SHINING STAR SOLUTIONS & SERVICES PVT. LTD.,MUMBAI vs. ITO 13 (2)(3), MUMBAI

This appeal in A.Y.2014-15 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-21, Mumbai in appeal No.CIT(A)-21/ITO-13(2)(3)/IT-391/2016-17 dated 10/09/2018 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated

The first issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in upholding the disallowance of interest expenditure made in the sum of Rs.95,13,021/- by the ld. AO u/s.36(1)(iii) / 37 of the Act.

We have heard the rival submissions and perused the materials available on record. We find that assessee had filed a letter dated 17/11/2020 stating that they are in the process of opting to prefer an application under direct tax “Vivad Se Viswas Scheme Act 2020” and accordingly, sought adjournment. We find there is no need to keep this appeal pending before us in view of the decision of Hon'ble High Court of Madras in the case of Nannusamy Mohan (HUF) vs. ACIT in T.C.A. No.372 of 2020 dated 16.10.2020, wherein Hon'ble High Court after considering the intention of the assessee to avail the benefit of „Vivad Se Viswas Scheme-2020‟ (VSV Scheme), had dismissed the appeal by observing in Para 7 to 9 as under: - “7. 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 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.

In the light of the above, we direct the appellant/ assessee to file the Form No.I on or before 20.11.2020 and the competent authority shall process the application/ declaration in accordance

In the light of the view taken by Hon‟ble Madras High Court cited (supra), we also give liberty to the assessee to get the appeal restored in the event that the assessee does not succeed on the declaration filed by the assessee under direct tax “Vivad Se Viswas Scheme-2020”. In other words if the assessee‟s declaration to be filed is not accepted by the Revenue for any reason whatsoever, the assessee can make a prayer before the Bench for recalling of the order by filing a miscellaneous application for restoration of appeal. The Registry will place such petition before the Bench concerned.

In view of the aforesaid observations, we dismiss this appeal of assessee with a liberty to get the appeal recalled in the eventuality of assessee‟s declaration (to be filed) not getting accepted by the Revenue. 6. In the result, the appeal of the assessee is dismissed.