Appeal details
Counselvise Citation
[2021] 109 COUNSELVISE.COM (IT) 5451 (ITAT-CHENNAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 4 month(s) 23 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
05-01-2021
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
A
Assessment Year
2011-2012
Appeal Filed On
13-08-2019
Judgement Text
, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI , , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA , ACCOUNTAN T MEMBER SL. NO. I.T.A. NO ASSTT YEAR ASSESSEE & PAN RESPONDENT APPELLANT BY RESPONDENT BY [1] 2322/CHNY/2019 2011 2012 MR. MANGAL CHAND OSTWAL, M/S. PASS ASSOCIATES, UNIT NO.208, 2 ND FLOOR, BETA WING, RAHEJA TOWERS, NO.113 134, ANNA SALAI, CHENNAI 600 002 PAN : AAAP0 1258J INCOME TAX OFFICER, NON - CORPORATE WARD - 10(3), CHENNAI 600 034 MR. D. ANAND MR. CHANDRA - BABU, ADDITIONAL CIT [2] 2321/CHNY/2019 2011 - 2012 MR. PRAKASH CHAND JAIN, M/S. PASS ASSOCIATES, UNIT NO.208, 2 ND FLOOR, BETA WING, RAHE JA TOWERS, NO.113 134, ANNA SALAI, CHENNAI 600 002 PAN: AADPJ 6295P INCOME TAX OFFICER, NON - CORPORATE WARD - 10(3), CHENNAI 600 034 MR. D. ANAND MR. CHANDRA - BABU, ADDITIONAL CIT [3] 2317/CHNY/2019 2011 - 2012 M/S . MANGAL CHAND OSTWAL & SONS, M/S. PASS ASSOCIATES, UNIT NO.208, 2 ND FLOOR, BETA WING, RAHEJA TOWERS, NO.113 134, ANNASALAI,CHENNAI 600 002 PAN:AAAHM 1827K INCOME TAX OFFICER, NON - CORPORATE WARD - 10(2), CHENNAI 600 034 MR. D. ANAND MR. CHANDRA - BABU, ADDITIONAL CIT [4] 2318/CHNY/2019 20 11 - 2012 MR. INDIRA DEVI OSTWAL, M/S. PASS ASSOCIATES, UNIT NO.208, 2 ND FLOOR, BETA WING, RAHEJA TOWERS, NO.113 134, ANNASALAI, CHENNAI 600 002 PAN: AAAPO 0785A INCOME TAX OFFICER, NON - CORPORATE WARD - 10(3), CHENNAI 600 034 MR. D. ANAND MR. CHANDRA - B ABU, ADDITIONAL CIT [5] 23 1 9/CHNY/2019 2011 - 2012 MS. KAMALA DEVI OSTWAL, M/S. PASS ASSOCIATES, UNIT NO.208, 2 ND FLOOR, BETA WING, RAHEJA TOWERS, NO.113 134, ANNASALAI, CHENNAI 600 002 PAN: AAAPO 1261D INCOME TAX OFFICER, NON - CORPORATE WARD - 10(2), CHE NNAI 600 034 MR. D. ANAND MR. CHANDRA - BABU, ADDITIONAL CIT I . T . A NO S.2322/CHNY/2019 & OTHERS : - 2 - : [6] 2320/CHNY/2019 2011 - 2012 M/S. PRAKASH CHAND JAIN & SONS, M/S. PASS ASSOCIATES, UNIT NO.208, 2 ND FLOOR, BETA WING, RAHEJA TOWERS, NO.113 134, ANNASALAI, CHENNAI 600 002 PAN: AAAHP 1569 F INCOME TAX OFFICER, NON - CORPORATE WARD - 10(3), CHENNAI 600 034 MR. D. ANAND MR. CHANDRA - BABU, ADDITIONAL CIT [7] 2753/CHNY/2019 2004 - 2005 M/S. VVA AGENCIES PRIVATE LIMITED, (FORMERLY KNOWN AS VVA FINANCIAL SERVICES PRIVATE LIMITED), RADISSON BLU HOTE L, NO.2, ETHIRAJ SALAI, C - IN - C ROAD, EGMORE, CHENNAI 600 008 PAN : AAACV 2097B ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE - III(4), CHENNAI 600034 MR. N. VIJAY KUMAR, C.A. MR. CHANDRA - BABU, ADDITIONAL CIT [8] 3292/CHNY/2019 2015 - 2016 MS. M EENAKSHI SUNDARAM MUTHULAKSHMI, NO.1, BALA KRISHNA STREET, FLAT NO.10, HERAMB APARTMENTS, MYLAPORE,CHENNAI - 600004 PAN: BMKPM 4571R INCOME TAX OFFICER, NON - CORPORATE WARD - 1(3), CHENNAI 600 034 MR. N.V. BALAJI, ADVOCATE MR. CHANDRA - BABU, ADDITIONAL CIT [9] 3439/CHNY/2019 2012 - 2013 MR. VISHAL OSTWAL, NO.38, RATTAN BAZAAR, PARK TOWN, CHENNAI 600 003 PAN:AAAPO 1263B INCOME TAX OFFICER, NON - CORPORATE WARD - 10(3), CHENNAI 600 034 MR. N.V. BALAJI, ADVOCATE MR. CHANDRA - BABU, ADDITIONAL CIT [10] 2368/CHNY/201 9 2012 - 2013 M/S. SAMPAT PUNIT BHAGWANDAS, NO.191, DEMELLOWS ROAD, CHOOLAI, CHENNAI - 600112 PAN: AAKHS 6779J INCOME TAX OFFICER, NON - CORPORATE WARD - 9(3), CHENNAI 600 034 MR. G. RAMAKRISHNAN, C.A., MR. CHANDRA - BABU, ADDITIONAL CIT / DATE OF HEARING : 05.01.2021 / DATE OF PRONOUNCEMENT : 05.01.2021 / O R D E R PER BENCH : THIS BUNCH OF TEN APPEALS FILED BY DIFFERENT A SSESSEES ARE DIRECTED AGAINST ORDERS OF THE LEARNED COMMISSIONER OF INCOME TAX I . T . A NO S.2322/CHNY/2019 & OTHERS : - 3 - : (AP PEALS), CHENNAI OF EVEN DATED 28.05.2019 , 28.05.2019, 28.05.2019, 28.05.2019, 28.05.2019, 28.05.2019, 29.07.2019, 25.09.2019, 17.10.2019 & 20.05.2019 FOR RESPECTIVE ASSESSMENT YEARS. 2. WE HAVE HEARD THE COUNSELS FOR THE ASSESSEES AND THE LEARNED DEPARTME NTAL REPRESENTATIVE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. AT THE TIME OF HEARING, LEARNED COUNSELS FOR THE ASSESSEES HAVE MADE A STATEMENT AT BAR THAT THE ASSESSEES WANT TO UTILIZE THE DIRECT TAXES VIVAD SE VISHWAS SCHEME, 2020 TO SE TTLE PENDING DISPUTE RELATING TO DIRECT TAXES AND IN THIS REGARD SOME OF ASSESSEES HAVE FILED FORM NO 1 AND 2 AND AWAITING FOR F ORM N O. 3 FROM THE DESIGNATED AUTHORITY. IN SOME CASES, THE ASSESSEES HAVE RECEIVED FORM NO. 3 FROM THE DESIGNATED AUTHORITY AND IN SOME CASES, THE ASSESSEE HAVE FILED LETTER AND EXPRESSED THEIR WILLINGNESS TO FILE FORM NO. 1 AND 2 BEFORE THE DESIGNATED AUTHORITY. 3. THE BENCH HAS CONSIDERED RIVAL CONTENTIONS OF BOTH SIDES AND AFTER HEARING BOTH PARTIES, WE FOUND THAT THE G OVERNMENT OF INDIA HAS ANNOUNCED IN THE BUDGET, 2020, A DIRECT TAXES VIVAD SE VISHWAS SCHEME, 2020 TO SETTLE PENDING DISPUTE RELATING TO DIRECT TAXES AT VARIOUS APPELLATE FORUMS INCLUDING THE FIRST APPELLATE AUTHORITY, TRIBUNAL, HIGH COURT AN D SUPREME COURT. IN THIS REGARD, THE SCHEME HAS BEEN NOTIFIED ON 17 TH MARCH, 2020 AND BECAME DIRECT TAXES VIVAD SE VISHWAS ACT, 2020. AS PER THE SAID I . T . A NO S.2322/CHNY/2019 & OTHERS : - 4 - : SCHEME, A SSESSEES ARE ALLOWED TO SETTLE DIRECT TAX DISPUTE IN A MANNER AND PROCEDURE PRESCRIBED THEREIN BY FILING NECESSARY DECLARATION AND UNDERTAKING. THE SCHEME HAS ALSO SPECIFIED THE AMOUNT OF TAXES, INTEREST, AND PENALTY, IF ANY PAYABLE UNDER THE ACT. IF AN ASSESSEE FILED A DECLARATION AND PAY SPECIFIED TAXES AS PER THE SCHEME AND WITHDRAW THE APPEAL PENDING BEFORE THE APPELLATE AUTHORITIES, THE DESIGNATED AUTHORITY SHALL PASS AN ORDER IN FORM 5 CONFIRMING PAYMENT MADE UNDER THE SCHEME AND GRANT IMMUNITY FROM PENALTY AND PROSECUTION. 4. IN THESE PRESENT APPEALS, SOME OF THE ASSESSEES H AVE FILED DECLARATION IN FORM NO.1 ALONG WITH UNDERTAKING WAIVING RIGHTS FOR ANY REMEDY IN FORM NO. 2 TO THE DESIGNATED AUTHORITY AND HAS ALSO RECEIVED FORM 3. IN SOME CASES, F ORM N O . 1 AND 2 HA VE BEEN FILED AND AWAITING F ORM N O. 3 FROM THE DESIGNATED AUTHORITY AND IN SOME CASES, THE ASSESSEES HAVE EXPRESSED THEIR WILLINGNESS TO FILE FORM NO. 1 AND 2 AND SETTLE THEIR DISPUTE UNDER THE SCHEME. THEREFORE, ONCE THE ASSESSEES INTEND TO FILE A DECLARATION IN FORM NO.1 ALONG WITH UNDERTAKING AND EXPRESSED TH EIR WILLINGNESS TO SETTLE PENDING DISPUTES REGARDING DIRECT TAXES, THEN THERE IS NO POINT IN KEEPING APPEAL FILED BY THE ASSESSEES. WE, FURTHER NOTED THAT RECENTLY THE HONBLE JURISDICTIONAL HIGH COURT OF MADRAS HAS CONSIDERED AN IDENTICAL APPLICATION FILED BY AN ASSESSEE IN THE CASE OF M/S. NANNUSAMY MOHAN (HUF) VS. ACIT IN T.C.A NO.372 OF 2020 FOR AVAILING THE BENEFIT OF VIVAD SE VISHWAS SCHEME, 2020, WHERE THE HONBLE HIGH COURT HAS DISMISSED THE APPEAL FILED BY THE PETITIONER I . T . A NO S.2322/CHNY/2019 & OTHERS : - 5 - : AS WITHDRAWN , BUT ALLOWED LIBERTY TO THE ASSESSEE TO RESTORE THE APPEAL IN THE EVENT THE DESIGNATED AUTHORITY FOR ANY REASON REJECT APPLICATION FILED BY THE ASSESSEE UNDER SECTION 4 OF THE ACT. THE RELEVANT PORTIONS OF THE OBSERVATIONS OF THE HONBLE HIGH COURT OF MADRAS VIDE ORDER DATED 16.10.2020 ARE EXTRACTED AS UNDER: - 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 MS. K.G.USHA RANI, LEARNED C OUNSEL 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) AND IN THIS REGARD, THE A SSESSEE IS TAKING STEPS TO FILE THE APPLICATION / DECLARATION IN FORM NO. 1. 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 IN DIA 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. 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 T HE 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 DA TE FILES A DECLARATION TO THE DESIGNATED AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 4 IN RESPECT OF TAX ARREARS, THEN, I . T . A NO S.2322/CHNY/2019 & OTHERS : - 6 - : 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 APPELLA TE 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 ME NTIONED 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. 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 T HE 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 ASSESSE E BY FILING A MISCELLANEOUS PETITION FOR RESTORATION, THE REGISTRY SHALL PLACE SUCH PETITION BEFORE THE DIVISION BENCH FOR ORDERS. 8. IN THE LIGHT OF THE ABOVE, WE DIRECT THE APPELLANT / ASSESSEE TO FILE THE FORM NO.1 ON OR BEFORE 20.11.2020 AND THE C OMPETENT 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 FOR M. I . T . A NO S.2322/CHNY/2019 & OTHERS : - 7 - : 5. IN THE LIGHT OF THE ABOVE DECISION OF THE HONBLE HIGH COURT OF MADRAS, AND BY TAKING NOTE OF THE FACT THAT SOME A SSESSEES HAVE ALREADY FILED DECLARATION IN FORM NO.1 ALONG WITH FORM NO.2 TO THE DESIGNATED AUTHORITY AND RECEIVED FORM NO. 3 AND SOME A SSESSEES HAD ALREADY FILED FORM N O . 1 & 2 AND AWAITING F ORM N O. 3 FROM THE DESIGNATED AUTHORITY AN D ALSO THE FACT THAT THE REMAINING A SSESSEES ARE WILLING TO FILE FORM NO. 1 AND 2 WITHIN THE DUE DATE PRESCRIBED FOR THIS PURPOSE, WE DIS MISS THE APPEALS FILED BY EACH OF THE A SSESSEES , SUPRA, AS WITHDRAWN. HOWEVER, LIBER TY IS GIVEN TO THE A SSESSEES TO RESTORE THE APPEALS, IN THE EVENT OF THE DESIGNATED AUTHORITY, FOR ANY REASON REJECT THE APPLICATION FILED BY THE ASSESSEE UNDER S ECTION 4 OF THE SAID ACT. WE, FURTHER MAKE IT CLEAR THAT IN A CASE WHERE THE APPEAL IS FILED BY THE REVENUE AND THE ASSESSEES HAVE FOR ANY REASON OPTED OUT FROM THE SCHEME OR THE APPLICANTS UNDER THE SCHEME MISREPRESENT ANY FACT WHICH RESULTED IN REJECTION OF APPL ICATION FILED UNDER THE SCHEME, THEN THE PROVISIONS OF SECTION 4(6) OF THE ACT, SHALL BE APPLICABLE TO ALL SUCH APPEALS AND IN SUCH CASES, ALL THE PROCEEDINGS AND THE CLAIMS WHICH WERE WITHDRAWN UNDER SECTION 4 AND ALL THE CONSEQUENCES UNDER THE INCOME - TAX ACT AGAINST THE DECLARANT SHALL BE DEEMED TO HAVE BEEN REVIVED. WE, FURTHER MAKE IT CLEAR THAT THE ASSESSEES SHOULD PROMPTLY INFORM THE ASSESSING OFFICER ABOUT TH EIR DECISION TO OPT OUT OF THE SCHEME OR REJECTION OF APPLICATION BY THE DESIGNATED AUTHORITY TO THE ASSESSING OFFICER, SO AS TO ENABLE TO FILE MISCELLANEOUS APPLICATION TO RESTORE THE APPEAL. I . T . A NO S.2322/CHNY/2019 & OTHERS : - 8 - : 6. IN THE RESULT, ALL THE APPEALS FILED BY THE ASSESSEE AS WE LL AS THE REVENUE ARE DISMISSED AS WITHDRAWN. ORDER PRONOUNCED ON 5 TH J ANUARY, 2021 IN CHENNAI. SD/ - ( ) ( G. MANJUNATHA ) /ACCOUNTANT MEMBER SD/ - ( ) ( V. DURGA RAO ) /JUDICIAL MEMBER / CHENNAI, / DATED: 5 TH JANUARY, 2021 IA , SR. P.S /COPY TO: 1. /A PPELLANT 2. /RESPONDENT 3. () /CIT(A) 4. /CIT 5. /DR 6. /GF
