SMS TAXICABS PRIVATE LIMITED, MUMBAI v. PRINCIPAL COMMISSIONER OF INCOME TAX-3, MUMBAI

ITA 4611/MUM/2017 | 2012-2013
Pronouncement Date: 10-03-2021 | Result: Dismissed

Appeal Details

RSA Number 461119914 RSA 2017
Assessee PAN AAQCS1401A
Bench Mumbai
Appeal Number ITA 4611/MUM/2017
Duration Of Justice 3 year(s) 8 month(s) 12 day(s)
Appellant SMS TAXICABS PRIVATE LIMITED, MUMBAI
Respondent PRINCIPAL COMMISSIONER OF INCOME TAX-3, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 10-03-2021
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted E
Tribunal Order Date 10-03-2021
Last Hearing Date 24-10-2017
First Hearing Date 10-03-2021
Assessment Year 2012-2013
Appeal Filed On 27-06-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) E BENCH MUMBAI BEFORE SHRI C.N. PRASAD HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN HON'BLE ACCOUNTANT MEMBER ITA NO. 4611 /MUM/201 7 (A.Y: 20 1 2 - 13) SMS T AXICABS PVT. L IMITED 1 ST F LOOR MMC C ENTRE MITHI CH OWKI LINK ROAD MALAD (W) MUMBAI - 40 0064 PAN: AAQCS1401A V. P R. COM MISSIONER OF INCOME TAX - 3 612 A AYAKAR BHAVAN M.K. R OAD M ARINE LINES MUMBAI - 400020 (APPELLANT) (RESPONDENT) ASSESSEE BY : N ONE DEPARTMENT BY : S HRI VIJAY KUMAR M ENON DATE OF HEARING : 10.03.2021 DATE OF PRONOUNCEMENT : 10.03.2021 O R D E R PER C.N. PRASAD (JM) 1. TH IS APPEAL IS FILED BY THE ASSESSEE AGAINST ORDER OF LEARNED PR. COMMISSIONER OF INCOME TAX (APPEALS) 3 MUMBAI [HEREINAFTER IN SHORT P R. CIT ] DATED 30.03.2017 FOR THE A.Y . 20 1 2 - 13. 2. ASSESSEE FILED A LETTER AND SUBMITTED AS UNDER: - 2 ITA NO. 4611 /MUM/201 7 (A.Y: 20 1 2 - 13) SMS T AXICABS PVT. LTD. A. ASSESSEE IS BEFORE HON'BLE ITAT MUMBAI AGAINST THE DIRECTIONS ISSUED BY PR CIT U/S 263 FOR A.Y 2012 - 13. B. ASSESSMENT U/S. 143(3) FOR A.Y 2012 - 13 WAS COMPLETED WITH 'NIL' OBSERVATIONS AND DISALLOWANCES. C. SUBSEQUENT HON BLE PR. CIT GAVE DIRECTIONS U/S 263 TO HAVE THE SAME RE - ASSESSED. D. IN TH E REASSESSMENT FOR A.Y 2012 - 13 U/S 143(3) R.W.S. 263 A.O DIFFERED IN VIEW FROM THE A.O COMPLETING ASSESSMENT U/S 143(3) FOR A.Y 2012 - 13. E. ASSE SSEE FILED APPEAL BEFORE THE HON'BLE CIT(A) FOR THE ASSESSMENT U/S 143(3) R.W.S 263 FOR A.Y . 2012 - 13 ON ISSUE O F CLAIM OF DEPRECIATION ON PERMIT LICENSE / TENDER FEES. F. AFTER INTRODUCTION OF VIVIAD SE VISHWAS SCHEME ASSESSEE RECENTLY CHOSE TO APPLY UNDER G. SCHEME FOR A.Y 2012 - 13 FOR APPEAL BEFORE HON'BLE CIT(A ) AGAINST ORDER U/S 143(3) R.W.S 263 . H. AFTER COMPLETION OF PRO CEDURE AND GETTING APPROVAL UNDER VIVAD SE VISHWAS SCHEME FOR A.Y . 2012 - 13 ASSESSEE INTENDS TO SUBMIT THESE DOCUMENTS BEFORE HON'BLE ITAT MUMBAI FOR WITHDRAWAL OF THE MATTER. I. THE ASSESSEE HOWEVER RESERVES RIGHT OF APPEAL IF THE APPLICATION UNDER VIVAD SE VISHWAS IS REJECTED. YOUR HONOUR MAY FURTHER PLEASE NOTE THAT ASSESSEE IS UNDER HUGE FINANCIAL CONSTRAINTS FROM F.Y 2017 - 18 DUE TO CLOSURE OF MAJOR BUSINESS ACTIVITY AND WAS FORCED TO VACATE REGISTERED OFFICE AND PLACE OF BUSINESS 2 - 3 TIMES. IT IS CURRENTLY NOT HAVING ANY BUSINESS PREMISES OR FOR CONTACT PURPOSE. MANAGEMENT OF COMPANY IS ALSO GOING THROUGH DISPUTES. AS SUCH WE ARE SORRY FOR THE INCONVENIENCE THAT MAY HAVE CAUSED TO YOUR HONORS OFFICE AND HON'BLE D.R . 3. ON A PERUSAL OF THE ABOVE LETTER FILED BY THE ASSESSEE IT IS OBSERVED THAT A SSESSEE IS IN THE PROCESS OF OPTING FOR VIVAD SE VISHWAS SCHEME. THEREFORE SINCE ASSESSEE IS CONTEMPLATING TO SETTLE LITIGATION UNDER 3 ITA NO. 4611 /MUM/201 7 (A.Y: 20 1 2 - 13) SMS T AXICABS PVT. LTD. VIVAAD SE VISHWAS SCHEME NO PUR POSE WOULD SERVE KEEPING THE APPEAL PENDING. 4. THE HON'BLE MADRAS HIGH COURT IN THE CASE OF M/S. NANNUSAMY MOHAN (HUF) V. ACIT IN T.C.A. NO. 372 OF 2020 DATED 16.10.2020 ON AN APPEAL BY THE ASSESSEE U/S. 260A OF THE ACT HELD AS UNDER: - THIS APPEAL HAS BEE N FILED BY THE ASSESSEE UNDER SECTION 260 A OF THE INCOME TAX ACT 1961 ('THE ACT' FOR BREVITY) CHALLENGING THE ORDER DATED 03.12.2018 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL CHENNAI 'A' BENCH ('THE TRIBUNAL' FOR BREVITY) IN I.T.A.NO.2576/CHNY/2017 FOR THE ASSESSMENT YEAR 2011 - 12. THE APPE AL IS ADMITTED ON THE FOLLOWING SUBSTANTIAL QUESTIONS OF LAW: 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE INCOME TAX APPELLATE TRIBUNAL WAS PERVERSE IN NOT CONSIDERING ALL THE GROUNDS RAISED IN CROSS OBJECTION VIZ. (1) CLAIM OF EXEMPTION I N RESPECT OF SALE OF AGRICULTURAL LAND (2) CLAIM OF DEDUCTION BY WAY OF COST INFLATION INDEX AND COST OF PLOT OF LAND PURCHASED IN COMPUTING DEDUCTION U/S.54F OF INCOME TAX ACT? 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE INCOME TAX APPELLATE TRIBUNAL WAS RIGHT IN LAW IN UPHOLDING THE DISALLOWANCE OF COST OF IMPROVEMENT IN PROVIDING MODERN KITCHEN IN THE FLATS PURCHASED? 2. WE HAVE HEARD MR.M.P.SENTHIL KUMAR LEARNED COUNSEL APPEARING FOR THE APPELLANT/ASSESSEE AND MR.T.R.SENTHIL KUM AR LEARNED SENIOR STANDING COUNSEL AND M/S.K.G.USHA RANI LEARNED COUNSEL FOR 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 VI SHWAS SCHEME ('VVS SCHEME' FOR BREVITY) 4 ITA NO. 4611 /MUM/201 7 (A.Y: 20 1 2 - 13) SMS T AXICABS PVT. LTD. 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 AC COUNT 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 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 TH E 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 S ECTION 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 BE FORE THE LAST DATE FILES A DECLARATION TO THE DESIGNATED AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 4 IN RESPECT OF TAX ARREARS THEN 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. 