Chakrapani Jayakumar, Coimbatore V. DCIT, Non Corp Cir-1, Coimbatore

ITA 596/CHNY/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 6692 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 08-03-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G JOHNSON CIT
• Keywords: Competent authority
• Section: 6

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER SL.NO ITA NO: AY APPELLANT RESPONDENT 1 596/CHNY/2019 2013 - 14 SHRI. CHAKRAPANI JAYAKUMAR, 88, ANNA NAGAR, 7 TH STREET, PEELAMEDU, COIMBATORE 641 004. [PAN: ADRPJ 5697A] DEPUTY COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE -1, 63, RACE COURSE ROAD, COIMBATORE. % & / APPELLANT BY : SHRI. I. DINESH, ADVOCATE )*% & / RESPONDENT BY : SHRI. G. JOHNSON, ADDL. CIT & /DATE OF HEARING : 19.01.2021 & /DATE OF PRONOUNCEMENT : 19.01.2021 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-2, COI MBATORE IN ITA NO. 02/2016-17 DATED 02.01.2019 FOR THE ASSESSMENT YEAR 2013-14. 2. WE HAVE HEARD THE COUNSEL FOR THE ASSESSEE AND T HE LD. DR AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. AT THE TI ME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE INVITING OUR ATTENTION TO THE COPY OF THE LETTER DATED 18.01.2021 SUBMITTED THAT THE ASSESSEE WANTS TO UTI LIZE THE DIRECT TAXES :-2-: ITA NO. 596/CHNY/2019 VIVAD SE VISHWAS SCHEME, 2020 TO SETTLE PENDING D ISPUTE RELATING TO DIRECT TAXES AND IN THIS REGARD THE ASSESSEE HAS FILED FOR M NO 1 AND 2 AND AWAITING FOR FORM NO. 3 FROM THE DESIGNATED AUTHORITY. 3. THE BENCH HAS CONSIDERED RIVAL CONTENTIONS OF BO TH SIDES AND AFTER HEARING BOTH PARTIES, WE FOUND THAT THE GOVERNMEN T OF INDIA HAS ANNOUNCED IN THE BUDGET, 2020, A DIRECT TAXES VIVA D SE VISHWAS SCHEME, 2020 TO SETTLE PENDING DISPUTE RELATING TO DIR ECT TAXES AT VARIOUS APPELLATE FORUMS INCLUDING THE FIRST APPELLATE A UTHORITY, TRIBUNAL, HIGH COURT AND SUPREME COURT. IN THIS REGARD, THE SCHE ME HAS BEEN NOTIFIED ON 17 TH MARCH, 2020 AND BECAME DIRECT TAXES VIVAD SE VISH WAS ACT, 2020. AS PER THE SAID SCHEME, ASSESSEE IS ALLOWED TO SETTLE DIRECT TAX DISPUTE IN A MANNER AND PROCEDURE PRESCRIBED THEREIN BY FILING N ECESSARY DECLARATION AND UNDERTAKING. THE SCHEME HAS ALSO SPECIFIED THE AMOU NT OF TAXES, INTEREST, AND PENALTY, IF ANY PAYABLE UNDER THE ACT. IF AN A SSESSEE FILED A DECLARATION AND PAY SPECIFIED TAXES AS PER THE SCHEME AND WITHDRAW THE APPEAL PENDING BEFORE THE APPELLATE AUTHORITIES, THE DES IGNATED AUTHORITY SHALL PASS AN ORDER IN FORM 5 CONFIRMING PAYMENT MADE U NDER THE SCHEME AND GRANT IMMUNITY FROM PENALTY AND PROSECUTION. 4. IN THE PRESENT APPEAL, THE ASSESSEE HAS FILED FO RM NO 1 AND 2 AND AWAITING FOR FORM NO. 3 FROM THE DESIGNATED AUTHORI TY. THEREFORE, ONCE THE :-3-: ITA NO. 596/CHNY/2019 ASSESSEE FILED A DECLARATION IN FORM NO.1 ALONG WIT H UNDERTAKING AND EXPRESSED THEIR WILLINGNESS TO SETTLE PENDING DISPU TES REGARDING DIRECT TAXES, THEN THERE IS NO POINT IN KEEPING THE APPEAL FILED BY THE ASSESSEE. WE, FURTHER NOTED THAT RECENTLY THE HONBLE JURISDICTIONAL H IGH COURT OF MADRAS HAS CONSIDERED AN IDENTICAL APPLICATION FILED BY AN AS SESSEE IN THE CASE OF M/S. NANNUSAMY MOHAN (HUF) VS. ACIT IN T.C.A NO.372 OF 2 020 FOR AVAILING THE BENEFIT OF VIVAD SE VISHWAS SCHEME, 2020, WHERE THE HONBLE HIGH COURT HAS DISMISSED THE APPEAL FILED BY THE PETITIONER 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 OBSERVA TIONS OF THE HONBLE HIGH COURT OF MADRAS VIDE ORDER DATED 16.10.2020 ARE EXT RACTED AS UNDER:- 2. WE HAVE HEARD MR.M.P.SENTHIL KUMAR, LEARNED C OUNSEL APPEARING FOR THE APPELLANT/ASSESSEE AND MR.T.R.SENTHIL KUMAR, LEA RNED SENIOR STANDING COUNSEL AND MS. K.G.USHA RANI, LEARNED COUNSEL FO R 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 REGA RD, THE ASSESSEE 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 INDIA ENACTED THE DIRECT TAX VIVA D SE VISHWAS ACT, 2020 (ACT 3 OF 