K.Meenakshisundaram vs The Assistant Commissioner Of ...
2021 Latest Caselaw 17155 Mad

                                                                              T.C.A.No.568 of 2013

                              IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                              DATED : 23.08.2021

                                                    CORAM :

                              THE HON'BLE MR. JUSTICE T.S. SIVAGNANAM
                                                      AND
                    THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP

                                             T.C.A. No.568 of 2013

                   K.Meenakshisundaram                                    ... Appellant
                                                       Vs.

                   The Assistant Commissioner of Income Tax
                   Circle III,
                   Income Tax Department,
                   Tiruchirapalli.                                        ... Respondent

                          Tax Case Appeal preferred under Section 260A of the Income Tax Act,
                   1961, against the order, dated 20.03.2013, passed by the Income Tax
                   Appellate Tribunal, Chennai "A" Bench, in I.T.(SS)A.No.27/Mds/2010, for
                   the Block Period 1989-90 to 2001-02.


                          For Appellant     : Mr.A.S.Sriraman
                                              for M/s.S.Sridhar

                          For Respondent    : Mr.M.Swaminathan
                                              Senior Standing Counsel




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                                                                                 T.C.A.No.568 of 2013

                                                 JUDGMENT

(Judgment was delivered by T.S. SIVAGNANAM, J.)

This Tax Case Appeal filed by the assessee under Section 260-A of the

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

dated 20.03.2013, passed by the Income Tax Appellate Tribunal, Chennai

"A" Bench, in I.T.(SS)A.No.27/Mds/2010, for the Block Period 1989-90 to

2001-02.

2.The appellant/assessee has raised the following substantial questions

of law in this appeal :

“1.Whether the Appellate Tribunal is correct in law in sustaining the levy of penalty u/s.158 BFA(2) of the Act with reference to the addition made to the extent of Rs.49,58,156/- representing the sundry debtors even though claimed as bad debts/business loss, added as undisclosed income in the quantum proceedings in spite of the admission of substantial questions of law in such quantum proceedings by this Hon'ble Court for rendering this decision within the scope of Section 260A of the Act?

2.Whether the Appellate Tribunal is correct in law in

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sustaining the levy of penalty u/s.158 BFA(2) of the Act relating to the addition of bad debts/business loss even though such claim for set off/deduction in the computation of undisclosed income was legally sustainable within the scope of the provisions in Chapter XIV B of the Act?”

3.We have heard Mr.A.S.Sriraman, learned counsel for the

appellant/assessee and Mr.M.Swaminathan, learned Senior Standing Counsel

for the respondent/Revenue.

4.This appeal is challenging the correctness of the order passed by the

Tribunal in sustaining the levy of penalty under Section 158BFA(2) of the

Act. With regard to the quantum, the assessee was before this Court by filing

T.C.A.Nos.44 and 45 of 2011. These appeals were disposed of by the

Hon'ble Division Bench of this Court by order dated 18.02.2021, as the

assessee had availed Vivad Se Vishwas Scheme and had filed Form-1

declaration on 27.01.2021. Therefore, the appeals were disposed of by

granting liberty to the assessee that, in the event the matter is not settled

under the said Scheme, it would be open to the assessee to restore the appeal.

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5.The present appeal, as mentioned above, is with regard to sustaining

the levy of penalty. If the assessee's Form-1 declaration is accepted and

processed and ultimately the matter is settled in terms of Vivad Se Vishwas

Scheme, then the penalty also would stand settled. Therefore, we dispose of

this appeal on the ground that, as against the quantum appeal, the assessee

has already filed declaration under the Vivad Se Vishwas Scheme, which in

the process of being considered. We grant liberty to the assessee 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 Direct Tax Vivad Se Vishwas

Act, 2020 is not in favour of the assessee and the same liberty granted to the

assessee in T.C.A.Nos.44 and 45 of 2011, dated 18.02.2021, will enure to

the assessee in this appeal as well. Consequently, the substantial questions of

law are left open. No costs.

                                                                     (T.S.S., J.)     (S.S.K., J.)
                                                                              23.08.2021

                   mkn


                   Internet : Yes


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                                                                T.C.A.No.568 of 2013

                   Index : Yes / No
                   Speaking order / Nonspeaking order

                   To

1.The Income Tax Appellate Tribunal, Chennai, “A” Bench.

2.The Assistant Commissioner of Income Tax Circle III, Income Tax Department, Tiruchirapalli.

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T.S. SIVAGNANAM, J.

and SATHI KUMAR SUKUMARA KURUP, J.

mkn

T.C.A. No.568 of 2013

23.08.2021

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