INCOME TAX OFFICER, KOLKATA V. GOODPOINT STOCKIST PVT. LTD., KOLKATA

ITA 1086/KOL/2023

AI Insights

The case involves an appeal by the revenue against the order of the Ld. Principal Commissioner of Income Tax -7, Kolkata, which had allowed the appeal of Goodpoint Stockist Pvt. Ltd. The primary contention was regarding the revisionary orders passed under section 263 of the Income Tax Act, 1961, by the Ld. PCIT-4, Kolkata, which were challenged and found to be without jurisdiction by the ITAT. The ITAT's decision was later confirmed by the Hon'ble Calcutta High Court. The revenue's appeal to the ITAT in this instance was based on the argument that the CIT(A) erred in allowing the assessee's appeal based on the ITAT's earlier order, which was under challenge before the High Court. However, the High Court's dismissal of the department's appeal solidified the ITAT's earlier decision, leading to the dismissal of the revenue's current appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 35995 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 06-10-2023
• Other Referred Cases: ITA NO. 263/Kol/2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Revision of order
• Section: 143(3); 250; 263

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “सी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH: KOLKATA Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय एवं Įी राक ेश ͧमĮ, लेखा सटèय क े सम¢ [Before Shri Pradip Kumar Choubey, Judicial Member & Shri Rakesh Mishra,Accountant Member] I.T.A. No. 1086/Kol/2023 Assessment Year: 2012-13 ITO, Ward-12(1), Kolkata Vs. Goodpoint Stockist Pvt. Ltd. (PAN: AAECG 6402 D) Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 21.11.2024 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ .11.2024 For the Appellant/ Ǔनधा[ǐरती कȧ ओर से Shri Pradip Biswas, Addl. CIT Sr. D.R For the Respondent/ राजèव कȧ ओर से Shri Soumitra Choudhury, Advocate Shri Pranabesh Sarkar, Advocate ORDER / आदेश Per Pradip Kumar Choubey, JM: This is an appeal preferred by the revenue against the order of the Ld. Principal Commissioner of Income Tax -7, Kolkata (hereinafter referred to as the “Ld. PCIT”) passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) dated 03.10.2023 for the AY 2012-13. 2. It appears from the record that there is an delay of 12 days in filing appeal, for this department has filed condonation petition and as per the condonation petition due 2 I.T.A. No.1086/Kol/2023 Assessment Year: 2012-13 Goodpoint Stockist Pvt. Ltd. to huge work load relating to time barring assessment, penalty and writ filed by various assesses on the issue, the delay has been caused. 3. The Ld. Counsel appeared on behalf of the assessee did not raise any objection in condoning the delay. Keeping in view, the facts as stated in the condonation petition the delay of 12 days is hereby condoned. 4. The present appeal has been filed by the department against the order passed u/s 250 of the Act in which appeal of the assessee has been allowed. The facts of the case of the assessee are that the assessee being a company filed its return of income for AY 2012-13 declaring total income nil. The case of the assessee was selected for scrutiny and AO after going over the documents and submissions filed by the assessee determined the total income of the assessee at Rs . 9,97,00,000/- u/s 143(3) of the Act. The action of the AO was interdicted by the Ld. PCIT by exercising his revisionary jurisdiction u/s 263 of the Act and by setting aside the order passed by the AO u/s 143(3) of the Act, directed the AO to pass order after carry out proper examination in the books of account, examining the source of share application, identity of investor and its genuineness. Pursuant to the first revisionary order passed by the Ld. PCIT, the AO has accepted the income assessed by the assessee. Again the Ld. PCIT-4, Kolkata has exercised his revisionary jurisdiction u/s 263 of the Act and passed an order on 11.03.2019 in which the AO has been directed to adjudicate the issue involved and pass a fresh assessment order in accordance with the relevant provisions of law. The order passed by the Ld. PCIT on 11.03.2019 has been brought under challenge by the assessee before the Tribunal in ITA NO. 263/Kol/2021 dated 11.03.2022 in which the appeal of the assessee has been allowed and direction of the Ld. PCIT has been held without jurisdiction and declared it null in void. It is pertinent to mention here that consequent upon the order passed by Ld. PCIT u/s 263 (2nd revisionary order) the AO has passed the order on 30.12.2019 in which he assessed the total income at Rs. 9,96,00,000/-. 5. The said order has been challenged by the assessee before the Ld. CIT(A) Kolkata wherein the appeal of the assessee has been allowed on the ground that 3 I.T.A. No.1086/Kol/2023 Assessment Year: 2012-13 Goodpoint Stockist Pvt. Ltd. revisionary order passed by PCIT-4, Kolkata passed u/s 263 of the Act dated 11.03.2019 has been quashed by the Hon’ble ITAT, Kolkata. The present appeal has been preferred by the Department against the said order. 6. The ld. Sr. D/R has challenged the impugned order only on the following ground- that the Ld. CIT(A) has erred in allowing the appeal of the assessee based on the order of Hon’ble ITAT which suffers from perversity and also it was under challenged before the Hon’ble High Court. Contrary to that, it has been argued by the ld. Counsel appeared on behalf of the assessee that the Hon’ble High Court has confirmed the order of ITAT by and dismissing the appeal of the department vide order dated 10.04.2024. 7. Upon hearing the submission of the counsel of the respective parties and on perusal of record the factual position of the case are as under: i) The assessee has filed its return of income for AY 2012-13 declaring total income nil. ii) The case was selected for scrutiny and an assessment order u/s 143(3) of the Act was passed on 16.03.2015 determined the total income at Rs. 9,97,00,000/- iii) Subsequently, the order u/s 263 of the Act was passed on 03.03.2016 in which order of the A.O has been set a side and directed the A.O. to pass fresh order. iv) Giving effect to the order passed u/s 263 of the Act, A.O. on 19.08.2016 accepted the income of the Assessee at Rs. Nil v) Subsequently Ld. PCIT-4,Kolkata again passed an order u/s 263 (2nd revisionary order) of the Act on 11.03.2019 and set aside the order passed by the A.O. on 19-08- 2016 and directed to pass again fresh order as per law. vi) The said order dated 11.03.2019 has been challenged by the assessee before the Tribunal bearing ITA NO. 263/Kol/2021, and an order was passed on 11.03.2022 in 4 I.T.A. No.1086/Kol/2023 Assessment Year: 2012-13 Goodpoint Stockist Pvt. Ltd. which appeal of the assessee has been allowed by holding that the action of Ld. PCIT - 4, Kolkata is without jurisdiction and accordingly quashed. vii) It is pertinent to mention here that consequent upon the order passed by Ld. PCIT- 4, Kolkata under revisionary power (2nd revisionary order) the AO has passed an order on 30.12.2019 by determining the total income of the assessee at Rs. 9,97,00,000/-. viii) The said order has been challenged by the assessee before the Ld. CIT(A) wherein the appeal of the assessee has been allowed on the ground that the order of PCIT-4, Kolkata passed the order u/s 263 of the Act has been quashed. ix) It is further important to mention here that the Order passed by the ITAT in ITA No. 2263/Kol/2021 dated 11.03.2022 has been confirmed by the order of Hon’ble Calcutta High Court as the Department had challenged the said order before the Hon’ble Calcutta High Court. 8. Keeping in view of the above facts and the facts that the order of ITAT, Kolkata has been confirmed by the order of the Hon’ble High Court Kolkata by dismissing the appeal of the department, we do not find any merit in the appeal. Accordingly, it is hereby dismissed. In the result, the appeal of the revenue is dismissed. Order is pronounced in the open court on 27th November, 2024 Sd/- Sd/- (Rakesh Mishra / राक ेश ͧमĮ) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 27th November, 2024 SM, Sr. PS 5 I.T.A. No.1086/Kol/2023 Assessment Year: 2012-13 Goodpoint Stockist Pvt. Ltd. Copy of the order forwarded to: 1. Appellant- ITO, Ward-12(1), Kolkata 2. Respondent – Goodpoint Stockist Pvt. Ltd., 83, Sarat Chatterjee Road, Ground Floor, Barat, Lake Town-700089 3. Ld. Pr. CIT- 7, Kolkata 4. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "