Tca/816/2019 Of Commissioner Of Income Tax v. M/S.vgn Builders Pvt Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 23.02.2021CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MS.JUSTICE R.N.MANJULA Commissioner of Income Tax,Corporate Circle 3,Chennai. .. Appellant in all Appeals-vs- M/s.VGN Builders Private Limited,333, Poonamallee Road,Amaaindakarai, Chennai-600 029.PAN: .. Respondent in all Appeals Appeals under Section 260A of the Income Tax Act, 1961against the order dated 03.10.2018, made in I.T.A.Nos.1124, 1126& 1125/Chny/2018 on the file of the Income Tax AppellateTribunal 'B' Bench, Chennai for the assessment years 2012-13,2014-15 and 2013-14 respectively. against the Common Order of the Commissioner of Income Tax(appeals)-11, Chennai, dated 27.12.2017 and madein ITANos.152/CIT(A)-11/2015-16; and 24 & 258/CIT(A)-11/2016-17 forthe Assessment year 2012-13, 2013-14 and 2014-15 and against theorder of the Assistant Commissioner of Income Tax, CorporateCircle 3-(2), Chennai, dated 23.03.2015, 29.03.2016 and30.12.2016 respectively and made in GIR.No.PAN. forthe assessment year 2012-13, 2013-14 and 2014-15. (Judgment of the Court was delivered by T.S.Sivagnanam, J.) These appeals have been filed by the Revenue under Section260A of the Income Tax Act, 1961 ('the Act' for brevity)challenging the order dated 03.10.2018, made in I.T.A.Nos.1124, https://hcservices.ecourts.gov.in/hcservices/ 1126 & 1125/Chny/2018 on the file of the Income Tax AppellateTribunal 'B' Bench, Chennai ('the Tribunal' for brevity) for theassessment years 2012-13, 2014-15 and 2013-14 respectively. 2.The appeals were admitted, on 11.11.2019, on thefollowing substantial questions of law:“1.Whether on the facts and circumstancesof the case and in law, the Income Tax AppellateTribunal erred in holding that there was noviolation of the provisions of Section 47(xiii)of the Act? 2.Whether on the facts and circumstances ofthe case and in law, the Income Tax AppellateTribunal erred in not considering that onsuccession, the cost of acquisition of the assetto the previous owner should be taken as thecost of acquisition of the asset to thesuccessor entity as per Section 45(2) of theIncome Tax Act, 1961? and 3.Whether on the facts and circumstances ofthe case and in law, the Income Tax AppellateTribunal was justified in holding that the firmhas borne the cost of additions created in thecurrent account of the partners of erstwhilefirm and such revaluation has been done at acost?” 3.We have heard Mr.M.Swaminathan, learned Senior StandingCounsel assisted by Ms.V.Pushpa, learned Junior Standing Counselappearing for the appellant/Revenue and Mr.V.Ayyapparaja,learned counsel appearing for the respondent/assessee. 4.The learned counsel on behalf of the respondent/assesseesubmits that the respondent/assessee already filed thedeclaration/undertaking under the Vivad Se Vishwas Scheme on31.01.2021, and is awaiting orders to be passed in Form No.1. 5.In the light of the subsequent event, the CompetentAuthority shall process the application/declaration inaccordance with the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3of 2020) and pass appropriate orders as expeditiously aspossible. The assessee is given liberty to restore theseappeals, in the event the ultimate decision to be taken on thedeclaration filed by the assessee under Section 4 of the saidAct is not in favour of the assessee. If such a prayer is made,the Registry shall entertain the prayer without insisting uponany applications to be filed for condonation of delay inrestoration of the appeals and on such request made by theassessee by filing miscellaneous petitions for restoration, theRegistry shall place such petitions before the appropriateDivision Bench for orders. https://hcservices.ecourts.gov.in/hcservices/ https://hcservices.ecourts.gov.in/hcservices/ 6.The tax case appeals stand disposed of with theaforementioned liberty. Consequently, the substantial questionsof law framed are left open. No costs. Sd/- Assistant Registrar(CO) //True Copy// Sub Assistant Registrar abr To1.The Income Tax Appellate Tribunal 'B' Bench, Chennai.2.The Commissioner of Income Tax (Appeals)-II, Chennai.3.The Assistant Commissioner of Income Tax, Corporate Circle 3(2), Chennai.4.The Deputy Commissioner of Income Tax, Corporate Circle 3(2), Chennai.+1cc Mr.Bharathkumar, Advocate, SR.No.11171.+1cc to Mr.M.Swaminathan, Advocate, SR.No.10839.T.C.A.Nos.816 to 818 of 2019SSD(CO)CSR 24.03.2021