COMMISSIONER OF INCOME TAX vs. M/S.TAMILNADU INDUSTRIAL

T.C.A.No.770 of 2016 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED 10.08.2022 CORAM THE HON'BLE Mr. JUSTICE R. MAHADEVAN AND THE HON'BLE Mr. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.770 of 2016 The Commissioner of Income Tax Company Circle-III Chennai

.. Appellant Vs. M/s.Tamil Nadu Industrial Development Corporation Limited 19A, Rukmani Lakshmipathy Road Egmore, Chennai 600 008 PAN : AAACT 3409P

.. Respondent Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961, against the order dated 30.03.2016 passed by the Income Tax Appellate Tribunal 'D' Bench, Chennai, in I.T.A.No.1267/Mds/2015. For Appellant Mrs.V.Pushpa Standing Counsel For Respondent Mr.R.Venkatanarayan for M/s.Subbaraya Aiyar 1/4 https://www.mhc.tn.gov.in/judis T.C.A.No.770 of 2016 J U D G M E N T (Judgment was delivered by R. MAHADEVAN, J.) This Tax Case Appeal arises from the order dated 30.03.2016 passed by the Income Tax Appellate Tribunal 'D' Bench, Chennai, in I.T.A.No. 1267/Mds/2015, relating to the assessment year 2008-09. 2. By order dated 02.11.2016, this court admitted the aforesaid tax case appeal on the following substantial questions of law: “(i) Whether on the facts and circumstances of the case and in law, the Tribunal was correct and justified in holding that strategic investments are not liable for disallowance u/s.14A when the provisions of the said section as well as Rule 8D does not provide for any such exemption ? and (ii) Whether on the facts and circumstance of the case and in law, the Tribunal was justified in not appreciating the fact that investment in shares of any company will yield only dividend income which is exempt from Income Tax and hence provisions of Section 14A are applicable?" 3. When this matter was taken up for consideration, the learned counsel appearing for the respondent/assessee submitted that during the pendency of this tax case appeal, the assessee has availed the benefit conferred under the Direct Tax Vivad Se Vishwas Act, 2020, and filed necessary declarations, 2/4 https://www.mhc.tn.gov.in/judis T.C.A.No.770 of 2016 which were accepted and Form-5/order for full and final settlement of tax arrears, was also issued by the Income tax department, on 25.01.2022. The learned counsel has also filed Form-5 dated 25.01.2022 to that effect. 4. The aforesaid submission made by the learned counsel for the respondent/assessee has also been fairly conceded by the learned Standing Counsel appearing for the appellant/ Revenue. 5. In view of the subsequent development, this court is of the opinion that nothing survives for adjudication in this appeal. Recording the submission so made by the learned counsel on either side, this Tax Case Appeal stands disposed of. No costs. [R.M.D,J.] [M.S.Q, J.] gya 10.08.2022

R. MAHADEVAN, J. AND 3/4 https://www.mhc.tn.gov.in/judis T.C.A.No.770 of 2016 MOHAMMED SHAFFIQ, J. gya To 1.The Commissioner of Income Tax Company Circle-III, Chennai 2.The Income Tax Appellate Tribunal 'D' Bench, Chennai 3.The Assistant Commissioner of Income Tax Corporate Circle-3(1), Chennai 600 034 4.The Commissioner of Income Tax (Appeals) Chennai T.C.A.No.770 of 2016 10.08.2022 4/4 https://www.mhc.tn.gov.in/judis