SMT.S.GOWRI vs. ASST COMMISSIONER OF INCOME

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TCA/707/2015HC Madras15 June 2021Bench: Hon`ble Mr Justice M.DURAISWAMY5 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court did not decide the substantial questions of law. The Court was informed that the assessee had been issued Form-3 under the Direct Tax Vivad Se Vishwas Act, 2020, which provides for the resolution of disputed tax. Consequently, the learned counsel for the assessee sought permission to withdraw the appeals. In view of this submission, the High Court dismissed the Tax Case Appeals as withdrawn. No costs were awarded. The operative direction was to dismiss the appeals as withdrawn.

What were the facts?

The assessee, S. Gowri, filed three Tax Case Appeals before the High Court of Judicature at Madras against the order dated 12.12.2013 passed by the Income Tax Appellate Tribunal, Madras "A" Bench. These appeals pertained to assessment years 2003-2004, 2008-2009, and 2009-2010. The appeals challenged the Tribunal's decision to restore penalty under Section 271(1)(c) of the Income Tax Act, 1961. The appeals were admitted on substantial questions of law. Subsequently, the Direct Tax Vivad Se Vishwas Act, 2020, was enacted. The assessee's counsel informed the court that Form-3 had been issued to the assessee under the Vivad Se Vishwas Act and sought permission to withdraw the appeals.

What were the issues?

The Tribunal had to decide three substantial questions of law, framed as follows: 1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in restoring the penalty under Section 271(1)(c), when the sworn statements recorded clearly show that the income was earned by the appellant's husband and invested in the name of the appellant? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in restoring the penalty under Section 271(1)(c), when the additions had been made only on the basis of the offer made by the appellant's husband in good faith and to avoid litigation? 3. Whether Explanation 5A to Section 271(1)(c) is applicable to a situation where there was no finding by the Department that the assessee was the owner of any money, bullion, jewellery, or other valuable investment etc., not disclosed to the Department, but additions were made only on the basis of an offer by the assessee's husband? Assessee's Contentions: The assessee argued that the income was earned by the husband and invested in her name, and that additions were made based on the husband's offer to avoid litigation. The applicability of Explanation 5A to Section 271(1)(c) was questioned in the absence of a finding of ownership by the assessee. Revenue's Contentions: The judgment records no specific contentions for the revenue on these questions of law.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 260A

AI-generated summary — verify with the full judgment below

Tax Case Appeal Nos.707, 709 & 710 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 15.06.2021 CORAM THE HON'BLE MR.JUSTICE M. DURAISWAMY AND THE HON'BLE MRS.JUSTICE R. HEMALATHA Tax Case Appeal Nos.707, 709 & 710 of 2015 S. Gowri ... Appellant in all the TCAs v.

Asst. Commissioner of Income Tax Central Circle - 1 (2). Chennai - 600 034. ... Respondent in all the TCAs

COMMON PRAYER: Tax Case Appeals filed under Section 260A of the Income Tax Act, 1961 against the orders of the Income Tax Appellate Tribunal, Madras "A" Bench, dated 12.12.2013 passed in I.T.A.Nos.1975,1977 & 2289/Mds/2012. For Appellant in all the TCAs : Mrs.Sri Niranjani For Respondent in all the TCAs : Mrs.V. Pushpa

Senior Counsel Page 1/5 Tax Case Appeal Nos.707, 709 & 710 of 2015 C O M M O N J U D G M E N T (Delivered by M.DURAISWAMY, J.) These appeals are filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), are directed against the order dated 12.12.2013 passed by the Income Tax Appellate Tribunal, Madras "A" Bench, ('the Tribunal' for brevity) in I.T.A.Nos.1975,1977 & 2289/Mds/2012 for the assessment years 2003-2004, 2008-2009, and 2009-2010. 2. The appeals were admitted on the following substantial questions of law:- "1. Whether on the facts and in the circumstances of the case, the Tribunal is right in restoring the penalty under Sec.271(1) (c ), when the sworn statements recorded clearly show that the income was earned by the appellant's husband and invested in the name of the appellant? 2. Whether on the facts and in the circumstances of the case, the Tribunal is right in restoring the penalty under S.271(1) (c ), when the additions had been made only on the basis of the offer made by the appellant's husband in good faith and to avoid litigation? Page 2/5 Tax Case Appeal Nos.707, 709 & 710 of 2015 3. Whether Explanation 5A to Sec.271(1) (c ) is applicable to a situation where there was no finding by the Department that the assessee was the owner of any money bullion, jewellery or other valuable investment etc., not disclosed to the Department; but additions were made only on the basis of offer by the assessee's husband?” 3. We have heard Mrs.Sri Niranjani, learned counsel for the appellant/assessee and Mrs.V.Pushpa, learned Senior Counsel for the respondent/Revenue. 4. It may not be necessary for this Court to decide the Substantial Questions of Law framed 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. 5. We are informed by the learned counsel for the appellant/ assessee that the assessee had already been issued with Form-3 on 10.12.2020 and the learned counsel for the appellant seeks permission of Page 3/5 Tax Case Appeal Nos.707, 709 & 710 of 2015 this Court to withdraw the appeal. 6. In view of the submission made by the learned counsel for the appellant, the Tax Case Appeals stand dismissed as withdrawn. No costs. [M.D., J.] [R.H., J.] 15.06.2021 (½)

Index : Yes/No

Internet : Yes gv To 1. Income Tax Appellate Tribunal, Madras "A" Bench 2.Asst. Commissioner of Income Tax Central Circle - 1 (2). Chennai - 600 034. Page 4/5 Tax Case Appeal Nos.707, 709 & 710 of 2015 M. DURAISWAMY, J. and R.HEMALATHA, J. gv Tax Case Appeal Nos.707, 709 & 710 of 2015 15.06.2021 (½) Page 5/5

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