M/S.srinivasa Foundation v. The Assistant Commissioner Of Income Tax, Central Circle Iii(1), Chennai – 600 034

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE MR.JUSTICE M. DURAISWAMYANDTHE HON'BLE MRS.JUSTICE T.V. THAMILSELVI Tax Case Appeal No.620 of 2011 M/s.Srinivasa Foundation7, Vidyodaya First Cross St.,T.Nagar,Chennai – 600 017. ... AppellantVs. The Assistant Commissioner of Income Tax,Central Circle III(1),Chennai – 600 034. ... Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras “C” Bench, dated 12.08.2011 passed inI.T.A.No.1325/Mds/2010, for the assessment year 2007-08reversing the order of the Commissioner of Income Tax(Appeals)-II, Chennai, in ITA.No.161/08-09 dated 23/4/2010 preferredagainst the order of the Assistant Commissioner of Income Tax(Assessing Officer) Central Circle 111(1) Chennai dated30/12/2008fortheassessmentyear2007-2008inPAN.No.ABAFS7944N. For Appellant : Mr.S.SridharFor Respondent : Mr.T.R.Senthil Kumar Senior Standing Counsel The appeal filed by the assessee under Section 260A of theIncome Tax Act, 1961 ('the Act' for brevity), is directedagainst the order, dated 12.08.2011, passed by the Income TaxAppellate Tribunal, Madras “C” Bench, Chennai ('the Tribunal'for brevity) in I.T.A.No.1325/Mds/2010 for the Assessment Year2007-08. The above appeal was admitted on 11.01.2012 on the https://hcservices.ecourts.gov.in/hcservices/ following Substantial Questions of Law: "1.Whether the Tribunal is correct in sustainingthe order of the respondent in disallowingRs.9,80,000/- as per the statutory prescription inSection 40A(3) of the Act with reference to the cashpayment of Rs.49,00,000/- for the purchase of land forappellant upon overlooking the non-applicability ofsaid section 40A(3) of the Act to commercialtransaction as well as the recording of suchtransaction in the books of accounts resulted in non-applicability of such provisions? 2.Whether the Tribunal is correct in interpretingthe documents/evidence relating to the landtransaction with reference to the provisions inSection 40A(3) of the Act r/w.Rule 6DD(k) of theIncome Tax Rules, 1962, even though the cash paymentsexceeding Rs.20,000/- routed through the agent werepermissible within the scope of Section 40A(3) of theAct?” 2. We have heard Mr.S.Sridhar, learned counsel for theappellant/ assessee and Mr.T.R.Senthil Kumar, learned SeniorStanding Counsel for the 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]March 2020and published in the Gazette of India on 17[th]March 2020. 4. We are informed by the learned counsel for theappellant/assessee that the assessee has already filed therequisite Forms 1 & 2 on 24.02.2021 under Section 4 of the Act. 5. In the light of the fact that the assessee has alreadyavailed the benefit under the Act, no useful purpose would beserved in keeping the appeal 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 stands disposedof on the ground that the assessee has already filed therequisite Forms 1 & 2 and the Department shall process theapplication at the earliest in accordance with the said Act and 4. We are informed by the learned counsel for theappellant/assessee that the assessee has already filed therequisite Forms 1 & 2 on 24.02.2021 under Section 4 of the Act. 5. In the light of the fact that the assessee has alreadyavailed the benefit under the Act, no useful purpose would beserved in keeping the appeal 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 stands disposedof on the ground that the assessee has already filed therequisite Forms 1 & 2 and the Department shall process theapplication at the earliest in accordance with the said Act and communicate the decision to the assessee at the earliest. Asobserved, the assessee is given liberty to restore the appeal inthe event the ultimate decision to be taken on the declarationfiled by the assessee under Section 4 of the said Act is not infavour of the assessee. If such a prayer is made, the Registryshall entertain the prayer without insisting upon anyapplication to be filed for condonation of delay in restorationof the appeal and on such request made by the assessee by filinga Miscellaneous Petition for Restoration, the Registry shallplace such petition before the Division Bench for orders. 6. 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-IX)//True Copy// Sub Assistant Registrar mknTo1.The Income Tax Appellate Tribunal, Madras “C” Bench.2.The Commissioner of Income Tax(Appeals)-II, Chennai.3.The Assistant Commissioner of Income Tax, Central Circle III(1), Chennai – 600 034.+1cc to Mr.T.R.Senthil Kumar, Advocate, S.R.No.17822 GMI(CO)CB(17/04/2021) https://hcservices.ecourts.gov.in/hcservices/