Sigaram Constructions (P) Ltd., Erode V. ITO Ward 1(4), Erode

ITA 1246/CHNY/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7449 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 12-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN IRS
• Assessee Lawyers: S SRIDHAR
• Keywords: Revised return
• Section: 143(3); 144

Judgement Text

, (SMC) , IN THE INCOME TAX APPELLATE TRIBUNAL, B (SMC) BENCH : CHENNAI . , [BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT M EMBER ] ./I.T.A. NO.1246/CHNY/2018 / ASSESSMENT YEAR : 2013-2014. M/S. SIGARAM CONSTRUCTIONS (P) LTD, NO.9/8, PANNAI NAGAR, PERUNDURAI ROAD, SAKTHI MAHAL BACKSIDE, ERODE 638 011. [PAN AANCS 8576P] VS. THE INCOME TAX OFFICER, WARD 1(4), ERODE. ( !' / APPELLANT) ( #$!' /RESPONDENT) / APPELLANT BY : SHRI. S. SRIDHAR, ADVOCATE /RESPONDENT BY : SHRI. B. SAGADEVAN, IRS, JCIT. /DATE OF HEARING : 26-06-2018 !' /DATE OF PRONOUNCEMENT : 02-07-2018 % / O R D E R IN THIS APPEAL FILED BY THE ASSESSEE, WHICH IS DIR ECTED AGAINST AN ORDER DATED 26.03.2018 OF THE LD. COMMISSIONER O F INCOME TAX (APPEALS)-3, COIMBATORE, IT ASSAILS THE ASSESSMENT DONE ON IT FOR THE IMPUGNED ASSESSMENT YEAR. ITA NO.1246 /CHNY/2018 :- 3 -: ASSESSMENT ORDER DATED 04.11.2015 IN ITS NAME. ACC ORDING TO THE LD. AUTHORISED REPRESENTATIVE, THE CORRIGENDUM CLEARLY MENTIONED ERROR IN NAME, ADDRESS, PAN AND STATUS EFFECTIVELY CONVERTI NG THE EARLIER ASSESSMENT ORDER IN THE NAME OF SHRI. R. SIVALINGAM TO THAT OF THE ASSESSEE COMPANY. THE CORRIGENDUM AS PER THE LD. AU THORISED REPRESENTATIVE, WAS CLEARLY INDICATIVE OF THE FACT THAT ASSESSMENT ON THE COMPANY WAS NOT DONE ON 04.11.2015 BUT ONLY ON THE DATE WHEN THE CORRIGENDUM WAS ISSUED. SUBMISSION OF THE LD. AUTHORISED REPRESENTATIVE WAS THAT THE TIME LIMIT FOR PASSING AN ASSESSMENT ORDER U/S.153 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) ON THE ASSESSEE FOR THE IMPUGNED ASSESSMENT YEAR ENDED ON 31.03.2016. AS PER THE LD. AUTHORISED REPRESENTATIVE, CORRIGENDUM DATED 21.04.2016 CLEARLY PROVED THAT THE ASSESSMENT ON THE ASSESSEE COMPANY WAS DONE MUCH AFTER THE TIME LIMIT. THUS, AS PER THE LD . AUTHORISED REPRESENTATIVE, ASSESSMENT HAVING BEING COMPLETED A FTER THE STATUTORY TIME LIMIT WAS VOID. 4. PER CONTRA, LD. DEPARTMENTAL REPRESENTATIVE SUBMIT TED THAT ASSESSMENT ORDER DATED 04.11.2015 IN THE NAME OF SH RI. R. SIVALINGAM WAS A MISTAKE COMMITTED BY THE