Principal Commissioner Of Income Tax, Central I v. Shri.c.kishanlal

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYANT.C.A.No.365 of 2019 Principal Commissioner of Income Tax,Central I,No.108, Mahatma Gandhi Road,Chennai – 600 034. ... Appellant/Respondent VersusShri.C.Kishanlal ... Respondent/Appellant Prayer:- This Tax Case Appeal filed under Section 260 A of theIncome Tax Act, 1961 against the order of the Income TaxAppellate Tribunal, ''C'' Bench, Chennai dated 20.12.2018 passedin I.T.A.No.2928/Chny/2017. relating to the Assessment Year2006-07, against the order of The Commissioner of Income Tax(Appeals)-19, 108, Mahathma Gandhi Road, Nungambakkam, Chennai-34, dated 11.10.2017 in ITA No.87/14-15 and against theAssessment order of The Deputy Commissioner of Income-Tax,Central Circle-III(3), Chennai-34 dated 27/3/14 in PAN/GIRNo. relating to the Assessment Year 2006-2007. For Respondent : Mr.R.Sivaraman This appeal has been filed by the Revenue under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), isdirected against the order dated 20.12.2018 passed by the IncomeTax Appellate Tribunal 'C' Bench, Chennai ('the Tribunal' forbrevity) in I.T.A.No.2928/Chny/2017 for the Assessment Year2006-07. The Revenue has raised the following SubstantialQuestions of Law for consideration:“1. Whether on the facts and in thecircumstances of the case, the ITAT was right in https://hcservices.ecourts.gov.in/hcservices/ law in deleting the additions made towards incomefrom undisclosed sources, by giving findings whichare not backed by evidence and such an order is notperverse? 2. Whether on the facts and in thecircumstances of the case, the Hon'ble Tribunal waslegally justified in deleting the additions madetowards income from undisclosed sources, by drawingconclusion, such as, that the assessee had soldgold jewellery in cash in a span of two months fora whopping amount of Rs.3,14,93,768/- to personswhose names or addresses have not been furnished bythe assessee, which cannot be drawn by anyreasonable person on the materials placed beforethe ITAT” 2. We have heard T.R.Senthilkumar, learned Senior Standingcounsel for the appellant/Revenue and Mr.R.Sivaraman, learnedcounsel for the respondent/assessee. 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. 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 such 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 such https://hcservices.ecourts.gov.in/hcservices/ a 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. 6. We are informed by the learned counsel for therespondent/assessee that the assessee has already filed thedeclaration under Section 4 of the Act. 7. In the light of the fact that the assessee has alreadyavailed the benefit under the Act, no useful purpose would beserved in keeping this 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 adeclaration and the Department shall process the application atthe earliest in accordance with the said Act and communicate thedecision to the assessee at the earliest. As observed, theassessee is given liberty to restore this appeal in the eventthe ultimate decision to be taken on the declaration filed bythe assessee under Section 4 of the said Act is not in favour ofthe assessee. If such a prayer is made, the Registry shallentertain the prayer without insisting upon any application tobe filed for condonation of delay in restoration of the appealand on such request made by the assessee by filing aMiscellaneous Petition for Restoration, the Registry shall placesuch petition before 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 II) //True Copy// Sub Assistant Registrar Kak To 1.The Income Tax Appellate Tribunal, 'C' Bench, Chennai. 2.The Commissioner of Income -Tax, (Appeals)-19, 108, Mahatma Gandhi Road, Nungambakkam, Chenani-34.3.The Deputy Commissioner of Income-Tax, Central Circle-III(3), Chennai-34.Copy to The Assistant Registrar,AE (Main) Section, High Court, Madras. +1cc to Mr.T.R.Senthilkumar, Advocate Sr.42455T.C.A.No.365 of 2019sr II[co]srg 19/01/2021