ACIT, Ludhiana V. M/s Laj Export, Ludhiana

ITA 1128/CHANDI/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0715 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 05-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J S NAGAR
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 1128/CHD/2012 (ASSESSMENT YEAR : 2006-07) THE A.C.I.T., VS. M/S LAJ EXPORT, CIRCLE-1, C-199, PHASE VII, LUDHIANA. FOCAL POINT, LUDHIANA. PAN: AAAFL3811A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI J.S.NAGAR, DR RESPONDENT BY : SHRI ASHOK GOYAL DATE OF HEARING : 08.01.2013 DATE OF PRONOUNCEMENT : 18.01.2013 O R D E R PER SUSHMA CHOWLA, J.M, : THE APPEAL FILED BY THE REVENUE IS AGAINST THE ORDE R OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, LUDHIANA DA TED 07.08.2012 RELATING TO ASSESSMENT YEAR 2006-07 AGAINST THE ORD ER PASSED U/S 143(3) R.W.S.263 OF THE INCOME TAX ACT, 1961 (IN SHORT TH E ACT). 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE READ AS UNDER: 1. THAT THE LD.CIT(A) HAS ERRED IN LAW AND ON FACT S IN DELETING THE ADDITION OF RS.30 LACS WAS MADE ON ACCOUNT OF INSUR ANCE PREMIUM PAID BY THE ASSESSEE ON THE LIVES OF THE PARTNERS O F THE FIRM AS KEYMAN INSURANCE POLICY. 2. THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FACT S IN DELETING THE ADDITION MADE BY THE A.O BY JUST RELYING UPON THE CANCELLATION OF THE ORDER BY THE HON'BLE ITAT OF THE ORDER PASSE D BY THE COMMISSIONER OF INCOME TAX-I, LUDHIANA U/S 263OF TH E I.T. ACT 1961 AND IGNORING THE FACT THAT AN APPEAL HAS ALR EADY BEEN FILED BEFORE THE HON'BLE PUNJAB & HARYANA HIGH COURT AGAI NST THE SAID ORDER OF THE HON'BLE ITAT AND ALSO IGNORING THE CON TENTS AND SPIRIT OF THE CIRCULAR NO. IRDA/LIFE/006/2005-06 DATED 27. 04.2005 AND CIRCULAR NO. 036/IRDA/LIFE/JAN-06 DATED 30.01.2006 ISSUED BY IRDA. 2 3. THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FACT S IN NOT DECIDING THE ISSUE OF ALLOWABILTY OF DEDUCTION IN RESPECT OF INS URANCE PREMIUM PAID ON MERITS. 4. THAT THE ORDER OF THE LD. CIT(A) BE SET ASIDE AN D THAT OF A.O.BE RESTORED. 5. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUND OF APPEAL BEFORE IT IS FINALLY DISPOSED OFF. 3. THE LEARNED A.R. FOR THE ASSESSEE AT THE OUTSET POINTED OUT THAT THE PRESENT APPEAL IS AGAINST THE ORDER PASSED UNDER SE CTION 143(3) R.W.S.263 OF THE ACT. IT IS FURTHER POINTED OUT BY THE LEARN ED A.R. FOR THE ASSESSEE THAT THE ORDER UNDER SECTION 263 OF THE ACT PASSED BY THE COMMISSIONER OF INCOME TAX WAS CANCELLED VIDE ORDER DATED 30.4.2 012 AND AS SUCH THERE IS NO MERIT IN THE PRESENT APPEAL FILED BY TH E REVENUE. 4. THE LEARNED D.R. FOR THE REVENUE POINTED OUT THA T THE DEPARTMENT HAD PREFERRED AN APPEAL BEFORE THE HON'BLE PUNJAB & HARYANA HIGH COURT AGAINST THE AFORESAID ORDER OF THE TRIBUNAL AND CON SEQUENTLY THE PRESENT APPEAL. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE TRIBUNAL IN ITA NO.558/CHD/2011 RELATING TO ASS ESSMENT YEAR 2006- 07 VIDE ORDER DATED 30.4.2011 HAD CANCELLED THE INV OKING OF JURISDICTION BY THE COMMISSIONER OF INCOME TAX UNDER SECTION 263 OF THE ACT AND ALSO CANCELLED THE ORDER PASSED UNDER SECTION 263 O F THE ACT. THE ASSESSING OFFICER HAD COMPLETED THE ASSESSMENT VIDE ORDER DATED 9.11.2011 UNDER SECTION 143(3) R.W.S.263 OF THE ACT . THE CIT (APPEALS) HAD HELD THE ASSESSMENT FRAMED BY THE ASSESSING OFF ICER TO BE DEVOID OF REQUISITE JURISDICTION IN VIEW OF THE ORDER OF THE TRIBUNAL PASSED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX UNDER SECTION 263 OF THE ACT. IN THE ABOVE SAID CIRCUMSTANCES WHERE THE POWER INVOKED BY THE COMMISSIONER OF INCOME TAX UNDER SECTION 263 OF THE ACT HAS BEEN 3 HELD TO BE INVALID, WE FIND NO MERIT IN THE ORDER P ASSED BY THE ASSESSING OFFICER. UPHOLDING THE ORDER OF THE COMMISSIONER O F INCOME TAX WE DISMISS GROUNDS OF APPEAL RAISED BY THE REVENUE. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH DAY OF JANUARY, 2013. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 14 TH JANUARY, 2013 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH