Commissioner Of Income Tax Salem v. M/S.thakadoor Spinning Mills (P) Ltd., 1-C, Ramaliga Chetty Street, Dharmapuri – 636 701

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMYANDTHE HON'BLE MRS.JUSTICE T.V. THAMILSELVI Tax Case Appeal No.419 of 2011 Commissioner of Income TaxSalem.... Appellant/AppellantVs. M/s.Thakadoor Spinning Mills (P) Ltd.,1-C, Ramaliga Chetty Street,Dharmapuri – 636 701. ...Respondent/Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Chennai "B" Bench, dated 19.04.2011 passed inI.T.A.No.258/Mds/2011 against the order of the commissioner ofIncome Tax Appeals II Coimbatore dated 14.12.10 in ITA No398/08-09 in the assessment year 2005-06. against the order of the Additional Commissioner of IncomeTax, coimbatore dated 28.7.09 CRI(44) penalty/CR/CBE 09-10 inthe assessment year 2005-2006 against the order of the Assistant Commissioner of IncomeTax Central Circle I coimbatore dated 24.12.07 PAN/GIRNo. in the assessment year 2005-06. This appeal filed by the Revenue under Section 260A of theIncome Tax Act, 1961 ('the Act' for brevity), is directedagainst the order dated 19.04.2011 passed by the Income TaxAppellate Tribunal, Chennai "B" Bench, ('the Tribunal' forbrevity) in I.T.A.No.258/Mds/2011 for the assessment year 2005- https://hcservices.ecourts.gov.in/hcservices/ 06. The above appeal has been admitted on 27.09.2011 on thefollowing Substantial Questions of Law: "1.Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in deleting the penalty under Section 271D ofRs.1,24,30,807/- levied by the Additional Commissionerof Income Tax on the ground that the assessee had madeborrowings in cash exceeding Rs.20,000/- in violationof Section 269SS, holding that the transactions weregenuine even though the assessee had not establishedany reasonable cause within the meaning of Section273B? 2.Without prejudice to the proceeding question,whether on the facts and in the circumstances of thecase, the Income Tax Appellate Tribunal was right innot making a distinction in the matter of cash loansto the extent of Rs.1.13 Crores which were depositedin the bank account and not holding that theassessee's explanation of the urgent needs to makecash payments would not be satisfied in respect of thesaid amount especially when the assessee could haveaccepted cheques and deposited the same in the bankaccounts?” 2. We have heard Mrs.V.Pushpa, learned Standing Counsel forthe appellant/Revenue and Ms.Sri Niranjani Srinivasan, 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.Learned counsel for the respondent/assessee submittedthat the assessee had availed the Vivad Se Vishwas Scheme andthat the respondent/assessee had already been issued with Form–3 on 06.01.2021.that the assessee had availed the Vivad Se Vishwas Scheme andthat the respondent/assessee had already been issued with Form–3 on 06.01.2021. https://hcservices.ecourts.gov.in/hcservices/ 5.Since the respondent/assessee had been issued with Form-3,nothing survives for adjudication in the above appeal.Recording the submission made by the learned counsel for therespondent/assessee, the Tax Case Appeal stands disposed of. Nocosts. Sd/- Assistant Registrar /TRUE COPY/ Sub-Assistant Registrar mkn To 1.The Income Tax Appellate Tribunal, Chennai "B" Bench 2.The Commissioner of Income Tax Appeals II, Coimbatore. https://hcservices.ecourts.gov.in/hcservices/ 5.Since the respondent/assessee had been issued with Form-3,nothing survives for adjudication in the above appeal.Recording the submission made by the learned counsel for therespondent/assessee, the Tax Case Appeal stands disposed of. Nocosts. Sd/- Assistant Registrar /TRUE COPY/ Sub-Assistant Registrar mkn To 1.The Income Tax Appellate Tribunal, Chennai "B" Bench 2.The Commissioner of Income Tax Appeals II, Coimbatore. 3.The Assistant Commissioner of Income Tax, Central Circle I, Coimbatore.4.The Additional Commissioner of Income Tax, Coimbatore.5.The Commissioner of Income Tax, Salem.+1cc to MR.G.BASKAR, ADVOCATE, SR.NO. 18840+1CC TO MR.M.SWAMINATHAN, ADVOCATE, SR.NO. 18939Tax Case Appeal No.419 of 201123.03.2021MGKKN 17.04.2021