SHRI.S. KOTHANDAN vs. THE ASSISTANT COMMISSIONER O

TCA.No.320 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 30.3.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MS.JUSTICE R.N.MANJULA Tax Case Appeal No.320 of 2021

Shri.S.Kothandan ...Appellant Vs The Assistant Commissioner of Income Tax, Non Corporate Circle- 7(1), Chennai. ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 09.9.2016 passed by the Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai made in I.T.A.No.2276/Mds/2015 for the assessment year 2012-13. For Appellant: Mr.A.S.Sriraman For Respondent: Mr.Karthik Ranganathan, SC Judgment was delivered by

T.S.SIVAGNANAM

This appeal has been filed by the assessee 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.320 of 2021 dated 09.9.2016 made in I.T.A.No.2276/Mds/2015 on the file of the Income Tax Appellate Tribunal, Chennai 'A' Bench ('the Tribunal' for brevity) for the assessment year 2012-13. 2. The assessee has filed the above appeal by raising the following substantial questions of law : “i. Whether the provisions of Section 68 of the Act permit assessment of cash credits appearing in the books of the appellant as undisclosed income despite the discharge of initial burden of proving the genuineness of the cash credit transaction? ii. Whether the provisions of Section 68 of the Act envisage the cash credit additions in the hands of the appellant despite the enquiry report indicating the source of the loan amounts received by the appellant ? iii. Whether the Appellate Tribunal is correct in sustaining the cash credit additions in the hands of the appellant overlooking the gross violation of the principles of natural justice ? And iv. Whether the Appellate Tribunal is correct in their interpretation of the provisions of Section 68 of the Act to sustain the cash credits addition in the computation of taxable total income pertaining to the assessment year 2/4 https://www.mhc.tn.gov.in/judis/ TCA.No.320 of 2021 2012-13?” 3. We have heard Mr.A.S.Sriraman, counsel for the appellant – assessee and Mr.Karthik Ranganathan, learned Standing Counsel accepting notice for the respondent/Revenue. 4. The learned counsel on behalf of the assessee submits that the assessee already filed the declaration/undertaking under the Vivad Se Vishwas Scheme on 08.3.2021 and is awaiting orders to be passed in Form No.3. 5. In the light of the subsequent event, the Competent Authority shall process the application/declaration in accordance with the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of 2020) and pass appropriate orders as expeditiously as possible. The assessee is given liberty to restore this appeal in the event the ultimate decision to be taken on the declaration to be 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 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. 3/4 https://www.mhc.tn.gov.in/judis/ TCA.No.320 of 2021 T.S.SIVAGNANAM,J AND R.N.MANJULA,J RS 6. The tax case appeal stands disposed of with the aforementioned liberty. Consequently, the substantial questions of law raised are left open. No costs. 30.3.2021 Internet : Yes

To 1.The Income Tax Appellate Tribunal, 'A' Bench, Chennai. 2.The Assistant Commissioner of Income Tax, Non Corporate Circle- 7(1), Chennai. TCA.No.320 of 2021 4/4 https://www.mhc.tn.gov.in/judis/