6. THE F IRST 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 SECOND PROVISO DEALS WITH THE CASES WHERE THE MATTER IS BEFORE T HE 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 THE ACT AND THE PARTICULARS TO BE FURNISHED ARE ALSO MENTIONED IN THE SUB SECTIONS OF SECTION 4 . SECTION 5 OF THE ACT DEALS WITH T HE 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. 7. AS OBSERVED THE ASSESSEE IS GIVEN LIBERTY TO RESTORE THIS APPEAL IN THE EVENT THE ULTIMATE DECISION TO BE TAKEN ON THE 5 ITA NO. 4611 /MUM/201 7 (A.Y: 20 1 2 - 13) SMS T AXICABS PVT. LTD. DECLARATION TO BE FILED BY TH E 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 CONDO NATION 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 T HE APPELLANT / ASSESSEE TO FILE THE FORM NO.I ON OR BEFORE 20.11.2020 AND THE COMPETENT AUTHORITY 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 WHICH THE DECLARATION IS FILED IN THE PROPER FORM. 5. FOLLOWING THE ABOVE DECISION OF THE HON'BLE MADRAS HIGH COURT THE APPEAL IS DISPOSED OFF ACCORDINGLY WITH LIBERTY TO THE ASSESSEE TO FILE A MISCELLANEOUS A PPLICATION IN THE EVENT OF EITHER THE ASSESSEE NOT OPTING FOR VIVAAD SE VISHWAS SCHEME AS CONTEMPLATED BY IT BEFORE THE DUE DATE OF THE SCHEME IN OPERATION OR IN THE EVENT OF THE DEPARTMENT NOT ACCEPTING THE APPLICATION MADE BY THE ASSESSEE UNDER THE SAID SCHEME TH E APPEAL OF THE ASSESSEE SHALL BE RECALLED BY THE TRIBUNAL AND RESTORE D FOR ADJUDICATION ON MERITS . IT IS FURTHER MADE CLEAR THAT IF THE ASSESSEE SEEKS TO RESTORE THE APPEAL IN THE EVENT OF ASSESSEES DECLARATION MADE UNDER VIVAAD SE VISHWAS SCHEME IS NOT ACCEPTED BY THE REVENUE THE REGISTRY SHALL NOT INSIST FOR FILING OF APPLICATION FOR CONDONATION OF DELAY IF THE MISCELLANEOUS APPLICATION FOR RECALLING THE ORDER IS FILED BEYOND TIME ON 6 ITA NO. 4611 /MUM/201 7 (A.Y: 20 1 2 - 13) SMS T AXICABS PVT. LTD. ACCOUNT OF DELAYED COMMUN IC ATION OF OUTCOME UNDER VIVAAD SE VISHWAS SCHEME IN VIEW OF THE DECISION OF THE HON'BLE MADRAS HIGH COURT IN THE CASE OF M/S. NANNUSAMY MOHAN (HUF) V. ACIT IN T.C.A. NO. 372 OF 2020 DATED 16.10.2020. WITH THESE OBSERVATIONS THE APPEAL IS DISMISSED AS WITHDRAWN. 6. IN THE RESULT APPEAL O F THE ASSESSEE IS DISMISSED AS OBSERVED ABOVE. ORDER PRONOUNCED IN THE VIRTUAL COURT ON 10.03.2021 S D/ - SD/ - ( S. RIFAUR RAHMAN ) ( C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 10/03 / 2021 GIRIDHAR SR.PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) MUMBAI. 4. CIT 5. DR ITAT MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER (ASSTT. REGISTRAR) ITAT MUM