.A.Nos.601, 602 & 603 of 2019 M. DURAISWAMY, J. and KRISHNAN RAMASAMY, J. Rj T.C.A.Nos.601, 602 & 603 of 2019 22.04.2021 Page 8/8 https://www.mhc.tn.gov.in/judis/