Mrs.vidya Reddy v. The Income Tax Officer, International Taxation Ward 1(2)

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 29.03.2021 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Ms.Justice R.N.MANJULA Tax Case Appeal No.827 of 2018 Mrs.Vidya Reddy,Represented by Power of Attorneyholder, Mr.V.K.Jhaver,18/19/Bawa Road,Alwarpet, Chennai - 600 018. ...AppellantVs The Income Tax Officer,International Taxation Ward 1(2),121, Uttmar Gandhi Road,Nungambakkam,Chennai - 600 006....Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 15.05.2018 made in ITA.No.2016/Chny/2017 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe assessment year 2014-15 and Appeal against the order dated05/06/2017 made in PAN No. on the file of the ITANos.105/CIT (A)-16/14-15 and against the order dated 28/12/2016ITO(International Taxation)-ward 1(2)chennai for the assessmentyear 2014-15. JUDGMENT(Delivered by T.S.Sivagnanam,J)This appeal has been filed by the assessee under Section260A of the Income Tax Act, 1961 ('the Act' for brevity)challengingtheorderdated15.05.2018madeinITA.No.2016/Chny/2017 on the file of the Income Tax AppellateTribunal, Chennai 'D' Bench ('the Tribunal' for brevity) for theassessment year 2014-15. https://hcservices.ecourts.gov.in/hcservices/ 2. The appeal was admitted on 23.11.2019 on the followingsubstantial questions of law: "1. Whether the Tribunal was right inholding that the amount of Rs.45,79,550/- isnot exempt under Sec 10(38) of the Income TaxAct, 1961? 2. Whether the Tribunal erred on holdingthat the provisions of Sec 68 are attractedin the instant case when the assessee hasfully discharged the onus of proof? 3. Whether the Tribunal is not correctin not adhering to the judicial discipline byignoring orders of the Co-ordinate Benches ofKolkata benches and also the Madras bencheswhere the identical transaction has beenaccepted and in some cases remanded back totheassessingofficerforfurtherinvestigation? 4. Whether the Tribunal was right in notexercising its discretion to restore thematter to the files of the lower authoritiesto give opportunity of being heard in respectof the material gathered behind the back ofthe assessee which have no live nexus orcasual connection with the appellant?" 3. We have heard Mr.V.S.Jayakumar, learned counsel for theappellant-assessee and Mr.R.Karthik Ranganathan, learned SeniorStanding Counsel appearing for the respondent-Revenue. 4. The learned counsel for the appellant-assessee submitsthat the assessee has already filed the declaration/undertakingunder the Vivad Se Vishwas Scheme and is awaiting orders to bepassed in Form No.3. 5. In the light of the subsequent event, the CompetentAuthority shall process the application/declaration inaccordance with the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3of 2020) and pass appropriate orders as expeditiously aspossible. 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 appropriateDivision Bench for orders. 6. The tax case appeal stands disposed of with theaforementioned liberty and consequently, the substantialquestions of law framed are left open. No costs. Sd/- Assistant Registrar /TRUE COPY/ Sub-Assistant Registrar hvk To1. The Income Tax Appellate Tribunal, 'D' Bench, Chennai. 2. The Commissioner of Income Tax(Appeals)-16, Chennai. 3. The Income Tax Officer, International Taxation Ward 1(2), 121, Uttmar Gandhi Road, Nungambakkam, Chennai - 600 006. +1cc to Mr.VS.JAYAKUMAR, ADVOCATE, SR.NO. 20508 6. The tax case appeal stands disposed of with theaforementioned liberty and consequently, the substantialquestions of law framed are left open. No costs. Sd/- Assistant Registrar /TRUE COPY/ Sub-Assistant Registrar hvk To1. The Income Tax Appellate Tribunal, 'D' Bench, Chennai. 2. The Commissioner of Income Tax(Appeals)-16, Chennai. 3. The Income Tax Officer, International Taxation Ward 1(2), 121, Uttmar Gandhi Road, Nungambakkam, Chennai - 600 006. +1cc to Mr.VS.JAYAKUMAR, ADVOCATE, SR.NO. 20508 TCA.No.827 of 2018AJB(CO)KKN 30.04.2021