Shri. L.k. Sudhish v. The Assistant Commissioner Of Income Tax,Central Circle – I[2]Chennai – 600 034

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 13.09.2021 CORAM : THE HON'BLE MR. JUSTICE T.S. SIVAGNANAMAND THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP Tax Case Appeal No.298 of 2016 Shri. L.K. Sudhish ...Appellant Vs. The Assistant Commissioner of Income Tax,Central Circle – I[2]Chennai – 600 034. ... Respondent Tax Case Appeal filed under Section 260A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal, Chennai Bench "B" dated 16.10.2015 passed inI.T.A.No.693/Mds/2013 for the AY 2003-04. As against the order dated 23.08.2013 by the office ofthe Income Tax Appellate Tribunal 'B' Bench, Chennai inI.T.A.Nos.709, 710, 711, 712, 713 and 715/mds/2013 AssessmentYears:2001-02, 02-03, 03-04, 04-05, 05-06, & 07-08 and asagainst the order dated 31.01.2013 by the office of theCommissioner of Income Tax(Appeals)-I, in ITA Nos.355 to361/08-09 Assessment Years 2001-02 to 2007-08 and as againstthe order dated:31.12.2008 by the office of the AssistantCommissioner of Income Tax Central Circle I(2) in PAN/GIRNo. Assessment Year 2003-04. For Respondent : Mr.T.R. Senthil Kumar Senior Standing Counsel and Ms.K.G. Usha Rani Standing Counsel This appeal filed by the assessee under Section 260A ofthe Income Tax Act, 1961 ('the Act' for brevity), is directedagainst the order dated 16.10.2015 passed by the Income TaxAppellate Tribunal, Chennai "B" Bench, ('the Tribunal' forbrevity) in I.T.A.No.693/Mds/2013 for the assessment year2003-04. The appeal has been admitted on 20.04.2016 on thehttps://hcservices.ecourts.gov.in/hcservices/following substantial questions of law : “1.Whether on the facts and in thecircumstances of the case, the Appellate Tribunal isright in law in applying the case of the Revenueconfirming the 2.5% disallowances on the appellant'sappeal where the grounds of appeal and relief soughthave appreciable differences? 2.Whether on the facts and in thecircumstances of the case, the Appellate Tribunal isright in confirming disallowance which was not outof any materials seized at the time of the searchand that the original assessment under Section 143was completed? 3.Whether on the facts and in thecircumstances of the case, the Appellate Tribunal isright in not considering that the Assessing Officerassumed extra jurisdictional powers in complicatingthe assessment and made the disallowances and theresultant interests? 4.Whether on the facts and in the circumstanceof the case, the Appellant Tribunal is right inconfirming disallowance where the same is alreadydisallowed and on items that are not subject todeduction in the circumstance? 5.Whether on the facts and in the circumstanceof the case, the Income Tax Appellate Tribunal isright in law in their interpretation on thecalculation of interest under Ssections 234A, 234Band 234C read with Section 153A of the Income TaxAct, 1961 and its effect? And 6.Whether on the facts and in the circumstanceof the case, the Appellate Tribunal is right in lawin placing reliance on the facts and cases citedabove in disallowing the appeal of the appellant?” 2. We have heard Mr.B.Ramana Kumar and Mr.M.Velmurugan,learned counsel appearing for the appellant/assessee andMr.T.R.Senthil Kumar, learned Senior Standing Counsel andMs.K.G.Usha Rani, learned Standing Counsel for therespondent/Revenue. 3. It may not be necessary for this Court to decide theSubstantial Questions of Law framed for consideration onaccount of certain subsequent developments. The Government ofIndia enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3of 2020) to provide for resolution of disputed tax and formatters connected therewith or incidental thereto. The Act ofthe Parliament received the assent of the President on 17[th]March 2020 and published in the Gazette of India on 17[th] March2020. https://hcservices.ecourts.gov.in/hcservices/ 2. We have heard Mr.B.Ramana Kumar and Mr.M.Velmurugan,learned counsel appearing for the appellant/assessee andMr.T.R.Senthil Kumar, learned Senior Standing Counsel andMs.K.G.Usha Rani, learned Standing Counsel for therespondent/Revenue. 3. It may not be necessary for this Court to decide theSubstantial Questions of Law framed for consideration onaccount of certain subsequent developments. The Government ofIndia enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3of 2020) to provide for resolution of disputed tax and formatters connected therewith or incidental thereto. The Act ofthe Parliament received the assent of the President on 17[th]March 2020 and published in the Gazette of India on 17[th] March2020. https://hcservices.ecourts.gov.in/hcservices/ 4. We are informed by the learned counsel for theappellant/ assessee that the assessee has availed the benefitof Vivad Se Vishwas Scheme and the assessee had already beenissued with Form-3 on 10.02.2021. 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, theinterest of the assessee in the event the order to be passedby the Department under the Act is not in favour of theassessee, is to be safeguarded. Accordingly, the Tax CaseAppeal stands disposed of on the ground that the assessee hasalready been issued with Form-3 and the Department shallprocess the application at the earliest in accordance with thesaid Act and communicate the decision to the assessee at theearliest. As observed, the assessee is given liberty torestore the appeal in the event the ultimate decision to betaken on the declaration filed by the assessee under Section 4of the said Act is not in favour of the assessee. If such aprayer 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 MiscellaneousPetition for Restoration, the Registry shall place suchpetition before the Division Bench for orders. 6. With this observation, this Tax Case Appeal standsdisposed of with the aforementioned liberty, and consequently,the Substantial Questions of Law are left open. No costs. -s/d- Deputy Registrar jeni/mkn Sub-Assistant Registrar To 1. Income Tax Appellate Tribunal, Chennai "B" Bench 2.The Assistant Commissioner of Income Tax, Central Circle – I[2], Chennai – 600 034. 3.The Commissioner of Income Tax-Appeals I, Chennai 34. Copy toThe Section Officer,Judicial Department,High Court, Madras. https://hcservices.ecourts.gov.in/hcservices/ +1cc to Mr.M.Velmurugan , Advocate SR.No.46814Tax Case Appeal No.298 of 2016 SSN(CO)KM(15.09.2021)KKV/17/09/2021