Disposed

M/S Virgo Properties P Ltd., v. the Assistant Commissioner

Madras HC7 Jan 2021TCA/103/2018

Case brief

AI extract

What is this about?

The High Court disposed of a tax case appeal under Section 260A Income Tax Act due to the assessee filing under the Vivad Se Vishwas Scheme. The court granted liberty to restore the appeal contingent on the outcome of the scheme claim, otherwise leaving the substantial questions of law open.

What did the court decide?

Liberty granted to restore appeal if scheme decision unfavorable; otherwise questions of law left open.

M/S Virgo Properties P Ltd., Vs the Assistant Commissioner — Income Tax | Madras HC (2021)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 07.1.2021

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CORAM

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THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MS.JUSTICE R.N.MANJULA

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Tax Case Appeal No.103 of 2018

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M/s.Virgo Properties P. Ltd., Chennai-17 ...Appellant Vs The Assistant Commissioner of Income Tax, Corporate Circle 3(2), Chennai-34 ...Respondent

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APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 31.7.2017 passed by the Income Tax Appellate Tribunal, Madras 'B' Bench, Chennai made in I.T.A.No.741/Mds/2016 for the assessment year 2012-13,

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against the order of the commissioner of Income Tax Appeals II chennai 34 dated 28/12/2015 in ITA.No.434/2014-15/CIT (A) II in the assessment year 2012-13

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against the order of the Income Tax department dated 19.03.2015 GIR No.PAN AABCV9182A in the assessment year 2012-13.

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For Appellant: Mr.A.S.Sriraman For Respondent: Ms.V.Pushpa, JSC

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Judgment was delivered by T.S.SIVAGNANAM,J

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This appeal has been filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) challenging the order dated 31.7.2017 made in I.T.A.No.741/Mds/2016 on the file of the Income Tax Appellate Tribunal, Chennai, 'B' Bench ('the Tribunal' for brevity) for the assessment year 2012-13.

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The assessee has filed this appeal by raising the following substantial questions of law :

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“i. Whether the interpretation of the provisions of Section 115JB of the Act is correct in so far as the inclusion of

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https://hcservices.ecourts.gov.in/hcservices/

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capital gains/profits in the quantification of book profits for taxation ? And

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ii. Whether the interpretation of Section 115JB of the Act so as to exclude the capital gains profit from the book profit computation given by various courts including this Court is validly and correctly followed by the Appellate Tribunal despite the decisions rendered/cited by the appellant were subsequent to the decision followed in the impugned order?”

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We have heard Mr.A.S.Sriraman, learned counsel for the appellant/assessee and Ms.V.Pushpa, learned Junior Standing Counsel appearing for the respondent/Revenue.

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The learned counsel for the assessee submits that the assessee already filed the declaration/undertaking under the Vivad Se Vishwas Scheme and orders were passed on 31.12.2020 in Form No.3.

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In the light of the subsequent event, the assessee is given liberty to restore this appeal in the event the ultimate decision taken on the declaration filed by the assessee under Section 4 of the said Act is not in favour of the assessee. If such a prayer is made, the Registry shall entertain the prayer without insisting upon any application to be filed for condonation of delay in restoration of the appeal and on such request made by the assessee by filing a miscellaneous petition for restoration, the Registry shall place such petition before the appropriate Division Bench for orders.

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The tax case appeal stands disposed of with the aforementioned liberty. Consequently, the substantial questions of law raised are left open. No costs.

Sd/-

Assistant Registrar

//True Copy//

Sub Assistant Registrar

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RS To

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1.The Income Tax Appellate Tribunal,

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'B' Bench, Chennai.

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2.The Assistant Commissioner of Income Tax, Corporate Circle 3(2),

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Chennai-34

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https://hcservices.ecourts.gov.in/hcservices/

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3.The Commissioner of Income Tax Appeals II, Chennai 34.

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Copy to

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The Section Officer, Judicial Section,

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High Court Madras.

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+2ccs to Mr.Swaminathan, Advocate, Sr.No.1432 & 1325

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TCA.No.103 of 2018
MG(CO)
RMP(27/01/2021)

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https://hcservices.ecourts.gov.in/hcservices/

M/S Virgo Properties P Ltd., v. the Assistant Commissioner

Case brief

What is this about?

What did the court decide?

M/S Virgo Properties P Ltd., v. the Assistant Commissioner

Case brief

What is this about?

What did the court decide?

What the court decided

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