The Commissioner Of Income Tax, Chennai v. M/S.iner Aia

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 21.04.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMYANDTHE HON'BLE MR.JUSTICE KRISHNAN RAMASAMY Tax Case Appeal No.251 of 2016 The Commissioner of Income Tax,Chennai. ... AppellantVs. M/s.Iner Aia,No.557, Anna Salai (1[st] Floor),Teynampet, Chennai – 600 018.... RespondentAppeal filed under Section 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal,Madras "SMC" Bench, dated 10.07.2015 passed inI.T.A.No.1268/Mds/2015. And against the order dated 26.02.15made in ITA.NO.29/CIT (A)/13-14 on the file of the Commisionerof Income Tax (Appeals)4,Chennai and the order dated 2801.2014made in GIR NO./PAN NO.AABF16553 M on the file of the IncomeTax Officer,Business Ward-XV(4),Chennai for the AssessmentYear 2006-2007.For Appellant : Mr.T.Ravi Kumar, Senior Standing CounselFor Respondent : Mr.G.Baskar J U D G M E N T(Delivered by M.DURAISWAMY, J.) The appeal filed by the Department under Section 260A ofthe Income Tax Act, 1961 ('the Act' for brevity), is directedagainst the order dated 10.07.2015 passed by the Income TaxAppellate Tribunal, Madras "SMC" Bench, ('the Tribunal' forbrevity) in I.T.A.No.1268/Mds/2015 for the assessment year2006-07. 2.The above appeal was admitted on the followingSubstantial Questions of Law: “1)Whether on the facts and circumstances ofhttps://hcservices.ecourts.gov.in/hcservices/ the case, the Tribunal was right in dismissing thatdepartmental appeal on the ground of low tax effectwithout going into the merits of the caseespecially when there was a revenue auditobjection which has been accepted by the Departmentin the present case? 2)Whether the order passed by the Tribunal isproper especially when the present case falls underthe exceptions provided in para 8(c) of the CBDTNotification dated 10.07.2014 governing themonetary limit? 3)Whether on the facts and circumstances ofthe case, the Tribunal was right in holding thatdisallowance made under Section 40(a)(ia) is notproper? 4)Whether the reasoning of the Tribunal isproper in holding that the disallowance is to bemade only on those amounts, which were outstandingand not on payments which had already been paidwhile dealing with Section 40(a)(ia)? 5)Whether the term 'payable' would include theamount already paid with reference to Section 40(a)(ia) of the Income Tax Act, 1961?” 3.We have heard Mr.T.Ravi Kumar, learned senior standingcounsel for the appellant/Revenue and Mr.G.Baskar, learnedcounsel for the respondent/assessee. 4.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. 5.The learned counsel for the respondent/assesseesubmitted that the respondent/assessee had availed Vivad SeVishwas Scheme and that the Department had also issued Form –3 on 05.12.2020. 6.In the light of the fact that the assessee has alreadyavailed the benefit under the Act, no useful purpose would behttps://hcservices.ecourts.gov.in/hcservices/served in keeping the appeal pending. At the same time, 5.The learned counsel for the respondent/assesseesubmitted that the respondent/assessee had availed Vivad SeVishwas Scheme and that the Department had also issued Form –3 on 05.12.2020. 6.In the light of the fact that the assessee has alreadyavailed the benefit under the Act, no useful purpose would behttps://hcservices.ecourts.gov.in/hcservices/served in keeping the appeal pending. At the same time, safeguarding the interest of the assessee in the event theorder to be passed by the Department under the Act is not infavour of the assessee. Accordingly, the Tax Case Appealstands disposed of on the ground that the assessee has alreadybeen issued with Form – 3 and the Department shall process theapplication at the earliest in accordance with the said Actand communicate the decision to the assessee at the earliest.As observed, the assessee is given liberty to restore theappeal 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 ismade, the Registry shall entertain the prayer withoutinsisting upon any application to be filed for condonation ofdelay in restoration of the appeal and on such request made bythe assessee by filing a Miscellaneous Petition forRestoration, the Registry shall place such petition before theDivision Bench for orders. 7.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(CS) //True Copy// Sub Assistant Registrarva To 1.INCOME TAX APPELLATE TRIBUNAL, MADRAS "SMC" BENCH 2.THE COMMISSIONER OF INCOME TAX APPEAL-4,CHENNAI3.THE INCOME TAX OFFICER,BUSINESS WARD-XV(4),CHENNAI.