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

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 No.168 of 2016 R.Swarna ...Appellant/AppellantVs. The Assistant Commissioner of Income Tax,Central Circle I(3),No.108, Mahatma Gandhi Salai,Nungambakkam, Chennai – 600 034....Respondent/Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax AppellateTribunal, Madras "B" Bench, dated 30.04.2009 passed inI.T.A.No.2370/Mds/2007.And this Appeal preferred against the commissioner ofIncome Tax (Appeals-I), Chennai-34 Order dated 10.08.2007 madein ITA.No.92/06-07 for the Assessment Year 2003-2004 and thisAppeal against the Assistant Commissioner of Income Tax CentralCircle-I(3), Chennai-34 Order dated 13.11.2006 made in PA/GIANIPS3560L for the Assessment Year 2003-2004. For Appellant : Mr.N.DevanathanFor Respondent : Mr.T.R.Senthil Kumar, Senior Standing Counsel J U D G M E N T(Delivered by M. DURAISWAMY, J) This appeal filed by the assessee under Section 260A of theIncome Tax Act, 1961 ('the Act' for brevity), is directedagainst the order dated 30.04.2009 passed by the Income TaxAppellate Tribunal, Madras “B” Bench, Chennai ('the Tribunal'for brevity) in I.T.A.No.2370/Mds/ 2007 for the Assessment Year2003-04. The above appeal was admitted on 29.03.2016 on thefollowing Substantial Questions of Law for consideration: “1)Whether on the facts and in the circumstancesof the case, the Assessing Officer has jurisdiction todecide the issue in the absence of recording of https://hcservices.ecourts.gov.in/hcservices/ satisfaction 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. 4. We are informed by the learned counsel for the appellant/assessee that the assessee has already filed the requisite Forms- 1 & 2 on 25.12.2020 under Section 4 of the Act. 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. We are informed by the learned counsel for the appellant/assessee that the assessee has already filed the requisite Forms- 1 & 2 on 25.12.2020 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 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 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 appeal inthe event the ultimate decision to be taken on the Forms filedby the assessee under Section 4 of the said Act is not in favourof the 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 place 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 Question of Law is left open. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar va To 1.Income Tax Appellate Tribunal, Madras "B" Bench 2.The Commissioner of Income Tax,Central Circle I(3)3.The Assistant Commissioner of Income Tax,Central Circle I(3),No.108, Mahatma Gandhi Salai,Nungambakkam, Chennai – 600 034. +1 cc to M/s.T.R.Senthil Kumar, Advocate Sr.No. 6009Tax Case Appeal No.168 of 2016KJ(CO)RMP(26/02/2021)