Medfort Hospital Private Limited, CHENNAI v. DCIT Corporate Circle 4, CHENNAI

ITA 839/CHNY/2019 | 2012-2013
Pronouncement Date: 24-03-2021 | Result: Dismissed

Appeal Details

RSA Number 83921714 RSA 2019
Assessee PAN ACYPC9428N
Bench Chennai
Appeal Number ITA 839/CHNY/2019
Duration Of Justice 1 year(s) 11 month(s) 26 day(s)
Appellant Medfort Hospital Private Limited, CHENNAI
Respondent DCIT Corporate Circle 4, CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 24-03-2021
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 24-03-2021
Last Hearing Date 21-08-2019
First Hearing Date 24-03-2021
Assessment Year 2012-2013
Appeal Filed On 28-03-2019
Judgment Text
/ DATE OF HEARING : 24 .03.2021 / DATE OF PRONOUNCEMENT : 24 .03. 2021 / O R D E R PER BENCH: THESE 03 APPEALS FILED BY DIFFERENT ASSESSES ARE DIRECTED AGAINST ORDERS OF LEARNED COMMISSIONER OF INCOME TAX (APPEA LS) CHENNAI EVEN DATED 23.05.2017 & 14.02.2019 FOR THE RESPECTIVE AS SESSMENT YEARS. IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . . . BEFORE SHRI DUVVURU R.L. REDDY JUDICIAL MEMBER AND SHRI S. JAYARAMAN ACCOUNTANT MEMBER SL.NO. ITA NO. AY APPELLANT RESPONDENT 1 2010/CHNY/2017 2011-12 MR. M.R.CHENDILNATHAN VIJAY RAJAS APEX PLOT NOT.22 2 ND STREET KAMARAJ NAGAR CHEMMANCHERRY CHENNAI-600 119. (PAN: ACYPC 9428 N) THE ASST. COMMISSIONER OF INCOME TAX BUSINESS CIRCLE-1 CHENNAI / APPELLANT BY : MR.D. ANAND ADV. / RESPONDENT BY : MR.G. JOHNSON ADDL.CIT 2 & 3 839 & 1341/CHNY/2019 2012-13 M/S. MEDFORT HOSPITAL PVT. LTD. NAME CHANGED TO M/S.MAXIVISION EYE HOSPITALS PVT. LTD. NO.25 TRIVITRON SAPTHAGIRI BHAVAN 4 TH STREET ABHIRAMAPURAM CHENNAI 600 018. (PAN: AAGCM 4783 R) THE DY. COMMISSIONER OF INCOME TAX CORPORATE CIRCLE-4 CHENNAI-34. / APPELLANT BY : MR.S. SRIDHAR ADV. / RESPONDENT BY : MR.G. JOHNSON ADDL.CIT ITA NO.2010/C/2017 & ITA NOS.839 & 1341/C/2019 :: 2 :: 2. WE HAVE HEARD THE COUNSELS FOR THE ASSESSEES AN D THE LD. DR AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. AT T HE TIME OF HEARING LEARNED COUNSELS FOR THE ASSESSEES HAVE MADE A STA TEMENT AT BAR THAT THE ASSESSEES WANTS TO UTILIZE THE DIRECT TAXES VIVAD SE VISHWAS SCHEME 2020 TO SETTLE PENDING DISPUTE RELATING TO DIRECT TAXES AND IN THIS REGARD SOME OF ASSESSEES HAVE FILED FORM NOS.1 AND 2 AND AWAITING FORM NO. 3 FROM THE DESIGNATED AUTHORITY. IN SOME CASES THE A SSESSEES HAVE RECEIVED FORM NO. 3 FROM THE DESIGNATED AUTHORITY AND IN SOM E CASES THE ASSESSEE HAVE FILED LETTER AND EXPRESSED THEIR WILLINGNESS T O FILE FORM NOS. 1 AND 2 BEFORE THE DESIGNATED AUTHORITY. 3. THE BENCH HAS CONSIDERED RIVAL CONTENTIONS OF BO TH SIDES AND AFTER HEARING BOTH PARTIES WE FOUND THAT THE GOVERNMENT OF INDIA HAS ANNOUNCED IN THE BUDGET 2020 A DIRECT TAXES VIVA D SE VISHWAS SCHEME 2020 TO SETTLE PENDING DISPUTE RELATING TO DIRECT TAXES AT VARIOUS APPELLATE FORUMS INCLUDING THE FIRST APPELLATE AUTHORITY TRI BUNAL HIGH COURT AND SUPREME COURT. IN THIS REGARD THE SCHEME HAS BEEN NOTIFIED ON 17 TH MARCH 2020 AND BECAME DIRECT TAXES VIVAD SE VISHWAS ACT 2020. AS PER THE SAID SCHEME ASSESSEES ARE ALLOWED TO SETTLE DIRECT TAX DISPUTE IN A MANNER AND PROCEDURE PRESCRIBED THEREIN BY FILING NECESSAR Y 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 ITA NO.2010/C/2017 & ITA NOS.839 & 1341/C/2019 :: 3 :: AND PAY SPECIFIED TAXES AS PER THE SCHEME AND WITHD RAW THE APPEAL PENDING BEFORE THE APPELLATE AUTHORITIES THE DESIGNATED AU THORITY SHALL PASS AN ORDER IN FORM 5 CONFIRMING PAYMENT MADE UNDER THE S CHEME AND GRANT IMMUNITY FROM PENALTY AND PROSECUTION. 4. IN THESE APPEALS SOME ASSESSEES HAVE FILED DEC LARATION IN FORM NO.1 ALONG WITH UNDERTAKING WAIVING RIGHTS FOR ANY REMED Y IN FORM NO. 2 TO THE DESIGNATED AUTHORITY AND HAS ALSO RECEIVED FORM NO. 3. IN SOME CASES FORM NOS.1 AND 2 HAS BEEN FILED AND AWAITING FORM N O.3 FROM THE DESIGNATED AUTHORITY AND IN SOME CASES THE ASSESSE ES HAVE EXPRESSED THEIR WILLINGNESS TO FILE FORM NOS. 1 AND 2 AND SET TLE THEIR DISPUTE UNDER THE SCHEME. THEREFORE ONCE THE ASSESSEES INTEND TO FI LE A DECLARATION IN FORM NO.1 ALONG WITH UNDERTAKING AND EXPRESSED THEIR WIL LINGNESS TO SETTLE PENDING DISPUTES REGARDING DIRECT TAXES THEN THERE IS NO POINT IN KEEPING APPEAL FILED BY THE ASSESSEES. WE FURTHER NOTED THAT RECENTLY THE HONBLE JURISDICTIONAL HIGH COURT OF MADRAS HAS CONSIDERED AN IDENTICAL APPLICATION FILED BY AN ASSESSEE IN THE CASE OF M/S. NANNU SAMY MOHAN (HUF) VS. ACIT IN T.C.A NO.372 OF 2020 FOR AVAILING THE BENEF IT OF VIVAD SE VISHWAS SCHEME 2020 WHERE THE HONBLE HIGH COURT HAS D ISMISSED THE APPEAL FILED BY THE PETITIONER AS WITHDRAWN BUT ALLOWED L IBERTY TO THE ASSESSEE TO RESTORE THE APPEAL IN THE EVENT THE DESIGNATED AU THORITY FOR ANY REASON REJECT APPLICATION FILED BY THE ASSESSEE UNDER SEC TION 4 OF THE ACT. THE ITA NO.2010/C/2017 & ITA NOS.839 & 1341/C/2019 :: 4 :: RELEVANT PORTIONS OF THE OBSERVATIONS OF THE HONBL E HIGH COURT OF MADRAS VIDE ORDER DATED 16.10.2020 ARE EXTRACTED 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 FOR THE RE SPONDENT/REVENUE. 3. THE LEARNED COUNSEL FOR THE APPELLANT / ASSESSEE ON INSTRUCTIONS SUBMITTED THAT THE APPELLANT / ASSESSEE INTENDS TO AVAIL THE BENEF IT OF VIVAD SE VISHWAS SCHEME (VVS SCHEME' FOR BREVITY) AND IN THIS REGARD 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 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 RE CEIVED 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 DIFFERENT LEVELS EITHER BEFORE THE FIRST APPELLATE AUTHORITY OR BEFORE THE TRIBUNAL OR BEFOR E 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 M EANS A PERSON WHO FILES A DECLARATION UNDER SECTION 4 ON OR BEFORE THE LAST D ATE FILES A DECLARATION TO THE DESIGNATED AUTHORITY IN ACCORDANCE WITH THE PROVISI ONS OF SECTION 4 IN RESPECT OF TAX ARREARS THEN NOTWITHSTANDING ANYTHING CONTAIN ED IN THE INCOME TAX ACT OR ANY OTHER LAW FOR THE TIME BEING IN FORCE THE AMOUNT P AYABLE BY THE DECLARANT SHALL BE DETERMINED IN TERMS OF SECTION 3(A-C) THEREUNDER. 6. THE FIRST PROVISO TO SECTION 3 STATES THAT IN CA SE WHERE AN APPEAL OR WRIT PETITION OR SPECIAL LEAVE PETITION IS FILED BY THE INCOME TA X AUTHORITY ON ANY ISSUE BEFORE THE APPELLATE FORUM THE AMOUNT PAYABLE SHALL BE ON E-HALF OF THE AMOUNT IN THE TABLE STIPULATED IN SECTION 3 CALCULATED ON SUCH IS SUE 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 RE SOLUTION PANEL. THE THIRD PROVISO DEALS WITH CASES WHERE THE ISSUE IS PENDIN G BEFORE THE INCOME TAX APPELLATE TRIBUNAL. THE FILING OF THE DECLARATION I S 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 THE TIME AND MAN NER OF THE PAYMENT AND SECTION 6 DEALS WITH IMMUNITY FROM INITIATION OF PROCEEDING S IN RESPECT OF OFFENCE AND IMPOSITION OF PENALTY IN CERTAIN CASES. SECTION 9 O F THE ACT DEALS WITH CASES 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 DECLARATION TO BE FILED BY THE ASSESSEE UNDER SECTION 4 OF THE SAID ACT IS NOT IN FAVOUR OF THE A SSESSEE. IF SUCH A PRAYER IS MADE THE REGISTRY SHALL ENTERTAIN THE PRAYER WITHOUT INS ISTING UPON ANY APPLICATION TO BE FILED FOR CONDONATION OF DELAY IN RESTORATION OF TH E 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 O RDERS. ITA NO.2010/C/2017 & ITA NOS.839 & 1341/C/2019 :: 5 :: 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 AUTH ORITY SHALL PROCESS THE APPLICATION / DECLARATION IN ACCORDANCE WITH THE AC T AND PASS APPROPRIATE ORDERS AS EXPEDITIOUSLY AS POSSIBLE PREFERABLY WITHIN A PERIO D OF SIX (6) WEEKS FROM THE DATE ON WHICH THE DECLARATION IS FILED IN THE PROPER FOR M. 5. IN THE LIGHT OF THE ABOVE DECISION OF THE HONBL E HIGH COURT OF MADRAS AND BY TAKING NOTE OF THE FACT THAT SOME ASSESSEE S HAVE ALREADY FILED DECLARATION IN FORM NO.1 ALONG WITH FORM NO.2 TO TH E DESIGNATED AUTHORITY AND RECEIVED FORM NO.3 AND SOME ASSESSEES HAD AL READY FILED FORM NOS.1 & 2 AND AWAITING FORM NO. 3 FROM THE DESIGNATED AUT HORITY AND ALSO THE FACT THAT REMAINING ASSESSEES ARE WILLING TO FILE FORM NOS.1 AND 2 WITHIN THE DUE DATE PRESCRIBED FOR THIS PURPOSE WE DISMIS S THE APPEALS FILED BY THE ASSESSEES AS WITHDRAWN. HOWEVER A LIBERTY IS GIVEN TO THE ASSESSEES TO RESTORE THE APPEALS IN THE EVENT OF THE DESI GNATED AUTHORITY FOR ANY REASON REJECT THE APPLICATION FILED BY THE ASSESSEE UNDER SECTION 4 OF THE SAID ACT. WE FURTHER MAKE IT CLEAR THAT IN A CASE S WHERE THE APPEAL IS FILED BY THE REVENUE AND THE ASSESSEES HAVE FOR ANY REAS ON OPTED OUT FROM THE SCHEME OR THE APPLICANTS UNDER THE SCHEME MISREPRES ENTS ANY FACTS WHICH RESULTED IN REJECTION OF APPLICATION FILED UNDER TH E SCHEME THEN THE PROVISIONS OF SECTION 4(6) OF THE ACT SHALL BE APP LICABLE TO ALL APPEALS AND IN SUCH CASES ALL THE PROCEEDINGS AND CLAIMS WHICH WERE WITHDRAWN UNDER SECTION 4 AND ALL THE CONSEQUENCES UNDER THE INCOME -TAX ACT AGAINST THE DECLARANT SHALL BE DEEMED TO HAVE BEEN REVIVED. WE FURTHER MAKE IT CLEAR THAT THE ASSESSEES SHOULD PROMPTLY INFORM THE ASSE SSING OFFICER ABOUT ITA NO.2010/C/2017 & ITA NOS.839 & 1341/C/2019 :: 6 :: THEIR DECISION TO OPT OUT OF THE SCHEME OR REJECTIO N OF APPLICATION BY THE DESIGNATED AUTHORITY TO THE ASSESSING OFFICER SO A S TO ENABLE TO FILE MISCELLANEOUS APPLICATION TO RESTORE THE APPEAL. 6. IN THE RESULT ALL THE APPEALS FILED BY THE ASSE SSEES ARE DISMISSED AS WITHDRAWN. ORDER PRONOUNCED ON THE 24 TH DAY OF MARCH 2021 IN CHENNAI. SD/- SD/- ( . ) ( S. JAYARAMAN ) / ACCOUNTANT MEMBER ( . . ) (DUVVURU R.L. REDDY) /JUDICIAL MEMBER /CHENNAI /DATED: 24 TH MARCH 2021. TLN /COPY TO: 1. /APPELLANT 4. /CIT 2. /RESPONDENT 5. /DR 3. ( ) /CIT(A) 6. ! /GF