M/S Virgo Properties Pvt., Ltd.,New v. The Assistant Commissioner Of Income Tax,Corporate Circle 3(2)Chennai - 600 034

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN M/s Virgo Properties Pvt., Ltd.,New No.5, Old No.3, Plaza House, Thirumurthy Street,T.Nagar, Chennai - 600 017 ..Appellant Versus The Assistant Commissioner of Income Tax,Corporate Circle 3(2)Chennai - 600 034 ..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,ChennaimadeinI.T.A.No.1208/MDS/2017 dated 31.07.2017 relating to theAssessment Year 2011-2012. Appeal against the order passed bythe Commissioner of Income Tax, (Appeals)-II, Chennai-600 034,dated 27.03.2017 made in ITA NO.234/2015-16/CIT(A)-II for theAssessment year 2011-12 against the order of assessment dated19.03.2014 with PAN NO. . For Appellant: Mr.A.S.SriramanFor Respondent : Mrs.V.Pushpa This appeal has been filed by the Appellant/Assessee underSection 260 A of the Income Tax Act, 1961 ('the Act' forbrevity), is directed against the order dated 13.07.2017 passedby the Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai('the Tribunal' for brevity) in I.T.A.No.1208/Mds/2017 for theAssessment Year 2011-2012. This appeal was admitted on06.06.2018 on the following Substantial Questions of Law:“Whether the Income Tax Authorities substantiallyerred in law in interpretation of the scope of Section115 JB of the Income Tax Act in enhancing book profitsfor taxation in rectification proceedings initiated https://hcservices.ecourts.gov.in/hcservices/ and completed under Section 154 of the Income Tax Act,1961?" 2. We have heard Mr.A.S.Sriraman, learned counsel appearingfor the Appellant/assessee and Mrs.V.Pushpa, learned counsel forthe respondent / revenue. 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. 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. 4. 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. 5. 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 thetable 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. appellant / Assessee that the assessee has already filed thedeclaration under Section 4 of the Act on 28.08.2020. 7. In the light of the fact that the assessee has alreadyavailed the benefit under the Act, no useful purpose would beserved in keeping these appeals pending. At the same time,safeguarding the interest of the assessee in the event the orderto be passed by the Department under the Act is not in favour ofthe assessee. Accordingly, the Tax Case Appeal stand disposed ofon the ground that the assessee has already filed a declarationand the Department shall process the application at the earliestin accordance with the said Act and communicate the decision tothe assessee at the earliest. As observed, the assessee is givenliberty to restore these appeal in the event the ultimatedecision to be taken on the declaration filed by the assesseeunder Section 4 of the said Act is not in favour of theassessee. If such a prayer is made, the Registry shall entertainthe prayer without insisting upon any application to be filedfor condonation of delay in restoration of the appeals and onsuch request made by the assessee by filing a MiscellaneousPetition for Restoration, the Registry shall place such petitionbefore the Division Bench for orders. 8. 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 VIII)//True Copy// Sub Assistant Registrar To1. The Income Tax Appellate Tribunal,'A' Bench, Chennai. 2. The Assistant Commissioner of Income Tax,Corporate Circle 3(2),Chennai-600 034. 3. The Commissioner of Income Tax,(Appeals)-II,Chennai-600 034. +1cc to Mr.M.Swaminathan, Advocate, S.R.No.41612 cb(CO)rv(05/02/2021) https://hcservices.ecourts.gov.in/hcservices/