The Commissioner Of Income Tax vs M/S.Iner Aia
2021 Latest Caselaw 10234 Mad

                                                                           Tax Case Appeal No.251 of 2016

                                        IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                     DATED: 21.04.2021

                                                           CORAM

                                          THE HON'BLE MR.JUSTICE M. DURAISWAMY
                                                           AND
                                        THE HON'BLE MR.JUSTICE KRISHNAN RAMASAMY

                                                Tax Case Appeal No.251 of 2016


                     The Commissioner of Income Tax,
                     Chennai.                                                       ... Appellant

                                                             Vs.


                     M/s.Iner Aia,
                     No.557, Anna Salai (1st Floor),
                     Teynampet, Chennai – 600 018.                                  ... Respondent


                               Appeal 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 in I.T.A.No.1268/Mds/2015.
                               For Appellant        : Mr.T.Ravi Kumar,
                                                      Senior Standing Counsel

                               For Respondent       : Mr.G.Baskar

                                                        JUDGMENT

(Delivered by M.DURAISWAMY, J.)

The appeal filed by the Department under Section 260A of the

Income Tax Act, 1961 ('the Act' for brevity), is directed against the order

dated 10.07.2015 passed by the Income Tax Appellate Tribunal, Madras

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"SMC" Bench, ('the Tribunal' for brevity) in I.T.A.No.1268/Mds/2015 for the

assessment year 2006-07.

2.The above appeal was admitted on the following Substantial

Questions of Law:

“1)Whether on the facts and circumstances of the case, the Tribunal was right in dismissing that departmental appeal on the ground of low tax effect without going into the merits of the case especially when there was a revenue audit objection which has been accepted by the Department in the present case?

2)Whether the order passed by the Tribunal is proper especially when the present case falls under the exceptions provided in para 8(c) of the CBDT Notification dated 10.07.2014 governing the monetary limit?

3)Whether on the facts and circumstances of the case, the Tribunal was right in holding that disallowance made under Section 40(a)(ia) is not proper?

4)Whether the reasoning of the Tribunal is proper in holding that the disallowance is to be made only on those amounts, which were outstanding and not on payments which had already been paid while dealing with Section 40(a)(ia)?

5)Whether the term 'payable' would include the amount already paid with reference to Section 40(a)(ia) of the Income Tax Act, 1961?”

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3.We have heard Mr.T.Ravi Kumar, learned senior standing counsel

for the appellant/Revenue and Mr.G.Baskar, learned counsel for the

respondent/assessee.

4.It may not be necessary for this Court to decide the Substantial

Questions of Law framed for consideration on account of certain subsequent

developments. The Government of India enacted the Direct Tax Vivad Se

Vishwas Act, 2020 (Act 3 of 2020) to provide for resolution of disputed tax

and for matters connected therewith or incidental thereto. The Act of the

Parliament received the assent of the President on 17th March 2020 and

published in the Gazette of India on 17th March 2020.

5.The learned counsel for the respondent/assessee submitted that the

respondent/assessee had availed Vivad Se Vishwas 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 already availed the

benefit under the Act, no useful purpose would be served in keeping the

appeal pending. At the same time, safeguarding the interest of the assessee

in the event the order to be passed by the Department under the Act is not

in favour of the assessee. Accordingly, the Tax Case Appeal stands disposed

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of on the ground that the assessee has already been issued with Form – 3

and the Department shall process the application at the earliest in

accordance with the said Act and communicate the decision to the assessee

at the earliest. As observed, the assessee is given liberty to restore the

appeal in the event the ultimate decision to be taken on the declaration

filed by the assessee under Section 4 of the said Act is not in favour of the

assessee. If such a prayer is made, the Registry shall entertain the prayer

without insisting upon any application to be filed for condonation of delay

in restoration of the appeal and on such request made by the assessee by

filing a Miscellaneous Petition for Restoration, the Registry shall place such

petition before the Division Bench for orders.

7.With this observation, the Tax Case Appeal stands disposed of with

the aforementioned liberty and consequently, the Substantial Questions of

Law are left open. No costs.

                     Index           : Yes/No                         [M.D., J.]   [K.R., J.]
                     Internet        : Yes                                  21.04.2021
                     va
                     To

1. Income Tax Appellate Tribunal, Madras "SMC" Bench

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M. DURAISWAMY, J.

and KRISHNAN RAMASAMY, J.

va

Tax Case Appeal No.251 of 2016

21.04.2021

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