Kurnool Seeds Pvt Limited , Kurnool V. Income Tax Officer, Ward-1, Kurnool

CO 2/Hyd/2021

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1465 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 23 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 01-07-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2010-2011
• Appeal Filed On: 08-03-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Difference of opinion; Change of opinion
• Section: 143(3); 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 1744 /HYD/20 18 (ASSESSMENT YEAR : 20 10 - 11 ) INCOME TAX OFFICER, WARD 1, KURNOOL. ..APPELLANT. VS. M/S. KURNOOL SEEDS PVT. LTD. , KURNOOL . ..RESPONDENT. PAN AACCK3170G C.O. NO.2/HYD/2021 ITA NO.1744/HYD/2018 (ASSESSMENT YEAR : 2010 - 11) (BY ASSESSEE) APPELLANT BY : SHRI ROHIT MAJUMDAR (D.R) RESPONDENT /C.O. BY : SHRI T.RAJENDRA PRASAD, C.A. DATE OF HEARING : 10.06 . 2021. DATE OF PRONOUNCEMENT : 01. 06 .2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS REVENUES APPEAL 1744/HYD/2018 ALONG WITH ASSESSEE'S CROSS OBJECTION 2/HYD/2021 THEREIN ARISE FROM 2 ITA NO. 1744/HYD/2017 & C.O. 2/HYD/2021 THE CIT(A) , KURNOOL S ORDER DT. 18.06.2018 IN CASE NO. 10122/ CIT(A)/KNL/2017 - 18 INVOLVING PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961 ('THE ACT'). HEARD BOTH THE PARTIES. CASE FILES PERUSED. 2. COMING TO THE REVENUES APPEAL 1744/HYD/2018 CHALLENGING CORRECTNESS OF THE ORDER OF THE CIT(A) S ORDER TERMING THE IMPUGNED REOPENING AS NOT SUSTAINABLE IN LAW, BOTH THE LEARNED REPRESENTATIVES TOOK US TO THE LOWER APPELLATE FINDINGS READING AS UNDER : 3 ITA NO. 1744/HYD/2017 & C.O. 2/HYD/2021 4 ITA NO. 1744/HYD/2017 & C.O. 2/HYD/2021 B ELIEF THAT INCOME HAS ESCAPED ASSESSMENT, HE CAN REOPEN THE ASSESSMENT. IN THE PRESENT CASE, THE A.O. NOT FOUND ANY FRESH INFORMATION NOR NEW FACTS. 4.1 IN THE CIRCUMSTANCES AS CONTENDED BY THE LEARNED AR, THE INITIATION OF PROCEEDINGS U/S.147 CANNOT BE HELD AS VALID. THUS THE ASSESSMENT MADE BY THE A.O. IS ACCORDINGLY ANNULLED. 3. A PERUSAL OF THE ABOVE EXTRACTED LOWER APPELLATE DISCUSSION SUFFICIENTLY INDICATE S TH A T THE ASSESSING OFFICER HAD REOPENED HIS REGULAR ASSESSMENT DT.28.3.2013 FOR THE SOLE REASON THAT THE ASSESSEE HAD INDULGE D IN SHORT RECORDING CLOSING STOCK OF RS.53,81,261. WE NOTICE IN THIS FACTUAL BACKDROP THAT ALL THE CORRESPONDING DETAILS TO THIS EFFECT FORMING PART OF ASSESSEE'S BOOKS OF ACCOUNT HAD BEEN DULY FILED DURING THE COURSE OF SCRUTINY ASSESSMENT. COUPLED WI TH THIS, LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE THAT THE ASSESSING OFFICER HAD ISSUED 148 NOTICE DT.30.3.2017 I.E. WELL BEYOND THE SPECIFIED PERIOD OF FOUR YEARS FROM THE END OF THE RELEVANT ASSESSMENT YEAR OF FILING OF THE RETURN WITHOUT EVE N INDICATING A S TO WHETHER THE ASSESSEE HAD NOT DISCLOSED THE CORRESPONDING SHORTFALL PERTAINING TO ITS TURNOVER ; FULLY AND TRULY , AS PER 147 SECTION FIRST PROVISO. WE THEREFORE HOLD THIS FACTUAL BACKDROP THE CIT(A) HAS RIGHTLY TERMED THE IMPUGNED 5 ITA NO. 1744/HYD/2017 & C.O. 2/HYD/2021 REASSESSMENT AS A MERE CHANGE OF OPINION AS PER HON'BLE APEX COURT LAND MARK DECISION IN CIT VS. KELVINATOR OF INDIA LTD. (SUPRA). WE FU RTHER WISH TO QUOTE HONBLE BOMBAY HIGH COURT DECISION IN HINDUSTAN LEVER LTD. VS. ACIT 268 ITR 332 (BOM) THAT T HE REASONS RECORDED BY THE ASSESSING OFFICER MUST STATE THAT THERE WAS FAILURE ON THE PART OF THE ASSESSEE TO DISCLOSE FULLY AND TRULY ALL MATER IAL FACTS . IT IS NEEDLESS TO MENTION THAT THE REASONS ARE REQUIRED TO BE READ AS THEY WERE RECORDED BY THE ASSESSING OFFICER. AND THAT THE ASSESSING OFFICER HIMSELF MUST ALSO SPEAK THROUGH HIS REASONS AND SHOULD NOT KEEP AN ALSO SEEK THROUGH HIS REASONS AND SHOULD NOT BE AN ASSESSEE GUESSING FOR THE SAME. WE CONCLUDE IN V IEW OF ALL THESE FACTS AND CIRCUMSTANCES THAT THE CIT(A) HAS RIGHTLY ACCEPTED THE ASSESSEE'S LEGAL ARGUMENTS CHALLENGING VALIDITY OF THE IMPUGNED REASSESSMENT . HIS LOWER APPELLATE ORDER STAND S CONFIRMED. THE REVENUES APPEAL ITA 1744/HYD/2018 FAILS. 4. THE ASSESSEE'S C.O. NO.2/HYD/2021 STANDS RENDERED INFRUCTUOUS IN VIEW OF OUR FINDINGS IN REVENUES APPEAL . ORDERED ACCORDINGLY. 5. THIS REVENUES A PPEAL ITA NO.1744/HYD/2017 IS DISMISSED AND ASSESSEE'S C.O. NO.2/HYD/2021 IS DISMISSED 6 ITA NO. 1744/HYD/2017 & C.O. 2/HYD/2021 AS RENDERED INFRUCTUOUS. A COPY OF THIS COMMON ORDER BE PLACED IN RESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST JULY , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 01.07 .2021. * REDDY GP COPY TO : 1. M/S. KURNOOL SEEDS (P) LTD., 81 - 5A - 2 - 3 - II, RAGHAVENDRANAGAR, NH7, KURNOOL. 2. ITO, WARD 1, KURNOOL. 3. PR. C I T , KURNOOL. 4. CIT(APPEALS) , KURNOOL. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.