Madras High Court
R.Swarna vs The Assistant Commissioner Of ... on 4 February, 2021
Tax Case Nos.180 to 182 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 04.02.2021
CORAM
THE HON'BLE MR.JUSTICE M. DURAISWAMY
AND
THE HON'BLE MRS.JUSTICE T.V. THAMILSELVI
Tax Case Appeal Nos.180 to 182 of 2014
R.Swarna ... Appellant in all 3 TCAs
Vs.
The Assistant Commissioner of Income Tax,
Central Circle I(3),
Chennai – 600 034. ... Respondent in all 3 TCAs
Tax Case Appeals filed under Section 260A of the Income Tax
Act, 1961 against the order of the Income Tax Appellate Tribunal,
Madras “D” Bench, dated 16.05.2013 passed in I.T.A.No.1750/Mds/
2011.
For Appellant : Mr.N.Devanathan
(in all 3 TCAs)
For Respondent : Mr.T.R.Senthil Kumar,
(in all 3 TCAs) Senior Standing Counsel
COMMON JUDGMENT
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Tax Case Nos.180 to 182 of 2014
(Delivered by M. DURAISWAMY, J)
These appeal filed by the assessee under Section 260A of the
Income Tax Act, 1961 ('the Act' for brevity), are directed against the
order dated 16.05.2013 passed by the Income Tax Appellate Tribunal,
Madras “D” Bench, Chennai ('the Tribunal' for brevity) in
I.T.A.No.1750/Mds/2011 for the Assessment Years 2003-04, 2004-05
and 2005-06. The above appeals were admitted on 29.03.2016 on the
following Substantial Questions of Law for consideration:
“1)Whether on the facts and in the circumstances of
the case, the Assessing Officer has jurisdiction to decide
the issue in the absence of recording of satisfaction under
Section 153C of the Act?
2)Whether on the facts and in the circumstances of
the case, the Income Tax Appellate Tribunal was right in
confirming the penalty under Section 271 (1)(c) of the Act
and also on the basis of admission by the third party?
3)Whether on the facts and in the circumstances of
the case, in the absence of finding as to the sum added, it
represents and partakes the character of income for
imposition of penalty?
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Tax Case Nos.180 to 182 of 2014
4)Without prejudice, whether on the facts and in the
circumstances of the case, the assessing officer was
justified in refusing to exercise the discretion as mandated
in terms of Section 271(1)(c) of the Act?”
2. We have heard Mr.N.Devanathan, learned counsel for the
appellant/assessee and Mr.T.R.Senthil Kumar, learned Senior Standing
Counsel for the respondent/ Revenue.
3. 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.
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Tax Case Nos.180 to 182 of 2014
4.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
these appeals 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 Appeals
stand disposed of on the ground that the assessee has already filed the
requisite Forms – 1 & 2 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 appeals in the event the ultimate decision to be
taken on the Forms 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 appeals 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.
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Tax Case Nos.180 to 182 of 2014
5.Since the appellant had opted for Vivad Se Vishwas Scheme in
the appeals in T.C.A.Nos.168 to 170 of 2016 filed in respect of the
quantum and that the assessee had submitted Forms - 1 & 2 on
25.12.2020 under Section 4 of the Act, we have disposed of the appeals
giving liberty. The present appeals in T.C.A.Nos.180 to 182 of 2014 are
filed as against the imposition of penalty. Hence, in view of the disposal
of the appeals in T.C.A.Nos.168 to 170 of 2016, the present appeals are
also disposed of with the same observations. Consequently, the
Substantial Questions of Law are left open. No costs.
[M.D., J.] [T.V.T.S., J.]
Index : Yes/No 04.02.2021
Internet : Yes (3/3)
va
To
1. Income Tax Appellate Tribunal, Madras "D" Bench
2.The Assistant Commissioner of Income Tax,
Central Circle I(3), Chennai – 600 034.
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Tax Case Nos.180 to 182 of 2014
M. DURAISWAMY, J.
and
T.V. THAMILSELVI, J.
va
Tax Case Appeal Nos.180 to 182 of 2014
(3/3)
04.02.2021
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