NIRAJ KUMAR JAIN vs. INCOME TAX OFFICER

TCA.Nos.120 & 121 of 2019 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15.03.2021 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Ms.Justice R.N.MANJULA Tax Case Appeal Nos.120 & 121 of 2019 Niraj Kumar Jain ...Appellant in both cases Vs Income Tax Officer, Non-Corporate Ward - 5(2), Chennai - 06. ...Respondent in both cases PRAYER in T.C.A.No.120 of 2019: Appeal under Section 260A of the Income Tax Act, 1961 against the order dated 22.06.2017 made in ITA.No.2820/Mds/2016 on the file of the Income Tax Appellate Tribunal, 'A' Bench, Chennai for the assessment year 2012-13. PRAYER in T.C.A.No.121 of 2019: Appeal under Section 260A of the Income Tax Act, 1961 against the order dated 12.01.2018 made in M.P.No.284/Mds/2-17 in ITA.No.2820/Mds/2016 on the file of the Income Tax Appellate Tribunal, 'A' Bench, Chennai for the assessment year 2012- 13. 1/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.120 & 121 of 2019 For Appellant: Mr.T.Pramodkumar Chopda For Respondent: Mr.T.Ravikumar, SSC COMMON JUDGMENT (Delivered by

T.S.Sivagnanam,J

) These appeals have been filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) challenging the orders dated 22.06.2017 and 12.01.2018 made in ITA.No.2820/Mds/2016 and M.P.No.284/Mds/2-17 in ITA.No.2820/Mds/2016 respectively on the file of the Income Tax Appellate Tribunal, 'A' Bench, Chennai ('the Tribunal' for brevity) for the assessment year 2012-13. 2. The appeals were admitted on 06.03.2019 on the following substantial questions of law, which were framed for consideration by this Court: "1. Whether in the facts and circumstances of the case, the learned Tribunal is justified in upholding the Penalty under Section 271(1)(c) of the Income Tax Act, 1961 on the Assessee, when the Assessee himself conceded before the Assessing Authority at the time of Assessment and gave up the claim of loss in Foreign 2/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.120 & 121 of 2019 Currency transactions entered into through M/s.Marigold Vanijaya (P) Ltd. vide Assessment Order dated 25.03.2015? 2. Whether non-specification of Clause 'Concealment of Income on the part of the Assessee' or 'Filing of Inaccurate Particulars' in the Notice under Section 271(1)(c) read with Section 274 of the Act in the Form ITNS 29 (Income Tax Non-Statutory), dated 25.03.2015, goes to the root of the Penalty proceedings and is a question of jurisdiction of the Assessing Authority to initiate and undertake Penalty proceedings under Section 271(1)(c) of the Act? 3. Whether the learned Tribunal is justified in imposing the Penalty on the amount of interest paid by the Assessee and claimed as 'Deductible Expenditure' on the borrowed funds, which were utilised by the Assessee for purchase of property in his personal name despite the said surrender before the Assessing Authority and paying tax thereon?" 3. We have heard T.Pramodkumar Chopda, learned counsel appearing for the appellant-assessee and Mr.T.Ravikumar, learned Senior Standing Counsel appearing for the respondent-Revenue. 3/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.120 & 121 of 2019 4. The learned counsel for the appellant-assessee submits that the assessee already filed the declaration/undertaking under the Vivad Se Vishwas Scheme and orders were passed in Form No.3. 5. In the light of the subsequent event, the assessee is given liberty to restore these appeals in the event the ultimate decision 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 appeals and on such request made by the assessee by filing a miscellaneous petition for restoration, the Registry shall place such petition before the appropriate Division Bench for orders. 6. The tax case appeals stand disposed of with the aforementioned liberty. Consequently, the substantial questions of law framed are left open. No costs. (T.S.S.,J.) (R.N.M.,J.) 15.03.2021 Index:Yes/No Internet:Yes/No hvk 4/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.120 & 121 of 2019 To 1. The Income Tax Appellate Tribunal, 'A' Bench, Chennai. 2. The Income Tax Officer, Non-Corporate Ward - 5(2), Chennai - 06. 5/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.120 & 121 of 2019 T.S.SIVAGNANAM,J AND R.N.MANJULA,J hvk TCA.Nos.120 & 121 of 2019 15.03.2021 6/6 https://www.mhc.tn.gov.in/judis/