THE COMMISSIONER OF INCOME TAX-II COCHIN vs. SRI.A.P.VINU,ALUKKAS JEWELLERY,M.G.ROAD,

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ITA/18/2011HC KeralaKLHC01026366201122 September 2021Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR.JUSTICE VIJU ABRAHAM6 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Kerala held that the Income Tax Appeals are dismissed as ineffective because the assessee has opted for the benefit provided under the 'Vivad Se Vishwas' scheme during the pendency of the appeals. The court reasoned that the scheme is intended to provide a mechanism for settling disputes, and once an assessee avails this option, the pending appeals become redundant. The ratio decidendi is that the 'Vivad Se Vishwas' scheme, by its nature, aims to conclude disputes, and appeals that are still under consideration become ineffective if the underlying dispute is settled under the scheme. The court granted liberty to the assessee/Revenue to file a petition to recall the order if the assessee's request under the scheme is not taken to its logical end.

What were the facts?

These are two Income Tax Appeals filed by the Revenue, the Commissioner of Income Tax-II, Cochin, against the orders of the Income Tax Appellate Tribunal (ITAT), Cochin Bench. ITA No. 18 of 2011 challenges the ITAT's order in ITA No. 383/Coch/2007 dated August 5, 2010. ITA No. 108 of 2013 challenges the ITAT's order in ITA No. 313/Coch/2011 dated August 10, 2012. The respondent in both appeals is Sri. A.P. Vinu, representing Alukkas Jewellery. During the pendency of these appeals before the High Court of Kerala, the assessee opted to settle the dispute under the 'Vivad Se Vishwas' scheme.

What were the issues?

1. Whether the appeals filed by the Revenue are to be dismissed as ineffective due to the assessee availing the 'Vivad Se Vishwas' scheme? The Revenue, as the appellant, has not raised any specific arguments on the merits of the ITAT's orders. However, the primary issue before the High Court is the consequence of the assessee opting for the 'Vivad Se Vishwas' scheme. The Revenue's counsel, through the court's record, has been informed of the assessee's decision. The court needs to determine if this development renders the appeals infructuous. The assessee, through their counsel, has informed the court of their decision to settle the dispute under the scheme, which is the central point for the court's consideration in disposing of these appeals.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR.JUSTICE VIJU ABRAHAM WEDNESDAY, THE 22ND DAY OF SEPTEMBER 2021 / 31ST BHADRA, 1943 ITA NO. 18 OF 2011 AGAINST THE ORDER IN ITA 383/2007 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM APPELLANT/S: THE COMMISSIONER OF INCOME TAX-II COCHIN BY ADV SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/S: SRI.A.P.VINU, ALUKKAS JEWELLERY,M.G.ROAD, ERNAKULAM, COCHIN-11 BY ADV SRI.A.KUMAR THIS INCOME TAX APPEAL HAVING COME UP FOR HEARING ON 22.09.2021, ALONG WITH ITA.108/2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITA Nos.18/2011 & 108/2013 -2- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR.JUSTICE VIJU ABRAHAM WEDNESDAY, THE 22ND DAY OF SEPTEMBER 2021 / 31ST BHADRA, 1943 ITA NO. 108 OF 2013 AGAINST THE ORDER IN ITA 313/2011 OF I.T.A.TRIBUNAL,COCHIN BENCH, ERNAKULAM APPELLANT/S: THE COMMISSIONER OF INCOME TAX-II, COCHIN BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/S: SRI.A.P.VINU, ALUKKAS JEWELLERY,M.G.ROAD, ERNAKULAM, COCHIN-11 BY ADV SRI.A.KUMAR THIS INCOME TAX APPEAL HAVING COME UP FOR HEARING ON 22.09.2021, ALONG WITH ITA.18/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITA Nos.18/2011 & 108/2013 -3- J U D G M E N T [ITA Nos.18/2011, 108/2013] S.V. Bhatti, J. Appeals are at the instance of Revenue. The orders dated 05.08.2010 and 10.08.2012 in I.T.A. No.383/Coch/2007 and I.T.A. No.313/Coch/2011 of the Income Tax Appellate Tribunal, Cochin Bench, Cochin, are assailed. 2. Advocate Mr A Kumar, on instructions received from the assessee, informs the Court that the assessee has availed the option to settle the dispute under 'Vivad Se Vishwas' scheme. 3. The Income Tax Appeals are dismissed as ineffective, for, the assessee, during the pendency of the appeals, has opted for the benefit provided under the 'Vivad Se Vishwas' scheme.

ITA Nos.18/2011 & 108/2013 -4- The assessee/Revenue, as the case may be, is given liberty to file petition to recall the instant order in the event of not taking the request of the assessee to its logical end under the Scheme. Sd/- S.V.BHATTI JUDGE Sd/- VIJU ABRAHAM JUDGE jjj

ITA Nos.18/2011 & 108/2013 -5- APPENDIX OF ITA 108/2013 PETITIONER ANNEXURE ANNEXURE A: TRUE COPY OF THE ASSESSMENT ORDER DATED 27/12/2006 FOR THE ASST. YEAR 2004-05. ANNEXURE B: TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 15/01/2006. ANNEXURE C: TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL IN ITA NO. 383/COCH/2007 DATED 30/03/2009. ANNEXURE D: TRUE COPY OF THE PENALTY DATED 20/08/2009. ANNEXURE E: TRUE COPY OF THE JUDGMENT DATED 5/10/2009 IN ITA 1690/2009. ANNEXURE F: TRUE COPY OF THE ORDER DATED 18/02/2010 IN RP NO. 23/2010 IN ITA 1690/2009. ANNEXURE G: TRUE COPY OF THE ORDER OF THE TRIBUNAL DATED 14/07/2010 IN ITA 383/COCH/2007. ANNEXURE H: TRUE COPY OF THE COMMISSIONER OF INCOME TAX(APPEALS) DATED 12/01/2011 ANNEXURE I: CERTIFIED COPY OF THE ORDER OF THE TRIBUNAL DATED 14/07/2010 IN ITA 313/COCH/2011 DATED 10/08/2012 WITH A COPY.

ITA Nos.18/2011 & 108/2013 -6- APPENDIX OF ITA 18/2011 PETITIONER ANNEXURE ANNEXURE A: COPY OF ASSESSMENT ORDER U/S 143(3) DATED 27/12/2006 FOR THE ASSESSMENT YEAR 2004-05. ANNEXURE B: COPY OF THE ORDER DATED 15/01/2006 OF THE CIT(APPEALS). ANNEXURE C: COPY OF THE ORDER DATED 30/03/2009 OF THE INCOME TAX APPELLATE TRIBUNAL. ANNEXURE D: COPY OF THE JUDGMENT OF THE HON'BLE HIGH COURT DATED 5/10/2009. ANNEXURE E: COPY OF THE REVIEW PETITION FILED BEFORE THE HON'BLE HIGH COURT. ANNEXURE F: COPY OF THE JUDGMENT DATED 18/02/2010 OF THE HON'BLE HIGH COURT ON THE REVIEW PETITION FILED. ANNEXURE G: COPY OF THE ORDER DATED 8/7/2010 OF THE INCOME TAX APPELLATE TRIBUNAL. ANNEXURE H: CERTIFIED COPY OF THE ORDER DATED 14/07/2010 OF THE INCOME TAX APPELLATE TRIBUNAL ON THE MISC. PETITION FILED.

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