Commissioner Of Income Tax Non Corporate Circle 10 (2) Chennai v. M/S.j.vinod Kumar Huf

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 16.12.2020 THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Commissioner of Income TaxNon Corporate Circle 10 (2)Chennai. ...Appellant/RespondentVs.M/s.J.Vinod Kumar HUF...Respondent/Appellant Tax Case Appeal filed under Section 260-A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, 'A' Bench, Chennai, dated 01.01.2020 made inI.T.A.No.3521/Chny/2018 relating to the Assessment Year 2014 –2015 against the order of the Commissioner of Income Tax(Appeals)-12, Chennai-34, made in ITA No.146/CIT(A)-12/2017-2018dated 19/11/2018 for the Assessment Year 2014-2015 against theorder of the Income Tax Officer, Non-Corporate Ward-10(2)Chennai made in PAN/GIR.No. dated 19.12.2017 for theAssessment year 2014-2015. For Appellant : Mr.M.Swaminathan For Respondent : Mr.P.HariJUDGMENT[Order of the Court was made by T.S.SIVAGNANAM, J.] This appeal has been filed by the Revenue under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity),challenging the order dated 01.01.2020 passed by the Income TaxAppellate Tribunal, 'A' Bench ('the Tribunal' for brevity) inI.T.A.No.3521/Chny/2018 for the Assessment Year 2014 - 2015. Theappeal was admitted on 31.08.2020 on the following SubstantialQuestions of Law : “1. Whether the Income Tax AppellateTribunal was right and justified in setting asidethe order passed by the assessing officer to re-examine the matter when the assessing officer hasalready duly examined the matter before passingthe assessment order? https://hcservices.ecourts.gov.in/hcservices/ 2. Whether the Income Tax AppellateTribunal was right in justified in remitting theissue back to the file of the assessing officerand shifting the onus to the Revenue with adirection that the assessing officer shall bringon record the role of the assessee in promotingthe company and the relationship of the assessee,if any with the promoters, role of the assesseein inflating the price of shares etc.” 2. We have heard Mr.M.Swaminathan, learned counselappearing for the appellant/revenue and Mr.P.Hari, learnedcounsel for the respondent/assessee. 3. It may not be necessary for this Court to decide theSubstantial Questions of Law framed for consideration on accountof certain subsequent developments. The Government of Indiaenacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of2020) to provide for resolution of disputed tax and for mattersconnected therewith or incidental thereto. The Act of theParliament received the assent of the President on 17[th] March2020 and published in the Gazette of India on 17[th] March 2020. 4. In terms of the said Act, the assessee has been given anoption to put an end to the tax disputes, which may be pendingat different levels either before the First Appellate Authorityor before the Tribunal or before the High Court or before theHon'ble Supreme Court of India. Under Section 2(j) “disputedtax” has been defined. In terms of Section 3, where a declarantmeans a person, who files a declaration under Section 4 on orbefore the last date files a declaration to the designatedauthority in accordance with the provisions of Section 4 inrespect of tax arrears, then, notwithstanding anythingcontained in the Income Tax Act or any other law for the timebeing in force, the amount payable by the declarant shall bedetermined in terms of Section 3(a-c) thereunder. 4. In terms of the said Act, the assessee has been given anoption to put an end to the tax disputes, which may be pendingat different levels either before the First Appellate Authorityor before the Tribunal or before the High Court or before theHon'ble Supreme Court of India. Under Section 2(j) “disputedtax” has been defined. In terms of Section 3, where a declarantmeans a person, who files a declaration under Section 4 on orbefore the last date files a declaration to the designatedauthority in accordance with the provisions of Section 4 inrespect of tax arrears, then, notwithstanding anythingcontained in the Income Tax Act or any other law for the timebeing in force, the amount payable by the declarant shall bedetermined in terms of Section 3(a-c) thereunder. 5. The First Proviso to Section 3 states that in case, wherean Appeal or Writ Petition or Special Leave Petition is filed bythe Income Tax authority on any issue before the AppellateForum, the amount payable shall be one-half of the amount in thetable stipulated in Section 3 calculated on such issue, in sucha manner as may be prescribed. The second proviso deals with thecases, where the matter is before the Commissioner (Appeals) orbefore the Dispute Resolution Panel. The third proviso dealswith cases, where the issue is pending before the Income TaxAppellate Tribunal. The filing of the declaration is as perSection 4 of the Act and the particulars to be furnished arealso mentioned in the Sub Sections of Section 4. Section 5 ofthe Act deals with the time and manner of the payment and Section 6 deals with Immunity from initiation of proceedings inrespect of offence and imposition of penalty in certain cases.Section 9 of the Act deals with cases, where the Act 3 of 2020will not be applicable. 6. We are informed by the learned counsel for therespondent/assessee that the assessee has already filed thedeclarations under Section 4 of the Act on 04.11.2020. 7. In the light of the fact that the assessee has alreadyavailed the benefit under the Act, no useful purpose would beserved in keeping this appeal pending. At the same time,safeguarding the interest of the assessee in the event the orderto be passed by the Department under the Act is not in favour ofthe assessee. Accordingly, the Tax Case Appeal stands disposedof on the ground that the assessee has already filed adeclaration and the Department shall process the application atthe earliest in accordance with the said Act and communicate thedecision to the assessee at the earliest. As observed, theassessee is given liberty to restore this appeal in the eventthe ultimate decision to be taken on the declarations filed bythe assessee under Section 4 of the said Act is not in favour ofthe assessee. If such a prayer is made, the Registry shallentertain the prayer without insisting upon any application tobe filed for condonation of delay in restoration of the appealand on such request made by the assessee by filing aMiscellaneous Petition for Restoration, the Registry shall placesuch petition before the Division Bench for orders. 8. With this observation, the Tax Case Appeal standsdisposed of with the aforementioned liberty and Consequently,the Substantial Questions of Law are left open. No costs. Sd/- Assistant Registrar(CS IX) //True Copy// Ssd Sub Assistant Registrar To 1.The Income Tax Appellate Tribunal, 'A' Bench, Chennai. 2.The Commissioner of Income Tax,Non-Corporate Circle 10(2),Chennai. 3.The Commissioner of Income Tax (Appeals)-12,Chennai-34. Copy to The Assisstant Registrar, A.E.Section, High Court, Madras. +1cc to Mr.M.Swaminathan, Advocate, S.R.No.41613 T.C.A.No.251 of 2020 MJB(CO)KKV/08/01/2021