M/S. Gee Gee Holdings P. Ltd vs Income Tax Officer

M. Duraiswamy, J

The appeal filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) are directed against the order dated 26.05.2016 passed by the Income Tax Appellate Tribunal "B" Bench, Chennai ('the Tribunal' for brevity) in I.T.A.No.775/Chny/2013 for the assessment year 2008-09.

The above appeal was admitted on the following Substantial Questions of Law:

"1) Whether the Appellate Tribunal was right in entertaining the issue of assessment of Rs.75,00,000/-despite the absence of ground of appeal forming part of the statutory form No.36 filed by the Revenue and accepted by the departmental representative during the course of the hearing of the appeal in 01.10.2019?

2) whether the Appellate Tribunal was within its jurisdiction in adjudicating an issue on merits despite an endorsement given by the departmental representative for not raising a ground on an issue in the capacity of the appellant before them?

3) Whether the Appellate Tribunal was correct in accepting the stand of the respondent/the Assessing Officer in bringing to tax Rs.75,00,000/- being the part of the arbitration award amount, which amount was arising from the arbitration award dated 08.04.2006 proving the sterilisation of source of income while fortifying the stand of the appellant company on treating such sum as capital receipt?

4) Whether the Appellate Tribunal was right in holding that the income of Rs.75,00,000/- had accrued during the assessment year under consideration despite the accepted position of the arbitration award dated 08.04.2006 falling within the assessment year 2007-08 while overlooking law declared consistently by the Supreme court on the principles of accrual accounting?

5) Whether the Appellate Tribunal is correct in confirming the assessment of notional interest as part of the taxable total income pertaining to the belated receipt of arbitration award amount is defying the principles of real income theory?"

We have heard Mr.M.Kaushik, learned counsel for the appellant/ assessee and Mr.Karthick Ranganathan, learned Senior Standing Counsel for the respondent/Revenue.

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.

We are informed by the learned counsel for the appellant/ assessee that the assessee had already been issued with Form - 3 on 02.03.2021 and the learned counsel for the appellant seeks permission of this Court to withdraw the appeal.

In view of the submission made by the learned counsel for the appellant, the Tax Case Appeal stands dismissed as withdrawn. No costs.