AMIT SHRIDHAR JINSIWALE, MUMBAI V. DCIT 14(3)(2), MUMBAI

ITA 6627/MUM/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1798 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 22-11-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SMITA VERMA
• Keywords: Salary income; Condonation of delay
• Section: 201; 6

Judgement Text

T HE INCOME TAX APPELLATE TRIBUNAL SMC - I BENCH, MUMBAI SHRI SHAMIM YAHYA ( A M) I.T.A. NO. 6627 /MUM/ 201 8 (ASSESSMENT YEAR 2014 - 15) AMIT SRIDHAR JINSIWALE ABHAR, P;OT NO. 297 12 TH ROAD, KHAR WEST MUMBAI - 400 052. PAN : ADBPJ8177B V S . DCIT - 14(3)(2) AAYAKAR BHAVAN M.K. ROAD CHURCHGATE MUMBAI - 400 020. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY NONE DEPARTMENT BY MS. SMITA VERMA DATE OF HEARING 25 . 11 . 20 20 DATE OF PRONOUNCEMENT 25 .11 . 20 20 O R D E R THIS APPEAL BY THE ASSESSEE IS DIRE CTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) [IN SHORT LEARNED CIT(A)] DATED 22.8.2018 PERTAINING TO A.Y. 201 4 - 1 5 . 2. THE GROUNDS OF APPEAL READ AS UNDER : - 1. UNDER THE FACTS AND THE CIRCUMSTANCES OF THE CASE, THE HON. CIT(A) HA S ERRED IN LAW IN UPHELDING THE PROFESSIONAL FEES RECEIVED BY THE APPELLANT AS INCOME FROM SALARY . 2. UNDER THE FACTS AND THE CIRCUMSTANCES OF THE CASE, THE HON. CIT(A) HAS ERRED IN LAW IN DISALLOWING RS. 56,6197 - BEING EXPENSES FROM PROFESSIONAL FEES. 3. UNDER THE FACTS AND THE CIRCUMSTANCES OF THE CASE, THE HON. CIT(A) HAS ERRED AND NOT JUSTIFIED IN LAW IN UPHELDING THE ACT OF LD. ASSESSING OFFICER OF REJECTING THE BOOKS OF ACCOUNTS OF THE APPELLANT ON THE ONE HAND AND TREATING THE PROFESSIONAL INCOME AS SALARY INCOME ON THE OTHER HAND 4. UNDER THE FACTS AND THE CIRCUMSTANCES OF THE CASE, THE HON. CIT(A) HAS ERRED AND NOT JUSTIFIED IN LAW IN NOT ACCEPTING THE CASH METHOD OF ACCOUNTING EMPLOYED BY THE APPELLANT AND APPLYING MERCANTILE METHOD OF ACCOUN TING . AMIT SRIDHAR JINSIWALE 2 3. AT THE OUTSET, IT IS NOTED THAT BY A WRITTEN SUBMISSION IT IS SUBMITTED THAT THE ASSESSEE HAS OPTED FOR SOLUTION OF DISPUTE UNDER THE VIVAD SE VISHWAS SCHEME. 4. I NOTE THAT IN A SIMILAR SITUATION, HON'BLE MADRAS HIGH COURT HAS IN AN APPEAL IN THE CASE OF M/S. NANNUSAMY MOHAN (HUF) VS. ACIT VIDE ORDER DATED 16.10.2020 HELD AS UNDER : - 3. THE LEARNED COUNSEL FOR THE APPELLANT/ASSESSEE, ON INSTRUCTIONS, SUBMITTED THAT THE APPELLANT/ASSESSEE INTENDS TO AVAIL THE BENEFIT OF VIVAD SE VISHWAS SC HEME (VVS SCHEME FOR BREVITY) AND IN THIS REGARD, THE ASSESSEE IS TAKING STEPS TO FILE THE APPLICATION/DECLARATION IN FORM NO. I. 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 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 RECEI VED THE ASSENT OF THE PRESIDENT ON 17 TH MARCH 2020 AND PUBLISHED IN THE GAZETTE OF INDIA ON 17 TH 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 EI THER 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 PROV ISIONS OF SECTION 4 IN RESPECT OF TAX ARREARS, THEN, NOTWITHSTANDING ANYTHING CONTAINED IN THE INCOME TAX ACT OR ANY OTHER LA W 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 TH E 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 TH E 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 IMP OSITION OF PENALTY IN AMIT SRIDHAR JINSIWALE 3 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 DECLARA TION 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. 8. 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 AUTHORIT Y 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 WHI CH THE DECLARATION IS FILED IN THE PROPER FORM. ACCORDINGLY, RESPECTFULLY FOLLOWING THE ABOVE AND NOTING THE FACT THAT THE ASSESSEE IS BEING OPTING FOR RESOLUTION OF DISPUTE UNDER VS V S SCHEME IN THE PRESENT CASE, I TREAT THI S APPEAL BEING DISPOSED OFF AS WITHDRAWN. 5. THE ASSESSEE IS GIVEN LIBERTY FOR RESTORATION OF APPEAL S IN ACCORDANCE WITH PARAGRAPH 7 OF THE HON'BLE HIGH COURT ORDER AS ABOVE. 6. IN THE RESULT, THI S APPEAL BY THE ASSESSEE IS DISPOSED OF BY TREATING THE SAME AS WITHDRAWN. ORDER PRON OUNCED UNDER RULE 34(4) OF THE ITAT RULES BY PLACING THE RESULT ON NOTICE BOARD ON 25.11.2020. SD/ - (SH A MIM YAHYA ) ACCOUNTANT MEMBER MUMBAI ; DATED : 26 / 1 1 / 20 20 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI AMIT SRIDHAR JINSIWALE 4 6. GUARD FILE. BY ORDER, //TRUE COPY// ( ASSISTANT REGISTRAR ) PS ITAT, MUMBAI