Tca/256/2020 Of Commissioner Of Income Tax v. J.ashok Kumar

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN The Commissioner of Income Tax,Non Corporate Circle 10(2)Chennai. M/s.J.Ashok Kumar ..Respondent Prayer:- This Tax Case Appeal filed under Section 260 A of theIncome Tax Act, 1961 against the order of the Income TaxAppellate Tribunal, ''A'' Bench, Chennai dated 29.11.2019 passedin I.T.A.No.2518/Chny/2019. relating to the Assessment Year2014-15 and against the order dated 02/05/2019 made inITA.No.87/CIT(A)-12/2017-18 passed by the Commissioner of IncomeTax(Appeals)-12, Chennai and against the order dated 26/12/2017passed by the Income Tax Officer, Non Corporate Ward-10(1),Chennai - 34 for the assessment year 2014-15. For Appellant: Mr.M.Swaminathan Senior Standing counsel assisted by Ms.V.Pushpa Junior Standing counsel For Respondent : Mr.Ashokpathi For M/s.Pass Associates JUDGMENT 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 29.11.2019 passed by the IncomeTax Appellate Tribunal 'A' Bench, Chennai ('the Tribunal' forbrevity) in I.T.A.No.2518/Chny/2019 for the Assessment Year2014-15. This appeal was admitted on 01.09.2020 on the followingSubstantial Questions of Law: https://hcservices.ecourts.gov.in/hcservices/ “1. Whether the Income Tax Appellate Tribunalwas right and justified in setting aside the orderpassed by the assessing officer to re-examine thematter when the assessing officer has already dulyexamined the matter before passing the assessmentorder? 2. Whether the Income Tax Appellate Tribunalwas right in justified in remitting the issue backto the file of the assessing officer and shiftingthe onus to the Revenue with a direction that theassessing officer shall bring on record the role ofthe assessee in promoting the company and therelationship of the assessee, if any with thepromotors, role of the assessee in inflating theprice of shares etc.,” 2. We have heard Mr.M.Swaminathan, learned Senior Standingcounsel assisted by Ms.V.Pushpa, learned Junior Standing counselfor the appellant/Revenue and Mr.Ashok Pathi for M/s.PassAssociates, learned counsel 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 the https://hcservices.ecourts.gov.in/hcservices/ 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 the https://hcservices.ecourts.gov.in/hcservices/ table stipulated in Section 3 calculated on such issue, in sucha 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 on 12.10.2020. 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 //True Copy// Kak Sub Assistant Registrar To 1.The Deputy/Registrar,The Income Tax Appellate Tribunal,'A' Bench, Chennai. 2.The Commissioner of Income Tax(Appeals)-12,Chennai. 3.The Income Tax Officer, Non Corporate Ward - 10(1),Chennai-34. 4.The Commissioner of Income-Tax,Non Corporate Circle 10(2), Chennai.+1cc to Mr.M.Swaminathan, Advocate, S.R.No.36025 T.C.A.No.256 of 2020 SAI(CO)KKV/16/12/2020