PRINCIPAL COMMISSIONER OF IN vs. LATE SHRI MAM RAMASAMY

TCA/827/2019HC Madras26 August 2022Bench: Hon`ble Mr Justice R. MAHADEVAN4 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that during the pendency of the appeal, the assessee had availed the benefits under the Direct Tax Vivad Se Vishwas Act, 2020. The assessee had filed the necessary declarations, which were accepted, and a Form 5 order for full and final settlement of tax arrears was issued by the Income Tax Department on May 7, 2021. Both the learned Senior Standing Counsel for the appellant/Revenue and the learned counsel for the respondent/assessee fairly conceded to this subsequent development. In view of this, the High Court was of the opinion that nothing further survived for adjudication in the appeal. The appeal was disposed of based on the submissions made by both parties, without delving into the merits of the substantial question of law.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Revenue) against an order of the Income Tax Appellate Tribunal (ITAT) dated January 11, 2019, for Assessment Year 2008-2009. The ITAT's order concerned the assessee's ability to set off losses from horse breeding activities against taxable income from construction and betting activities. During the pendency of the appeal before the High Court, the assessee availed the benefit of the Direct Tax Vivad Se Vishwas Act, 2020. The assessee filed necessary declarations, which were accepted, and a Form 5 order for full and final settlement of tax arrears was issued by the Income Tax Department on May 7, 2021. This subsequent development was acknowledged by both the Revenue and the assessee.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the ITAT was right in law in holding that the loss from breeding activities of horses can be set off against taxable income which comprises gains from construction activity, betting activities in horse racing, without taking cognizance of the Hon'ble Madras High Court Judgment dated 22.10.2018 in T.C.A.No.1165 of 2008 in assessee's own case? Contentions: Assessee: Not recorded. Revenue: The Revenue contended that the ITAT erred in its decision by not considering a prior judgment of the Madras High Court in the assessee's own case. The Revenue's primary argument revolved around the applicability of the aforementioned High Court judgment.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

T.C.A.No.827 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.08.2022 CORAM : THE HON'BLE MR. JUSTICE R. MAHADEVAN AND THE HON'BLE MR. JUSTICE MOHAMMED SHAFFIQ T.C.A.No.827 of 2019 The Principal Commissioner of Income Tax Central-I, No.108, Nungambakkam High Road, Chennai - 600 034. ... Appellant Versus Late Shri MAM Ramasamy, Legal-heir Shri M.A.M.R.Muthiah, Chettinad House, Raja Annamalai Puram, Chennai - 600 028. ... Respondent (PAN No.AAJPR 4449M) Appeal preferred under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, “A” Bench, Chennai, dated 11.01.2019 in I.TA.No.1494/Chny/2012. For Appellant : Mr.T.Ravi Kumar Senior Standing Counsel For Respondent : Mr.S.Sridhar Page 1/4 https://www.mhc.tn.gov.in/judis T.C.A.No.827 of 2019 J U D G M E N T (Judgment was delivered by R.MAHADEVAN, J.) This Tax Case Appeal has been filed by the appellant / Assessee challenging the order dated 11.01.2019 passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai ('the Tribunal', for brevity) in I.T.A.No.1494/Chny/2012 for the Assessment Year 2008-2009. 2.The above appeal was admitted on 03.12.2019 on the following substantial question of law : “Whether on the facts and in the circumstances of the case, the ITAT was right in law in holding that the loss from breeding activities of horses can be set off against taxable income which comprises gains from construction activity, betting activities in horse racing, without taking cognizance of the Hon'ble Madras High Court Judgment dated 22.10.2018 in T.C.A.No.1165 of 2008 in assessee's own case?” 3.When the matter was taken up for consideration, the learned Senior Standing Counsel appearing for the appellant / Revenue 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 Page 2/4 https://www.mhc.tn.gov.in/judis T.C.A.No.827 of 2019 declarations, which were accepted and Form 5 / order for full and final settlement of tax arrears, was also issued by the Income tax department, on 07.05.2021. The learned Senior Standing Counsel has also filed Form 5 dated 07.05.2021 to that effect. 4.The aforesaid submission made by the learned Senior Standing Counsel for the appellant/Revenue has also been fairly conceded by the learned counsel appearing for the respondent/assessee. 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, the Tax Case Appeal stands disposed of. No costs. (R.M.D., J.) (M.S.Q., J.) 26.08.2022 r n s

Internet : Yes.

Index : Yes / No. Page 3/4 https://www.mhc.tn.gov.in/judis T.C.A.No.827 of 2019 R. MAHADEVAN, J. and MOHAMMED SHAFFIQ, J. r n s To 1. The Income Tax Appellate Tribunal Madras 'A' Bench, Chennai. 2. The Commissioner of Income Tax, (Appeals-III), Chennai. 3. The Assistant Commissioner of Income Tax, Company Circle-I (3), Chennai - 34. T.C.A.No.827 of 2019 26.08.2022 Page 4/4 https://www.mhc.tn.gov.in/judis

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