SHRI S. KOTHANDAN vs. THE ASSISTANT COMMISSIONER OF

T.C.A.No. 322 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 29.09.2021 CORAM : THE HON'BLE MR. JUSTICE T.S. SIVAGNANAM and THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP T.C.A.No. 322 of 2021 S. Kothandan

... Appellant Vs.

The Assistant Commissioner of Income Tax, Non Corporate Circle-7(1), Chennai. ...Respondent Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Chennai “A” Bench, Chennai dated 24.01.2018 passed in M.P.No.89/Mds/2017 in I.T.A.No.2276/Mds/2015, dated 09.09.2016 for the Assessment Year 2012-13. For Appellant : Mr.A.S.Sriraman

For Respondent : Mr.Karthik Ranganaathan

Senior Standing Counsel J U D G M E N T (Judgment was delivered by T.S. SIVAGNANAM, J.) The appeal filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), is directed against the order, dated 24.01.2018 Page 1/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No. 322 of 2021 passed by the Income Tax Appellate Tribunal, Chennai “A” Bench, Chennai ('the Tribunal' for brevity) in M.P.No.89/Mds/2017 in I.T.A.No.2276/Mds/2015 for the Assessment Year 2012-13. The appellant has raised the following Substantial Questions of Law: “1. Whether the provisions in section 254(2) of the Act could be invoked for rectifying the mistake of facts apparent from record despite such rectification leading to the alteration of the ultimate result of the appeal ? 2. Whether the provisions in section 254(2) of the Act were properly applied to the factual matrix of the case despite noticing the mistake of facts in the original order ? 3. 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 ? 4. 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 for source of the loan amounts received by the Appellant ?” 2. We have heard Mr. A.S.Sriraman, Learned Counsel for the appellant and Mr. Karthik Ranganaathan, Learned Senior Standing Counsel for the respondent/Revenue. Page 2/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No. 322 of 2021 3. It may not be necessary for this Court to decide the substantial questions of Law raised for consideration on account of certain subsequent developments. The Government of India enacted the Direct Tax Vivad Se Vishwas Act, 2020 (Act 3 of 2020) to provide for resolution of disputed tax and for matters connected therewith or incidental thereto. The Act of the Parliament received the assent of the President on 17th March 2020 and published in the Gazette of India on 17th March 2020. 4. We are informed by the learned counsel for the appellant/assessee that the assessee has already filed the requisite Forms 1 & 2 on 08.03.2021 under Section 4 of the Act. 5. In the light of the fact that the assessee has already availed the benefit under the Act, no useful purpose would be served in keeping the appeal pending. At the same time, the interest of the assessee in the event the order to be passed by the Department under the Act is not in favour of the assessee, is to be safeguarded. Accordingly, the Tax Case Appeal stands disposed of on the ground that the assessee has already filed the requisite Forms 1 & 2 and the Department shall process the application at the earliest in accordance with the Page 3/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No. 322 of 2021 said Act and communicate the decision to the assessee at the earliest. As observed, the assessee is given liberty to restore the appeal in the event the ultimate decision to be 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 appeal and on such request made by the assessee by filing a Miscellaneous Petition for Restoration, the Registry shall place such petition before the Division Bench for orders. 6. With this observation, the Tax Case Appeal stands disposed of with the aforementioned liberty and consequently, the Substantial Questions of Law are left open. No costs. [T.S.S., J.] [S.S.K., J.] 29.09.2021

Sp/Maya

Internet : Yes

Index : Yes / No To 1. The Assistant Commissioner of Income Tax, Non Corporate Circle-7(1), Page 4/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No. 322 of 2021 Chennai. 2. The Income Tax Appellate Tribunal, Chennai “A” Bench, Chennai. Page 5/6 https://www.mhc.tn.gov.in/judis/ T.C.A.No. 322 of 2021 T.S. SIVAGNANAM, J. and SATHI KUMAR SUKUMARA KURUP, J. Sp T.C.A. No.322 of 2021

Dated : 29.09.2021 Page 6/6 https://www.mhc.tn.gov.in/judis/