COMMISSIONER OF INCOME TAX vs. M/S.SOUTH INDIA SURGICAL COM

TCA.No.120 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 16.2.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MS.JUSTICE R.N.MANJULA Tax Case Appeal No.120 of 2021

The Commissioner of Income Tax, Chennai ...Appellant Vs M/s.South India Surgical Company Ltd., Chennai-2. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 29.7.2019 passed by the Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai made in I.T.A.No.916/Chny/2019 for the assessment year 2015-16. For Appellant: Mr.J.Narayanaswamy, SSC For Respondent: Mr.A.S.Sriraman Judgment was delivered by

T.S.SIVAGNANAM

This appeal has been filed by the Revenue under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) challenging the order 1/4 https://www.mhc.tn.gov.in/judis/ TCA.No.120 of 2021 dated 29.7.2019 made in I.T.A.No.916/Chny/2019 on the file of the Income Tax Appellate Tribunal, Chennai, 'A' Bench ('the Tribunal' for brevity) for the assessment year 2015-16. 2. The Revenue has filed this appeal by raising the following substantial questions of law : “i. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that penalty u/s 271(1)(c) cannot be levied on the assessee? And ii. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the Assessing Officer in the assessment had merely not accepted the assessee claim and the same had led the Assessing Officer to form opinion that the assessee had concealed the particulars of income and consequently penalty was levied without appreciating the assessee's deliberate and malafide intention to evade tax in the light of false pleas and claims made by the assessee?” 3. We have heard Mr.J.Narayanaswamy, learned Senior Standing Counsel appearing for the appellant/Revenue and Mr.A.S.Sriraman, learned counsel accepting notice for the respondent/assessee. 2/4 https://www.mhc.tn.gov.in/judis/ TCA.No.120 of 2021 4. The learned counsel for the assessee submits that the assessee already filed the declaration/undertaking under the Vivad Se Vishwas Scheme and orders were passed on 23.12.2020 in Form No.3. 5. In the light of the subsequent event, the assessee is given liberty to restore this appeal 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 petition 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 appropriate Division Bench for orders. 6. The tax case appeal stands disposed of with the aforementioned liberty. Consequently, the substantial questions of law raised are left open. No costs. 16.2.2021 To The Income Tax Appellate Tribunal, 'A' Bench, Chennai. RS 3/4 https://www.mhc.tn.gov.in/judis/ TCA.No.120 of 2021 T.S.SIVAGNANAM,J AND R.N.MANJULA,J RS TCA.No.120 of 2021 16.2.2021 4/4 https://www.mhc.tn.gov.in/judis/