Addl. CIT, V. M/s. Ideal Institute of Technology,

ITA 1023/DEL/2009

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 8115 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 30-06-2009
• Assessment Year: misc
• Appeal Filed On: 19-03-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHEELA CHOPRA
• Keywords: Set aside
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : C : NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NOS. 1023-1025/DEL/2009 ASSESSMENT YEAR : 1999-2000, 2000-01 & 2002-03 ADDL. COMMISSIONER OF INCOME- TAX, RANGE-2, GHAZIABAD. VS. M/S IDEAL INSTITUTE OF TECHNOLOGY, FF-46, NAVYUG MARKET, GHAZIABAD. PAN: AAATI13380F (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAVI PRATAP MALL REVENUE BY : SMT. SHEELA CHOPRA O R D E R PER BENCH: THESE ARE APPEALS FILED BY THE REVENUE. THEY ARE DIRECTED AGAINST THE CONSOLIDATED ORDER OF THE CIT (A) DATED 16 TH DECEMBER, 2008 FOR ASSESSMENT YEARS 1999-2000, 2000-01 AND 2002-03. GROUNDS OF A PPEAL IN ALL THESE APPEALS ARE IDENTICAL EXCEPT DIFFERENCE IN FIGURES. GROUND S OF APPEAL FOR ASSESSMENT YEAR 1999-2000 READ AS UNDER:- 1) THAT THE LD. CIT (A) HAS WRONGLY HELD THAT THE ASSESSMENT PROCEEDINGS WAS ANNULLED ON THE GROUND O F ITATS ORDER WITHOUT CONSIDERING THE FACTS AS MENTI ONED BY THE CIT IN HIS ORDER UNDER SECTION 263 OF THE IT ACT ON THE BASIS OF WHICH A.O HAS PASSED THE ORDER. 2) THAT THE LD. CIT (A) HAS WRONGLY DELETED THE ADD ITION MADE BY THE A.O. IN RESPECT OF THE DIFFERENCE OF CO ST OF VALUATION OF BUILDING MADE BY THE DVO AND SHOWN BY TH E ASSESSEE BECAUSE OF DVOS REPORT WAS A MAJOR SOURCE OF EVIDENCE AND AN OPINION OF A TECHNICAL EXPERT. THE LD. CIT (A) HAS ERRED IN LAW AND ON FACTS DELETING THE ADDITION OF RS.5,92,631/- MADE BY THE A.O. WITHOUT CONSIDERI NG THE ITA NO.1023 TO 1025/DEL/2009 2 FULL FACTS OF THE CASE. HENCE ORDER OF THE LD. CIT (A) MAY BE SET ASIDE AND THE ORDER OF THE A.O. BE RESTORED. 2. FOR OTHER YEARS, THE FIGURES ARE AS UNDER:- ASSESSMENT YEAR 2000-01 - RS.43,43,739/- ASSESSMENT YEAR 2002-03 - RS.17,49,824/- 3. IMPUGNED ASSESSMENTS HAVE BEEN FRAMED AS PER DIR ECTIONS GIVEN BY CIT VIDE HIS ORDER PASSED U/S 263 OF IT ACT, 1961 (THE ACT). THE SAID ORDER PASSED BY COMMISSIONER U/S 263 ON 23 RD FEBRUARY, 2007 WAS CHALLENGED IN APPEAL FILED BEFORE THE TRIBUNAL AND THE SAID APPEAL HAS BEEN DE CIDED BY THE TRIBUNAL VIDE ITS ORDER DATED 30 TH SEPTEMBER, 2008 IN ITA NOS.1428, 1429 AND 1430/DEL /2007. IT HAS BEEN DECIDED THEREIN VIDE PARA 25 THAT THE ASSE SSING OFFICER HAD ADOPTED ONE VIEW ACCEPTING THE COST OF CONSTRUCTION AS DECL ARED BY THE ASSESSEE IN THE BOOKS OF ACCOUNT REGULARLY MAINTAINED BY IT AND AFT ER EXAMINING ALL THE MATERIALS AND DETAILS AND AFTER CONSIDERING THE ASSESSEES EX PLANATION, THE DVOS REPORT AND REGISTERED VALUERS REPORT, THERE FORE, SUCH VIEW TAKEN BY THE ASSESSING OFFICER COULD NOT BE SAID TO BE NON-SUSTA INABLE IN THE EYES OF LAW SO AS TO ENABLE CIT TO INVOKE THE JURISDICTION UNDER S ECTION 263. VIDE PARA 29 IT HAS BEEN OBSERVED THAT THE ORDER OF CIT IS CANCELLED. A COPY OF THE SAID ORDER WAS PLACED ON OUR RECORD. THE LD. CIT (A) FOLLOWING TH E SAID ORDER OF THE TRIBUNAL HAS INVALIDATED THE IMPUGNED ASSESSMENTS WHICH WERE FRAMED ONLY AS PER ORDER PASSED U/S 263. 4. IN THIS VIEW OF THE SITUATION, AFTER HEARING BOT H THE PARTIES, AS THE VERY BASIS I.E., THE ORDER PASSED BY THE CIT U/S 263 HAS BEEN CANCELLED BY THE TRIBUNAL, IN ITS AFOREMENTIONED ORDER DATED 30 TH SEPTEMBER, 2008, THE IMPUGNED ASSESSMENTS FRAMED BY THE ASSESSING OFFICER HAVE LO ST THEIR LEGS TO STAND AND, THUS, THE LD. CIT (A) WAS RIGHT IN HOLDING THAT THE IMPUGNED ASSESSMENTS WERE NOT VALID ASSESSMENTS. WE DECLINE TO INTERFERE. T HE APPEALS FILED BY THE REVENUE ARE DISMISSED. ITA NO.1023 TO 1025/DEL/2009 3 5. IN THE RESULT, THE APPEALS FILED BY THE DEPARTME NT ARE DISMISSED. 6. THE ORDER PRONOUNCED IN THE OPEN COURT ON 03.07. 2009. [B.C. MEENA] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, 03.07.2009. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES