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Madras High Court

M/S.Chettinad Logistics (P) Ltd vs The Assistant Commissioner Of Income ... on 25 August, 2022

Author: R. Mahadevan

Bench: R. Mahadevan, Mohammed Shaffiq

                                                                                T.C.A.No.58 of 2017


                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATED 25.08.2022

                                                      CORAM

                                    THE HON'BLE Mr. JUSTICE R. MAHADEVAN
                                                       AND
                                  THE HON'BLE Mr. JUSTICE MOHAMMED SHAFFIQ

                                                T.C.A.No.58 of 2017


                M/s.Chettinad Logistics (P) Ltd.
                5th Floor, Rani Seethai Hall
                603, Anna Salai
                Chennai 600 006
                PAN : AABCC4551C                                                  .. Appellant

                                                        Vs.

                The Assistant Commissioner of Income Tax
                Company Circle-I(3)
                Chennai                                                          .. Respondent

                          Tax Case Appeal filed under Section 260-A of the Income Tax Act, 1961,
                against the order dated 07.06.2016 passed by the Income Tax Appellate
                Tribunal 'B' Bench, Chennai, in I.T.A.No.1388/Mds/2015.


                                     For Appellant    Mr.S.Sridhar

                                     For Respondent   Mr.T.Ravikumar
                                                      Senior Standing Counsel

https://www.mhc.tn.gov.in/judis

                1/4
                                                                                       T.C.A.No.58 of 2017




                                                    JUDGMENT

(Judgment was delivered by R. MAHADEVAN, J.) This Tax Case Appeal arises from the order dated 07.06.2016 passed by the Income Tax Appellate Tribunal 'B' Bench, Chennai, in I.T.A.No. 1388/Mds/2015, relating to the assessment year 2010-11, by raising the following substantial questions of law:

“(i) Whether the Appellate Tribunal is correct in law in rejecting the claim of slump sale of the windmill division/undertaking/unit under the MOU dated 11.12.2009 within the scope of Section 2(19AA) r/w section 2(42C)/50B of the Act while sustaining the computation of Long Term Capital Gains as per Section 48 and further as per Section 50 of the Act thereby proceeding to assess the surplus from the transfer of assets as transfer of individual assets?
(ii) Whether the Appellate Tribunal is correct in law in sustaining the rejection of the claim of slump sale despite the transfer of project assets of the windmill division/undertaking/unit would constitute a business activity as per the definition of the undertaking in explanation (1) to Section 2(19AA) of the Act r/w Section 2(42C) of the Act?"
2. When this matter was taken up for consideration, the learned counsel appearing for the appellant/assessee submitted that during the pendency of this tax case appeal, the assessee has availed the benefit conferred under the Direct https://www.mhc.tn.gov.in/judis 2/4 T.C.A.No.58 of 2017 Tax Vivad Se Vishwas Act, 2020, and filed necessary 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 07.12.2021.
3. The aforesaid submission made by the learned counsel for the appellant/assessee has also been fairly conceded by the learned Standing Counsel appearing for the respondent/Revenue.
4. 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                                                            25.08.2022

                To
1.The Assistant Commissioner of Income Tax Company Circle-I(3), Chennai
2. The Commissioner of Income Tax (Appeals)-I Chennai
3.The Income Tax Appellate Tribunal 'B' Bench, Chennai https://www.mhc.tn.gov.in/judis 3/4 T.C.A.No.58 of 2017 R. MAHADEVAN, J.
AND MOHAMMED SHAFFIQ, J.
gya T.C.A.No.58 of 2017 25.08.2022 (1/2) https://www.mhc.tn.gov.in/judis 4/4