M/s. M.T.M. Wines & Bottlers (p) Ltd., Tipi Industrial Estate, P.O. Bhalukpong (Arunachal Pradesh), Bhalukpong V. Income Tax Officer, Ward - 1, Tezpur, Aayakar Bhavan, Ex-Police Line, Tezpur, Sonitpur, Assam - 784 001, Tezpur

ITA 138/GTY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8508 (ITAT-GUWAHATI)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 04-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K BHARDWAJ
• Assessee Lawyers: SANJOY MODY
• Keywords: Validity of assessment; Assessment record
• Section: 143(3); 143(2)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH SMC GUWAHATI BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.138/GAU/2019 ASSESSMENT YEAR:2014-15 MTM WINES & BOTTLERS PVT. LTD., TIPI INDUSTRIAL ESTATE, BHALUKPONG, WEST KAMENG, ARUNACHAL PRADEH-790114 [ PAN NO.AADCM 7194 F ] / V/S . INCOME TAX OFFICER WARD-1, TEZPUR, AAYKAR BHAWAN, EX-POLICE LINE ROAD, TEZPUR-784001 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI SANJOY MODY, FCA /BY RESPONDENT SHRI A.K. BHARDWAJ, ADDL. CIT-DR /DATE OF HEARING 11-07-2019 /DATE OF PRONOUNCEMENT 10-10-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-1, GUWAHATIS ORDER DATED 07.01.2019 PASSED IN CASE NO.TEZ-58/2016-17/311 INVOLVING PROCEEDINGS U /S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT TRANSPIRES AT THE OUTSET THAT THE ASSESSEES LEGAL GROUND CHALLENGES VALIDITY OF THE IMPUGNED ASSESSMENT FOR WANT OF SECTION 143(2) ISSUED BY THE ASSESSING OFFICER HAVING TERRITORIAL JURISDICTION. I FIND THAT THE VE RY ISSUE AROSE BETWEEN PARTIES IN ASSESSMENT YEAR 2012-13 AS WELL INVOLVING ITA NO.13 4/GAU/2017 DECIDED ON 14.11.2018. LEARNED COORDINATE BENCH ACCEPTED THE A SSESSEES CONTENTION THEREIN AS UNDER: ITA NO.138/GAU/2019 A.Y. 2014-15 MTM WINES & BOTTLERS PVT. LTD. VS. ITO WD-1, T EZ PAGE 2 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEF ORE THE LD. CIT(A) WHO WAS PLEASED TO SUSTAIN THE ADDITION AND DISMISSED THE A PPEAL OF THE ASSESSEE. AGGRIEVED, THE ASSESSEE IS BEFORE US AND HAS ASSAILED THE DECI SION BY CHALLENGING THE VALIDITY OF ASSESSMENT ITSELF BY CONTENDING THAT THE ASSESSEE H AS NOT RECEIVED NOTICE U/S 143(2) FROM ITO, WARD-1, TEZPUR SO ACCORDING TO LD. A/R FR AMING OF SCRUTINY ASSESSMENT U/S 143(3) OF THE ACT IN THE ABSENCE OF ISSUE OF NOTICE U/S 143(2) BY THE ASSESSING OFFICER WHO FRAMED THE ASSESSMENT U/S 143(3) (I.E. ITO, WAR D-1, TEZPUR) WAS WITHOUT JURISDICTION. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORDS. WE NOTE THAT THE ASSESSEE E-FILED RETURN OF INCOME. THE ITO, WARD-NO RTH LAKHIMPUR TAKING NOTE OF THE PAN DETAILS OF ASSESSEE ISSUED NOTICE U/S 143(2) ON 12.08.2013. HOWEVER, IT WAS LATER FOUND BY HIM THAT THE TERRITORIAL JURISDICTION IN R ESPECT TO ASSESSEE COMPANY WAS CONFERRED ON ITO, WARD-1, TEZPUR SO THE CASE WAS TA KEN OVER BY ITO, WARD-1, TEZPUR ON 27.11.2014. THE QUESTION BEFORE US IS WHETHER IS SUANCE OF SECTION 143(2) NOTICE IS MANDATORY FOR FRAMING OF SCRUTINY ASSESSMENT U/S 14 3(3). THIS ISSUE IS NO LONGER RES- INTEGRA AS HELD BY THE HONBLE SUPREME COURT IN CIT V HOTEL BLUE MOON (2010) 321 ITR 362 (S.C) WHEREIN THEIR LORDSHIP HELD THAT BEFO RE FRAMING ASSESSMENT U/S 143(3), [THE SCRUTINY ASSESSMENT] NOTICE U/S 143(2) IS MAND ATORY. ADMITTEDLY, IN THIS CASE, 143(2) NOTICE HAS BEEN ISSUED BY ITO, WARD-NORTH LA KHIMPUR ON ERRONEOUS ASSUMPTION THAT HE HAS JURISDICTION AS PER THE PAN DETAILS OF THE ASSESSEE. WE NOTE THAT THE INCOME-TAX ACT DOES NOT CONFER JURISDICTIO N TO ASSESSING OFFICER BASED ON PAN. THE TERRITORIAL JURISDICTION IS CONFERRED BY T HE STATUTE AND IN THIS CASE ADMITTEDLY IT FALLS IN THE JURISDICTION OF ITO, WARD-1, TEZPUR . THEREFORE, ITO, WARD-1, TEZPUR HAS THE TERRITORIAL JURISDICTION TO ASSESS THE ASSESSEE AND NOT ITO, WARD-NORTH LAKHIMPUR. SINCE, THE NOTICE U/S 143(2) IS SINE QUA- NON FOR A SSUMPTION OF JURISDICTION TO FRAMING THE ASSESSMENT U/S 143(3) OF THE ACT AND SINCE THE LD. DR AFTER GOING THROUGH THE ASSESSMENT RECORDS COULD NOT CONTROVERT THE FACT TH AT ITO, WARD-1, TEZPUR HAD NOT ISSUED 143(2) NOTICE, THE IMPUGNED ASSESSMENT FRAME D U/S 143(3) IS WITHOUT JURISDICTION AND IS, THEREFORE, NULL IN THE EYES OF LAW AND THEREFORE, WE QUASH THE ASSESSMENT ITSELF. ASSESSEE SUCCEEDS ON THE GROUND NO.2 RAISED BY IT AND THEREFORE, OTHER GROUNDS ARE ACADEMIC AND THEREFORE THE ASSESS EES APPEAL IS ALLOWED. 3. MR. BHARDWAJ FAILS TO PINPOINT ANY EXCEPTION IN THE FACTS OF THESE TWO ASSESSMENT YEARS. I THEREFORE QUASH THE IMPUGNED ASSESSMENT ON THIS COUNT ALONE BY ADOPTING THE ABOVE DETAILED REASONING MUTATIS MUTANDIS. THE ASSE SSEES REMAINING PLEADINGS ON MERITS ARE RENDERED INFRACTUOUS. 4. THIS ASSESSEES APPEAL IS ALLOWED IN ABOVE TERMS . ORDER PRONOUNCED IN ACCORDANCE WITH RULE 34(3) OF T HE ITAT RULES BY PUTTING ON NOTICE BOARD ON 10/10/2019. SD/- (S.S. GODARA) JUDICIAL MEMBE R GAUHATI, *DKP/SR.PS ' - 10/10/2019 ITA NO.138/GAU/2019 A.Y. 2014-15 MTM WINES & BOTTLERS PVT. LTD. VS. ITO WD-1, T EZ PAGE 3 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-MTM WINES & BOTTLERS PVT. LTD., TIPI IND USTRIAL ESTATE BHALUKPONG, WE ST KAMENG ARUNACHAL PRADESH-790114 2. /RESPONDENT-ITO WARD-1, AAYAKAR BHAWAN,A EX-POLICE LINE ROAD, TEZPUR ASSAM-784001 3. & ' , / CONCERNED CIT GUWAHATI 4. ' - / CIT (A)-1 GUWAHATI 5. - //& , & , / DR, ITAT, GUWAHATI 6. 1 / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY (ON TOUR) &,