M/s.Sunny Jacob, Kollam V. DCIT, Kollam

ITA 134/COCH/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68910 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2013
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 24-06-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 16-05-2012
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA; M ANIL KUMAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND B.R.BASKAR AN, AM I.T.A. NOS.134,135&136/COCH/2012 ASSESSMENT YEAR : 2008-09 1. M/S. JACOB JEWELLERS GOLD HYPER MARKET, C/O HOTEL DONA CASTLE NEAR LAKSHMINADA TEMPLE, KOTTAMUKKU, KOLLAM. 2. M/S. SUNNY JACOB JEWELLERS, CSI COMMERCIAL COMPLEX, SASTRI ROAD, KOTTAYAM. [PAN: 3. M/S. SUNNY JACOB JEWELLERS & WEDDING CENTRE, CHANTHAMUKKU, KOTTARAKKARA. [PAN: ABCFS 1711R] VS. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE, KOTTAYAM. (ASSESSEE-APPELLANT) (REVENUE-R ESPONDENT) ASSESSEE BY SHRI ANIL D NAIR, ADV. REVENUE BY SMT. S. VIJAYAPRABHA, JR. DR AND SHRI M. ANIL KUMAR, CIT(DR) DATE OF HEARING 24/06/2013 DATE OF PRONOUNCEMENT /08/2013 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE APPEALS FILED BY THE ASSESSEES ARE DIRECTED AGA INST THE COMMON ORDER DATED 16-03- 2012 PASSED BY THE LD. CIT(CENTRAL), KOCHI U/S. 263 OF THE ACT FOR THE ASSESSMENT YEAR 2008-09. I.T.A. NOS.134,135&136COCH/2012 2 2. THE ASSESSEE IS CHALLENGING THE VALIDITY OF THE REVISION ORDER PASSED BY LD CIT. . THE HONBLE DELHI HIGH COURT, IN THE CASE OF TOYOTO MOTOR CORPORATION (306 ITR 49), HAS HELD THAT THE PROCEEDINGS BEFORE THE AO AR E QUASI JUDICIAL PROCEEDINGS AND A DECISION TAKEN BY THE AO IN THIS REGARD MUST BE SUP PORTED BY REASONS. IN THE CASE BEFORE THE DELHI HIGH COURT, THE ASSESSING OFFICER PASSED A CRYPTIC ORDER DROPPING THE PENALTY PROCEEDINGS WITHOUT GIVING ANY REASON AND H ENCE THE SAID ORDER WAS REVISED BY THE LD CIT U/S 263 OF THE ACT. THE ASSESSEE CHALLE NGED THE REVISION ORDER BEFORE THE TRIBUNAL AND COULD SUCCEED. THE DEPARTMENT CARRIED THE MATTER IN APPEAL BEFORE THE HONBLE DELHI HIGH COURT, WHICH UPHELD THE REVISION ORDER PASSED BY LD CIT U/S 263 OF THE ACT FOR THE REASONS STATED ABOVE. THE SAID ORD ER OF THE DELHI HIGH COURT HAS BEEN APPROVED BY THE HONBLE SUPREME COURT IN THE CASE O F TOYOTO MOTOR CORPORATION (306 ITR 52) WITH THE OBSERVATION THAT THE ASSESSING OFF ICER SHOULD PASS A REASONED ORDER. THESE DECISIONS CLEARLY BRING OUT THAT THE ASSESSME NT ORDER SHOULD BE PASSED WITH OR CONTAIN PROPER REASONS ON VARIOUS ISSUES. 9. THE IMPUGNED ISSUE POINTED OUT BY LD CIT WOULD HAVE IMPLICATION ON THE TAX COMPUTATION IF IT IS DECIDED AGAINST THE ASSESSEE, IN WHICH CASE THE IMPUGNED ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER WO ULD BECOME PREJUDICIAL TO THE INTERESTS OF THE REVENUE. 10. THE LD A.R SUBMITTED THAT THE LD CIT HAS EX PRESSED HIS OPINION ABOUT THE ALLOWABILITY OF THE CLAIM MADE BY THE ASSESSEE AND HENCE THE ASSESSING OFFICER MAY HAVE NO OTHER CHOICE, BUT TO DISALLOW THE CLAIM OF RS.3,02,97,295/- CLAIMED BY THE ASSESSEE. ACCORDINGLY, THE LD A.R SUBMITTED THAT T HE ASSESSING OFFICER MAY BE DIRECTED TO EXAMINE THE ISSUE AFRESH IN ACCORDANCE WITH THE LAW. WE FIND FORCE IN THE SAID SUBMISSIONS. ACCORDING TO THE ASSESSEE, THE ISSUE RELATING TO THE ABOVE SAID CLAIM IS SQUARELY COVERED BY THE DECISION RENDERED BY THE JU RISDICTIONAL HIGH COURT IN THE CASE OF NEDUNGADI BANK LTD (SUPRA). HENCE, THE CONTENTIONS OF THE ASSESSEE REQUIRE EXAMINATION. ACCORDINGLY, WE MODIFY THE IMPUGNED O RDER OF THE LD CIT AND DIRECT THE ASSESSING OFFICER TO EXAMINE THE ISSUE AFRESH IN AC CORDANCE WITH LAW BY DULY CONSIDERING I.T.A. NOS.134,135&136COCH/2012 3 THE CONTENTIONS OF THE ASSESSEE AND WITHOUT BEING I NFLUENCED BY THE DISCUSSIONS MADE BY LD CIT IN THE IMPUGNED REVISION ORDER. 11. IN THE RESULT, THE APPEALS FILED BY THE ASSESSE ES ARE DISMISSED. PRONOUNCED ACCORDINGLY ON -08-2 013. (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: AUGUST, 2013 GJ COPY TO: 1. M/S. JACOB JEWELLERS GOLD HYPER MARKET, C/O HOTE L DONA CASTLE, NEAR LAKSHMINADA TEMPLE, KOTTAMUKKU, KOLLAM. 2. M/S. SUNNY JACOB JEWELLERS, CSI COMMERCIAL COMP LEX, SASTRI ROAD, KOTTAYAM. 3. M/S. SUNNY JACOB JEWELLERS & WEDDING CENTRE, CH ANTHAMUKKU, KOTTARAKKARA. 4. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL C IRCLE, KOTTAYAM. 5. THE COMMISSIONER OF INCOME-TAX, CENTRAL, KOCHI. 6. I.T.A.T., COCHIN BENCH, COCHIN. 7. GUARD FILE. BY ORDER (ASSISTANT REGISTRAR ) I.T.A.T, COCHIN