M/S.VISWAMS vs. THE DEPUTY COMMISSIONER OF I

Tax Case Appeal Nos.904 and 905 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 24.06.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMY AND THE HON'BLE MRS.JUSTICE R. HEMALATHA Tax Case Appeal Nos.904 and 905 of 2019 M/s.Viswams 176F, Trivandrum Road, Tirunelveli – 627 003.

... Appellant in all appeals Vs.

The Deputy Commissioner of Income Tax, Central Circle – IV(1), Chennai. ... Respondent in all appeals

Tax Case Appeals in T.C.A.Nos.904 and 905 of 2019 filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Chennai "B" Bench, dated 28.08.2015 passed in I.T.A.Nos.1777/Mds/2014 and 1778/Mds/2014 respectively. For Appellant : Mr.R.Venkata Narayanan for M/s.Subbaraya Aiyar Padmanabhan in all appeals For Respondent : Mr.M.Swaminathan Senior Standing Counsel and Ms.V.Pushpa, Standing Counsel in all appeals Page 1/7 Tax Case Appeal Nos.904 and 905 of 2019 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 28.08.2015 passed by the Income Tax Appellate Tribunal, Chennai "B" Bench, ('the Tribunal' for brevity) in I.T.A.Nos.1777/Mds/2014 and 1778/Mds/2014 for the assessment years 2006-07 and 2007-08 respectively. The above appeals were admitted on 18.11.2019 on the following substantial questions of law : T.C.A.No.904 of 2019 : “1.Whether on the facts and circumstances of the case and in law the assessment made u/s.153A r.w.s.153C of the Act is valid in the absence of any incriminating material discovered in the course of search? 2.Whether on the facts and circumstances of the case, the Tribunal was right in law in rejecting the valuation of closing stock consistently followed by the appellant at “cost or realisable value whichever is less” ? Page 2/7 Tax Case Appeal Nos.904 and 905 of 2019 3.Whether on the facts and circumstances of the case, the Tribunal was right in law in holding that appellant has changed the valuation of closing stock consequent to search without appreciating that the return of income for Assessment Years 2006-07 to 2008-09 were filed much earlier to date of search viz 18.12.2009 when the value of closing stock and income admitted in the returns filed prior to after the search were the same ? 4.Whether on the facts and circumstances of the case, the Tribunal erred in not appreciating that the appellant had valued the unsold stock by discounting the purchase price of fixed percentage considering the age of stock and their realisability which was consistently followed every year? 5.Whether on the facts and circumstances of the case, the Tribunal erred in not appreciating that there is no income escaping since the actual sale value gets captured in the year of sale?” T.C.A.No.905 of 2019 : “1.Whether on the facts and circumstances of the case, the Tribunal was right in law in rejecting the valuation of closing stock consistently followed by the Page 3/7 Tax Case Appeal Nos.904 and 905 of 2019 appellant at “cost or realisable value whichever is less” ? 2.Whether on the facts and circumstances of the case, the Tribunal was right in law in holding that appellant has changed the valuation of closing stock consequent to search without appreciating that the return of income for Assessment Years 2006-07 to 2008-09 were filed much earlier to date of search viz 18.12.2009 when the value of closing stock and income admitted in the returns filed prior to after the search were the same ? 3.Whether on the facts and circumstances of the case, the Tribunal erred in not appreciating that the appellant had valued the unsold stock by discounting the purchase price of fixed percentage considering the age of stock and their realisability which was consistently followed every year? 4.Whether on the facts and circumstances of the case, the Tribunal erred in not appreciating that there is no income escaping since the actual sale value gets captured in the year of sale?” Page 4/7 Tax Case Appeal Nos.904 and 905 of 2019 2. We have heard Mr.R.Venkata Narayanan for M/s.Subbaraya Aiyar Padmanabhan, learned counsel for the appellant/assessee and Mr.M.Swaminathan, learned Senior Standing Counsel and Ms.V.Pushpa, 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 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 23.04.2021 and the learned counsel for the appellant seeks permission of this Court to withdraw the above appeals. Page 5/7 Tax Case Appeal Nos.904 and 905 of 2019 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.] 24.06.2021 (2/2)

Index : Yes/No

Internet : Yes

mkn To 1. Income Tax Appellate Tribunal, Chennai "B" Bench 2.The Deputy Commissioner of Income Tax, Central Circle – IV(1), Chennai. Page 6/7 Tax Case Appeal Nos.904 and 905 of 2019 M. DURAISWAMY, J. and R. HEMALATHA, J. mkn T.C.A. Nos.904 and 905 of 2019

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