Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 1287 - HC - Income TaxEnhanced book profit towards profit u/s 10A by way of exclusion of receipt and expenses of the unit - AO also made disallowances of indexation benefit against long term capital gain on the sale of shares - company in question was in liquidation and was not in a position to pay its outstanding dues including its taxes - CIT (A) allowed the appeal of the assessee by holding that the proviso to Section 73A is not applicable to assessee company in respect of indexation benefit against long term capital gains and deleted the addition by holding that no deduction was claimed u/s 10A - HELD THAT:- A perusal of the aforesaid order of Apex Court in Civil Appeal[2020 (7) TMI 760 - SC ORDER] makes it clear that the respondent company Moser Baer India Ltd. is not financially viable and is in liquidation before NCLT. The order also makes it clear that even if the Revenue were to succeed, the Official Liquidator would not be in a position to pay the tax amount involved in these appeals. Thus, even if the appellant-department succeeds in the present appeal, there would be no fructifying effect as the respondent company, which is under liquidation, would not be able to discharge its debts and tax liability through the liquidator. The courts are already overburdened. Thus, while dealing with such matters, it has to be seen whether keeping such matters alive would serve any purpose. If such matters continue to remain on board, they would rather block other deserving matters. There is no purpose of flogging a dead horse. We are of the view that there is no purpose in keeping this matter alive. Hence, in view of peculiar facts and circumstances, the report filed by the department and the order passed by the Apex Court we dispose of the present appeal, leaving the question of law open to be decided in an appropriate case.
|