Subhash Goel, Parwanoo V. Pr. CIT (C), Gurgaon

ITA 1045/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0044 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-05-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 06-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 153A; 69; 263; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BEFORE AND S HRI S.S.GODARA SUBASH GOEL SUBHASH COMPLEX, KHASRA NO. 134/SECTOR- 3, PARWANOO HIMACHAL PRADESH T AN /PAN : ADIPG 7403 J (APP ELL ANT) / APPELLANT RESPONDENT BY: DATE OF HEARING: DATE OF PRONOUNCEMENT: PER S.S.GODARA, JUDICIAL THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2013 PR. COMMISSIONER OF INCOME 23.03.2018, INVOLVING PROCEEDINGS U/S 263 OF THE INCOME TAX ACT , 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. I T TRANSPIRES AT THE OUTSET THAT THE ASSESSEES APPE AL SUFFERS FROM 65 DAYS DELAY PETITION STATING REASONS THEREOF TO VARIOUS PROCEDU RAL FORMALITIES AND COMPILATION OF THE NECESSARY RECORDS. THE REVENUE I S DISPUTING CORRECTNESS OF THE SAID , B IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH B BENCH, CHANDIGARH BEFORE SHRI N.K. SAINI, VICE-PRESIDENT HRI S.S.GODARA , JUDICIALMEMBER ITA NO. 1045/CHD/2018 ASSESSMENT YEAR: 2013 - 14 SUBHASH COMPLEX, KHASRA 3, PARWANOO V. PR. COMMISSIONER OF INC (CENTRAL), GURAON, CIRCLE, PARWANOO ADIPG 7403 J (RESPONDENT) APPELLANT BY: SHRI T.N. SING LA , CA RESPONDENT BY: SHRI G.S. PHANI KISHARE, CIT - DR DATE OF HEARING: 21 0 5 201 9 23 0 5 201 9 / O R D E R S.S.GODARA, JUDICIAL MEMBER: APPEAL FOR ASSESSMENT YEAR 2013 - 14 ARISES AGAINST THE PR. COMMISSIONER OF INCOME - TAX (CENTRAL), GURUGRAMS ORDER DATED INVOLVING PROCEEDINGS U/S 263 OF THE INCOME TAX ACT , 1961; HEARD BOTH THE PARTIES. CASE FILE PERUSED. T TRANSPIRES AT THE OUTSET THAT THE ASSESSEES APPE AL SUFFERS DELAY IN FILING. HE HAS PLACED ON RECORD HIS CONDONATION PETITION STATING REASONS THEREOF TO VARIOUS PROCEDU RAL FORMALITIES AND COMPILATION OF THE NECESSARY RECORDS. THE REVENUE I S FAIR ENOUGH IN NOT DISPUTING CORRECTNESS OF THE SAID SOLEMN AVERMENTS. WE THEREFORE IN THE INCOME TAX APPELLATE TRIBUNAL COMMISSIONER OF INC OME TAX CIRCLE, DR 14 ARISES AGAINST THE TAX (CENTRAL), GURUGRAMS ORDER DATED INVOLVING PROCEEDINGS U/S 263 OF THE INCOME TAX ACT , 1961; T TRANSPIRES AT THE OUTSET THAT THE ASSESSEES APPE AL SUFFERS CONDONATION PETITION STATING REASONS THEREOF TO VARIOUS PROCEDU RAL FORMALITIES AND FAIR ENOUGH IN NOT AVERMENTS. WE THEREFORE ITA NO.1045/CHD/2018 PAGE 2 OF 3 CONDONE THE IMPUGNED DELAY OF 65 DAYS AS NEITHER IN TENTIONAL NOR DELIBERATE BUT ON ACCOUNT OF CIRCUMSTANCES BEYOND A SSESSEES CONTROL. THIS APPEAL IS NOW TAKEN UP FOR ADJUDICATION ON MER ITS. 3. IT TRANSPIRES DURING THE COURSE OF HEARING THAT WE NEED NOT DIG DIPPER IN THE FACTS OF THE INSTANT CASE. THIS ASSES SEE IS AN INDIVIDUAL. THE DEPARTMENT CARRIED OUT A SURVEY IN HIS CASE ON 08.11.2012. THE ASSESSEE SURRENDERED AN AMOUNT OF RS.35 LAC IN LUMP SUM IN COURSE THEREOF. HE FILED HIS RETURN ON 14.03.2013 DECLARIN G INCOME OF RS.3,25,650/-. THE SAME STOOD SUMMARILY PROCESSED O N 08.05.2013. THE ASSESSING OFFICER FRAMED SEC. 143(3) REGULAR AS SESSMENT ON 14.12.2015 ACCEPTING THE ABOVE RELEVANT INCOME. 