Commissioner Of Income Tax,Chennai v. M/S.precot Meridian Ltd.,“Suprem”

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 08.04.2021 CORAMTHE HON'BLE MR.JUSTICE M.DURAISWAMYANDTHE HON'BLE MRS.JUSTICE R.HEMALATHA Tax Case Appeal No.777 of 2014 Commissioner of Income Tax,Chennai. ...Appellant Vs. M/s.Precot Meridian Ltd.,“Suprem” 737, GreenFields,Pullakulam Road,Coimbatore – 641 045....Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras “A” Bench, dated 08.05.2013 passed inI.T.A.No.1562/Mds/2012.Preferred against the order of the IncomeTax Appeallate Tribunal “A” Bench, dated 08.05.2013 made in ITANo.1562/Mds/2012 for the Assessment year 1994-1995 preferredagainst the order of the Commissioner of Income Tax (Appeals)-I,Coimbatore dated 04.05.2012 made in Appeal No.28/11-12 preferredagainst the order of the Deputy Commissioner of Income Taxcircle-I(2) Coimbatore dated 01.04.2011 made in PANNo.AABCP3038K. For Appellant : Mr.T.R.Senthil Kumar Senior Standing Counsel For Respondent : Mr.S.Sridhar The above appeal filed by the Department under Section 260Aof the Income Tax Act, 1961 ('the Act' for brevity), is directedagainst the order dated 08.05.2013 passed by the Income TaxAppellate Tribunal, Madras “A” Bench, Chennai ('the Tribunal'for brevity) in I.T.A.No.1562/Mds/2012 for the Assessment Year https://hcservices.ecourts.gov.in/hcservices/ 1994-95. The above appeal was admitted on 25.09.2014 on thefollowing substantial questions of law : “1.Whether under the facts and circumstances ofthe case, the Income Tax Appellate Tribunal was rightin holding that for charging of interest under theprovisions of Section 220(2) the period for reckoningof interest has to be taken from the date of passingof the fresh assessment order? 2.Whether under the facts and circumstances ofthe case, the Income Tax Appellate Tribunal was rightin law in not accepting the fact that where theassessment made originally by the assessing officer iseither varied or even set aside by the appellateauthority but on further appeal, the original order isrestored either in part or in full, interest ispayable under Section 220(2) is required to becomputed with reference to the due date reckoned fromthe original demand notice and the quantum of whichthe tax is payable is to be reckoned with reference tothe tax finally determined? 3.Whether under the facts and circumstances ofthe case, the Income Tax Appellate Tribunal was rightin law in not considering the circular issued by theCentral Board of Direct Taxes with reference tocharging of interest under Section 220(2) whereassessment is set-aside/cancelled and determinedthrough an order giving effect to the appellateorder?” 2. We have heard Mr.T.R.Senthil Kumar, learned SeniorStanding Counsel for the appellant/ Revenue and Mr.S.Sridhar,learned Counsel 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. We are informed by the learned counsel for therespondent/assessee that the assessee has already filed therequisite Forms 1 & 2 on 16.11.2020 under Section 4 of the Act. 5. 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 order 4. We are informed by the learned counsel for therespondent/assessee that the assessee has already filed therequisite Forms 1 & 2 on 16.11.2020 under Section 4 of the Act. 5. 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 order to 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 therequisite Forms 1 & 2 and the Department shall process theapplication at the earliest in accordance with the said Act andcommunicate the decision to the assessee at the earliest. Asobserved, the assessee is given liberty to restore this appealin the event the ultimate decision to be taken on thedeclaration filed by the assessee under Section 4 of the saidAct is not in favour of the assessee. If such a prayer is made,the Registry shall entertain the prayer without insisting uponany application to be filed for condonation of delay inrestoration of the appeal and on such request made by theassessee by filing a Miscellaneous Petition for Restoration, theRegistry shall place such petition before the Division Bench fororders. 6. 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-VII) //True Copy// Sub Assistant Registrar mkn To 1. The Income Tax Appellate Tribunal, Madras “A” Bench 2. The Commissioner of Income Tax (Appeals)-I Chennai.3. The Deputy Commissioner of Income Tax Circle I(2), Coimbatore. +1cc to Mr.T.R.Senthilkumar, Advocate, S.R.No.22089+1cc to Mr.S.Sridhar, Advocate, S.R.No.22349 Tax Case Appeal No.777 of 2014 GSM(CO)RGA(09/08/2021)