The Commissioner Of Income Tax,Non Corporate Circle 10(1)Chennai v. Smt Ankitadoor

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 05.11.2020 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN T.C.A.No.254 of 2020 The Commissioner of Income Tax,Non Corporate Circle 10(1)Chennai. ..Appellant Versus Smt AnkitaDoor No.1089, B-1201,Sankheshwara Serenity,Poonamallee High Road, Vepery,Chennai,PAN:ALSPA 9931 D ..Respondent Prayer:- This Tax Case Appeal filed under Section 260 A of theIncome Tax Act, 1961 against the order of the Income TaxAppellate Tribunal, ''D'' Bench, Chennai dated 16.12.2019 passedin I.T.A.No.3142/Chny/2018 relating to the Assessment Year 2013-14 against the order dated 31/07/2018 made in ITA.No.74/CIT(A)-12/2016-17 passed by the Commissioner of Income Tax (Appeals)-12, Chennai and against the order dated 30/03/2016 passed by theIncome Tax Officer, Non Corporate Ward 10(1), Chennai 34 for theassessment year 2013-14. 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[Order of the Court was made by T.S.SIVAGNANAM, J.] 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 16.12.2019 passed by the IncomeTax Appellate Tribunal 'D' Bench, Chennai ('the Tribunal' forbrevity) in I.T.A.No.3142/Chny/2018 for the Assessment Year2013-14. This appeal was admitted on 01.09.2020 on the followingSubstantial Questions of Law: “1. Whether the Income Tax Appellate Tribunal wasright and justified in setting aside the order passedby the assessing officer to re-examine the matter whenthe assessing officer has already duly examined thematter before passing the assessment order? 2. Whether the Income Tax Appellate Tribunal wasright in justified in remitting the issue back to thefile of the assessing officer and shifting the onus tothe Revenue with a direction that the assessingofficer shall bring on record the role of the assesseein promoting the company and the relationship of theassessee, if any with the promotors, role of theassessee in inflating the price 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. The learned counsel for the respondent / assessee, oninstructions, submitted that the respondent / assessee intendsto avail the benefit of Vivad Se Vishwas Scheme ('VVS Scheme'for brevity) and in this regard, the assessee is taking steps tofile the application / declaration in Form No.I. 4. 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. 5. 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 Authority https://hcservices.ecourts.gov.in/hcservices/ 4. 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. 5. 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 Authority https://hcservices.ecourts.gov.in/hcservices/ or 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. 6. 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 thetable 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. 7. As observed, the assessee is given liberty to restorethis appeal in the event the ultimate decision to be taken onthe declaration to be filed by the assessee under Section 4 ofthe said Act is not in favour of the assessee. If such a prayeris made, 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 for Restoration,the Registry shall place such petition before the Division Benchfor orders. 8. In the light of the above, we direct the respondent /assessee to file the Form No.I on or before 02.12.2020 and thecompetent authority hall process the application / declarationin accordance with the Act and pass appropriate orders asexpeditiously as possible preferably within a period of six (6)weeks from the date on which the declaration is filed in theproper form. https://hcservices.ecourts.gov.in/hcservices/ 9. With this direction, the Tax Case Appeal stands disposedof with the aforementioned liberty and Consequently, theSubstantial Questions of Law are left open. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar Kak To1.The Deputy/Registrar,The Income Tax Appellate Tribunal,'D' Bench, Chennai.2.The Commissioner of Income Tax, Appeals 12, Chennai.3.The Income Tax Officer, NCW 10(1),Chennai.4.The Commissioner of Income Tax, Non Corporate Circle 10(1), Chennai.+1cc to M/s.G.Baskar, Advocate, S.R.No.36046+1cc to Mr.M.Swaminathan, Advocate, S.R.No.36024T.C.A.No.254 of 2020SAI(CO)KKV/16/12/2020