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.777 of 2014 Commissioner of Income Tax, Chennai.

...Appellant Vs.

M/s.Precot Meridian Ltd., "Suprem" 737, GreenFields, Pullakulam Road, 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 08.05.2013 passed in I.T.A.No.1562/Mds/2012.Preferred against the order of the Income Tax Appeallate Tribunal "A" Bench, dated 08.05.2013 made in ITA No.1562/Mds/2012 for the Assessment year 1994-1995 preferred against the order of the Commissioner of Income Tax (Appeals)-I, Coimbatore dated 04.05.2012 made in Appeal No.28/11-12 preferred against the order of the Deputy Commissioner of Income Tax circle-I(2) Coimbatore dated 01.04.2011 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 08.05.2013 passed by the Income Tax Appellate Tribunal, Madras "A" Bench, Chennai ('the Tribunal' for brevity) in I.T.A.No.1562/Mds/2012 for the Assessment Year

1994-95. The above appeal was admitted on 25.09.2014 on the following substantial questions of law :

"1.Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in holding that for charging of interest under the provisions of Section 220(2) the period for reckoning of interest has to be taken from the date of passing of the fresh assessment order?

2.Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in not accepting the fact that where the assessment made originally by the assessing officer is either varied or even set aside by the appellate authority but on further appeal, the original order is restored either in part or in full, interest is payable under Section 220(2) is required to be computed with reference to the due date reckoned from the original demand notice and the quantum of which the tax is payable is to be reckoned with reference to the tax finally determined?

3.Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in not considering the circular issued by the Central Board of Direct Taxes with reference to charging of interest under Section 220(2) where assessment is set-aside/cancelled and determined through an order giving effect to the appellate 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 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. 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 questions of law are 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

2. The Commissioner of Income Tax (Appeals)-I Chennai.

3. The Deputy Commissioner of Income Tax Circle I(2), Coimbatore.

+1cc to Mr.T.R.Senthilkumar, Advocate, S.R.No.22089 +1cc to Mr.S.Sridhar, Advocate, S.R.No.22349 Tax Case Appeal No.777 of 2014 GSM(CO) RGA(09/08/2021)