M/S.m.arunachalam And Company v. The Joint/Assistant Commissioner Of Income Tax,Business Range – Viii,Chennai – 600 006

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 29.11.2021 CORAM : THE HONOURABLE MR.JUSTICE R.MAHADEVANAND THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ TAX CASE APPEAL NO.229 OF 2017 M/s.M.Arunachalam and Company,No.117/79, Lloyds Road,Royapettah,Chennai – 600 014.PAN: ... Appellant Versus The Joint/Assistant Commissioner of Income Tax,Business Range – VIII,Chennai – 600 006. ... Respondent PRAYER:- Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Chennai "A" Bench, dated 07.04.2016 passed inI.T.A.No.1353/Mds/2015 for the Assessment Year 2010-2011. Against the Order of Commissioner of Income Tax,Appeals – 13, Nungambakkam, Chennai – 34, dated 27/03/2015 inITA:298 CIT(A)-13/2013-14 and arising out of the AssessmentOrder of Commissioner of Income Tax, Business Circle – VIII,Chennai, dated 01/03/2013 in PAN/GIR No: . For Appellant :Mr.R.SridharFor Respondent :M/s.V.PushpaJunior Standing Counsel (Judgment was delivered by R.MAHADEVAN, J.) This tax case appeal has been filed by the appellant/assessee, challenging the order dated 07.04.2016 passed by theIncome Tax Appellate Tribunal, 'A' Bench, Chennai, inI.T.A.No.1353/Mds/2015, relating to the assessment year 2010-11,by raising the following substantial questions of law:- “ 1. Whether the Appellate Tribunal iscorrect in law in confirming the disallowance ofRs.39,44,719/- for want of TDS on the applicationof section 40(a)(ia) of the Act despite theapplicability of the second proviso as well as inview of the fact of actual payment of such sum inthe previous year relating to the Assessment yearunder consideration? 2. Whether the Appellate Tribunal is correctin law in interpreting the provisions of section40(a)(ia) of the Act despite of cleavage ofopinion as well as the availability of thedecisions of the Co-ordinate Bench rendered infavour of the tax payer? 3. Whether the Appellate Tribunal is correctin law in recording the findings on theapplicability of the TDS provisions to thepayments made which were subjected to thedisallowance under section 40(a)(ia) of the Actwhich findings were recorded without theexamination of the facts? 4. Whether the Appellate Tribunal is correctin confirming the assessment of sundry creditorsbalances aggregating to Rs.17,95,370/- on thepresumption of cessation of liability despite thefact of such cessation as well as offer of suchsum in the subsequent Assessment Years? " 2. When the matter was taken up for consideration, thelearned counsel appearing for the appellant/assessee submittedthat during the pendency of this tax case appeal, the assesseehas filed the requisite Forms 1 and 2 under Section 4 of theDirect Tax Vivad Se Vishwas Act, 2020, which were accepted andForm 3 was issued to the assessee on 21.04.2021 by the IncomeTax Department. The learned counsel has also filed a memo tothat effect. https://hcservices.ecourts.gov.in/hcservices/ 3. The aforesaid submission made by the learned counsel forthe appellant/assessee has also been fairly conceded by thelearned senior standing counsel appearing for the respondent/Revenue. 4. This court heard the submissions made by the learnedcounsel on either side, as per which, the assessee has alreadyavailed the benefit conferred under the beneficial legislationviz., the Direct Tax Vivad Se Vishwas Act, 2020, enacted forresolution of disputed tax and for matter connected therewith orincidental thereto, which came into force with effect from17.03.2020; and the declarations submitted by the assessee werealso accepted and Form 3 was also issued to them by the IncomeTax Department. In view of such development, it is unnecessaryfor this court to decide the substantial questions of law arisenin this tax case appeal. 4. This court heard the submissions made by the learnedcounsel on either side, as per which, the assessee has alreadyavailed the benefit conferred under the beneficial legislationviz., the Direct Tax Vivad Se Vishwas Act, 2020, enacted forresolution of disputed tax and for matter connected therewith orincidental thereto, which came into force with effect from17.03.2020; and the declarations submitted by the assessee werealso accepted and Form 3 was also issued to them by the IncomeTax Department. In view of such development, it is unnecessaryfor this court to decide the substantial questions of law arisenin this tax case appeal. 5. Therefore, recording the submissions so made by thelearned counsel on either side, this appeal stands disposed of,directing the department to process the application at theearliest in accordance with the Act and communicate the decisionto the assessee at the earliest. No costs. Sd/-Assistant Registrar(CS IV) //True Copy// av Sub Assistant Registrar To 1. The Income Tax Appellate Tribunal, Chennai "A" Bench. 2. The Joint/Assistant Commissioner of Income Tax, Business Range VIII, Chennai – 600 006. Business Range VIII, Chennai – 600 006. 3.The Commissioner of Income Tax,Appeal – XIII, Chennai – 600 034.Appeal – XIII, Chennai – 600 034. 4.The Commissioner of Income Tax,Business Circle VIII, Coimbatore.Business Circle VIII, Coimbatore. KG(CO)PBS/28/12/2021 TAX CASE APPEAL NO.229 OF 2017