E.Balasubramanian v. The Income-tax Officer, Business Ward-X(1), Chennai
[Citation -2020-LL-1013-74]

Citation 2020-LL-1013-74
Appellant Name E.Balasubramanian
Respondent Name The Income-tax Officer, Business Ward-X(1), Chennai
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 13/10/2020
Assessment Year 2011-12
Judgment View Judgment
Keyword Tags vivad se vishwas scheme • designated authority • competent authority • family arrangement • sale consideration • dispute resolution • stamp duty • sale deed
Bot Summary: The appeal has been filed, raising the following Substantial Questions of Law for consideration: 1.Whether the family arrangement leading to the execution of the sale deed dated 2.8.2010 would result in transfer u/s 2(47) of the Act for the purpose of levy of capital gains tax within the scope of Section 45 of the Act 2. Whether the Appellate Tribunal is correct in not considering the scope of section 50C(2) of the Act in order to consider the correctness of the computation of Long Term Capital Gains especially the adoption of sale consideration being the stamp duty value as per section 50C(1) of the Act 2. 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 provisions of Section 4 in respect of tax arrears 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. 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 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. 715 of 2019 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 imposition of penalty in certain cases. Section 9 of the Act deals with cases, where the Act 3 of 2020 will not be applicable.


T.C.A.No.715 of 2019 IN HIGH COURT OF JUDICATURE AT MADRAS DATED : 13.10.2020 CORAM HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN T.C.A.No.715 of 2019 Shri E.Balasubramanian Appellant Versus Income Tax Officer, Business Ward X(1) Chennai 600006 Respondent Prayer:- Tax Case Appeal filed under Section 260-A of Income Tax Act, 1961, against order of Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai, dated 23.09.2016 made in I.T.A.No.1506/Mds/2016 relating to Assessment Year 2011-12. For Appellant : Mr.A.S.Sriraman For Respondent : Mr.T.Ravikumar Senior Standing counsel JUDGMENT http://www.judis.nic.in1/6 T.C.A.No.715 of 2019 [Order of Court was made by T.S.SIVAGNANAM, J.] This appeal has been filed by assessee under Section 260 of Income Tax Act, 1961 ('the Act' for brevity), challenging order dated 23.09.2016 passed by Income Tax Appellate Tribunal, Chennai, 'A' Bench ('the Tribunal' for brevity) in I.T.A.No.1506/Mds/2016 for Assessment Year 2011-12. appeal has been filed, raising following Substantial Questions of Law for consideration: 1.Whether family arrangement leading to execution of sale deed dated 2.8.2010 would result in transfer u/s 2(47) of Act for purpose of levy of capital gains tax within scope of Section 45 of Act? 2. Whether execution of sale deed dated 2.8.2010 by Appellant in capacity of GPA holder of other family members / co-owners in favour of his wife would attract levy of capital gains tax in hands of Appellant / GPA holder? 3. Whether Appellate Tribunal is correct in not considering scope of section 50C(2) of Act in order to consider correctness of computation of Long Term Capital Gains especially adoption of sale consideration being stamp duty value as per section 50C(1) of Act? 2. We have heard Mr.A.S.Sriraman, learned counsel appearing for http://www.judis.nic.in2/6 T.C.A.No.715 of 2019 appellant/assessee and Mr.T.Ravikumar, learned Senior Standing counsel for respondent/Revenue. 3. learned counsel for appellant / assessee, on instructions, submitted that appellant / assessee intends to avail benefit of Vivad Se Vishwas Scheme ('VVS Scheme' for brevity) and in this regard, assessee is taking steps to file application / declaration in Form No.I. 4. It may not be necessary for this Court to decide Substantial Questions of Law framed for consideration on account of certain subsequent developments. Government of India enacted 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. Act of Parliament received assent of President on 17th March 2020 and published in Gazette of India on 17th March 2020. 5. In terms of said Act, assessee has been given option to put end to tax disputes, which may be pending at different levels http://www.judis.nic.in3/6 T.C.A.No.715 of 2019 either before First Appellate Authority or before Tribunal or before High Court or before Hon'ble Supreme Court of India. Under Section 2(j) disputed tax has been defined. In terms of Section 3, where declarant means person, who files declaration under Section 4 on or before last date files declaration to designated authority in accordance with provisions of Section 4 in respect of tax arrears, then, notwithstanding anything contained in Income Tax Act or any other law for time being in force, amount payable by declarant shall be determined in terms of Section 3(a-c) thereunder. 6. First Proviso to Section 3 states that in case, where Appeal or Writ Petition or Special Leave Petition is filed by Income Tax authority on any issue before Appellate Forum, amount payable shall be one-half of amount in table stipulated in Section 3 calculated on such issue, in such manner as may be prescribed. second proviso deals with cases, where matter is before Commissioner (Appeals) or before Dispute Resolution Panel. third proviso deals with cases, where issue is pending before Income Tax Appellate Tribunal. filing of declaration is as per Section 4 of Act and particulars to http://www.judis.nic.in4/6 T.C.A.No.715 of 2019 be furnished are also mentioned in Sub Sections of Section 4. Section 5 of Act deals with time and manner of 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 Act deals with cases, where Act 3 of 2020 will not be applicable. 7. As observed, assessee is given liberty to restore this appeal in event ultimate decision to be taken on declaration to be filed by assessee under Section 4 of said Act is not in favour of assessee. If such prayer is made, Registry shall entertain prayer without insisting upon any application to be filed for condonation of delay in restoration of appeal and on such request made by assessee by filing Miscellaneous Petition for Restoration, Registry shall place such petition before Division Bench for orders. 8. In light of above, We direct appellant / assessee to file Form No.I on or before 09.11.2020 and competent authority T.S.SIVAGNANAM, J. AND http://www.judis.nic.in5/6 T.C.A.No.715 of 2019 V.BHAVANI SUBBAROYAN, J. Kak shall process application / declaration in accordance with Act and pass appropriate orders as expeditiously as possible preferably within period of six (6) weeks from date on which declaration is filed in proper form. 9. With this direction, Tax Case Appeal stands disposed of with aforementioned liberty and Consequently, Substantial Questions of Law are left open. No costs. (T.S.S.,J) (V.B.S.,J) 13.10.2020 Kak Index: Yes / No Internet: Yes / No Speaking Order/Non-Speaking Order To Income Tax Appellate Tribunal, 'A' Bench, Chennai. T.C.A.No.715 of 2019 http://www.judis.nic.in6/6 E.Balasubramanian v. Income-tax Officer, Business Ward-X(1), Chennai
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