IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 11.1.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM and THE HONOURABLE MS.JUSTICE R.N.MANJULA Tax Case Appeal No.9 of 2021 & CMP.No.193 of 2021 M/s.Cortex Enterprises, Chennai-4 ...Appellant Vs The Income Tax Officer, Non Corporate Ward 1(5), Chennai-34 ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 30.4.2019 passed by the Income Tax Appellate Tribunal, 'B' Bench, Chennai made in I.T.A.No.3378/Chny/2018 for the assessment year 2012-13.

For Appellant: Mr.P.Prithvi Chopda For Respondent : Mr.T.Ravikumar, SSC J udgment was delivered by T .S.SIVAGNANAM ,J This appeal has been filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) challenging the order dated 30.4.2019 made in I.T.A.No.3378/Chny/2018 on the file of the Income Tax Appellate Tribunal, Chennai, 'B' Bench ('the Tribunal' for brevity) for the assessment year 2012-13.

2. The assessee has filed this appeal by raising the following substantial questions of law:

“1. Whether, in the facts and circumstances of the case, the Appellate Tribunal is correct in law to uphold the reassessment proceedings for the assessment year 2012-13 ?

2. Whether, in the facts and circumstances of the case, the Appellate Tribunal is correct in law to uphold the reassessment order beyond the reasons recorded under Section 148 of the Income Tax Act ? and

3. Whether, in the facts and circumstances of the case, the Appellate Tribunal is correct in law to uphold the disallowance under Section 40A(3) for the payment made in the course of business due to unavoidable circumstance falling under exceptional circumstance provided under Rule

6DD of the Income Tax Rules?”

3. We have heard Mr.P.Prithvi Chopda, learned counsel appearing for the appellant – assessee and Mr.T.Ravikumar, learned Senior Standing Counsel accepting notice for the respondent – Revenue. 4. The learned counsel for the appellant/assessee, on instructions, submitted that the appellant/assessee intends to avail the benefit 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.I.

5. It may not be necessary for this Court to decide the substantial questions of law raised 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 received the assent of the President on 17th March 2020 and published in the Gazette of India on

17th March 2020.

6 . 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 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 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, 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.

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 Second Proviso deals with the cases, where the matter is before the Commissioner (Appeals) or before the Dispute Resolution Panel. The Third Proviso deals