Creative Processing Ltd., Surat V. The ACIT.,Cent.Circle-1, Surat

CO 201/AHD/2011

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 1580 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 2 month(s) 10 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 17-12-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 09-12-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 07-10-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3); 153A

Judgement Text

IT (SS) A NO . 511 /AHD / 20 1 1 & C.O. NO.201/AHD/2011 ASSESSMENT YEAR: 2 0 0 5 - 06 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH, AHMEDABAD BEFORE SHRI ANIL CHATURVEDI , ACCOUNTANT MEMBER AND SHRI S.S. GODARA , JUDICIAL MEMBER IT (SS) A NO. 511 /AHD/2011 ASSESSMENT YEAR: 2005 - 2006 DEPUTY COMMISSIONER OF INCOME TAX VS. CREATIVE PROCESSING LIMITED CENTRAL CIRCLE - 1, SURAT. 606, RIVER PALACE , NAVDI OVARA, SURAT. [PAN A ABCP 4345 H ] C.O. NO.201/AHD/2011 (IN IT (SS) A NO. 511/AHD/2011) ASSESSMENT YEAR: 2005 - 2006 CREATIVE PROCESSING LIMITED VS. DEPUTY COMMISSI ONER OF INCOME TAX 606, RIVER PALACE, CENTRAL COIRCLE - 1, SURAT. NAVDI OVARA, SURAT. [PAN A ABCP 4345 H ] (APPELLANT S ) (RESPONDENT S ) REVENUE BY : SHRI SANJAY AG RA WAL, CIT (D.R.) ASSESSEE : SHRI MANISH J. SHAH, A.R. DATE OF HE ARING : 09.12 .2015 DATE OF PRONOUNCEMENT : 17 . 1 2 .2015 O R D E R PER S.S. GODARA , J.M. THIS REVENUE S APPEAL AND ASSESSEE S CROSS OBJECTION FOR ASSESSMENT YEAR 2005 - 06, ARISE S FROM ORDER OF THE CIT(A) - II, AHMEDABAD DATED 29.06.2011 PASSED IN CASE NO .CIT(A) - II/CC.1/243/2010 - 11 , IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 153A OF THE INCOME T AX ACT, 1 961 ; IN SHORT THE ACT ) IT (SS) A NO . 511 /AHD / 20 1 1 & C.O. NO.201/AHD/2011 ASSESSMENT YEAR: 2 0 0 5 - 06 PAGE 2 OF 4 2. A PERUSAL OF THE CASE FILES REVEALS THAT THE R EV ENUE RAISES FOUR SUBSTANTIVE GR O UNDS IN ITS APPEAL, INTER ALIA, CHALLENGING TH E LOW E R APPELLATE ORDE R DELETING ADDITIONS OF CLOSING WORK - IN - PROGRESS OF RS.10,11,190/ - , EXCE SS PAYMENT OF INTEREST TO SISTER C ONCERN OF RS.17,30,267/ - , DISALLOWANCE OF RATE DIFFERENCE TO SISTER C ONCERN MOUNTING TO RS.1,76,93,464/ - AND THAT OF YET ANOTHER IDENTICAL DIFFERENTIAL RATE OF RS.91,75,606; RESPECTIVELY . T HE ASSESSE E S CROSS OBJECTION IN TURN CHALLENGES VALIDITY OF THE SECTION 153A PROCEEDINGS. 3. THE ASSESSEE HAS FILE D BEFORE US COPY OF TRIBUNAL S ORDER IN ITS OWN CASE IN A SSESSMENT YEAR 2003 - 04 TO 2008 - 09 (EXCEPT THE IMPUGNED A SSESSMENT YEAR 2005 - 06) DECIDED ON 30.04.2015 DELETING FORMER TWO ADDITIONS OF CLOSING WORK - IN - PROGRESS AND EXCESS PAYMENT OF INTEREST T O SISTER C ONCERN . THIS IS FOLLOWED BY AN IDENTICAL PLEA THAT THE LA T TER TWO ISSUES OF DISALLOWANCE S /ADDITIONS OF RATE DIFFERENCE TO SISTER CONCERN OF RS.1,76,93,464/ - AND RS.91,75,606/ - STAND DECIDED IN ITS OWN CASE IN I TA N O. 721/AHD/2009 DECIDED ON 15.05.2015 INVOLVING THE VERY GROUNDS. THE REVENUE SUBMITS AT THIS STAGE THAT THERE IS NO DISPUTE ABOUT THE ABOVE STATED FACTUAL POSITION QUA LATTER THREE GROUNDS. IT HAS FILE D A PETITION ON 08.12.2015 SEEKING TO MAKE A SPECIAL BENCH REFERENCE UNDER SECTION 255 OF THE ACT ON THE GROUND THAT THE L EARNED CO - ORDINATE BENCH HEARING THE ABOVE I N ASSESS EE S OWN CASE DID NOT TAKE INTO ACCOUNT YET ANOTHER DECISION OF ARCHANA DYEING & P RINTING VS. ITO - ITA NO. 268/AHD/2009 DECIDED ON 25.11.2011 UPHOLDING AN IDENTICAL ADDITION TO THE EXTENT OF 50% OF THE WORK - IN - PROGRESS AMOUNT. IT (SS) A NO . 511 /AHD / 20 1 1 & C.O. NO.201/AHD/2011 ASSESSMENT YEAR: 2 0 0 5 - 06 PAGE 3 OF 4 4. WE HAVE HEARD BOTH THE PARTIES AND C ASE FILE S PERUS E D. THIS ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF D Y E ING & PRINTING O F FABRICS. THE ASSESSING OFFICER FRAMED THE REGULAR ASSESSMENT IN ITS CASE ON 29.12.2007. THE DEPARTMENT CARRIED OUT A SEARCH IN ITS CASE ON 12.0 6.2008. T HIS WAS FOLLOWED BY INITIATION OF SECTION 153A PROCEEDINGS VIDE NOTICE DATED 17.12.2008. T HE ASSESSING OFFICER FINALISED SEARCH ASSESSMENT VIDE ORDER IN QUESTION PASSED ON 31.1.2010 , INTER ALIA , MAKING THE FOUR DISALLOWANCES/ ADDITIONS , SUBJECT M ATTER OF THE INSTANT APPEAL. THE CIT ( A ) DELETES ALL OF THEM. IT HAS COME ON THE RECORD THAT TRIBUNAL S ORDER (SUPRA) ALREADY COVERS THE LATTER THREE ISSUES IN ASSESS EE S FAVOUR. THE R EVENUE SEEKS TO HIGHLIGHT A DISTINCTION BY FILING ITS REQUEST FOR A SP ECIAL B ENCH REFERENCE. WE FIND THIS CONTENTI O N TO BE NOT SUSTAINABLE. IT EMANATES FROM THE CASE LAW OF ARCHANA DY E ING & P RINTING (SUPRA) THAT THE CORRESPONDING ADDITION MADE RIGHT FR O M ASSESSMENT UPTO THE TRIBUNAL WAS BASED ON MERE ESTIMATION O N CO NSENT OF THE PARTIES. WE OBSERVE , IN THESE FACTS , THAT A CONSENSUS ORDER BASED ON ESTIMATION DOES NOT FORM A PRECEDENT SO AS TO WARRANT A SPECIAL BENCH REFERENCE IN THE EVENT OF THE SAME BEING NOT FOLLOWED BY ANOTHER CO - ORDINATE BENCH. WE REJECT THIS REV ENUE S CONTENTION. NECESSARY COROLLARY THAT FLOWS FROM OUR FINDING IS THAT THE TRIBUNAL S ORDER IN ASSESS EE S OWN CASE DELET I NG WORK - IN - PROGRESS APPLIES IN THE IMPUGNED A SSESSMENT YEAR AS WELL. THE R EVENU E S ALL FOUR SUB STANTIVE GROUNDS AS WELL AS ITS PE TITION HEREINABOVE FAIL. 5. OUR FINDING S ON MERITS RENDER ASSESS EE S LEGAL GROUND IN ITS C ROSS OBJECTION AS HAVING BEEN RENDER E D INFRUCTUOUS. ORDERED ACCORDINGLY. IT (SS) A NO . 511 /AHD / 20 1 1 & C.O. NO.201/AHD/2011 ASSESSMENT YEAR: 2 0 0 5 - 06 PAGE 4 OF 4 6 . IN THE RESULT, T HE REVENUE S APPEAL IT ( SS ) A NO.511 /AHD/ 2011 IS DISMISSED. ASSESSEE S C ROSS OBJECTION NO. 201/AHD/2011 IS DISMISSED AS HAVING BECOME INFRUCTUOUS . P RONOUNCED IN THE OPEN COURT ON THIS 17 TH D AY OF DECEMBER , 2015. SD/ - SD/ - ANIL CHATURVEDI S.S. GODARA ( ACCOUNTANT MEMBER) ( JUDICIAL MEMBER) AHMEDABAD , THE 17 TH DAY OF DECEMBER , 201 5 PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD