M/S.goldmine Investments v. The Deputy Commissioner Of Income Tax, Business Circle-1

IN THE HIGH COURT OF JUDICATURE AT Chennai DATED: 18.02.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMYANDTHE HON'BLE MRS.JUSTICE T.V. THAMILSELVI Tax Case Appeal No.235 of 2011 M/s.Goldmine Investments,No.2, Doraisamy Road,T.Nagar, Chennai - 600 017. ...Appellant /Respondentv. The Deputy Commissioner of Income Tax,Business Circle-1 ,121, Nungambakkam High Road,Chennai - 600 034. ... Respondent /Appellant Tax Case Appeal filed under Section 260A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal, Chennai 'A' Bench, Chennai, dated 19.01.2011 passedin I.T.A.No.2040/Mds/2007 for the Assessment Year 1996-97,and against the order of the Commissioner of Incoem Tax(Appeals-VI), Chennai 34, dated 25/04/2007 and made inITA.No.70/2006-07 and against the order of the DeputyCommissioner of Income Tax Circle-I, Chennai dated 30/03/2004made in PA/GIR No.AAAFG4524N/21336-G for the assessment year1996-97. For Appellant : Ms.Sriniranjani Srinivasan This appeal filed by the assessee under Section 260A ofthe Income Tax Act, 1961 ('the Act' for brevity), is directedagainst the order dated 19.01.2011 passed by the Income TaxAppellate Tribunal, Chennai 'A' Bench, Chennai ('theTribunal' for brevity) in I.T.A.No.2040/Mds/2007 for the https://hcservices.ecourts.gov.in/hcservices/ Assessment Year 1996-97. 2. The appeal was admitted on 02.12.2008 on thefollowing Substantial Question of Law: " Whether on the facts and thecircumstances of the case, the Income TaxAppellate Tribunal is right in law in conformingthe penalty of Rs.62,32,794/- under section 271(1)(c) of the Income Tax Act, relating to theaddition of Rs.1,55,81,985/- ?" 3. We have heard Ms.Sriniranjani Srinivasan, learnedcounsel for the appellant and Mr.T. Ravikumar, learnedSenior Standing Counsel for the respondent. 4. It may not be necessary for this Court to decide theSubstantial Questions of Law framed for consideration onaccount of certain subsequent developments. The Government ofIndia enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3of 2020) to provide for resolution of disputed tax and formatters connected therewith or incidental thereto. The Act ofthe Parliament received the assent of the President on 17[th]March 2020 and published in the Gazette of India on 17[th] March2020. 5. We are informed by the learned counsel for theappellant/assessee that the assessee has already filed therequisite Form 1 on 20.10.2020 under Section 4 of the Act. 4. It may not be necessary for this Court to decide theSubstantial Questions of Law framed for consideration onaccount of certain subsequent developments. The Government ofIndia enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3of 2020) to provide for resolution of disputed tax and formatters connected therewith or incidental thereto. The Act ofthe Parliament received the assent of the President on 17[th]March 2020 and published in the Gazette of India on 17[th] March2020. 5. We are informed by the learned counsel for theappellant/assessee that the assessee has already filed therequisite Form 1 on 20.10.2020 under Section 4 of the Act. 6. In the light of the fact that the assessee hasalready availed the benefit under the Act, no useful purposewould be served in keeping this appeal pending. At the sametime, safeguarding the interest of the assessee in the eventthe order to be passed by the Department under the Act is notin favour of the assessee. Accordingly, the Tax Case Appealstands disposed of on the ground that the assessee hasalready filed requisite Form 1 and the Department shallprocess the application at the earliest in accordance withthe said Act and communicate the decision to the assessee atthe earliest. As observed, the assessee is given liberty torestore this appeal in the event the ultimate decision to betaken on the declaration filed by the assessee under Section4 of the said Act is not in favour of the assessee. If sucha prayer is made, the Registry shall entertain the prayerwithout insisting upon any application to be filed foralready availed the benefit under the Act, no useful purposewould be served in keeping this appeal pending. At the sametime, safeguarding the interest of the assessee in the eventthe order to be passed by the Department under the Act is notin favour of the assessee. Accordingly, the Tax Case Appealstands disposed of on the ground that the assessee hasalready filed requisite Form 1 and the Department shallprocess the application at the earliest in accordance withthe said Act and communicate the decision to the assessee atthe earliest. As observed, the assessee is given liberty torestore this appeal in the event the ultimate decision to betaken on the declaration filed by the assessee under Section4 of the said Act is not in favour of the assessee. If sucha prayer is made, the Registry shall entertain the prayerwithout insisting upon any application to be filed for https://hcservices.ecourts.gov.in/hcservices/ condonation of delay in restoration of the appeal and on suchrequest made by the assessee by filing a MiscellaneousPetition for Restoration, the Registry shall place suchpetition before the Division Bench for orders. 7. With these observations, 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-VI) //True Copy// Sub Assistant RegistrarRj To 1. The Income Tax Appellate Tribunal, Chennai 'A' Bench, Chennai, 2. The Deputy Commissioner of Income Tax, Business Circle-1 , 121, Nungambakkam High Road, Chennai - 600 034. 3.The Commissioner of Income Tax(Appeals)-VI, 121, Mahatma Gandhi Road, Chennai-34. +1cc to Mr.T.Ravindran, Advocate SR.9626+1cc to Mr.G.Baskar, Advocate SR.9469 Tax Case Appeal No.235 of 2011 VG II(CO)CB(29/03/2021) https://hcservices.ecourts.gov.in/hcservices/