ADIT, CHENNAI V. Ambur Economic Development Organisation, CHENNAI

ITA 1301/CHNY/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4615 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2013
• Appeal Filed By: Department
• Bench Allotted: D
• Next Hearing Date: 05-09-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 10-06-2013
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: S RIFAUR RAHMAN
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : CHENNAI BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER I.T.A. NO. 1301/MDS/2013 ASSESSMENT YEAR 2006-07 ASST. DIRECTOR OF INCOME TAX (EXEMPTIONS)-II CHENNAI. VS M/S. AMBUR ECONOMIC DEVELOPMENT ORGANISATION, NO. 43, RAJA MUTHIAH ROAD, PERIAMET, CHENNAI -600 003. [PAN: AAFCA 3914 L] (APPELLANT) (RESPONDENT) REVENUE BY : SHRI S.DAS GUPTA, JCIT ASSESSEE BY : SHRI S.RIFAUR RAHMAN, FCA DATE OF HEARING : 05-09-2013 DATE OF PRONOUNCEMENT : 11-09-2013 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-VI, CHEN NAI, DATED 11-01-2013, RELEVANT TO THE ASSESSMENT YEAR (AY) 20 06-07. I.T.A. NO. 1301/MDS/2013 :- 2 -: 2. THE ASSESSEE HAD FILED ITS RETURN OF INCOME FOR THE AY 2006- 07 ON 27-11-2006 DECLARING ITS INCOME AS NIL. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S. 143(3) OF THE INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT) O N 30-07-2008 ACCEPTING THE INCOME RETURNED BY THE ASSESSEE. THE CIT INITIATED PROCEEDINGS U/S. 263 OF THE ACT ON THE GROUND THAT A SUM OF ` 28,57,063/- RECEIVED BY THE ASSESSEE TOWARDS INTERE ST HAS BEEN WRONGLY CAPITALIZED BY THE ASSESSEE AS WORK-IN-PROG RESS. AGGRIEVED AGAINST THE ORDER OF THE CIT DATED 30-09 -2010 PASSED U/S. 263, THE ASSESSEE APPROACHED THE TRIBUN AL IN ITA NO. 326/MDS/2012. THE TRIBUNAL VIDE ORDER DATED 24 TH SEPTEMBER, 2012, SET ASIDE THE ORDER OF THE CIT AND ALLOWED TH E APPEAL OF THE ASSESSEE. 3. THE PRESENT APPEAL IS EMANATING FROM THE ORDER O F THE CIT(APPEALS). THE ASSESSEE HAD PREFERRED AN APPEAL BEFORE THE CIT(APPEALS) AGAINST THE ASSESSMENT ORDER DATED 28- 09-2011 PASSED U/S. 143(3) R.W.S. 263 OF THE ACT TO GIVE EF FECT TO THE CIT ORDER U/S. 263. SINCE, THE ORDER OF THE CIT PASSED U/S. 263 HAS BEEN SET ASIDE BY THE TRIBUNAL, THE CONSEQUENTIAL O RDER PASSED BY I.T.A. NO. 1301/MDS/2013 :- 3 -: THE ASSESSING OFFICER ARISING OUT OF PROCEEDINGS U/ S. 263 HAS BECOME NULL AND VOID. THE ASSESSEE HAS WITHDRAWN H IS APPEAL PENDING BEFORE CIT(APPEALS) IN VIEW OF THE ORDER OF THE TRIBUNAL IN ITA NO. 326/MDS/2012. THE REVENUE HAS COME IN A PPEAL BEFORE THE TRIBUNAL ASSAILING THE ORDER OF THE CIT( APPEALS) ALLOWING THE ASSESSEE TO WITHDRAW THE APPEAL. WE D O NOT FIND ANY INFIRMITY IN THE IMPUGNED ORDER. SINCE, THE ORDER OF THE CIT PASSED U/S. 263 HAS ALREADY BEEN SET ASIDE, THE CON SEQUENTIAL PROCEEDINGS ARISING THERE FORM HAS GOT NO MEANING. THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON WEDNESDAY, THE 11 TH SEPTEMBER, 2013 AT CHENNAI. SD/- SD/- (N.S. SAINI) ACCOUNTANT MEMBER (VIKAS AWASTHY) JUDICIAL MEMBER DATED: 11 TH SEPTEMBER, 2013 TNMM COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR