Principal Commissioner of Income Tax-6 V. M/s. Chillara Kalyan

ITTA/351/2019

AI Insights

The case involves an appeal by the Principal Commissioner of Income Tax-6, Hyderabad against Sri Chillara Kalyan concerning an income tax liability linked to an arbitration award. The dispute centered on the acceptance of a Rs. 7.00 crores liability by the ITAT, which was originally part of an arbitration award confirmed by the High Court and settled by the Supreme Court. The Assessee had already made the payment, and the proof was submitted, leading the ITAT to uphold the liability without further contest. The High Court, upon reviewing the matter, found no reason to overturn the ITAT's decision and thus closed the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 684527 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 01-11-2023
• Assessment Year: misc
• Other Referred Cases: S.L.A.Nos.2B604 and 2g605 of 2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHALLA GUNARANJAN
• Assessee Lawyers: J V PRASAD; K RAJI REDDY
• Keywords: Arbitration award; High Court; Income Tax; Supreme Court; Payment Liability
• Section: 260-4

Judgement Text

"I 3386I IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY, THE FIRST DAY OF NOVEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETW INCOME TAX TRIBUNAL APPEAL No: 351 of 2019 lncome Tax Tribunal Appeal Under Section 260,4 of the lncome Tax Act, 1961 arising out of the order of the lncome Tax Appellate Tribunal, Hyderabad Bench ' A ' Hyderabad in l.T.A. No.137lHyd/20'16, for assessment Year 2010-11 dated:31-01-2019 prefered against the Order of the Commissioner of lncome Tax (Appeals)-6, Hyderabad ITA No.1513/2014-15lClT (A)-6/15-16, dated:13-1 1-20'15, preferred against the Order of the Assistant Commissioner of lncome-Tax, Circle- 13('l ), Hyderabad PAN/GIR No. ACSPC 2026Q dated 28-03-2014. Between: Principal Commissioner of lncome Tax-6, Hyderabad. ...Appellant AND Sri Chillara Kalyan, Plot No.332, House No.G1, Somnath Residency, Phase-lll, Kamalapuri Colony, Hyderabad. ...Respondent Counsel for the Appellant: SRI J.V. PRASAD, SC FOR INCOME TAX appearing for SRI K. RAJI REDDY, Sr. SC FOR lT DEPARTMENT Counsel for the Respondent: SRI CHALLA GUNARANJAN The Court delivered the following: JUDGMENT I f THE HON'BLE SRI WSTICE P.SAM KOSI{Y AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY I.T.T.A. No. 351 of2019 WDGMENT:(per Hon'bte Si Justice P.SAM KOSHfl) Heard Sri J.V. Prasad, learned Senior Standing Counsel appearing for the appellant and Sri Challa Gunaranjan, learned counsel appearing for the respondent. 2. The challenge in the present appeal is primarily questioning the order of the ITAT in aflirming the order of CIT (appeals) in accepting the subsisting liability on the Assessee, so far as return of Rs.7.OO crores is concerned, even when the Assessee did not in fact return the amount. The said amount of Rs.7.O0 crores was a payment to be made in terms of the arbitration award, which has been affirmed even in appeal by the High Court and which now has also been settled before the Hon'ble Supreme Court in S.L.A.Nos.2B604 and 2g605 of 2OLg, decided on 1O.O4.2O22. 3. In view of the fact that the Assessee has been ordered to pay Rs.7.O0 crores to the developer and the same has already been paid by the Assessee and the proof of payment is also brought on record, hence, the finding of the ITAT does not t I 2 warrant any interference' Therefore, nothing remains in the matter for adjudication. Accordingly, the appeal is closed' There shall be no order as to costs. Consequently, miscellaneous petitions pending' if any' shall stand closed. //TRUE COPY// \"''is'':::?n_ To, 1. The lncome Tax Appellate Tribunal' Hyderabad Bench 'A'Hyderabad ,. iii; C;fussionei of lncome Tax (Appeals)-6' Hvderabad' i. in\" n..i.t, ni Comm issionei of I ncomb-Tax, Circle- _1 3( 1 ), HVd9r9^b9!r^. 4. ONE CC tO SRI K. RAJI NiOOV, ST. SC FOR IT DEPARTMENT TOPUCI ;. o;; cc i\" sdr cHALLA GUNARANJAN' Advocate [oPUc] 6. Two CD CoPies N\"'- kam HIGH COURT PSK, J & LNA, J DATED:0111112023 JUDGMENT !TTA.No.3S1 of 2019 THE APPEAL IS CLOSED 5 1k 'i STAf€ o k ($ (' z o t) 1 i DEI 2023 E,J * !'. i r.diCk .1 N ^{) i I i ''' i l i i I t t t "