ACG ASSOCIATED CAPSULES P. LTD, MUMBAI V. DCIT CEN CIR 42, MUMBAI

ITA 1239/MUM/2012

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9343 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 24-02-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 23-02-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: MANISH V SHAH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUM BAI , , BEFORE SHRI SANJAY ARORA, AM AND SHRI AMIT SHUKLA, JM ./I.T.A. NO. 1239/MUM/2012 ( / ASSESSMENT YEAR: 2004-05) ACG ASSOCIATED CAPSULES P.LTD. 1001, DALAMAL HOUSE, 10 TH FLOOR, NARIMAN POINT, MUMBAI-400021, / VS. DY. CIT, CC-42, , GROUND FLOOR, AAYAKAR BHAVAN, M. K. MARG, MUMBAI-400 020 ./ ./PAN/GIR NO. AAACA4769K ( /APPELLANT ) : ( !' / RESPONDENT ) # $ / APPELLANT BY : SHRI MANISH V. SHAH !' # $ / RESPONDENT BY : MS. S. PADMAJA %& ' # ( / DATE OF HEARING : 24.02.2015 )*+ # ( / DATE OF PRONOUNCEMENT : 13.03.2015 / O R D E R PER SANJAY ARORA, A. M.: THIS IS AN APPEAL BY THE ASSESSEE DIRECTED AGAINST THE ORDER BY THE COMMISSIONER OF INCOME TAX (APPEALS)-38, MUMBAI (CIT(A) FOR SH ORT) DATED 19.12.2011, DISMISSING THE ASSESSEES APPEAL CONTESTING ITS ASSESSMENT U/S .143(3) OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER) FOR THE ASSESSMENT YEAR (A. Y.) 2004-05 VIDE ORDER DATED 30.12.2009. 2. AT THE VERY OUTSET, THE LEARNED AUTHORIZED REPRE SENTATIVE (AR), THE ASSESSEES COUNSEL, WOULD SUBMIT THAT THE ASSESSEE IS NOT INTE RESTED TO PROSECUTE ITS APPEAL AND, ACCORDINGLY, PRESSED FOR ITS WITHDRAWAL. THE LD. DE PARTMENTAL REPRESENTATIVE (DR), ON 2 ITA NO. 1239/MUM/2012 (A.Y. 2004-05) ACG ASSOCIATED CAPSULES P. LTD. VS. DY. CIT BEING REQUIRED BY THE BENCH TO STATE HIS OBJECTIONS , IF ANY, TO THE PROPOSED WITHDRAWAL AFORESAID, WOULD SUBMIT THAT THE SAME SHOULD NOT IN ANY CASE OPERATE TO PREJUDICE THE REVENUE IN ANY MANNER. IN FACT, THE LD. CIT(A) HAS DISMISSED THE REVENUES APPEAL AS NOT MAINTAINABLE IN-AS-MUCH AS IT IS TIME BARRED BY 330 DAYS, WHICH DELAY HAS NOT BEEN CONDONED BY HIM. THE LD. AR WOULD, UPON THIS, SUBMI T THAT THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS THE DEMERGED COMPANY UPON DEMERGER OF UNIVERSAL CAPSULES PVT. LTD. (LATER NAMED AS ACG ARTS & PROPERTIES PVT. LTD.) W. E.F. 31.03.2003. ITS INCOME OF RS. 62,21,089/- WAS ORIGINALLY OFFERED TO TAX. HOWEVER, AS THE SAID INCOME WAS BROUGHT TO TAX BY THE REVENUE IN DEMERGED COMPANY FOR THE SAME YEA R, I.E., AY 2004-05, THE ASSESSEE FILED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORIT Y (FAA), CLAIMING THAT THE SAME SHOULD NOT, THEREFORE, BE INCLUDED IN ITS TOTAL INCOME FOR THE YEAR. THE DEMERGED COMPANY BEING SUCCESSFUL IN ITS APPEAL BEFORE THE FIRST APPELLAT E AUTHORITY, THE INSTANT APPEAL BECOMES INFRUCTUOUS. THE SAME WOULD ALSO EXPLAIN THE REASON FOR THE DELAY, WHICH IN FACT HAS BEEN NARRATED IN THE GROUNDS OF APPEAL ASSUMED BY THE AS SESSEE BEFORE THE APPELLATE TRIBUNAL. 3. WE HAVE HEARD THE PARTIES, AND PERUSED THE MATER IAL ON RECORD. THE STATEMENT OF FACTS BEFORE THE FIRST APPELLATE A UTHORITY BRINGS THE RELEVANT FACTS, IN FULL, I.E., ALONG WITH THE RELEVANT FIGURES, OF THE CASE, WHICH ARE IN CONFORMITY WITH THAT AS EXPLAINED BY THE LD. AR BEFORE US. THE INCOME IS ONLY TO BE ASSESSED IN THE HANDS OF THE RIGHT PERSON AND FOR THE RIGHT YEAR. IT BEING A SSESSED IN THE HANDS OF ANOTHER, OR FOR A DIFFERENT YEAR, WOULD NOT IMPACT ITS ASSESSABILITY IN THE HANDS OF THE RIGHT PERSON FOR THE RIGHT YEAR. THE INCOME HAS CORRECTLY BEEN OFFERED T O TAX BY THE ASSESSEE FOR THE CURRENT YEAR IN-AS-MUCH AS THE DEMERGER IS W.E.F. 31.03.200 3, I.E., PRIOR TO THE COMMENCEMENT OF THE CURRENT PREVIOUS YEAR ON 01.04.2003. WE HAVE UNDER THE CIRCUMSTANCES NO HESITATION IN, F IRSTLY, CONDONING THE OTHERWISE INORDINATE DELAY OF 330 DAYS IN FILING THE APPEAL B EFORE THE FIRST APPELLATE AUTHORITY AND, SECONDLY, IN ALLOWING THE ASSESSEES PLEA FOR WITHD RAWAL OF ITS INSTANT APPEAL; ITS INCOME HAVING ONLY BEEN ASSESSED IN ACCORDANCE WITH LAW. T HIS, AS IT WOULD BE APPEARS TO US, IS ALSO THE REASON FOR THE DELETION OF THE IMPUGNED IN COME IN THE HANDS OF THE DEMERGED 3 ITA NO. 1239/MUM/2012 (A.Y. 2004-05) ACG ASSOCIATED CAPSULES P. LTD. VS. DY. CIT COMPANY, NAMELY ACG ARTS & PROPERTIES PVT. LTD., I. E., IN THE APPELLATE PROCEEDINGS. WE DECIDE ACCORDINGLY. 4. IN THE RESULT, THE ASSESSEES APPEAL IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH MARCH, 2015 SD/- SD/- (AMIT SHUKLA) (SANJAY ARORA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER ,' MUMBAI; -% DATED : 13.03.2015 & . % . ./ S.K. PS. !'#$ %$' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. .&/ 0 !%12 , ( 12+ , ,' / DR, ITAT, MUMBAI 6. 0 34 5 ' / GUARD FILE & / BY ORDER, ' / &( ) (DY./ASSTT. REGISTRAR) , ,' / ITAT, MUMBAI