M/s. Madurai Soft Drinks Ltd., Coimbatore V. JCIT, Madurai

CO 31/CHNY/2001

• Counselvise Citation: [2010] 122 COUNSELVISE.COM (IT) 4889 (ITAT-CHENNAI)
• Duration Of Justice: 8 year(s) 11 month(s) 24 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 09-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 1990-1991
• Appeal Filed On: 16-07-2001
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS P N KAMALA DEVI
• Keywords: Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH D CHENNAI (BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER A ND SHRI GEORGE MATHAN, JUDICIAL MEMBER) --------- C.O. NO. 31/MDS/2001 (ARISING OUT OF ITA NO. 2015/MDS/2000) ASSESSMENT YEAR 1990-91 M/S. MADURAI SOFT DRINKS LTD., V. THE JOINT COMMI SSIONER OF 15, SASTRI ROAD, RAM NAGAR, INCOME-TAX, COIMBATORE-625 401. S PECIAL RANGE-I, MADURAI. PAN: 47-026-CZ-9044/DC.SR.I/MDU (CROSS OBJECTOR) (RE SPONDENT) CROSS OBJECTOR BY : NONE RESPONDENT BY : MRS. P.N. KAMALA DEVI O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER: THIS IS A CROSS OBJECTION FILED BY THE ASSESSEE AGAINST THE DEPARTMENTAL APPE AL IN ITA NO. 2015/MDS/2000 FOR THE ASSESSMENT YEAR 1990-91. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE AND MRS. P.N. KAMALA DEVI, LEARNED DEPARTMENTAL REPRESENTATIVE REPRESENTED ON BEHALF OF THE REVENUE. 3. IT IS NOTICED THAT THE DEPARTMENTAL APPEAL IN I TA NO.2015/MDS/2000 HAS BEEN DISPOSED OF BY THE ORDER OF CO-ORDINATE BENCH OF THIS TRIBUNAL DATED 29-05- 2003 WHERE THE TRIBUNAL HAS HELD AS FOLLOWS : 4. ON CONSIDERATION OF THE MATERIAL MADE AVAILABLE WITH THE TRIBUNAL AND THE ORDER OF THIS TRIBUNAL PASSED ON 30-1-2003 IN I.T.A. NOS. 1413 AND 1432/MDS/97 FILED C.O. NO, 31/MDS/2001 2 BY THE ASSESSEE AND THE DEPARTMENT RES PECTIVELY AGAINST THE ORDER OF THE CIT(A) PASSED IN THE QUANTUM MATTER RELATING TO THE ASSESSMENT YEAR 1990-91 WE FIND THAT IT IS CLEAR THAT THIS TRIBUNAL HAS SET ASIDE THE ASSESSMENT OF THE QUANTUM MADE BY THE ASSESSING OFFICER AS CONFIRMED BY THE CIT(A) AN D RESTORED THE MATTER TO THE FILE OF THE ASSESSING OF FICER TO RE-EXAMINE AND ALLOW THE ASSESSEE OPPORTUNITY TO SHOW TRUE PROFIT IN REGARD TO THE ITEM IN DISPUTE. FROM THIS FINDING OF THE TRIBUNAL IT IS CLEAR THAT THE ASSESSMENT OF QUANTUM RELATING TO THE ASSESSMENT YEAR 1990-91 WAS RESTORED TO THE FILE OF THE ASSESS ING OFFICER FOR DE NOVO ASSESSMENT AFTER GIVING OPPORTUNITY TO THE ASSESSEE TO SHOW THE TRUE PROFIT IN REGARD TO THE SALE THROUGH SELLING AGENT AND ARRIVE AT THE CORRECT ASSESSABLE INCOME THEREON. SINCE THE PRESENT APPEALS PERTAINING TO THE PENALTY ARE BASED ON THE QUANTUM DETERMINED BY THE ASSESSING OFFICER, AS UPHELD BY THE CIT(APPEALS), WE ARE OF THE CONSIDERED VIEW THAT THE PENALTY ORDER IMPUGNED IN THESE APPEALS, CONFIRMING THE FINDING OF THE ASSESS ING OFFICER IN IMPOSING THE PENALTY BUT REDUCING THE QUANTUM OF PENALTY, SHOULD ALSO BE SET ASIDE AND RESTORED TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO PROCEED WITH THE PENALTY PROCEEDINGS I F HE FINDS AFTER ASSESSMENT OF THE INCOME THAT THERE IS CONCEALMENT MADE BY THE ASSESSEE IN DISCLOSING ITS INCOME AND TO PASS CONSEQUENTIAL ORDER AS PER LAW, OF COURSE STRICTLY FOLLOWING THE PRINCIPLES OF NATURAL JUSTICE CONTEMPLATED UNDER LAW. 4. IT IS NOTICED THAT THE ASSESSEE HAS ALSO FILED A N APPEAL IN ITA NO. 2016/MDS/20000 WHICH HAS ALSO BEEN DISPOSED BY THE ORDER DATED 29-05-2003. IT IS NOTICED THAT THE CO-ORDINATE BENCH OF THIS TR IBUNAL HAS RESTORED THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR RE-ADJUDICATI ON. IN THE CIRCUMSTANCES, AS THE ISSUES IN THE REVENUES APPEAL AND THE ASSESSEES A PPEAL IN ITA NOS. 2015 & 2016/MDS/2000 HAVE BEEN RESTORED TO THE FILE OF THE A.O. FOR RE-ADJUDICATION, ON C.O. NO, 31/MDS/2001 3 IDENTICAL LINES THE CROSS OBJECTION IS ALSO RESTORE D TO THE FILE OF THE A.O. FOR RE- ADJUDICATION. IN THE CIRCUMSTANCES, THE CROSS OBJE CTION FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE CROSS OBJECTION IS ALLOWED FO R STATISTICAL PURPOSES. 6. THE ORDER PRONOUNCED IN THE COURT ON 09-07-2010 . SD/- SD/- ( ABRAHAM P. GEORGE) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 9 TH JULY, 2010. H. COPY TO: (1) CROSS OBJECTOR (2) RESPONDENT (3) CIT(A) (4) CIT (5) D.R. (6) GUARD FILE