G.T.Sambandham, CHENNAI V. ITO Corp.Ward 1(1), CHENNAI

ITA 3514/CHNY/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3452 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-11-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 26-12-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R ANITHA
• Keywords: Competent authority; Condonation of delay
• Section: 6

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C B ENCH, CHENNAI , . , % BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER ./ I.T.A.NO.3514/CHNY/2018 ( / ASSESSMENT YEAR: 2013-14) SHRI G.T.SAMBANDHAM, 40B, THAMBUSWAAMY ROAD, KILPAUK, CHENNAI. VS THE INCOME TAX OFFICER , CORPORATE WARD 1(1) CHENNAI-34 PAN:AIJPS 4599M ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : NONE /RESPONDENTBY : MS. R.ANITHA, JCIT /DATE OF HEARING : 09.11.2020 /DATE OF PRONOUNCEMENT : 09.11.2020 / O R D E R PER G.MANJUNATHA, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)-1, CHENNAI DATED 10.10.2018 AND PERTAINS TO THE ASSES SMENT YEAR 2013-14. 2. NONE APPEARED FOR THE ASSESSEE. SINCE THE MA TTER IS COVERED BY VIVAD SE VISHWAS SCHEME, 2020, THE ADJOURNMENT PETITION FILED BY THE COUNSEL FOR THE ASSESSEE IS REJECTED AND TH E APPEAL IS TAKEN UP FOR DISPOSAL. WE HAVE HEARD THE LEARNED DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSEE INT ENDS TO AVAIL THE BENEFIT OF DIRECT TAXES VIVAD SE VISHWAS SCHEME, 2 020 TO SETTLE THE PENDING DISPUTE RELATING TO DIRECT TAXES A ND IN THIS REGARD 2 ITA NO.3514/CHNY/2018 PROPOSED TO FILE DECLARATION IN FORM NO. 1 ALONG WI TH UNDERTAKING WAIVING RIGHTS FOR ANY REMEDY IN FORM 2 TO THE D ESIGNATED AUTHORITY. 3. THE BENCH HAS EXAMINED THE ADJOURNMENT APPLICATI ON FILED BY THE ASSESSEE AND FOUND THAT THE GOVERNMENT OF I NDIA HAS ANNOUNCED IN THE BUDGET, 2020, A DIRECT TAXES VIVAD SE VISHWAS SCHEME, 2020 TO SETTLE THE PENDING DISPUTE RELAT ING TO DIRECT TAXES AT VARIOUS APPELLATE FORUMS INCLUDING THE FIRST APPELLATE AUTHORITY, TRIBUNAL, HIGH COURT AND 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 T HE SAID SCHEME, ASSESSEES ARE ALLOWED TO SETTLE DIRECT TAX DISPUT E IN A MANNER AND PROCEDURE PRESCRIBED THEREIN BY FILING NECESSARY DECLARATION AND UNDERTAKING. THE SCHEME HAS ALSO SPECIFIED THE AMOU NT OF TAXES, INTEREST, AND PENALTY, IF ANY PAYABLE UNDER THE ACT . IF AN ASSESSEE FILES A DECLARATION AND PAY THE SPECIFIED TAXES AS PER THE SCHEME AND WITHDRAW THE APPEAL PENDING BEFORE 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. 3 ITA NO.3514/CHNY/2018 4. IN THIS CASE, THE ASSESSEE INTENDS TO AVAIL THE BENEFIT OF THE SAID SCHEME BY FILING DECLARATION IN FORM NO.1 AL ONG WITH UNDERTAKING WAIVING RIGHTS FOR ANY REMEDY IN FORM N O. 2 TO DESIGNATED AUTHORITY. THEREFORE, ONCE THE ASSESSEE INTEND TO FILE A DECLARATION IN FORM NO.1 ALONG WITH UNDERTAKING A ND EXPRESSED HIS WILLINGNESS TO SETTLE PENDING DISPUTES REGARDIN G DIRECT TAXES, THEN THERE IS NO POINT IN KEEPING PENDING APPEAL FI LED BY THE ASSESSE. WE FURTHER NOTED THAT RECENTLY THE HON BLE JURISDICTIONAL HIGH COURT OF MADRAS HAS CONSIDERED AN IDENTICAL A PPLICATION FILED BY AN ASSESSEE IN THE CASE OF M/S. NANNUSAMY M OHAN (HUF) VS. ACIT IN T.C.A NO.372 OF 2020 FOR AVAILING THE B ENEFIT OF VIVAD SE VISHWAS SCHEME, 2020, WHERE THE HONBLE HIGH C OURT HAS DISMISSED THE APPEAL FILED BY THE PETITIONER AS WIT HDRAWN, BUT ALLOWED LIBERTY TO THE ASSESSEE TO RESTORE THE APP EAL IN THE EVENT THE DESIGNATED AUTHORITY FOR ANY REASON REJECT APPL ICATION FILED BY THE ASSESSEE UNDER SECTION 4 OF THE ACT. THE RELEVA NT PORTION OF THE OBSERVATIONS OF THE HONBLE HIGH COURT OF MADRAS VI DE ORDER DATED 16.10.2020 ARE EXTRACTED AS UNDER:- 2. WE HAVE HEARD MR.M.P.SENTHIL KUMAR, LEARNED C OUNSEL APPEARING FOR THE APPELLANT/ASSESSEE AND MR.T.R.SENTHILKUMAR, LEARNED SENIOR STANDING COU NSEL AND MS. K.G.USHA RANI, LEARNED COUNSEL FOR THE RESPONDENT/REVENUE. 4 ITA NO.3514/CHNY/2018 3. THE LEARNED COUNSEL FOR THE APPELLANT / ASSESSEE , ON INSTRUCTIONS, SUBMITTED THAT THE APPELLANT / ASSESS EE INTENDS TO AVAIL THE BENEFIT OF VIVAD SE VISHWAS SCHEME ( VVS SCHEME' FOR BREVITY) AND IN THIS REGARD, THE ASSESSEE IS TA KING 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 CONSIDERATI ON 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 INCIDENT AL THERETO. THE ACT OF THE PARLIAMENT RECEIVED THE ASSENT OF TH E 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 THE TRIBUNAL OR BEFORE THE HIGH COURT OR BEFORE THE HON'BLE SUPREME COURT OF INDIA. UNDER SE CTION 2(J) 'DISPUTED TAX' HAS BEEN DEFINED. IN TERMS OF SECTIO N 3, WHERE A DECLARANT MEANS A PERSON, WHO FILES A DECLARATION UNDER SECTION 4 ON OR BEFORE THE LAST DATE FILES A DECLAR ATION TO THE DESIGNATED AUTHORITY IN ACCORDANCE WITH THE PROVISI ONS OF SECTION 4 IN RESPECT OF TAX ARREARS, THEN, NOTWITHS TANDING ANYTHING CONTAINED IN THE INCOME TAX ACT OR ANY OTH ER LAW FOR THE TIME BEING IN FORCE, THE AMOUNT PAYABLE BY THE DECLARANT SHALL BE DETERMINED IN TERMS OF SECTION 3(A-C) THER EUNDER. 6. THE FIRST PROVISO TO SECTION 3 STATES THAT IN C ASE WHERE AN APPEAL OR WRIT PETITION OR SPECIAL LEAVE PETITION I S FILED BY THE INCOME TAX AUTHORITY ON ANY ISSUE BEFORE THE APPELL ATE FORUM, THE AMOUNT PAYABLE SHALL BE ONE-HALF OF THE AMOUNT IN THE TABLE STIPULATED IN SECTION 3 CALCULATED ON SUC H ISSUE, IN SUCH A MANNER AS MAY BE PRESCRIBED. THE SECOND PROV ISO DEALS WITH THE CASES, WHERE THE MATTER IS BEFORE TH E COMMISSIONER (APPEALS) OR BEFORE THE DISPUTE RESOLU TION PANEL. THE THIRD PROVISO DEALS WITH CASES, WHERE TH E ISSUE IS PENDING BEFORE THE INCOME TAX APPELLATE TRIBUNAL. T HE FILING OF THE DECLARATION IS AS PER SECTION 4 OF THE ACT A ND THE PARTICULARS TO BE FURNISHED ARE ALSO MENTIONED IN T HE SUB SECTIONS OF SECTION 4. SECTION 5 OF THE ACT DEALS W ITH THE TIME AND MANNER OF THE PAYMENT AND SECTION 6 DEALS WITH IMMUNITY FROM INITIATION OF PROCEEDINGS IN RESPECT OF OFFENC E AND IMPOSITION OF PENALTY IN CERTAIN CASES. SECTION 9 O F THE ACT DEALS WITH CASES, WHERE THE ACT 3 OF 2020 WILL NOT BE APPLICABLE. 5 ITA NO.3514/CHNY/2018 7. AS OBSERVED, THE ASSESSEE IS GIVEN LIBERTY TO RE STORE THIS APPEAL IN THE EVENT THE ULTIMATE DECISION TO BE TAK EN ON THE DECLARATION TO BE FILED BY THE ASSESSEE UNDER SECTI ON 4 OF THE SAID ACT IS NOT IN FAVOUR OF THE ASSESSEE. IF SUCH A PRAYER IS MADE, THE REGISTRY SHALL ENTERTAIN THE PRAYER WITHO UT INSISTING UPON ANY APPLICATION TO BE FILED FOR CONDONATION OF DELAY IN RESTORATION OF THE APPEAL AND ON SUCH REQUEST MA DE BY THE ASSESSEE BY FILING A MISCELLANEOUS PETITION FOR RES TORATION, THE REGISTRY SHALL PLACE SUCH PETITION BEFORE THE D IVISION BENCH FOR ORDERS. 8. IN THE LIGHT OF THE ABOVE, WE DIRECT THE APPE LLANT / ASSESSEE TO FILE THE FORM NO.1 ON OR BEFORE 20.11.2 020 AND THE COMPETENT AUTHORITY SHALL PROCESS THE APPLICATI ON / DECLARATION IN ACCORDANCE WITH THE ACT AND PASS APP ROPRIATE ORDERS AS EXPEDITIOUSLY AS POSSIBLE PREFERABLY WITH IN A PERIOD OF SIX (6) WEEKS FROM THE DATE ON WHICH THE DECLARATION IS FILED IN THE PROPER FORM. 5. THE BENCH HAS ALSO TAKEN NOTE OF THE AFORESAID D ECISION OF THE HONBLE HIGH COURT OF MADRAS, WHEREIN IT HA S DISMISSED THE APPEAL FILED BY THE ASSESSEE ON THE PRETEXT OF APPLICATION FILED BY THE ASSESSEE IN FORM NO.1 BEFORE THE DESIGNATED AUTHORITY UNDER VIVAD SE VISHWAS SCHEME, 2020 T O SETTLE ITS DIRECT TAXES DISPUTE, BUT LIBERTY IS GIVEN TO THE A SSESSEE TO RESTORE THE APPEAL IN THE EVENT THE APPLICATION F ILED BY THE ASSESSEE IS REJECTED BY THE DESIGNATED AUTHORITY FOR ANY REASONS THEREFORE, BY TAKING NOTE OF THE FACT THA T THE ASSESSEE INTENDS TO AVAIL THE SAID SCHEME BY FILI NG DECLARATION IN FORM NO.1 ALONG WITH FORM NO.2 TO THE DESIGNATE D AUTHORITY AND ALSO TAKEN NOTE OF THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN T.C.A NO.372 OF 202 0 DATED 6 ITA NO.3514/CHNY/2018 16.10.2020 (SUPRA), WE DISMISS THE APPEAL FILED BY THE ASSESSEE AS WITHDRAWN. HOWEVER, A LIBERTY IS GIVE N TO THE ASSESSEE TO RESTORE THIS APPEAL, IN THE EVENT OF THE DESIGNATED AUTHORITY, FOR ANY REASON REJECT THE AP PLICATION FILED BY THE ASSESSEE UNDER SECTION 4 OF THE SAID ACT. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 9TH NOVEMB ER, 2020 SD/- SD/- ( ) ( . ) (MAHAVIR SINGH) (G. MANJUNATHA ) / VICE-PRESIDENT $ / ACCOUNTANT MEMBER & /CHENNAI, ' /DATED 9 TH NOVEMBER, 2020 DS )* +* /COPY TO: 1. APPELLANT 2. RESPONDENT 3. , () /CIT(A) 4. , /CIT 5. * 1 /DR 6. /GF .