Sri Patchava Krunakar, Yeleswaram V. The Asst. Commissioner of Income Tax, Kakinada

CO 35/VIZ/2016

• Counselvise Citation: [2017] 123 COUNSELVISE.COM (IT) 2718 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 12-01-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 07-06-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: M K SETHI
• Section: 143(3); 263

Judgement Text

ITA NO.127/VIZAG/2016 PATCHAVA KARUNAKAR YELESWARAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.127/VIZAG/2016 ( / ASSESSMENT YEAR: 2009-10) ACIT, CIRCLE - 1, KAKINADA VS. PATCHAVA KARUNAKAR, YELESWARAM [PAN: AEFPP4224G ] ( % / APPELLANT) ( &'% / RESPONDENT) C.O.35/VIZAG/2016 (ARISING OUT OF I.T.A.NO.127/VIZAG/2016) ( / ASSESSMENT YEAR: 2009-10) ACIT, CIRCLE - 1, KAKINADA VS. PATCHAV A KARUNAKAR, YELESWARAM [PAN: AEFPP4224G ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI M.K. SETHI, DR / RESPONDENT BY : SHRI G.V.N. HARI, AR / DATE OF HEARING : 10.01.2017 / DATE OF PRONOUNCEMENT : 12.01.2017 / O R D E R PER G. MANJUNATHA, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE REVENUE AND CROSS OBJECTI ON FILED BY THE ASSESSEE ARE DIRECTED AGAINST ORDER OF THE CIT(A), GUNTUR, CAMP AT VISAKHAPATNAM DATED 28.12.2015 AND IT PERTAINS TO T HE ASSESSMENT YEAR 2009-10. ITA NO.127/VIZAG/2016 PATCHAVA KARUNAKAR YELESWARAM 2 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL DERIVING INCOME FROM BUSINESS FILED ITS RETURN OF I NCOME FOR THE ASSESSMENT YEAR 2009-10 ON 28.9.2009 DECLARING TOTA L INCOME OF ` 3,15,69,330/-. THE ASSESSMENT WAS COMPLETED U/S 14 3(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE AC T') ON 30.11.2011 DETERMINING TOTAL INCOME OF ` 3,81,76,712/-. SUBSEQUENTLY, THE CASE HAS BEEN SUBJECTED TO REVISIONARY PROCEEDINGS BY TH E COMMISSIONER OF INCOME TAX, RAJAHMUNDRY U/S 263 OF THE ACT. THE AS SESSEE HAS CHALLENGED THE ORDER PASSED U/S 263 OF THE ACT, BY THE CIT BEFORE THE ITAT, VISAKHAPATNAM. THE ITAT, VISAKHAPATNAM BENCH IN ITA NO.264/VIZAG/2014 DATED 20.11.2015 QUASHED ORDER PA SSED BY THE CIT U/S 263 OF THE ACT AND RESTORED THE ASSESSMENT ORDE R PASSED BY THE A.O. MEANWHILE, THE A.O. HAS PASSED CONSEQUENTIAL ORDER U/S 143(3) R.W.S. 263 OF THE ACT. THE ASSESSEE HAS PREFERRED AN APPEAL BEFORE THE CIT(A) AGAINST ORDER OF THE A.O. PASSED U/S 143(3) R.W.S. 263 OF THE ACT. THE CIT(A) QUASHED THE ASSESSMENT ORDER PASSED BY T HE A.O. U/S 143(3) R.W.S. 263 OF THE ACT AS VOID-AB-INITIO. AG GRIEVED BY THE CIT(A) ORDER, THE REVENUE IS IN APPEAL BEFORE US. 3. THE LD. A.R. FOR THE ASSESSEE, AT THE TIME OF HE ARING SUBMITTED THAT THE APPEAL FILED BY THE REVENUE IS NOT MAINTAI NABLE AS THE VERY SAME ORDER PASSED BY THE CIT U/S 263 OF THE ACT, HA S BEEN QUASHED BY ITA NO.127/VIZAG/2016 PATCHAVA KARUNAKAR YELESWARAM 3 THE ITAT IN ITA NO.264/VIZAG/2014 DATED 20.11.2015. SINCE, THE ITAT HAS QUASHED ORDER PASSED BY THE COMMISSIONER U/S 26 3 OF THE ACT, CONSEQUENTIAL ORDER PASSED BY THE A.O. IN PURSUANCE OF THE DIRECTIONS OF THE CIT U/S 263 OF THE ACT IS NOT MAINTAINABLE. TH E CIT(A) HAS RIGHTLY QUASHED ASSESSMENT ORDER AND HIS ORDER SHOULD BE UP HELD. ON THE OTHER HAND, THE LD. D.R. FAIRLY ACCEPTED THAT THE I TAT HAS QUASHED THE ORDER PASSED BY THE CIT(A) U/S 263 OF THE ACT AND H ENCE, THE CONSEQUENTIAL ORDER PASSED BY THE A.O. U/S 143(3) R .W.S. 263 OF THE ACT IS NOT MAINTAINABLE. 4. HAVING HEARD BOTH THE SIDES AND CONSIDERED MATER IALS ON RECORD, WE FIND THAT THE A.O. HAS PASSED CONSEQUENTIAL ORDE R IN PURSUANCE OF DIRECTIONS OF THE CIT U/S 263 OF THE ACT. WE FURTH ER NOTICED THAT THE COORDINATE BENCH OF THIS TRIBUNAL IN ITA NO.264/VIZ AG/2014 DATED 20.11.2015 HAS QUASHED ORDER PASSED BY THE COMMISSI ONER U/S 263 OF THE ACT AND RESTORED THE ASSESSMENT ORDER PASSED BY THE A.O. SINCE, THE ITAT HAS QUASHED ORDER PASSED BY THE CIT U/S 26 3 OF THE ACT, CONSEQUENTIAL ORDER PASSED BY THE A.O. U/S 143(3) R .W.S. 263 OF THE ACT IS NOT MAINTAINABLE. THE CIT(A) AFTER CONSIDERING RELEVANT DETAILS HAS RIGHTLY SET ASIDE THE ORDER PASSED BY THE A.O. AS V OID-AB-INITIO, WE DO NOT FIND ANY ERROR OR INFIRMITY IN THE ORDER PASSED BY THE CIT(A). HENCE, ITA NO.127/VIZAG/2016 PATCHAVA KARUNAKAR YELESWARAM 4 WE INCLINED TO UPHOLD CIT(A) ORDER AND DISMISS APPE AL FILED BY THE REVENUE. 5. THE ASSESSEE HAS FILED CROSS OBJECTION IN SUPPOR T OF ORDER OF THE CIT(A). THEREFORE, FOR THE REASONS RECORDED IN THE PRECEDING PARAGRAPHS, WE DISMISS THE CROSS OBJECTION FILED BY THE ASSESSEE AS NOT MAINTAINABLE. 6. IN THE RESULT, APPEAL FILED BY THE REVENUE AND C ROSS OBJECTION FILED BY THE ASSESSEE IS DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 12 TH JAN17. SD/- SD/- ( . ) ( . ) (V. DURGA RAO) (G. MANJUNATHA) /JUDICIAL MEMBER /ACCOUNTANT MEMBER ! /VISAKHAPATNAM: % /DATED : 12.01.2017 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ACIT, CIRCLE-1, KAKINADA 2. / THE RESPONDENT SRI PATCHAVA KARUNAKAR, 15-19A, NARISIPATNAM ROAD, YELESWARAM. 3. THE PRINCIPAL CIT-2, VISAKHAPATNAM 4. ) ( ) / THE CIT(A), GUNTUR 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM