D SANTHA vs. PRINCIPAL COMMISSIONER OF IN

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TCA/86/2021HC Madras29 January 2021Bench: Hon`ble Mr Justice T. S. SIVAGNANAM6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that the assessee had filed a declaration/undertaking under the Vivad Se Vishwas Scheme on 29.01.2021 and was awaiting orders. In light of this subsequent event, the Court directed the Competent Authority to process the application/declaration under the Direct Tax Vivad Se Vishwas Act, 2020, and pass appropriate orders expeditiously. The assessee was granted liberty to restore these appeals if the ultimate decision on the declaration was not in their favour. If such a prayer was made, the Registry was directed to entertain it without insisting on a condonation of delay application. Consequently, the substantial questions of law framed were left open, and the tax case appeals were disposed of with the aforementioned liberty. No costs were awarded.

What were the facts?

These three appeals, TCA.Nos.86 to 88 of 2021, were filed by the assessee, D. Santha, against the order dated 27.09.2017 passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai. The appeals pertain to assessment years 2008-09 and 2009-10. The orders under challenge by the Tribunal relate to additions made in respect of closing stock of inventory of silver articles and penalties levied under Section 271(1)(c) of the Income Tax Act, 1961. The appeals were filed under Section 260A of the Act. During the pendency of these appeals before the High Court, the assessee filed a declaration/undertaking under the Vivad Se Vishwas Scheme on 29.01.2021.

What were the issues?

The Tribunal had to decide the following substantial questions of law: 1. Whether, under the facts and circumstances of the case, the Tribunal was right in upholding the addition made by the assessing officer in respect of the closing stock of inventory of silver articles (for AY 2008-09 in TCA.No.86 of 2021). 2. Whether, under the facts and circumstances of the case, the Tribunal was right in upholding the penalty levied by the assessing officer under Section 271(1)(c) of the Act (for AY 2008-09 in TCA.No.87 of 2021). 3. Whether, under the facts and circumstances of the case, the Tribunal was right in upholding the penalty levied by the assessing officer under Section 271(1)(c) of the Act (for AY 2009-10 in TCA.No.88 of 2021). The judgment records that the learned counsel for the appellant/assessee submitted that a declaration/undertaking under the Vivad Se Vishwas Scheme was being filed. No specific arguments were recorded for the revenue.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

TCA.Nos.86 to 88 of 2021 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 29.01.2021 CORAM : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Ms.Justice R.N.MANJULA T.C.A.Nos.86 to 88 of 2021 and C.M.P.Nos.1484 & 1485 of 2021 D.Santha ...Appellant in all cases Vs Principal Commissioner of Income Tax, Pudhucherry. ...Respondent in all cases COMMON PRAYER: Appeals filed under Section 260A of the Income Tax Act, 1961 against the order dated 27.09.2017 made in ITA.Nos.1593, 1828 & 1829/Mds/2016, on the file of the Income Tax Appellate Tribunal, 'A' Bench, Chennai for the assessment years 2008-09, 2008-09 and 2009-10. For Appellant: Mr.N.V.Balaji (in all cases) For Respondent: Mrs.R.Hemalatha (in all cases) Senior Standing Counsel 1/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.86 to 88 of 2021 COMMON JUDGMENT (Delivered by

T.S.Sivagnanam,J

) These appeals, filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), are directed against the order dated 27.09.2017 made in ITA.No.1593/Mds/2016 for the assessment year 2008-09, ITA.No.1828/Mds/2016 for the assessment year 2008-09 and ITA.No.1829/Mds/2016 for the assessment year 2009-10 on the file of the Income Tax Appellate Tribunal, 'A' Bench, Chennai ('the Tribunal' for brevity). 2. The assessee in TCA.No.86 of 2021 has raised the following substantial question of law for consideration: "1. Whether under the facts and circumstances of the case, the Tribunal was right in upholding the addition made by the assessing officer in respect of closing stock of inventory of silver articles?" 3. The assessee in TCA.No.87 of 2021 has raised the following substantial question of law for consideration: "1. Whether under the facts and circumstances of the case, the Tribunal was right in upholding the penalty levied by the assessing officer under Section 27(1)(c) of the Act? 2/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.86 to 88 of 2021 4. The assessee in TCA.No.88 of 2021 has raised the following substantial question of law for consideration: "1. Whether under the facts and circumstances of the case, the Tribunal was right in upholding the penalty levied by the assessing officer under Section 27(1)(c) of the Act? 5. We have heard Mr.N.V.Balaji, learned counsel for the appellant/assessee and Mrs.R.Hemalatha, learned Senior Standing Counsel appearing for the respondent-Revenue. 6. The learned counsel for the appellant/assessee submits that the declaration/undertaking under the Vivad Se Vishwas Scheme in Form No.1 is being filed by the appellant/assessee today (29.01.2021) and is awaiting orders to be passed in Form No.3. The same is taken on record. 6. 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 these appeals in the event the ultimate decision to be taken on the declaration 3/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.86 to 88 of 2021 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 appeals 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. 7. The tax case appeals stand disposed of with the aforementioned liberty and consequently, the substantial questions of law framed are left open. No costs. Connected miscellaneous petitions are closed. (T.S.S.,J.) (R.N.M.,J.) 29.01.2021 Index: Yes/No Internet:Yes/No Speaking Judgment/Non speaking Judgment hvk 4/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.86 to 88 of 2021 To 1. The Income Tax Appellate Tribunal, 'A' Bench, Chennai. 2. Principal Commissioner of Income Tax, Pudhucherry. 5/6 https://www.mhc.tn.gov.in/judis/ TCA.Nos.86 to 88 of 2021 T.S.SIVAGNANAM,J AND R.N.MANJULA,J hvk T.C.A.Nos.86 to 88 of 2021 and C.M.P.Nos.1484 & 1485 of 2021 29.01.2021 6/6 https://www.mhc.tn.gov.in/judis/

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