R.Sivaraman for the Appellant. R.Hemalatha for the Respondent.

1. This appeal has been filed by the Assessee under Section 260 (of Income Tax Act, 1961) A of the Income Tax Act, 1961 ('the Act' for brevity), challenging the order dated 12.06.2017 passed by the Income Tax Appellate Tribunal, 'C' Bench ('the Tribunal' for brevity) in I.T.A.No.64/Mds/2017 for the Assessment Year 2013 - 2014. The appeal was admitted on 19.12.2018 on the following Substantial Questions of Law :

“i. Whether on the facts and the circumstances of the case the Appellate Tribunal was right in law in denying the Appellant the benefit of deduction of Rs.55,25,000/- u/s 54 (of Income Tax Act, 1961), on Long Term Capital Gain on sale of the residential property?

ii. Whether on the facts and the circumstances of the case the Appellate Tribunal was right in law in holding that the Dwelling Unit constructed by the Appellant is not habitable for human residence and therefore the Appellant is not entitled for claim of exemption u/s 54 (of Income Tax Act, 1961)?”

2. We have heard Mr.R.Sivaraman, learned counsel appearing for the appellant/assessee and M/s.R.Hemalatha, Learned Senior Standing Counsel for the respondent/revenue.

3. 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 received the assent of the President on 17 th March 2020 and published in the Gazette of India on 17 th March 2020.

4. 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) (of Income Tax Act, 1961) “disputed tax” has been defined. In terms of Section 3 (of Income Tax Act, 1961), where a declarant means a person, who files a declaration under Section 4 (of Income Tax Act, 1961) on or before the last date files a declaration to the designated authority in accordance with the provisions of Section 4 (of Income Tax Act, 1961) 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 (of Income Tax Act, 1961)(a-c) thereunder.

5. The First Proviso to Section 3 (of Income Tax Act, 1961) 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 (of Income Tax Act, 1961) 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 with cases, where the issue is pending before the Income Tax Appellate Tribunal. The filing of the declaration is as per Section 4 (of Income Tax Act, 1961) and the particulars to be furnished are also mentioned in the Sub Sections of Section 4 (of Income Tax Act, 1961). Section 5 (of Income Tax Act, 1961) deals with the time and manner of the payment and Section 6 (of Income Tax Act, 1961) deals with Immunity from initiation of proceedings in respect of offence and imposition of penalty in certain cases. Section 9 (of Income Tax Act, 1961) deals with cases, where the Act 3 of 2020 will not be applicable.

6. We are informed by the learned counsel for the appellant/assessee that already the declaration has been filed by the assessee and Form III has been issued.

7. In the light of the fact that the assessee has already availed the benefit under the Act, no useful purpose would be served in keeping this appeal pending. At the same time, safeguarding the interest of the assessee in the event the order to be passed by the Department under the Act is not in favour of the assessee. Accordingly, the Tax Case Appeal stands disposed of on the ground that the assessee has already filed a declaration and the Department shall process the application at the earliest in accordance with the said Act and communicate the decision to the assessee at the earliest. As observed, the assessee is given liberty to restore this appeal in the event the ultimate decision to be taken on the declarations filed by the assessee under Section 4 of the Income Tax Act, 1961 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 condonation 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. With this observation, the Tax Case Appeal stands disposed of with the aforementioned liberty and Consequently, the Substantial Questions of Law are left open. No costs.

T.S.SIVAGNANAM, J.

AND

V.BHAVANI SUBBAROYAN, J.

16.12.2020