SHRI K.SUBRAMANIAN vs. ASSISTANT COMMISSIONER OF

TCA/628/2016HC 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 question of law framed for consideration. This was due to subsequent developments, specifically the enactment of the Direct Tax Vivad Se Vishwas Act, 2020. The Court was informed by the assessee's counsel that the assessee had received Form-3 under this Act and sought permission to withdraw the appeals. Consequently, the High Court dismissed the appeals as withdrawn. No costs were awarded. The principle derived from this judgment is that appeals admitted on substantial questions of law can be disposed of as withdrawn if the assessee opts for resolution under a scheme like the Vivad Se Vishwas Act and seeks withdrawal.

What were the facts?

The assessee, Shri K. Subramanian (Prop. Kavitha Dyeings), filed two appeals before the High Court of Judicature at Madras against the order of the Income Tax Appellate Tribunal (ITAT), Chennai 'D' Bench, dated 26.02.2016. These appeals, TCA Nos. 628 and 629 of 2016, pertained to assessment years 2007-08 and 2008-09 respectively. The appeals were admitted on 31.08.2016. The core dispute involved whether an adjustment of a retention amount withheld by the assessee from the cost of a wind energy generator, due to performance failure, should be treated as a revenue receipt. The High Court was informed about the enactment of the Direct Tax Vivad Se Vishwas Act, 2020, and that the assessee had received Form-3 under this Act.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in treating the adjustment of the retention amount withheld by the Assessee out of the cost of the wind energy generator on failure of the wind energy generator with minimum guaranteed generation should be treated as revenue receipt? (Question of law) Assessee's Contention: The assessee sought to withdraw the appeals. The learned counsel for the appellant/assessee informed the Court that the assessee had been issued with Form-3 on 15.04.2021 under the Direct Tax Vivad Se Vishwas Act, 2020, and sought permission to withdraw the appeals. Revenue's Contention: The judgment records no specific contention from the revenue regarding the substantial question of law. However, the revenue was represented by its Senior Standing Counsel.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Tax Case Appeal Nos.628 and 629 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 Nos.628 and 629 of 2016 Shri. K.Subramanian (Prop.Kavitha Dyeings), No.1/5-261, Athiyur Road, Kadayampatti Post, Bhavani – 638 302.

... Appellant in all appeals Vs.

Assistant Commissioner of Income Tax, Circle-II, Erode. ... Respondent in all appeals

Tax Case Appeals in T.C.A.Nos.628 and 629 of 2016 filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Chennai "D" Bench, dated 26.02.2016 passed in I.T.A.Nos.2514/Mds/2014 and 2515/Mds/2014 respectively. Page 1/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal Nos.628 and 629 of 2016 For Appellant : Ms.K.C.Aarthi in all appeals For Respondent : Mr.T.R.Senthil Kumar

Senior Standing Counsel in all appeals C O M M O N J U D G M E N T (Delivered by M.DURAISWAMY, J.) The above appeals filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), are directed against the order dated 26.02.2016 passed by the Income Tax Appellate Tribunal, Chennai "D" Bench, ('the Tribunal' for brevity) in I.T.A.Nos.2514/Mds/2014 and 2515/Mds/2014 for the assessment years 2007-08 and 2008-09 respectively. The above appeals were admitted on 31.08.2016 on the following substantial question of law : “Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in treating the adjustment of the retention amount withheld by Assessee out of the cost of the wind energy generator on failure on the performance of the wind energy generator with minimum guaranteed generation should be treated as revenue receipt” Page 2/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal Nos.628 and 629 of 2016 2. We have heard Ms.K.C.Aarthi, learned counsel for the appellant/ assessee and Mr.T.R.Senthil Kumar, 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 had already been issued with Form-3 on 15.04.2021 and the learned counsel for the appellant seeks permission of this Court to withdraw the above appeals. Page 3/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal Nos.628 and 629 of 2016 5. In view of the submission made by the learned counsel for the appellant/assessee, the above Tax Case Appeals stand dismissed as withdrawn. No costs. [M.D., J.] [R.H., J.] 20.04.2021

Index : Yes/No

Internet : Yes

mkn To 1. Income Tax Appellate Tribunal, Chennai "D" Bench 2.The Assistant Commissioner of Income Tax, Circle-II, Erode. Page 4/5 https://www.mhc.tn.gov.in/judis/ Tax Case Appeal Nos.628 and 629 of 2016 M. DURAISWAMY, J. and R. HEMALATHA, J. mkn Tax Case Appeal Nos.628 and 629 of 2016

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

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