SAHARA AKTHER KHANAM vs. COMMISSIONER OF INCOME TAX-1

TCA.No.493 of 2020 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 23.12.2020 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Appeal No.493 of 2020

1.Sahara Akther Khanam 2.S.Saraswati legal heirs of deceased N.Shanmugam (cause title accepted vide order of court dated 18.12.2020 made in CMP.No. 13877 of 2020 by TSSJ & VBSJ in TCA.SR.No.41204 of 2020) ...Appellants Vs The Commissioner of Income Tax-1, Chennai-34 ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Chennai 'D' Bench, Chennai, dated 22.3.2017 made in I.T.A.No.3299/Mds/2016 relating to the assessment year 2012-13. For Appellants : Mr.N.V.Balaji For Respondent : Mr.T.Ravikumar, SSC 1/6 https://www.mhc.tn.gov.in/judis/ TCA.No.493 of 2020 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 dated 22.3.2017 passed by the Income Tax Appellate Tribunal, Chennai, 'D' Bench ('the Tribunal' for brevity) in I.T.A.No.3299/Mds/ 2016 for the Assessment Year 2012-13. 2. The appellants have filed this appeal by raising the following substantial questions of law : "1. Whether, on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that the appellant is eligible for deduction under Section 54F of the Act only in respect of one residential house? and 2. Whether, under the facts and circumstances of the case and in law, the Tribunal was right in holding that the deduction is available under Section 54F of the Act only in respect of properties that are 'single unit'?” 3. We have heard Mr.N.V.Balaji, learned counsel for the appellant/assessee and Mr.T.Ravikumar, learned Senior Standing counsel accepting notice for the respondent/Revenue. 4. The learned counsel for the appellant/assessee, on instructions, has submitted that the appellant/assessee intends to avail 2/6 https://www.mhc.tn.gov.in/judis/ TCA.No.493 of 2020 the benefit of Vivad Se Vishwas Scheme ('VVS Scheme' for brevity) and in this regard, the assessee is taking steps to file the application/ declaration in Form No.I. 5. 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. 6. In terms of the said Act, the assessee has been given an option to put an end to the tax disputes, which may be pending at different levels either before the First Appellate Authority or before the Tribunal or before the High Court or before the Hon'ble Supreme Court of India. Under Section 2(j) “disputed tax” has been defined. In terms of Section 3, where a declarant means a person, who files a declaration under Section 4 on or before the last date files a declaration to the Designated Authority in accordance with the provisions of Section 4 in respect of tax arrears, then, notwithstanding anything contained in the Income Tax Act or any other law for the time 3/6 https://www.mhc.tn.gov.in/judis/ TCA.No.493 of 2020 being in force, the amount payable by the declarant shall be determined in terms of Section 3(a-c) thereunder. 7. The First Proviso to Section 3 states that in case, where an appeal or writ petition or special leave petition is filed by the Income Tax Authority on any issue before the Appellate Forum, the amount payable shall be one-half of the amount in the table stipulated in Section 3 calculated on such issue, in such a manner as may be prescribed. The second proviso deals with the cases, where the matter is before the Commissioner (Appeals) or before the Dispute Resolution Panel. The third proviso deals with cases, where the issue is pending before the Income Tax Appellate Tribunal. The filing of the declaration is as per Section 4 of the Act and the particulars to be furnished are also mentioned in the Sub Sections of Section 4. Section 5 of the Act deals with the time and manner of the payment and Section 6 deals with Immunity from initiation of proceedings in respect of offence and imposition of penalty in certain cases. Section 9 of the Act deals with cases, where the Act 3 of 2020 will not be applicable. 8. As observed, 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 4/6 https://www.mhc.tn.gov.in/judis/ TCA.No.493 of 2020 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. 9. In the light of the above, we direct the appellant/assessee to file the Form No.I and the Competent Authority shall process the application/declaration in accordance with the Act and pass appropriate orders as expeditiously as possible preferably within a period of six (6) weeks from the date on which the declaration is filed in the proper form. 10. The Tax Case Appeal stands disposed of with the aforementioned liberty. Consequently, the substantial questions of law raised are left open. No costs.

23.12.2020 To The Income Tax Appellate Tribunal, 'D' Bench, Chennai. RS 5/6 https://www.mhc.tn.gov.in/judis/ TCA.No.493 of 2020 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS T.C.A.No.493 of 2020 23.12.2020 6/6 https://www.mhc.tn.gov.in/judis/