Commissioner Of Income Tax v. M/S Precot Meridian Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 08.04.2021

CORAM

THE HON'BLE MR.JUSTICE M.DURAISWAMY AND THE HON'BLE MRS.JUSTICE R.HEMALATHA Tax Case Appeal No.399 of 2014 Commissioner of Income Tax, Coimbatore.

...Appellant Vs.

M/s.Precot Meridian Ltd., Suprem No.7161, Green Fields, Puliakulam, Coimbatore - 641 045.

...Respondent

Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras "A" Bench, dated 22.08.2013 passed in I.T.A.No.1563/Mds/2012. Preferred against the order of the Income Tax Appellate Tribunal "A" Bench, Chennai dated 22.08.2013 made in ITA.No.1563/Mds/2012 for the Assessment Year 1995-1996, preferred against the order the Commissioner of Income Tax (Appeals)-I, Coimbatore dated 14.05.2012 made on Appeal No.95/11-12 preferred against the Assistant Commissioner of Income Tax Company Circle EI(2), Coimbatore dated 08.09.2011 made in PAN No.AABCP3038K.

For Appellant : Mr.T.R.Senthil Kumar Senior Standing Counsel For Respondent : Mr.S.Sridhar

J U D G M E N T

(Delivered by M. DURAISWAMY, J) The above appeal filed by the Department under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), is directed against the order dated 22.08.2013 passed by the Income Tax Appellate Tribunal, Madras "A" Bench, Chennai ('the Tribunal' for brevity) in I.T.A.No.1563/Mds/2012 for the Assessment Year 1995-96. The above appeal was admitted on 23.09.2014 on the following substantial question of law :

"Whether the order under Section 220(2) of the Income Tax Act levying interest is an appellable order?

2. We have heard Mr.T.R.Senthil Kumar, learned Senior Standing Counsel for the appellant/ Revenue and Mr.S.Sridhar, learned Counsel for the respondent/assessee.

3. It may not be necessary for this Court to decide the Substantial Question 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. We are informed by the learned counsel for the respondent/assessee that the assessee has already filed the requisite Forms 1 & 2 on 16.11.2020 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 this appeal 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 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 said Act and communicate the decision to the assessee at the earliest. As observed, the assessee is given liberty to restore this 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 question of law is left open. No costs. Sd/- Assistant Registrar(CS-VII) //True Copy// Sub Assistant Registrar mkn

To

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

2. The Commissioner of Income Tax (Appeal)-I Coimbatore.

3. The Assistant Commissioner of Income Tax Company Circle EI(2), Coimbatore.

+1cc to Mr.T.R.Senthilkumar, Advocate, S.R.No.22088 +1cc to M/s.S.Sridhar, Advocate, S.R.No.22348 Tax Case Appeal No.399 of 2014 GSM(CO) RGA(09/08/2021)