The Pr. Commissioner Of Income Tax - 9,Chennai v. Mrs.p.kesarimal Jainc/O M/S.mayur Exporiumno

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 16.12.2020 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN T.C.A.No.180 of 2020 The Pr. Commissioner of Income Tax - 9,Chennai. ...Appellant/Respondent Vs. Mrs.P.Kesarimal JainC/o M/s.Mayur ExporiumNo.144, Mint Street,Sowcarpet, Chennai - 600 079. PAN : ...Respondent/Appellant Tax Case Appeal filed under Section 260-A of the Income TaxAct, 1961, against the order of the Income Tax AppellateTribunal, Madras 'A' Bench, Chennai, dated 06.12.2019 passed inI.T.A.No.1799/Chny/2018 relating to the Assessment Year 2013 –2014 against the order of the Commissioner of Income Tax(Appeals)-5, dated 21/03/2018 passed in ITA.No.93/CIT(A)-5/2017-18 for the Assessment year 2013-14 and against the order ofIncome Tax officer, Non-Corporate Ward 5(1), Chennai dated30/10/17 in PAN. for the Assessment year 2013-14. For Appellant : Mr.T.Ravi Kumar For Respondent : No Appearance 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),challenging the order dated 06.12.2019 passed by the Income TaxAppellate Tribunal, Madras 'A' Bench ('the Tribunal' forbrevity) in I.T.A.No.1799/Chny/2018 relating to the AssessmentYear 2013 - 2014. The appeal was admitted on 23.07.2020 on thefollowing Substantial Questions of Law : https://hcservices.ecourts.gov.in/hcservices/ “(i). Whether on the facts and in thecircumstances of the case, the Tribunal was rightin setting aside the well reasoned order passedby the Assessing Officer for re-examination,especially when the assessing officer had dulyexamined the matter in great depth while framingthe assessment order? (ii). Whether on the facts and in thecircumstances of the case, the Tribunal was rightin remitting the issue back to the file of theAssessing Officer by quoting the decision in thecase of Kanhaiyalal and Sons (HUF) inITA.No.1849/Chny/2014 wherein the onus has beenshifted to the revenue with a direction that theAssessing Officer is to bring on record the roleof the Assessee in promoting the Company and therelation of the Assessee if any with that of thepromoters and role of inflating of prices etcwhich exercise had already been done by the AOwhile framing the assessment?” 2. We have heard Mr.T.Ravi Kumar, learned counsel appearingfor the appellant/revenue and there is no representation for therespondent/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 anything contained 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. 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 anything contained 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,where an Appeal or Writ Petition or Special Leave Petition isfiled by the Income Tax authority on any issue before theAppellate Forum, the amount payable shall be one-half of theamount in the table stipulated in Section 3 calculated on suchissue, in such a manner as may be prescribed. The second provisodeals with the cases, where the matter is before theCommissioner (Appeals) or before the Dispute Resolution Panel.The third proviso deals with cases, where the issue is pendingbefore the Income Tax Appellate Tribunal. The filing of thedeclaration is as per Section 4 of the Act and the particularsto be furnished are also mentioned in the Sub Sections ofSection 4. Section 5 of the Act deals with the time and mannerof the payment and Section 6 deals with Immunity from initiationof proceedings in respect of offence and imposition of penaltyin certain cases. Section 9 of the Act deals with cases, wherethe Act 3 of 2020 will not be applicable. 6. We are informed by the learned counsel for theappellant/revenue that the assessee has already filed thedeclarations under Section 4 of the Act on 09.06.2020. 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 declarations 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// Sub Assistant RegistrarSsdTo1.The Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai.2.The Commissioner of Income Tax Appeals-5,Chennai.3.The Income Tax Officer,Non-Corporate Ward 5(1), Chennai.+1cc to M/s.T.Ravikumar, Advocate, S.R.No.41619T.C.A.No.180 of 2020SRA(CO)KKV/07/01/2021