Madras High Court
S. Kothandan vs The Assistant Commissioner Of ... on 29 September, 2021
T.C.A.No. 322 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 29.09.2021
CORAM :
THE HON'BLE MR. JUSTICE T.S. SIVAGNANAM
and
THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP
T.C.A.No. 322 of 2021
S. Kothandan ... Appellant
Vs.
The Assistant Commissioner of Income Tax,
Non Corporate Circle-7(1),
Chennai. ...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,
Chennai dated 24.01.2018 passed in M.P.No.89/Mds/2017 in
I.T.A.No.2276/Mds/2015, dated 09.09.2016 for the Assessment Year 2012-13.
For Appellant : Mr.A.S.Sriraman
For Respondent : Mr.Karthik Ranganaathan
Senior Standing Counsel
JUDGMENT
(Judgment was delivered by T.S. SIVAGNANAM, J.)
The appeal filed by the assessee under Section 260A of the Income Tax
Act, 1961 ('the Act' for brevity), is directed against the order, dated 24.01.2018
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T.C.A.No. 322 of 2021
passed by the Income Tax Appellate Tribunal, Chennai “A” Bench, Chennai
('the Tribunal' for brevity) in M.P.No.89/Mds/2017 in I.T.A.No.2276/Mds/2015
for the Assessment Year 2012-13. The appellant has raised the following
Substantial Questions of Law:
“1. Whether the provisions in section 254(2) of the Act could be
invoked for rectifying the mistake of facts apparent from record
despite such rectification leading to the alteration of the ultimate
result of the appeal ?
2. Whether the provisions in section 254(2) of the Act were
properly applied to the factual matrix of the case despite noticing
the mistake of facts in the original order ?
3. Whether the provisions of Section 68 of the Act permit
assessment of cash credits appearing in the books of the Appellant
as undisclosed income despite the discharge of initial burden of
proving the genuineness of the cash credit transaction ?
4. Whether the provisions of section 68 of the Act envisage the
cash credit additions in the hands of the Appellant despite the
enquiry report indicating the source for source of the loan
amounts received by the Appellant ?”
2. We have heard Mr. A.S.Sriraman, Learned Counsel for the appellant and
Mr. Karthik Ranganaathan, Learned Senior Standing Counsel for the
respondent/Revenue.
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T.C.A.No. 322 of 2021
3. It may not be necessary for this Court to decide the substantial questions
of Law raised 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.
4. We are informed by the learned counsel for the appellant/assessee that
the assessee has already filed the requisite Forms 1 & 2 on 08.03.2021 under
Section 4 of the Act.
5. 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, 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, is to
be safeguarded. Accordingly, the Tax Case Appeal stands 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
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T.C.A.No. 322 of 2021
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.
6. 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.
[T.S.S., J.] [S.S.K., J.]
29.09.2021
Sp/Maya
Internet : Yes
Index : Yes / No
To
1. The Assistant Commissioner of Income Tax,
Non Corporate Circle-7(1),
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T.C.A.No. 322 of 2021
Chennai.
2. The Income Tax Appellate Tribunal,
Chennai “A” Bench, Chennai.
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T.C.A.No. 322 of 2021
T.S. SIVAGNANAM, J.
and
SATHI KUMAR SUKUMARA KURUP, J.
Sp
T.C.A. No.322 of 2021
Dated : 29.09.2021
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