2020) TO PROVIDE FOR RESOLUTION OF DISPUT ED 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 DI FFERENT LEVELS EITHER BEFORE THE FIRST APPELLATE AUTHORITY OR BEFORE THE TRIBUNA L 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 SECTION 3, WHERE A DE CLARANT MEANS A PERSON, WHO FILES A DECLARATION UNDER SECTION 4 ON OR BEFOR E THE LAST DATE FILES A DECLARATION TO THE DESIGNATED AUTHORITY IN ACCORDAN CE WITH THE PROVISIONS OF SECTION 4 IN RESPECT OF TAX ARREARS, THEN, NOTWITHS TANDING ANYTHING CONTAINED IN :-4-: ITA NO. 596/CHNY/2019 THE INCOME TAX ACT OR ANY OTHER LAW FOR THE TIME BE ING IN FORCE, THE AMOUNT PAYABLE BY THE DECLARANT SHALL BE DETERMINED IN TER MS OF SECTION 3(A-C) THEREUNDER. 6. THE FIRST PROVISO TO SECTION 3 STATES THAT IN C ASE 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 PAYABL E SHALL BE ONE-HALF OF THE AMOUNT IN THE TABLE STIPULATED IN SECTION 3 CALCULA TED ON SUCH ISSUE, IN SUCH A MANNER AS MAY BE PRESCRIBED. THE SECOND PROVISO DEA LS WITH THE CASES, WHERE THE MATTER IS BEFORE THE COMMISSIONER (APPEALS) OR BEFORE THE DISPUTE RESOLUTION PANEL. THE THIRD PROVISO DEALS WITH CASE S, WHERE THE ISSUE IS PENDING BEFORE THE INCOME TAX APPELLATE TRIBUNAL. T HE 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. SE CTION 5 OF THE ACT DEALS WITH THE TIME AND MANNER OF THE PAYMENT AND SECTION 6 DE ALS WITH IMMUNITY FROM INITIATION OF PROCEEDINGS IN RESPECT OF OFFENCE AND IMPOSITION OF PENALTY IN CERTAIN CASES. SECTION 9 OF THE ACT DEALS WITH CASE S, WHERE THE ACT 3 OF 2020 WILL NOT BE APPLICABLE. 7. AS OBSERVED, THE ASSESSEE IS GIVEN LIBERTY TO RE STORE THIS APPEAL IN THE EVENT THE ULTIMATE DECISION TO BE TAKEN ON THE DECLARATIO N 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 PR AYER WITHOUT INSISTING UPON ANY APPLICATION TO BE FILED FOR CONDONATION OF DELA Y IN RESTORATION OF THE APPEAL AND ON SUCH REQUEST MA DE BY THE ASSESSEE BY FILING A MISCELLANEOUS PETITION FOR RESTORATION, THE REGIS TRY SHALL PLACE SUCH PETITION BEFORE THE DIVISION 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 20.11.2020 AND THE COMPETENT AUTHORITY SHALL PROCESS THE APPLICATION / DECLARATION IN ACCORDANCE WITH TH E ACT AND PASS APPROPRIATE 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. IN THE LIGHT OF THE ABOVE DECISION OF THE HONBL E HIGH COURT OF MADRAS, AND BY TAKING NOTE OF THE FACT THAT THE ASSESSEE HAD ALREADY FILED FORM NO 1 & 2 AND AWAITING FOR FORM NO. 3 FROM THE DESIGNATED AUTHORITY, WE DISMISS THE APPEAL FILED THE ASSESSEE, SUPRA, AS WITHDRAWN. HOWEVER, LIBERTY IS GIVEN TO THE ASSESSEE TO RESTORE THE APPEAL, IN THE EVENT OF THE DESIGNATED AUTHORITY, FOR ANY REASON REJECT THE APPLICATION FI LED BY THE ASSESSEE UNDER SECTION 4 OF THE SAID ACT. WE, FURTHER MAKE IT CLEA R THAT IF THE ASSESSEE HAS FOR ANY REASON OPTED OUT FROM THE SCHEME OR THE APPLICA NT UNDER THE SCHEME :-5-: ITA NO. 596/CHNY/2019 MISREPRESENT ANY FACT WHICH RESULTED IN REJECTION O F APPLICATION FILED UNDER THE SCHEME, THEN THE PROVISIONS OF SECTION 4(6) OF THE ACT, SHALL BE APPLICABLE TO SUCH APPEAL AND IN SUCH CASE, THE PROCEEDINGS AND THE CLAIMS WH ICH WERE WITHDRAWN UNDER SECTION 4 AND ALL THE CONSEQUENCES UNDER THE INCOME-TAX ACT AGAINST THE DECLARANT ASSESSEE SHALL BE DEEMED TO HAVE BEEN REVIVED. WE, FURTHER MAKE IT CLEAR THAT THE ASSESSEE SHOULD PROMPTLY INFORM THE ASSESSING OFFICER ABOUT THEIR DECISION TO OPT OUT O F THE SCHEME OR REJECTION OF APPLICATION BY THE DESIGNATED AUTHORITY TO THE ASSE SSING OFFICER, SO AS TO ENABLE TO FILE MISCELLANEOUS APPLICATION TO RESTORE THE APPEAL. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH JANUARY, 2021 AT CHENNAI. SD/- ( ) (V. DURGA RAO) /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER /CHENNAI, / /DATED: 19 TH JANUARY, 2021 JPV &)1232 /COPY TO: 1. % / APPELLANT 2. )*% /RESPONDENT 3. 4 ) ( /CIT(A) 4. 4 /CIT 5. 2) /DR 6. /GF