PR COMMISSIONER OF INCOME TAX-2 CHD vs. M/S GREATER MOHALI AREA DEVELOPMENT AUTHORITY SEC 62 PUDA BHAWAN MOHALI

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ITA/419/2015HC Punjab & HaryanaPHHC01110072201516 October 2023Bench: MR. JUSTICE ARUN PALLI,MR. JUSTICE VIKRAM AGGARWAL2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal filed by the revenue (ITA-419-2015) concerning penalty proceedings was rendered infructuous. This conclusion was reached because the underlying dispute, which included quantum proceedings, had been resolved under the Direct Tax Vivad-se-Vishwas Act, 2020. The assessee had opted for the scheme, leading to the dismissal of their related appeal (ITA-70-2015) as withdrawn. Consequently, the revenue's appeal against the penalty order was deemed to have no substantive matter surviving for adjudication. The court ordered the appeal to be disposed of as having been rendered infructuous. No specific ratio decidendi was articulated beyond the immediate consequence of the Vivad-se-Vishwas settlement on the pending appeal.

What were the facts?

The appeal before the High Court of Punjab and Haryana at Chandigarh was filed by the Principal Commissioner of Income Tax-2, Chandigarh (the appellant/revenue) against M/s Greater Mohali Area Development Authority (GMADA, the respondent/assessee). The appeal, ITA-419-2015, concerned penalty proceedings and was against an order passed by the Income Tax Appellate Tribunal (ITAT) on 21.05.2015. Earlier, GMADA had filed an appeal (ITA-70-2015) against the ITAT's order in quantum proceedings. During the pendency of ITA-70-2015, the Direct Tax Vivad-se-Vishwas Act, 2020, came into force. Consequently, ITA-70-2015 was dismissed as withdrawn by a Division Bench on 01.07.2021, as GMADA had opted for the Vivad-se-Vishwas Scheme. The present appeal (ITA-419-2015) regarding penalty proceedings was then argued to be rendered infructuous because the underlying dispute was resolved under the 2020 Act.

What were the issues?

1. Whether the appeal filed by the revenue (ITA-419-2015) concerning penalty proceedings is rendered infructuous and should be disposed of as such, given that the related quantum appeal (ITA-70-2015) was dismissed as withdrawn under the Direct Tax Vivad-se-Vishwas Act, 2020, due to the assessee opting for the scheme. The revenue contended that since the matter between the parties stood resolved under the 2020 Act, the appeal at hand is rendered infructuous and nothing substantive survives therein. The assessee argued that the appeal should be disposed of as having been rendered infructuous. No specific provisions of the Income Tax Act were explicitly named in the arguments presented for this issue.

AI-generated summary — verify with the full judgment below

ITA-419-2015(O&M) 1 2023:PHHC:134666-DB IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA-419-2015(O&M) Date of decision: 16.10.2023 The Pr. Commissioner of Income Tax-2, Chandigarh … Appellant Versus M/s Greater Mohali Area Development Authority … Respondent CORAM: HON’BLE MR. JUSTICE ARUN PALLI HON’BLE MR. JUSTICE VIKRAM AGGARWAL Present: Ms. Pridhi Jaswinder Sandhu, Jr. Standing Counsel, for the appellant. Ms. Radhika Suri, Senior Advocate, with Mr. Sidhant Suri and Mr. Abhinav Narang, Advocates, for the respondent-GMADA. *** ARUN PALLI, J. (Oral) Learned counsel for the parties are ad idem that against an order passed by the Income Tax Appellate Tribunal (ITAT), in quantum proceedings, the respondent-GMADA had appealed to this Court (ITA-70-2015). However, since during the pendency of the said appeal, the Direct Tax Vivad-se-Vishwas Act, 2020 had come into being, the same was dismissed as withdrawn by the Division Bench, vide order dated 01.07.2021: “CM-5026-CII-2021

This is an application for withdrawal of the appeal in view of the fact that the appellant has adopted Vivad Se Vishwas Scheme. Notice of the application. On advance notice, Mrs. Urvashi Dhugga, Advocate appears on behalf of the respondent. For the reasons recorded in the application, the same is allowed. RAJAN KUMAR 2023.10.16 22:56 I attest to the accuracy and authenticity of this document

ITA-419-2015(O&M) 2 2023:PHHC:134666-DB Main case is taken up for hearing today itself. ITA-70-2015(O&M) In view of the averments made in CM-5026-CII- 2021, the main appeal bearing ITA-70-2015 stands dismissed as withdrawn. Since the main case has been dismissed as withdrawn, the pending Civil Miscellaneous Application, if any, also stands dismissed as withdrawn.” It is urged that against the order, dated 21.05.2015, passed by the Tribunal, qua the penalty proceedings, even the Department had approached this Court vide ITA-419-2015. But, since the matter between the parties stood resolved under 2020 Act (ibid), the appeal at hand is rendered infructuous. And, nothing substantive survives therein. Accordingly, learned counsel for the parties submit that the appeal be disposed of as having been rendered infructuous. Ordered, accordingly. ( Arun Palli )

Judge 16.10.2023 Rajan ( Vikram Aggarwal ) Judge Whether speaking / reasoned: YES/NO Whether Reportable: YES/NO RAJAN KUMAR 2023.10.16 22:56 I attest to the accuracy and authenticity of this document

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