R.swarna v. The Assistant Commissioner Of Income Tax, Central Circle I(3), Chennai – 600 034

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 04.02.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMYANDTHE HON'BLE MRS.JUSTICE T.V. THAMILSELVI Tax Case Appeal Nos.180 to 182 of 2014 R.Swarna ... Appellant/ Appellants in all 3 TCAsVs. The Assistant Commissioner of Income Tax,Central Circle I(3),Chennai – 600 034. ... Respondent/Respondents in all 3 TCAsTax Case Appeals filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras “D” Bench, dated 16.05.2013 passed inI.T.A.No.1750/Mds/ 2011, for the Assessment years 2003-2004,2004-2005,2005-2006.and this appeal preferred against the commissioner ofIncome Tax (Appeals)-I, Chennai-34 order dated 30.08.2011 madein ITA.No.127,128,129/10 for the Assessment years 2003-2004,2004-2005, 2005-2006 and this appeal preferred against theAssistant Commissioner of Income Tax Central Circle I(3),Chennai-34 order dated 27/02/2009 made in F.No.CHE/CEN-I(3)/271(1)(C)/09-10 / PAN. for the Assessment years 2003-2004,2004-2005,2005-2006. For Appellant : Mr.N.Devanathan(in all 3 TCAs)For Respondent : Mr.T.R.Senthil Kumar,(in all 3 TCAs) Senior Standing CounselC O M M O N J U D G M E N T(Delivered by M. DURAISWAMY, J) These appeal filed by the assessee under Section 260A ofthe Income Tax Act, 1961 ('the Act' for brevity), are directedagainst the order dated 16.05.2013 passed by the Income TaxAppellate Tribunal, Madras “D” Bench, Chennai ('the Tribunal'for brevity) in I.T.A.No.1750/Mds/2011 for the Assessment Years https://hcservices.ecourts.gov.in/hcservices/ 2003-04, 2004-05 and 2005-06. The above appeals were admitted on29.03.2016 on the following Substantial Questions of Law forconsideration: “1)Whether on the facts and in the circumstancesof the case, the Assessing Officer has jurisdiction todecide the issue in the absence of recording ofsatisfaction under Section 153C of the Act? 2)Whether on the facts and in the circumstancesof the case, the Income Tax Appellate Tribunal wasright in confirming the penalty under Section 271 (1)(c) of the Act and also on the basis of admission bythe third party? 3)Whether on the facts and in the circumstancesof the case, in the absence of finding as to the sumadded, it represents and partakes the character ofincome for imposition of penalty? 4)Without prejudice, whether on the facts and inthe circumstances of the case, the assessing officerwas justified in refusing to exercise the discretionas mandated in terms of Section 271(1)(c) of the Act?” 2. We have heard Mr.N.Devanathan, 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] March2020 and published in the Gazette of India on 17[th] March 2020. 2. We have heard Mr.N.Devanathan, 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] March2020 and published in the Gazette of India on 17[th] March 2020. 4.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 Appeals stand 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 andcommunicate the decision to the assessee at the earliest. Asobserved, the assessee is given liberty to restore the appealsin the event the ultimate decision to be taken on the Formsfiled by the assessee under Section 4 of the said Act is not infavour of the assessee. If such a prayer is made, the Registry shall entertain the prayer without insisting upon anyapplication to be filed for condonation of delay in restorationof the appeals and on such request made by the assessee byfiling a Miscellaneous Petition for Restoration, the Registryshall place such petition before the Division Bench for orders. 5.Since the appellant had opted for Vivad Se Vishwas Schemein the appeals in T.C.A.Nos.168 to 170 of 2016 filed in respectof the quantum and that the assessee had submitted Forms - 1 & 2on 25.12.2020 under Section 4 of the Act, we have disposed ofthe appeals giving liberty. The present appeals in T.C.A.Nos.180to 182 of 2014 are filed as against the imposition of penalty.Hence, in view of the disposal of the appeals in T.C.A.Nos.168to 170 of 2016, the present appeals are also disposed of withthe same observations. Consequently, the Substantial Questionsof Law are left open. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar vaTo 1.Income Tax Appellate Tribunal, Madras "D" Bench. 2.The Commissioner of Income Tax (Appeals-I), Central Circle I(3), Chennai-600 034. 3 .The Assistant Commissioner of Income Tax,Central Circle I(3), Chennai – 600 034. +1 cc to M/s.T.R.Senthil Kumar, Advocate Sr.No. 6010 KJ(CO) RMP(26/02/2021) Tax Case Appeal Nos.180 to 182 of 2014