Health And Glow Retailing Private Ltd., Bangalore v. The Assistant Commissioner Of Income Tax, Corporate Circle 2(2), Chennai-34

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 10.12.2020 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMand THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.477 of 2019 Health and Glow Retailing PrivateLtd., Bangalore...AppellantVs The Assistant Commissioner of Income Tax, Corporate Circle 2(2), Chennai-34....Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 14.2.2019 passed by the Income TaxAppellate Tribunal, Madras 'C' Bench, Chennai made inI.T.A.No.1784/Chny/2018 for the assessment year 2010-11 againstthe order of the Commissioner of Income Tax (Appeals)-13. 121,Mahatma gandhi Road, Chennai - 600034, dated 06/03/18I.T.A.No.233/CIT(A)-13/2010-11 PAN. , for the Assesmentyear 2010-11, and against the order of the AssistantCommissioner of Income tax, Corporate Circle-2(2), Chennai-600034dated31/12/2014PAN/GIR/No.AAACR4742BDistrict/Ward/Circle/Corporate Circle 2 (2) status DomesticCompany for the Assesment Year 2010-11 and against the order ofthe Deputy Commissioner of Income Tax Company Circle II(2),RoomNo.512, Wanapathy Block, 121, M.G.Road, Nungambakkam Chennai -34 dated 25/03/13 PAN/GIR. , Ward CIT Company Circle II(2) Status-Company for the Assesment Year 2010-11. . This appeal, filed by the assessee under Section 260A ofthe Income Tax Act, 1961 ('the Act' for brevity), is directedagainsttheorderdated14.2.2019madeinI.T.A.No.1784/Chny/2018 on the file of the Income Tax AppellateTribunal, Chennai, 'C' Bench ('the Tribunal' for brevity) forthe assessment year 2010-11. https://hcservices.ecourts.gov.in/hcservices/ 2. The appeal was admitted on 19.7.2019 on the followingsubstantials question of law: “i. Whether, in the facts andcircumstances of the case and in law, theTribunal's order passed without entertainingthe adjournment request of the appellant andaffording an opportunity of hearing is inviolation of the principles of naturaljustice and therefore deserves to be sestaside? ii. Whether, in the facts andcircumstances of the case and in law, theTribunal was right in upholding thereassessment order passed by the respondentunder Section 147 of the Act, although therewas no fresh tangible material necessitatingthe reopening of assessment and it was acase of change of opinion? Andiii. Whether, in the facts andcircumstances of the case and in law, theTribunal was correct in upholding thedisallowance of provision for bad anddoubtful debts and advances, although theywere written off as irrecoverable andtherefore allowable as a deducion as held bythe Hon'ble Supreme Court?” 3. We have heard the learned counsel appearing for theappellant/assessee and Mr.Karthik Ranganathan, learned StandingCounsel assisted by Mr.S.Rajesn, learned Junior Standing Counselappearing on behalf of the respondent/Revenue. 4. The learned counsel for the appellant/assessee, oninstructions, submits that the assessee intends to avail thebenefit of Vivad Se Vishwas Scheme ('VVS Scheme' for brevity)and in this regard, the assessee is taking steps to file theapplication/ declaration in Form No.I. 5. 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. 6. 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 Authority https://hcservices.ecourts.gov.in/hcservices/ 5. 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. 6. 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 Authority https://hcservices.ecourts.gov.in/hcservices/ or 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. 7. The First Proviso to Section 3 states that in case,where an appeal or writ petition or special leave petition isfiled by the Income Tax authority on any issue before theAppellate Forum, the amount payable shall be one-half of theamount in the table stipulated in Section 3 calculated on suchissue, in such a manner as may be prescribed. The Second Provisodeals with the cases, where the matter is before theCommissioner (Appeals) or before the Dispute Resolution Panel.The Third Proviso deals with cases, where the issue is pendingbefore the Income Tax Appellate Tribunal. The filing of thedeclaration is as per Section 4 of the Act and the particularsto be furnished are also mentioned in the Sub-Sections ofSection 4. Section 5 of the Act deals with the time and mannerof the payment and Section 6 deals with immunity from initiationof proceedings in respect of offence and imposition of penaltyin certain cases. Section 9 of the Act deals with cases, wherethe Act 3 of 2020 will not be applicable. 8. 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. 9. In the light of the above, we direct theappellant/assessee to file Form No.I on or before 28.12.2020 andtheCompetentAuthorityshallprocesstheapplication/declaration in accordance with the Act and passappropriate orders as expeditiously as possible preferablywithin a period of six (6) weeks from the date, on which, thedeclaration is filed in the proper form. 10. With this direction, the tax case appeal standsdisposed of with the aforementioned liberty and Consequently,the substantial questions of law framed are left open. No costs. Sd/- Assistant Registrar(CS VIII) //True Copy// Sub Assistant Registrar RSTo1.The Income Tax Appellate Tribunal, 'C' Bench, Chennai.2.The Assistant Commissioner of Income Tax, Corporate Circle 2(2),Chennai-34.+1cc to Mr.King & Partridge, Advocate, S.R.No.40615T.C.A.No.477 of 2019AD(CO)KKV/31/12/2020