ITO, NCW - 3 (2),, CHENNAI v. M/S. RATNA FOUNDATION,, CHENNAI

MA 2/CHNY/2021 | 2014-2015
Pronouncement Date: 05-05-2021 | Result: Allowed

Appeal Details

RSA Number 221724 RSA 2021
Assessee PAN AACTR2289Q
Bench Chennai
Appeal Number MA 2/CHNY/2021
Duration Of Justice 3 month(s) 27 day(s)
Appellant ITO, NCW - 3 (2),, CHENNAI
Respondent M/S. RATNA FOUNDATION,, CHENNAI
Appeal Type Miscellaneous Application
Pronouncement Date 05-05-2021
Appeal Filed By Department
Order Result Allowed
Bench Allotted B
Tribunal Order Date 05-05-2021
Last Hearing Date 24-03-2021
First Hearing Date 23-04-2021
Assessment Year 2014-2015
Appeal Filed On 08-01-2021
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B B ENCH CHENNAI . . $ BEFORE SHRI V.DURGA RAO JUDICIAL MEMBER AND SHRI G.MANJUNATHA ACCOUNTANT MEMBER ./ I.T.A. NOS.182 & 183/CHNY/2020 & MISC. PETITION NOS. 2 & 3/CHNY/2021 ( / ASSESSMENT YEARS: 2014-15 & 2015-16) THE INCOME TAX OFFICER NON-CORPORATE WARD-3(2) CHENNAI-600 034. VS M/S. RATNA FOUNDATION 18 KOTHARI BAGH MAHATMA GANDHI ROAD NUNGAMBAKKAM CHENNAI-34. PAN:AACTR2289Q ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. SURESH PERIASAMY JCIT /RESPONDENT BY : MR.SAROJ KUMAR PARIDA ADVOCATE /DATE OF HEARING : 23.04.2021 /DATE OF PRONOUNCEMENT : 05.05.2021 / O R D E R PER BENCH: THESE TWO MISCELLANEOUS PETITIONS ARE FILED BY THE REVENUE U/S. 254(2) OF THE INCOME TAX ACT 1961 R EQUESTING TO RECALL ORDER OF THE TRIBUNAL DATED 30.09.2020 I N ITA NOS.182 & 183/MDS/2020 FOR THE ASSESSMENT YEARS 2014-15 & 2015-16. 2. THE LEARNED DR HAS NARRATED FACTS AND MISTAKES STATED TO BE APPARENT ON RECORD FROM THE ORDER OF THE TRIBUNA L DATED 30.09.2020 AND SUBMITTED THAT THE ASSESSEE HAS OPT ED FOR 2 ITA NO.182 & 183/CHNY/2020 & M.P. NO. 2 & 3/CHNY/2021 VIVAD SE VISHWAS SCHEME 2020 TO SETTLE THE PENDI NG DISPUTE REGARDING DIRECT TAXES AND HAS ALREADY FILED FORM N O.1 TO THE DESIGNATED AUTHORITY. THE DR FURTHER SUBMITTED THAT THE DESIGNATED AUTHORITY HAS ACCEPTED APPLICATION FILED BY THE ASSESSEE AND ALSO ISSUED FORM 5 FOR BOTH THE ASSES SMENT YEARS. THEREFORE LEARNED DR SUBMITTED THAT THE O RDER DATED 30.09.2020 PASSED BY THIS TRIBUNAL MAY BE RECALLED AND THE APPEALS MAY BE DISMISSED TO ENABLE THE ASSESSEE TO UTILIZE VIVAD SE VISHWAS SCHEME 2020 TO SETTLE PENDING D ISPUTE. 3. THE LEARNED AR ON THE OTHER HAND SUBMITTED TH AT THE IMPUGNED ORDER OF THIS TRIBUNAL DATED 30.09.2020 M AY BE RECALLED AS THE ASSESSEE HAS OPTED TO AVAIL BENEFI T OF VSVS SCHEME 2020 AND FILED FORM NO.5 ISSUED BY DESIGNAT ED AUTHORITY. 4. AFTER HEARING BOTH THE PARTIES WE RECALL THE TR IBUNAL ORDER DATED 30.09.2020 PASSED BY THIS TRIBUNAL IN ITA NO. 182 & 183/CHNY/2020 AS THE ASSESSEE INTENDS TO AVAIL B ENEFIT OF VSVS SCHEME 2020 AND THUS APPEALS ITSELF ARE TAKE N UP FOR 3 ITA NO.182 & 183/CHNY/2020 & M.P. NO. 2 & 3/CHNY/2021 DISPOSAL BY ALLOWING MISCELLANEOUS PETITIONS FILED BY THE REVENUE. 5. WE HAVE HEARD THE COUNSELS FOR THE ASSESSEES AN D THE LD. DR AND ALSO PERUSED THE MATERIAL AVAILABLE ON R ECORD. AT THE TIME OF HEARING LEARNED COUNSELS FOR THE ASSESS EES HAVE MADE A STATEMENT 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 NO 1 AND 2 AND A WAITING FORM NO. 3 FROM THE DESIGNATED AUTHORITY. IN SOME C ASES THE ASSESSEES HAVE RECEIVED FORM NO. 3 FROM THE DESIGN ATED AUTHORITY AND IN SOME CASES THE ASSESSEE HAVE FILE D LETTER AND EXPRESSED THEIR WILLINGNESS TO FILE FORM NO. 1 AND 2 BEFORE THE DESIGNATED AUTHORITY. 6. 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 DIR ECT TAXES VIVAD SE VISHWAS SCHEME 2020 TO SETTLE PENDING DISPUTE RELATING TO DIRECT TAXES AT VARIOUS APPELLATE FOR UMS INCLUDING THE FIRST APPELLATE AUTHORITY TRIBUNAL HIGH COUR T AND 4 ITA NO.182 & 183/CHNY/2020 & M.P. NO. 2 & 3/CHNY/2021 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 ASSESSE ES ARE ALLOWED TO SETTLE DIRECT TAX DISPUTE IN A MANNER AN D PROCEDURE PRESCRIBED THEREIN BY FILING NECESSARY DECLARATION AND UNDERTAKING. THE SCHEME HAS ALSO SPECIFIED THE AMOU NT OF TAXES INTEREST AND PENALTY IF ANY PAYABLE UNDER THE ACT. IF AN ASSESSEE FILED A DECLARATION AND PAY SPECIFIED TAXES AS PER THE SCHEME AND WITHDRAW THE APPEAL PENDING BEFOR E THE APPELLATE AUTHORITIES THE DESIGNATED AUTHORITY S HALL PASS AN ORDER IN FORM 5 CONFIRMING PAYMENT MADE UNDER THE SCHEME AND GRANT IMMUNITY FROM PENALTY AND PROSECUTION. 7. IN THESE PRESENT APPEALS SOME ASSESSEES HAVE F ILED DECLARATION IN FORM NO.1 ALONG WITH UNDERTAKING WAI VING RIGHTS FOR ANY REMEDY IN FORM NO. 2 TO THE DESIGNATED AUTH ORITY AND HAS ALSO RECEIVED FORM 3. IN SOME CASES FORM NO 1 AND 2 HAS BEEN FILED AND AWAITING FORM NO. 3 FROM THE DES IGNATED AUTHORITY AND IN SOME CASES THE ASSESSEES HAVE EX PRESSED THEIR WILLINGNESS TO FILE FORM NO. 1 AND 2 AND SETT LE THEIR DISPUTE UNDER THE SCHEME. THEREFORE ONCE THE ASSESSEES IN TEND TO FILE 5 ITA NO.182 & 183/CHNY/2020 & M.P. NO. 2 & 3/CHNY/2021 A DECLARATION IN FORM NO.1 ALONG WITH UNDERTAKING A ND EXPRESSED THEIR WILLINGNESS TO SETTLE PENDING DISPU TES REGARDING DIRECT TAXES THEN THERE IS NO POINT IN KEEPING APP EAL FILED BY THE ASSESSEES. WE FURTHER NOTED THAT RECENTLY THE H ONBLE JURISDICTIONAL HIGH COURT OF MADRAS HAS CONSIDERED AN IDENTICAL APPLICATION FILED BY AN ASSESSEE IN THE CASE O F M/S. NANNUSAMY MOHAN (HUF) VS. ACIT IN T.C.A NO.372 OF 2 020 FOR AVAILING THE BENEFIT OF VIVAD SE VISHWAS SCH EME 2020 WHERE THE HONBLE HIGH COURT HAS DISMISSED THE AP PEAL FILED BY THE PETITIONER AS WITHDRAWN BUT ALLOWED LIBERTY TO THE ASSESSEE TO RESTORE THE APPEAL IN THE EVENT THE D ESIGNATED AUTHORITY FOR ANY REASON REJECT APPLICATION FILED BY THE ASSESSEE UNDER SECTION 4 OF THE ACT. THE RELEVANT PORTIONS O F THE OBSERVATIONS OF THE HONBLE HIGH COURT OF MADRAS VI DE 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 LEARNED SENIOR STANDING COUNSEL AND MS. K.G.USHA RANI LEARNED COUNSEL FOR THE RESPONDENT/REVENUE. 3. THE LEARNED COUNSEL FOR THE APPELLANT / ASSESSEE ON INSTRUCTIONS SUBMITTED THAT THE APPELLANT / ASSESS EE INTENDS TO AVAIL THE BENEFIT OF VIVAD SE VISHWAS SCHEME ( VVS SCHEME' FOR BREVITY) AND IN THIS REGARD THE ASSESSEE IS TA KING STEPS TO FILE THE APPLICATION / DECLARATION IN FORM NO. 1. 6 ITA NO.182 & 183/CHNY/2020 & M.P. NO. 2 & 3/CHNY/2021 4. IT MAY NOT BE NECESSARY FOR THIS COURT TO DECIDE THE SUBSTANTIAL QUESTIONS OF LAW FRAMED FOR CONSIDERATI ON ON ACCOUNT OF CERTAIN SUBSEQUENT DEVELOPMENTS. THE GOV ERNMENT OF INDIA ENACTED THE DIRECT TAX VIVAD SE VISHWAS AC T 2020 (ACT 3 OF 2020) TO PROVIDE FOR RESOLUTION OF DISPUTED TA X 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 THE 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 BEF ORE 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 SECTI ON 4 ON OR BEFORE THE LAST DATE FILES A DECLARATION TO THE DES IGNATED AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 4 IN R ESPECT OF TAX ARREARS THEN NOTWITHSTANDING ANYTHING CONTAINED I N THE INCOME TAX ACT OR ANY OTHER LAW FOR THE TIME BEING IN FORC E THE AMOUNT PAYABLE BY THE DECLARANT SHALL BE DETERMINED IN TER MS OF SECTION 3(A-C) THEREUNDER. 6. THE FIRST PROVISO TO SECTION 3 STATES THAT IN C ASE WHERE AN APPEAL OR WRIT PETITION OR SPECIAL LEAVE PETITION I S FILED BY THE INCOME TAX AUTHORITY ON ANY ISSUE BEFORE THE APPELL ATE FORUM THE AMOUNT PAYABLE SHALL BE ONE-HALF OF THE AMOUNT IN THE TABLE STIPULATED IN SECTION 3 CALCULATED ON SUCH ISSUE I N SUCH A MANNER AS MAY BE PRESCRIBED. THE SECOND PROVISO DEA LS WITH THE CASES WHERE THE MATTER IS BEFORE THE COMMISSIONER (APPEALS) OR BEFORE THE DISPUTE RESOLUTION PANEL. THE THIRD PROV ISO 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 AR E ALSO MENTIONED IN THE SUB SECTIONS OF SECTION 4. SECTION 5 OF THE ACT DEALS WITH THE TIME AND MANNER OF THE PAYMENT AND S ECTION 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 W ILL NOT BE APPLICABLE. 7. AS OBSERVED THE ASSESSEE IS GIVEN LIBERTY TO RE STORE THIS APPEAL IN THE EVENT THE ULTIMATE DECISION TO BE TAK EN ON THE DECLARATION TO BE FILED BY THE ASSESSEE UNDER SECTI ON 4 OF THE SAID ACT IS NOT IN FAVOUR OF THE ASSESSEE. IF SUCH A PRAYER IS MADE THE REGISTRY SHALL ENTERTAIN THE PRAYER WITHO UT INSISTING 7 ITA NO.182 & 183/CHNY/2020 & M.P. NO. 2 & 3/CHNY/2021 UPON ANY APPLICATION TO BE FILED FOR CONDONATION OF DELAY IN RESTORATION OF THE APPEAL AND ON SUCH REQUEST MA DE BY THE ASSESSEE BY FILING A MISCELLANEOUS PETITION FOR RES TORATION THE REGISTRY SHALL PLACE SUCH PETITION BEFORE THE DIVIS ION BENCH FOR ORDERS. 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 T HE COMPETENT AUTHORITY SHALL PROCESS THE APPLICATION / DECLARATI ON IN ACCORDANCE WITH THE ACT AND PASS APPROPRIATE ORDERS AS EXPEDIT IOUSLY AS POSSIBLE PREFERABLY WITHIN A PERIOD OF SIX (6) WEE KS FROM THE DATE ON WHICH THE DECLARATION IS FILED IN THE PROPER FOR M. 8. IN THE LIGHT OF THE ABOVE DECISION OF THE HONBL E HIGH COURT OF MADRAS AND BY TAKING NOTE OF THE FACT T HAT SOME ASSESSEES HAVE ALREADY FILED DECLARATION IN FOR M NO.1 ALONG WITH FORM NO.2 TO THE DESIGNATED AUTHORITY AND RE CEIVED FORM 3 AND SOME ASSESSEES HAD ALREADY FILED FORM NO. 1 & 2 AND AWAITING FORM NO. 3 FROM THE DESIGNATED AUTHORI TY AND ALSO THE FACT THAT REMAINING ASSESSEES ARE WILLING TO F ILE FORM NO. 1 AND 2 WITHIN THE DUE DATE PRESCRIBED FOR THIS PURPO SE WE DISMISS THE APPEALS FILED BY THE ASSESSEES AS W ITHDRAWN. HOWEVER A LIBERTY IS GIVEN TO THE ASSESSEES TO R ESTORE THE APPEALS IN THE EVENT OF THE DESIGNATED AUTHORIT Y FOR ANY REASON REJECT THE APPLICATION FILED BY THE ASSESSEE UNDER SECTION 4 OF THE SAID ACT. 8 ITA NO.182 & 183/CHNY/2020 & M.P. NO. 2 & 3/CHNY/2021 9. IN THE RESULT APPEALS FILED BY THE REVENUE A RE DISMISSED AS WITHDRAWN AND MISCELLANEOUS PETITIONS FILED BY THE REVENUE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH MAY 2021 SD/- SD/- ( . ) ( . ) (V.DURGA RAO) (G.MANJUNATHA) ' $ / JUDICIAL MEMBER $ / ACCOUNTANT MEMBER ' /CHENNAI ' /DATED 5 TH MAY 2021 DS )* +* /COPY TO: 1. APPELLANT 2. RESPONDENT 3. () /CIT(A) 4. /CIT 5. * 1 /DR 6. /GF .