Shri F.susai Raju v. The Income Tax Officer, Corporateward 5(2), Chennai-34

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 26.3.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMand THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.696 of 2018 Shri F.Susai Raju ...Appellant Vs The Income Tax Officer, CorporateWard 5(2), Chennai-34....Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 30.1.2017 passed by the Income TaxAppellate Tribunal, Madras 'A' Bench, Chennai made inI.T.A.No.2423/Mds/2016 for the assessment year 2012-13 asagainst the order dated 30.06.2016 by the office of theCommissionerofIncomeTax(Appeals)-3Chennai inI.T.A.No.96/2015-16/CIT(A)-3 Assessment year 2012-13 and asagainst the order dated 30.03.2015 in PAN/GIR No. bythe Income Tax Officer, Corporate Ward-5(2) Assessment year2012-13.For Appellant: Mr.M.P.Senthilkumar For Respondent: Mrs.R.Hemalatha, SSC Judgment was delivered by T.S.SIVAGNANAM,J This appeal has been filed by the assessee under Section260A of the Income Tax Act, 1961 ('the Act' for brevity)challengingtheorderdated30.1.2017madeinI.T.A.No.2423/Mds/2016 on the file of the Income Tax AppellateTribunal, Chennai, 'A' Bench ('the Tribunal' for brevity) forthe assessment year 2012-13. 2. The assessee filed this appeal by raising the followingsubstantial questions of law : https://hcservices.ecourts.gov.in/hcservices/ ““i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal is right in law inholding that the gift received by theappellant from Shri M.Amaloresamy cannot betreated as 'gift in contemplation of death'as per Proviso (d) to Section 56(vii) of theIncome Tax Act, 1961? ii. Whether, on the facts and in thecircumstances of the case, the gift receivedby the appellant was 'in contemplation ofdeath' of donor and the same satisfies theprovisions of Section 191 of the IndianSuccession Act, 1925 and not assessable asincome of the appellant under Section 56 ofthe Income Tax Act, 1961 ? and iii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal is right in law inupholding the disallowance under Section 40A(3) of the Income Tax Act, 1961 in respectof genuine payment of sale consideration tothe vendors in cash for purchase ofimmovablepropertyoutofbusinessexpediency ?”3. We have heard Mr.M.P.Senthilkumar, learned counselappearing for the appellant/assessee and Mrs.R.Hemalatha,learnedSeniorStandingCounselappearingfortherespondent/Revenue.4. The learned counsel for the assessee submits that theassessee already filed the declaration/undertaking under theVivad Se Vishwas Scheme and orders were passed on 23.12.2020 inForm No.3. 5. In the light of the subsequent event, the assessee isgiven liberty to restore this appeal in the event the ultimatedecision taken on the declaration filed by the assessee underSection 4 of the said Act is not in favour of the assessee. Ifsuch a prayer is made, the Registry shall entertain the prayerwithout insisting upon any application to be filed forcondonation of delay in restoration of the appeal and on suchrequest made by the assessee by filing a miscellaneous petitionfor restoration, the Registry shall place such petition beforethe appropriate Division Bench for orders. 6. The tax case appeal stands disposed of with theaforementioned liberty. Consequently, the substantial questionsof law raised are left open. No costs. Sd/-Assistant Registrar(CS IV) //True Copy//Sub Assistant RegistrarRSTo1.The Income Tax Appellate Tribunal, 'A' Bench, Chennai.2.The Income Tax Officer, Corporate Ward 5(2), Chennai-34.3.The Commissioner of Income Tax (Appeals)3, Chennai.4.The Section Officer, A.E.Section, High Court, Madras.5.The Section Officer, Judicial Section, High Court, Madras. +1cc to Mr.M.P.Senthil Kumar, Advocate, S.R.No.20418TCA.No.696 of 2018 SSM(CO)TE (30/04/2021)