Commissioner Of Income Taxnon Corporate Circle 10(2)Chennai v. M/S J.ashok Kumar & Sonsno

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Commissioner of Income TaxNon Corporate Circle 10(2)Chennai Versus M/s J.Ashok Kumar & SonsNo.30, Market Street,Perambur,Chennai - 600 029...Respondent Prayer:- Tax Case Appeal filed under Section 260-A of the IncomeTax Act, 1961, against the order of the Income Tax AppellateTribunal, Madras 'A' Bench, Chennai, dated 29.11.2019 made inI.T.A.No.2519/Chny/2019 relating to the Assessment Year 2015-2016 against the order of the Commissioner of Income Tax(Appeals)-12 Chennai in I.T.A.No.107/CIT(A)-12/2017-2018 dated19.07.2019 for the Assessment year 2015-2016, against the orderof the Income Tax Officer, Non Corporate Ward-10(2) Chennaidated 21.12.2017 made in under Section 143(3) of the Income TaxAct 1961. 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 29.11.2019 passed by the Income TaxAppellate Tribunal, Chennai, 'A' Bench ('the Tribunal' forbrevity) in I.T.A.No.2519/Chny/2019 for the Assessment Year2015-16. The appeal was admitted on 31.08.2020 on the followingSubstantial Questions of Law: "(i) Whether the Income Tax Appellate Tribunalwas right and justified in setting aside the orderpassed by the assessing officer to re-examine the https://hcservices.ecourts.gov.in/hcservices/ matter when the assessing officer has already dulyexamined the matter before passing the assessmentorder? (ii) Whether the Income Tax Appellate Tribunalwas right in justified in remitting the issue backto the file of the assessing officer and shiftingthe onus to the Revenue with a direction that theassessing officer shall bring on record the roleof the assessee in promoting the company and therelationship of the assessee, if any with thepromotors, role of the assessee in inflating theprice of shares etc., 2. We have heard Mr.M.Swaminathan, learned counsel appearingfor the appellant/revenue and Mr.Ashok Pathy, learned counselfor the respondent/assessee for M/s Pass Associates. 3. The learned counsel for the respondent / assessee, oninstructions, submitted that the respondent / assessee intendsto avail the benefit of Vivad Se Vishwas Scheme ('VVS Scheme'for brevity) and in this regard, the assessee is taking steps tofile the application / declaration in Form No.I. 4. 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. 5. 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. 6. 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 the 6. 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 the https://hcservices.ecourts.gov.in/hcservices/ table 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 andSection 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. 7. As observed, the assessee is given liberty to restorethis appeal in the event the ultimate decision to be taken onthe declaration to be filed by the assessee under Section 4 ofthe said Act is not in favour of the assessee. If such a prayeris made, the Registry shall entertain the prayer withoutinsisting upon any application to be filed for condonation ofdelay in restoration of the appeal and on such request made bythe assessee by filing a Miscellaneous Petition for Restoration,the Registry shall place such petition before the Division Benchfor orders. 8. In the light of the above, We direct the respondent /assessee to file the Form No.I on or before 30.12.2020 and thecompetent authority shall process the application / declarationin accordance with the Act and pass appropriate orders asexpeditiously as possible preferably within a period of six (6)weeks from the date on which the declaration is filed in theproper form. 9. With this direction, the Tax Case Appeal stands disposedof with the aforementioned liberty and Consequently, theSubstantial Questions of Law are left open. No costs. -s/d- Assistant Registrar True Copy Sub-Assistant Registrar ssdTo1.The Commissioner of Income TaxNon Corporate Circle 10(2)ChennaiTo1.The Commissioner of Income TaxNon Corporate Circle 10(2)Chennai https://hcservices.ecourts.gov.in/hcservices/ 2.The Commissioner of Income Tax (Appeals)-12ChennaiChennai 3.The Income Tax OfficerNon Corporate Ward-10(2)ChennaiNon Corporate Ward-10(2)Chennai +1 Cc to Mr.M.Swaminathan, Advocate sr 41605. T.C.A.No.252 of 2020 GP(CO)SP(18/01/2021)