M/S M.Arunachalam And Company vs The Joint/Assistant ...
2021 Latest Caselaw 23254 Mad

                                                                           Tax Case Appeal No.229 of 2017

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                 DATED : 29.11.2021

                                                      CORAM :

                                  THE HONOURABLE MR. JUSTICE R.MAHADEVAN
                                                        AND
                         THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ

                                            Tax Case Appeal No.229 of 2017


                  M/s M.Arunachalam and Company,
                  No.117/79, Lloyds Road,
                  Royapettah,
                  Chennai – 600 014.
                  PAN: AAAFM6851F                                                        .. Appellant

                                                       Versus

                  The Joint/Assistant Commissioner of Income Tax
                  Business Range - VIII
                  Chennai – 600 006                                                                    ..
                  Respondent

                       Tax Case Appeal filed under Section 260A of the Income Tax Act,
                  1961 against the order of the Income Tax Appellate Tribunal, Chennai "A"
                  Bench, dated 07.04.2016 passed in I.T.A.No.1353/Mds/2015.


                            For Appellant      : Mr.R.Sridhar

                            For Respondent     : M/s.V.Pushpa
                                                 Junior Standing Counsel

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                                                                             Tax Case Appeal No.229 of 2017



                                                   JUDGMENT

(Judgment was delivered by R.MAHADEVAN, J.)

This tax case appeal has been filed by the appellant / assessee,

challenging the order dated 07.04.2016 passed by the Income Tax Appellate

Tribunal, 'A' Bench, Chennai, in I.T.A.No.1353/Mds/2015, relating to the

assessment year 2010-11, by raising the following substantial questions of

law:-

“ 1. Whether the Appellate Tribunal is correct in law in confirming the disallowance of Rs.39,44,719/- for want of TDS on the application of section 40(a)(ia) of the Act despite the applicability of the second proviso as well as in view of the fact of actual payment of such sum in the previous year relating to the Assessment year under consideration?

2. Whether the Appellate Tribunal is correct in law in interpreting the provisions of section 40(a)(ia) of the Act despite of cleavage of opinion as well as the availability of the decisions of the Co-ordinate Bench rendered in favour of the tax payer?

3. Whether the Appellate Tribunal is correct in law in recording the findings on the applicability of the TDS provisions to the payments made which were subjected to the

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disallowance under section 40(a)(ia) of the Act which findings were recorded without the examination of the facts?

4. Whether the Appellate Tribunal is correct in confirming the assessment of sundry creditors balances aggregating to Rs.17,95,370/- on the presumption of cessation of liability despite the fact of such cessation as well as offer of such sum in the subsequent Assessment Years? "

2.When the matter was taken up for consideration, the learned counsel

appearing for the appellant / assessee submitted that during the pendency of

this tax case appeal, the assessee has filed the requisite Forms 1 and 2 under

Section 4 of the Direct Tax Vivad Se Vishwas Act, 2020, which were

accepted and Form 3 was issued to the assessee on 21.04.2021 by the

Income Tax Department. The learned counsel has also filed a memo to that

effect.

3.The aforesaid submission made by the learned counsel for the

appellant / assessee has also been fairly conceded by the learned senior

standing counsel appearing for the respondent / Revenue.

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4.This court heard the submissions made by the learned counsel on

either side, as per which, the assessee has already availed the benefit

conferred under the beneficial legislation viz., the Direct Tax Vivad Se

Vishwas Act, 2020, enacted for resolution of disputed tax and for matter

connected therewith or incidental thereto, which came into force with effect

from 17.03.2020; and the declarations submitted by the assessee were also

accepted and Form 3 was also issued to them by the Income Tax Department.

In view of such development, it is unnecessary for this court to decide the

substantial questions of law arisen in this tax case appeal.

5.Therefore, recording the submissions so made by the learned counsel

on either side, this appeal stands disposed of, directing the department to

process the application at the earliest in accordance with the Act and

communicate the decision to the assessee at the earliest. No costs.

                                                                  (R.M.D., J.)     (M.S.Q., J.)
                                                                            29.11.2021

                  av
                  Internet : Yes

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https://www.mhc.tn.gov.in/judis Tax Case Appeal No.229 of 2017

Index : Yes / No

To

1. The Income Tax Appellate Tribunal, Chennai "A" Bench.

2. The Joint/Assistant Commissioner of Income Tax, Business Range VIII, Chennai – 600 006.

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R.MAHADEVAN, J.

and MOHAMMED SHAFFIQ, J.

av

Tax Case Appeal No.229 of 2017

29.11.2021

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