SMS TAXICABS PRIVATE LIMITED,MUMBAI vs. PRINCIPAL COMMISSIONER OF INCOME TAX-3, MUMBAI

O R D E R PER C.N. PRASAD (JM)

(A.Y: 2012-13) SMS Taxicabs Pvt. Ltd., “a. Assessee is before Hon'ble ITAT Mumbai against the directions issued by Pr CIT U/s 263 for A.Y 2012-13. b. Assessment U/s. 143(3) for A.Y 2012-13 was completed with "NIL" observations and disallowances. c. Subsequent Hon’ble Pr. CIT gave directions U/s 263 to have the same re-assessed. d. In the reassessment for A.Y 2012-13 U/s 143(3) r.w.s. 263 A.O differed in view from the A.O completing assessment U/s 143(3) for A.Y 2012-13. e. Assessee filed appeal before the Hon'ble CIT(A) for the assessment U/s 143(3) r.w.s 263 for A.Y. 2012-13 on issue of claim of depreciation on permit license / tender fees. f. After introduction of Viviad Se Vishwas Scheme, assessee recently chose to apply under g. Scheme for A.Y 2012-13 for appeal before Hon'ble CIT(A) against order U/s 143(3) r.w.s 263. h. After completion of procedure and getting approval under Vivad Se Vishwas scheme for A.Y. 2012-13 assessee intends to submit these documents before Hon'ble ITAT Mumbai for withdrawal of the matter. i. The assessee however reserves right of appeal, if the application under Vivad Se Vishwas is rejected. Your Honour may further please note that assessee is under huge financial constraints from F.Y 2017-18 due to closure of major business activity and was forced to vacate registered office and place of business 2-3 times. It is currently not having any business premises or for contact purpose. Management of company is also going through disputes. As such we are sorry for the inconvenience that may have caused to Your Honor’s office and Hon'ble D.R.”

4. The Hon'ble Madras High Court in the case of M/s. Nannusamy Mohan (HUF) v. ACIT in T.C.A. No. 372 of 2020 dated 16.10.2020 on an appeal by the assessee u/s. 260A of the Act, held as under: - “This appeal has been filed by the assessee under Section 260 A of the Income Tax Act, 1961 ('the Act' for brevity), challenging the order dated 03.12.2018 passed by the Income Tax Appellate Tribunal, Chennai, 'A' Bench ('the Tribunal' for brevity) in I.T.A.No.2576/CHNY/2017 for the Assessment Year 2011-12. The appeal is admitted on the following Substantial Questions of Law: “1. Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was perverse in not considering all the grounds raised

in Cross Objection, viz. (1) claim of exemption in respect of sale of agricultural land (2) claim of deduction by way of cost inflation Index and cost of plot of land purchased in computing deduction u/s.54F of Income Tax Act?

2. Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in upholding the disallowance of cost of improvement in providing Modern Kitchen in the flats purchased?”

2. We have heard Mr.M.P.Senthil Kumar, learned counsel appearing for the appellant/assessee and Mr.T.R.Senthil Kumar, learned Senior Standing counsel and M/s.K.G.Usha Rani, learned counsel for the respondent/Revenue.

3. The learned counsel for the appellant / assessee, on instructions, submitted that the appellant / assessee intends to avail the benefit of Vivad Se Vishwas Scheme ('VVS Scheme' for brevity)

(A.Y: 2012-13) SMS Taxicabs Pvt. Ltd., and in this regard, the assessee is taking steps to file the application / declaration in Form No.I.

5. 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 being in force, the amount payable by the declarant shall be determined in terms of Section 3(a-c) thereunder.

6. 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.

Order pronounced in the virtual court on 10.03.2021