Ind Mark Properties P. Ltd. v. The Assistant Commissioner of Income-tax, Central Circle-II(3), Chennai
[Citation -2020-LL-1014-64]

Citation 2020-LL-1014-64
Appellant Name Ind Mark Properties P. Ltd.
Respondent Name The Assistant Commissioner of Income-tax, Central Circle-II(3), Chennai
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 14/10/2020
Assessment Year 2001-02
Judgment View Judgment
Keyword Tags disallowance of expenses • vivad se vishwas scheme • designated authority • contract work • declaration
Bot Summary: 1010 and 1011 of 2019 For Appellant in both appeals : Mr.A.S.Sriraman For Respondent in both appeals : Mr.T.R.Senthil Kumar Senior Standing counsel COMMON JUDGMENT Order of the Court was made by T.S.SIVAGNANAM, J. These appeals have been filed by the assessee under Section 260 A of the Income Tax Act, 1961, is directed against the order passed by the Income Tax Appellate Tribunal, Chennai, 'C' Bench in M.P.No. 1010 and 1011 of 2019 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 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. 7.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. The 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. Section 9 of the Act deals with cases, where the Act 3 of 2020 will not be applicable. 8.As observed, the assessee is given liberty to restore these appeals in the event the ultimate decision to be taken on the declaration to be filed by the assessee under Section 4 of the said Act is not in favour of the assessee.


T.C.A.Nos.1010 and 1011 of 2019 IN HIGH COURT OF JUDICATURE AT MADRAS DATED : 14.10.2020 CORAM HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN T.C.A.Nos.1010 and 1011 of 2019 M/s.Ind Mark Properties P. Ltd., No.36, Ambattur Industrial Estate, Ambattur, Chennai 600058. PAN: AAACI9531K .. Appellant in both appeals Versus Assistant Commissioner of Income Tax, Central Circle-II(3), Chennai 600034. .. Respondent in both appeals Prayer:- Tax Case Appeals filed under Section 260-A of Income Tax Act, 1961, against order of Income Tax Appellate Tribunal, Madras 'C' Bench, made in M.P.No.84/Mds/2014[I.T.A.No.583/Mds/2013/ dated 12.08.2015 and I.T.A.No.583/Mds/2013 dated 28.03.2014 relating to Assessment Year 2001-02. 1/8 http://www.judis.nic.in T.C.A.Nos.1010 and 1011 of 2019 For Appellant in both appeals : Mr.A.S.Sriraman For Respondent in both appeals : Mr.T.R.Senthil Kumar Senior Standing counsel COMMON JUDGMENT [Order of Court was made by T.S.SIVAGNANAM, J.] These appeals have been filed by assessee under Section 260 of Income Tax Act, 1961 ('the Act' for brevity), is directed against order passed by Income Tax Appellate Tribunal, Chennai, 'C' Bench ('the Tribunal' for brevity) in M.P.No.84/Mds/2014[I.T.A.No.583/Mds/2013/ dated 12.08.2015 and I.T.A.No.583/Mds/2013 dated 28.03.2014 relating to Assessment Year 2001-02. 2.The following Substantial Questions of Law have been raised for consideration. 1.Whether Appellate Tribunal is correct in law in sustaining disallowance of expenses for earning contract income even after acceptance of charge of income by recipient in re- assessment passed in their hands which divergent stand 2/8 http://www.judis.nic.in T.C.A.Nos.1010 and 1011 of 2019 would negate rule of consistency as well as Doctrine of 'Fair Procedure'? 2.Whether Appellate Tribunal is correct in law in overlooking reassessment framed in hands of recipient in booking income earned from Appellant for assisting them in execution of contract work which amounts were claimed as expenses even though under wrong nomenclature while recording perverse findings of fact on presumed change in stand by Appellant in splitting up payments made to other entity? 3.Whether Appellate Tribunal is correct in law in not interfering with their order passed originally u/s.254(2) of Act especially mistake of fact pointed out by Appellant would fall within ambit of said provisions governing rectification of order? 3.We have heard Mr.A.S.Sriraman, learned counsel appearing for appellant and Mr.T.R.Senthil Kumar, learned Senior Standing counsel for respondent. 3/8 http://www.judis.nic.in T.C.A.Nos.1010 and 1011 of 2019 4.The 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. 5.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. 6.In terms of said Act, assessee has been given option to put end to tax disputes, which may be pending at different levels either before First Appellate Authority or before Tribunal or before High Court or before Hon'ble Supreme Court of India. Under 4/8 http://www.judis.nic.in T.C.A.Nos.1010 and 1011 of 2019 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. 7.The 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 be furnished are also mentioned in Sub Sections of Section 4. Section 5 5/8 http://www.judis.nic.in T.C.A.Nos.1010 and 1011 of 2019 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. 8.As observed, assessee is given liberty to restore these appeals 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. 9.In light of above, We direct appellant / assessee to file Form No.I on or before 11.11.2020. Upon declaration being filed in full form, competent authority shall process application / declaration in accordance with Act and pass appropriate orders as expeditiously as 6/8 http://www.judis.nic.in T.C.A.Nos.1010 and 1011 of 2019 possible preferably within period of eight (8) weeks from date on which declaration is filed in proper form. 10.With this direction, Tax Case Appeals stand disposed of with aforementioned liberty and Consequently, Substantial Questions of Law are left open. No costs. (T.S.S.,J) (V.B.S.,J) 14.10.2020 cse Index: Yes / No Internet: Yes / No Speaking Order/Non-Speaking Order To Income Tax Appellate Tribunal, 'C' Bench, Chennai. 7/8 http://www.judis.nic.in T.C.A.Nos.1010 and 1011 of 2019 T.S.SIVAGNANAM, J. AND V.BHAVANI SUBBAROYAN, J. cse T.C.A.Nos.1010 and 1011 of 2019 14.10.2020 8/8 http://www.judis.nic.in Ind Mark Properties P. Ltd. v. Assistant Commissioner of Income-tax, Central Circle-II(3), Chennai
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