Smt.R.Swarna v. The Assistant Commissioner

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/ Appellants in all 3 TCAs Vs.

The Assistant Commissioner of Income Tax, Central Circle I(3), Chennai - 600 034.

Respondent/Respondents 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 the Assessment years 20032004,2004-2005,2005-2006. and this appeal preferred against the commissioner of Income Tax (Appeals)-I, Chennai-34 order dated 30.08.2011 made in ITA.No.127,128,129/10 for the Assessment years 20032004,2004-2005, 2005-2006 and this appeal preferred against the Assistant Commissioner of Income Tax Central Circle I(3), Chennai-34 order dated 27/02/2009 made in F.No.CHE/CEN-I(3)/271 (1)(C)/09-10 / PAN. ANIPS3560L for the Assessment years 20032004,2004-2005,2005-2006. For Appellant : Mr.N.Devanathan (in all 3 TCAs) For Respondent : Mr.T.R.

Senthil Kumar, (in all 3 TCAs) Senior Standing Counsel C O M M O N J U D G M E N T (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.

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?

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. 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.

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. 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.

Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar va To 1.Income Tax Appellate Tribunal, Madras "D" Bench. 2.The Commissioner of Income Tax (Appeals-I), Central Circle I(3), Chennai-600 034.

3 .The Assistant Commissioner of Income Tax, Central Circle I(3), Chennai - 600 034.

+1 cc to M/s.T.R.Senthil Kumar, Advocate Sr.No. 6010 Tax Case Appeal Nos.180 to 182 of 2014 KJ(CO) RMP(26/02/2021)