Vcare Seed Services, , Kurnool V. Income Tax Officer, Ward-2, Kurnool

ITA 1049/Hyd/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7461 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 03-01-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 23-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: A C GANGAIAH
• Keywords: Revision of order
• Section: 143(3); 40(a)(ia); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 1049 /HYD/201 8 ASSESSMENT YEAR: 20 09 - 10 V CARE SEED SERVICES, KURNOOL PAN A AFFV8223P VS. INCOME - TAX OFFICER, W ARD 2 , KURNOOL ( APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI A.C. GANGAIAH REVENUE BY : S HRI NILANJAN DEY DATE OF HEARING : 0 3 / 0 1 /201 9 DATE OF PRONOUNCEMENT : 18 / 0 1 / 201 9 O R D E R PER S . RIFAUR RAHMAN , A .M. : T H IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) , KURNOOL, DATED 20 / 03 /201 8 FOR AY 20 09 - 10 WHEREIN THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. ITAT HYDERABAD SET ASIDE THE ORDERS PASSED U/ S 263 AND RESTORED THE ASSESSMENT TO THE FILE OF AO AND AO PASSED THE ASSESSMENT ORDERS U/ S 143(3) RW S 254. THE ASSESSMENT ORDERS U /S 143(3) RW S 263 HAD NO EXISTENCE OR HAD NO LEGS TO STAND. 2 CIT (A) MIGHT HAVE ANNULLED THE ASSESSMENT ORDERS U/S 143(3) RW S 263 AFTER TRIBUNAL SET ASIDE THE REVISION ORDERS U/ S 263. 3 TO PERMIT THE APPELLANT TO RAISE ANY OTHER GROUND AT THE TIME OF HEARING OF THE APPEAL. 2 . BEFORE US, THE LD. AR OF THE ASSE SSEE SUBMITTED THAT THE ASSESSMENT ORDERS PASSED U/S 143(3) RWS 263 OF THE ACT CANNOT WITH STAND AFTER QUASHING THE REVISION ORDERS OF CIT U/S 263, BY THE ITAT. FOR THIS PROPOSITION, HE RELIED ON VARIOUS DECISION S OF THE ITAT. 2 ITA NO. 1049 /HYD/1 8 VCARE SEED SERVICES, KURNOOL. 3. ON THE OTHER HAND, LD. DR RELIED ON THE ORDER OF CIT(A). 4. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. FOR AY UNDER CONSIDERATION, ASSESSEE FILED ITS RETURN OF INCOME ON 30.09.2009 DECLARING TOTAL INCOME OF RS.8,63,110/ - AND ASS ESSMENT IN CASE OF ASSESSEE WAS COMPLETED U/S 143(3) OF THE ACT VIDE ORDER DATED 28.12.2011 DETERMINING TOTAL INCOME AT 21,34,600/ - . THEREAFTER, THE ORDER PASSED U/S 143(3) WAS SET ASIDE U/S 263 OF THE ACT, BY THE COMMISSIONER OF INCOME TAX VIDE ORDER DATE D 1 0 - 3 - 2014 WITH DIRECTION TO THE AO TO RE COMPUTE THE ASSESSEE'S INCOME AFTER DISALLOWING THE AMOUNT OF RS.20,50, 000 / - PAID TO SH RI N.V. PARAMESHWAR U/S 40(A)(IA) OF THE ACT. ACCORDINGLY, THE AO RE - C OMPUTED THE INCOME OF ASSESSEE AFTER MAKING ADDITION RS. 20,50,000/ - ON ACCOUNT OF DISALLOWANCE U/S 40(A)(IA) OF THE ACT BY PASSING ORDER U/S 143(3) RWS 263 OF THE ACT ON 28/04/2014. 4.1 WHEN THE ASSESSEE PREFERRED AN APPEAL AGAINST THE ORDER PASSED U/S 263 OF THE ACT, BEFORE THE ITAT, THE ITAT VIDE ITS ORDER DATED 03/06/2015 IN ITA NO. 1308/HYD/2014, SET ASIDE THE ORDER PASSED U/S 263 AND RESTORED THE ORDER OF AO BY HOLDING THAT THE AMOUNT OF RS. 20,50,500/ - WAS PAID BY THE ASSESSEE DURING THE RELEVANT PY AND AS NOTHING REMAINED PAYABLE AS ON THE LAST DATE OF RELEVANT PY, NO DISALLOWANCE U/S 40(A)(IA) SHOULD BE MADE. 4.2 CONSEQUENT TO THE ORDER OF ITAT, THE AO PASSED ASSESSMENT ORDER U/S 143 (3) RWS 254 ON 29/12/2015. THEREFORE, THE ORDER PASSED U/S 143(3) RWS 263 HAS BECOME INFRUCTUOUS. 4.3 NOW , THE CIT(A) CONFIRMED THE ORDER OF AO PASSED U/S 143(3) RWS 263 ON 20/03/2018, , AGAINST WHICH THE ASSESSEE APPEALED BEFORE HIM ON 2 3 /0 6 /201 4 , RELYING ON THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF M/S PALAM GAS SERVICE VIDE CIVIL APPEAL NO. 5512 OF 2017, DATED 03/05/2017. 3 ITA NO. 1049 /HYD/1 8 VCARE SEED SERVICES, KURNOOL. 4.4 THE CONTENTION OF THE ASSESSEE BEFORE US IS THAT , AFTER THE REVISION ORDER OF CIT U/S 263 WAS QUASHED BY THE ITAT, THE ASSESSMENT ORDER PASSED U/S 143(3) RWS 263 BECOMES INFRUCTUOUS. 4.5 WE ARE IN AGREEMENT WITH THE CONTENTION OF THE ASSESSEE. SINCE THE ORDER PASSED U/S 263 ITSELF IS QUASHED BY THE ITAT, THE CONSEQUENT ORDER PASSED BY THE AO U/S 143(3) RW S 263 BECOMES INFRUCTUOUS AND CONFIR MATION OF SUCH AN ORDER BY THE CIT(A) BECOMES REDUNDANT. THEREFORE, WE SET ASIDE THE ORDER OF CIT(A) AND ALLOW THE GROUNDS RAISED BY THE ASSESSEE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN TH E OPEN COURT ON 18 TH JANUARY , 201 9 SD/ - SD/ - ( P. MADHAVI DEVI ) (S . RIFAUR RAHMAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 18 TH JANUARY , 201 9 KV C OPY TO: - 1) VCARE SEED SERVICES, D.NO. 51/1017 - B - 1, LIC COLONY, NEAR WATER WORKS, KURNOOL 518 002 2) ITO, WARD 2 , KURNOOL. 3) CIT(A) , KURNOOL 4) PR. CIT , KURNOOL 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE