THE PRINCIPAL COMMISSIONER OF INCOME TAX vs. SIJI TONO,

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ITA/107/2016HC KeralaKLHC01026906201603 March 2021Author: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS9 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Kerala decided to close the appeals, taking note of the developments regarding the assessee's availing of the 'Vivad Se Vishwas' Scheme. The Court acknowledged the statement made by the assessee's counsel that applications under the scheme were filed and were being processed. The Court reasoned that keeping the appeals pending would be unnecessary when an alternative mechanism for dispute resolution was being utilized by the assessee. However, to protect the revenue's interests, the Court granted liberty to the appellant (Department) to file a petition to recall the order and revive the appeals. This liberty was specifically granted in two scenarios: (a) if the Department finds that the certificate in Form No.III could not be issued to the assessee, or (b) if the Department issues the certificate and the assessee fails to comply with the conditions imposed therein. The assessee's counsel did not oppose this liberty being granted to the revenue. The appeals were closed with this liberty preserved.

What were the facts?

These three appeals (ITA.103/2016, ITA.107/2016, ITA.108/2016) were filed by the Principal Commissioner of Income Tax, Kochi-2, against the common order dated 05.02.2016 passed by the Income Tax Appellate Tribunal (ITAT), Cochin Bench, in ITA Nos.355/Coch/2014, 356/Coch/2014 and 441/Coch/2015. The respondent assessees are M/s Tanvest Properties, Siji Tono, and Tono Thomas. During the pendency of these appeals before the High Court of Kerala, the assessees availed the 'Vivad Se Vishwas' Scheme and filed applications before the designated authority, which were under processing by the Department. The High Court noted these developments and the pendency of the 'Vivad Se Vishwas' applications.

What were the issues?

1. Whether the High Court should keep the appeals pending when the assessee has availed the 'Vivad Se Vishwas' Scheme, a mechanism to resolve tax disputes. Assessee's contention: The assessee, through their counsel, stated that they have availed the 'Vivad Se Vishwas' Scheme and filed applications before the designated authority, which are being processed. They submitted that the appeals need not be kept pending. Revenue's contention: The revenue, through their counsel, sought liberty to seek recall of the order and revive the appeals if the 'Vivad Se Vishwas' certificate (Form No.III) could not be issued to the assessee, or if the assessee failed to comply with the conditions imposed in the certificate. They argued that the closure of appeals should not prejudicially affect the Department's interest in canvassing the challenge to the ITAT's order at a later stage.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Cochin

DATED 9.6.2015 PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS)- II, KOCHI. ANNEXURE COF THE COMMON ORDER PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL ON 5.2.2016. ITA.103/2016, ITA.107/2016, ITA.108/2016 -9- APPENDIX OF ITA 108/2016 PETITIONER'S/S EXHIBITS: ANNEXURE AOF THE ASSESSMENT ORDER DATED 31.12.2010. ANNEXURE BOF THE A APPELLATE ORDER DATED 3.3.2014 PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS)- II, KOCHI. ANNEXURE COF THE COMMON ORDER PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL ON 5.2.2016.

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