LD. ASSESSING OFFIC ER AND THIS WAS A CURABLE DEFECT U/S.292B OF THE ACT. AS PER THE LD . DEPARTMENTAL REPRESENTATIVE, INCOME TAX COMPUTATION FORM GENERA TED BY THE ITA NO.1246 /CHNY/2018 :- 5 -: THE SAID ASSESSMENT WAS THE INCOME OF THE ASSESSEE COMPANY. THE SAID SHRI. R. SIVALINGAM HAD MOVED AN APPEAL BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS), POINTING OUT THAT THE ADDITIONS MADE BY THE LD. ASSESSING OFFICER AS WEL L AS THE INCOME COMPUTED PERTAINED TO THE ASSESSEE COMPANY. LD. CO MMISSIONER OF INCOME TAX (APPEALS) HAD HELD IN FAVOUR OF SHRI. R. SIVALINGAM AND DELETED THE ADDITIONS THROUGH HIS ORDER DATED 25.0 5.2016. PRIOR TO THIS, ON 21.04.2016, LD. ASSESSING OFFICER ISSUED T HE CORRIGENDUM IN THE NAME OF THE ASSESSEE COMPANY WHICH READ AS UNDE R:- AANCS8576P/W 1(4) /2015-16/ERODE DATED: 21.04.201 6 CORRIGENDUM AN ORDER U/S 143(3) WAS PASSED ON 04.11.2015 IN THE ASSESSEE'S CASE FOR THE A.V 2013-14. IT IS NOTICED THAT TYPOGR APHICAL ERROR HAS OCCURRED AT SERIAL NO.L, 2, 3 AND 5, 5B(I) ON T HE FIRST PAGE OF THE ASSESSMENT ORDER. CORRESPONDING ERROR HAVE ALSO OCCURRED IN THE DEMAND NOTICE U/S 156 (FORM ITS-7) AND NOTIC E U/S 271(1)(C). THE SAME IS RECTIFIED AND REQUIRES TO BE READ AS BELOW 1. SERIAL NO.1, 2,3 AND 5, 5B(I) OF ASSESSMENT ORDER - FIRST PAGE:- 1). NAME OF ASSESSEE : M/S.SIGARAM CONSTRUCTIONS (P) LTD 2). ADDRESS : 9/8, PANNAI NAGAR, PERUNDURAI ROAD, SAKTHI MAHAL BACKSIDE, ERODE - 638 011. 3). PAN : AANCS8576P 5). STATUS B). IF COMPANY, WHETHER (I). DOMESTIC/OTHE RS : : COMPANY DOMESTIC ITA NO.1246 /CHNY/2018 :- 7 -: ASSESSEE COMPANY. WHAT WAS STATED IN THE FACING SH EET OF THE ASSESSMENT ORDER ORIGINALLY ISSUED IN THE NAME SH RI. R. SIVALINGAM IS REPRODUCED HEREUNDER:- INCOME TAX DEPARTMENT PRESENT SRI. C.V. RAJAGOPALAN, INCOME TAX OFFICER, WARD 1(4), ERODE. 1 NAME OF THE ASSESSEE : R. SIVALINGAM 2 ADDRESS : 61/1-B,M PAVITHRA, APT. KUMULAN, KUTTAI, COLLECTORATE POST, ERODE - 638011. 3 PAN : APAPS 0181H 4 WARD/CIRCLE/RANGE : WARD 1(4), ERODE 5 STATUS A) IF HUF, IS HIGHER RATE OF TAX APPLICABLE B) IF COMPANY, WHETHER (I) DOMESTIC/ OTHERS (II) PUBLIC SUBSTANTIALLY INTERESTED/ PUBLIC NOT SUBSTANTIALLY INTERESTED. (III) INDUSTRIAL / NON INDUSTRIAL (IV) SECTION 108/ OTHER THAN SEC. 108 : : : : : : INDIVIDUAL NA NA NA NA NA 6 ASSESSMENT YEAR : 2013 - 2014 7 WHETHER RESIDENT/ RESIDENT BUT NOT ORDIN ARILY RESIDENT/ NON RESIDENT : RESIDENT 8 METHOD OF ACCOUNTING : MERCANTILE 9 PREVIOUS YEAR : 2012 - 13 10 NATURE OF BUSINESS : CIVIL CONTRACT 11 DATE OF HEARING : 13.07.2015, 17.07.2015, 22.07.2015, 28.07.2015 31.08.2015 AND 04.11.2015 12 DATE OF ORDER : 04.11.2015 13 SECTION AND SUB - SECTION UNDER WHICH THE ASSESSMENT IS MADE : 143(3) OF I.T. ACT ITA NO.1246 /CHNY/2018 :- 9 -: THE CHANGES EFFECTED THROUGH THE CORRIGENDUM WERE N OT ONLY THE NAME OF THE ASSESSEE, AS WELL AS ITS PA NUMBER, BU T ALSO ITS STATUS AND ADDRESS. THERE WAS A WHOLESALE CHANGE OF THE A SSESSEE AS SUCH. IT IS DIFFICULT TO ACCEPT THAT SUCH MISTAKES COMMIT TED BY THE LD. ASSESSING OFFICER IS CURABLE U/S.292B OF THE ACT. THE ONLY PROBABILITY IS THAT ON 04.11.2015, THE ONLY ASSESSMENT AVAILABLE O N RECORD WAS IN THE NAME OF SHRI. R. SIVALINGAM. THE CHANGES COULD HAVE BEEN EFFECTED SUBSEQUENTLY WHEN THE CORRIGENDUM WAS ISSU ED ON 21.04.2016. JUST BECAUSE INCOME COMPUTATION FORM GENERATED BY THE DEPARTMENT SERVER REFLECTED THE DATE OF ASSESS MENT AS 04.11.2015, A GO BY CANNOT BE GIVEN TO THE FACTS WH ICH ARE OTHERWISE GLARING FROM THE RECORD. IN OTHER WORDS, THE DATE OF ASSESSMENT IN THE NAME OF THE ASSESSEE COMPANY CAN ONLY BE CONSTRUED AS 21.04.2016, WHICH IS THE DATE ON WHICH THE CORRIGENDUM WAS ISSU ED AND NOT 04.11.2015. 7. SECTION 153(1) OF THE ACT IS REPRODUCED HEREUNDER:- 153(1) NO ORDER OF ASSESSMENT SHALL BE MADE UNDER SECTION 143 OR SECTION 144 AT ANY TIME AFTER THE EX PIRY OF- (A) TWO YEARS FROM THE END OF THE ASSESSMENT YEAR I N WHICH THE INCOME WAS FIRST ASSESSABLE; OR (B) ONE YEAR FROM THE END OF THE FINANCIAL YEAR IN WHICH A RETURN OR A REVISED RETURN RELATING TO THE ASSESSME NT YEAR COMMENCING ON THE 1ST DAY OF APRIL, 1988, OR ANY EA RLIER ITA NO.1246 /CHNY/2018 :- 11 -: THE ASSESSMENT YEAR BEING 2013-2014, TWO YEARS FR OM THE END OF THE SAID ASSESSMENT YEAR EXPIRED ON 31.03.216. THE ASSESSMENT ORDER IN MY OPINION IN THE NAME OF THE COMPANY WAS PASSED ONLY AFTER THE SAID DATE. EX-CONSEQUENTI, THE IMPUGNED ASSESSMENT DONE BEYOND THE TIME LIMIT SPECIFIED UNDER THE ACT IS QUASHED. 8. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOW ED. ORDER PRONOUNCED ON MONDAY, THE 2 ND DAY OF JULY, 2018, AT CHENNAI. SD/- ( . ) (ABRAHAM P. GEORGE) / ACCOUNTANT MEMBER #$ / CHENNAI %& / DATED:2 ND JULY, 2018 KV &' ()*) / COPY TO: 1 . / APPELLANT 3. +,- / CIT(A) 5. )./ 0 / DR 2. / RESPONDENT 4. + / CIT 6. /12 / GF