4. THE DEPARTMENT THEREAFTER CARRIED OUT A SEARCH AT A SSESSEES BUSINESS AND RESIDENTIAL PREMISES INCLUDING HIS GRO UP CASES IN THE NAME AND STYLE OF M/S OM SONS GROUP. THE SAME LED TO INI TIATION OF SEC. 153A R.W.S. 143(3) PROCEEDING ASSESSMENT FRAMED ON 29.12 .2017 ASSESSING THE ABOVE INCOME OF RS 35 LAC AS UNDISCLOSED INVEST MENTS U/S 69 LIABLE TO BE ASSESSED AT HIGHER RATE U/S 115BBE OF THE ACT . 5. WE NOW ADVERT TO THE CITS ASSUMPTION OF SEC.263 RE VISION PROCEEDINGS. HE ISSUED HIS SHOW-CAUSE NOTICE DATED 16.03.2018 TERMING THE ABOVE FORMER ASSESSMENT DATED 14.12.2015 (SUPRA ) AS ERRONEOUS CAUSING PREJUDICE TO INTEREST OF THE REVENUE ON THE GROUND THAT THE SAID UNDISCLOSED INVESTMENTS AMOUNTING TO RS.35 LAC DESE RVED TO BE ASSESSED U/S 115BBF OF THE ACT. HE HAS DECLINED ASS ESSEES EXPLANATION DATED 22.03.2018 CONTESTED THE ABOVE SHOW CAUSE AND DIRECTED THE ASSESSING OFFICER TO ACT AS PER SEC. 115BBE OF THE ACT ONCE AGAIN. THIS LEAVES THE ASSESSEE AGGRIEVED. 6. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL CONTENTIONS. CASE FILE PERUSED. THE ABOVE NARRATED RELEVANT FACTS MAKE ITA NO.1045/CHD/2018 PAGE 3 OF 3 IT CLEAR THAT IT IS THE SURRENDERED AMOUNT OF RS.35 LAC IN THE COURSE OF SURVEY WHAT FORMS THE SUBJECT-MATTER OF THE IMPUGNE D REVISION PROCEEDINGS ASSUMED AT THE CITS INSTANCE WHILST HO LDING THE REGULAR ASSESSMENT DATED 14.12.2015 AS ERRONEOUS CAUSING PR EJUDICE TO INTEREST OF THE REVENUE. SUFFICE TO SAY, THE ASSESSEES VERY INCOME ALREADY STANDS ASSESSED AT THE HIGHER RATE U/S 69 R.W.S. 11 5BBE OF THE ACT ON 29.12.2017 IN SEC. 153A R.W.S 143(3) ASSESSMENT (SU PRA). THE REVENUE FAILS TO REBUT THIS CLINCHING FACT. THE CITS REVIS ION PROCEEDINGS NOWHERE TAKE NOTE OF ALL THESE INTERVENING PROCEEDINGS. WE THEREFORE CONCLUDE THAT CITS ORDER UNDER CHALLENGE PASSED IN REVISION JURISDICTION U/S 263 OF THE ACT IS NOT SUSTAINABLE IN THE EYES OF LAW AS NEITHER IT IS A CASE OF ERRONEOUS ASSESSMENT NOR HAS ANY PREJUDICE CAUSED T O INTEREST OF THE REVENUE AS PER HON'BLE APEX COURTS DECISION IN MALABAR INDUSTRIAL CO. LTD. VS. CIT (2000) 243 ITR 83 (SC). THE SAME STANDS REVERSED. 7. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON _23/05/2019 . SD/- SD/- [ N.K.SAINI ] [ S.S.GODARA ] VICE PRESIDENT JUDICIAL MEMBER ! DATED:23/05/2019 *DKP '#$%- 23 / 05 /201 9 + ! ' / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-SUBASH GOEL, SUBHASH COMPLEX, KHASRA NO .134/SECTOR-3, HIMACHAL PRADESH 2. /RESPONDENT-PR. CIT, (CENTRAL), GURGAON, DCIT, CIR- PARWANOO 3. $.$/0 1 1 2 ! / CONCERNED CIT CHANDIGARH 4. 1 1 2- ! / CIT (A) CHANDIGARH 5. 56 77/0, 1 /0 , ! / DR, ITAT, CHANDIGARH 6. : ;< / GUARD FILE. BY ORDER/ 1#= , /TRUE COPY/ > $? 1 /0 , ! +