M/s. P.N.G Jewellery & Gems, Pune V. Deputy Commissioner of Income tax, Pune

ITA 1432/PUN/2017

• Counselvise Citation: [2019] 110 COUNSELVISE.COM (IT) 2967 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 06-06-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NANDITA KANCHAN
• Keywords: Reopening of assessment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, J UDICIAL MEMBER . / ITA NO S.1431 & 1432 /PUN/201 7 / ASSESSMENT YEAR S : 20 07 - 08 & 2008 - 09 M/S. P.N.G. JEWELLERY & GEMS, 693, NARAYAN PETH, KUNTE CHOWK, LAXMI ROAD, PUNE 411030 PAN : AADFP5196K ....... / APPELLANT / V/S. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(2), PUNE / RE SPONDENT ASSESSEE BY : SHRI M. R . BHAGWAT REVENUE BY : MS. NANDITA KANCHAN / DATE OF HEARING : 2 5 - 09 - 2019 / DATE OF PRONOUNCEMENT : 17 - 10 - 2019 / ORDER PER S.S. VISWANETHRA RAVI, JM : BOTH THESE APPEALS FILED BY THE ASSESSEE AGAINST THE COMMON ORDER DATED 29 - 03 - 2017 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 1 1, PUNE FOR ASSESSMENT YEAR S 2007 - 08 AND 2008 - 09 , RESPECTIVELY . 2 ITA NOS.1431 & 1432/PUN/2017, A.YS. 2007 - 08 & 2008 - 09 ITA NO. 1432/PUN/2017, (A.Y. 2008 - 09) 2. SHRI M. R . BHAGWAT, THE LD. AR SUBMITS THAT THE ASSESSEE IS NOT INTEREST TO PROSECUTE THE GROUNDS RAISED IN APPEAL IN ITA NO. 1432/PUN/2017 FOR A.Y. 2008 - 09 AND PRAYED TO ACCORD PERMISSION TO WITHDRAW THE SAME. ACCORDINGLY, THE ASSESSEE IS PERMITTED TO WITHDRAW THE APPEAL IN ITA NO. 1432/PUN/2017 FOR A.Y. 2008 - 09 AND THE SAME IS DISMISSED AS WITHDRAWN . 3. IN THE RESULT, THE APPEAL OF ASSESSEE IS DISMISSED AS WITHDRAWN. ITA NO. 1431/PUN/2017, A.Y. 2007 - 08 4. NOW, WE SHALL TAKE UP THE APPEAL IN ITA NO. 1431/PUN/2 017 FOR A.Y. 2007 - 08 FILED BY THE ASSESSEE. THE LD. AR, SHRI M. R . BHAGWAT SUBMITS THAT THE ASSESSEE IS NOT INTERESTED TO PROSECUTE THE VALIDITY OF REOPENING OF ASSESSMENT RAISED IN GROUND NO. 1 AND PRAYED TO DISMISS THE SAME AS NOT PRESSED. ACCORDINGLY, GROUND NO. 1 IS DISMISSED AS NOT PRESSED. 5. REGARDING THE OTHER ISSUES RAISED IN GROUND NOS. 2 TO 4 OF THE APPEAL, IT IS NOTED THAT THE ASSESSEE FILED RETURN OF INCOME FOR THE A.Y. 2006 - 07 ON 23 - 10 - 2007 DECLARING TOTAL INCOME OF RS.6,71,38,401/ - . THE ASSESSING OFFICER COMPLETED ASSESSMENT BY DETERMINING LOSS OF RS.44,52,858/ - BY ALLOWING SET OFF OF ADDITIONS MADE IN A.Y. 2006 - 07. IN FIRST APPELLATE PROCEEDINGS, THE SAID ADDITIONS WERE DELETED AND THE CIT(A) PROPOSED ENHANCEMENT OF INCOME IN THE YEAR U NDER CONSIDERATION I.E. A.Y. 2007 - 08. THE ASSESSEE REPORTED NO OBJECTION FOR ENHANCEMENT SUBJECT TO A SITUATION WHERE THE ORDER OF CIT(A) FOR A.Y. 2006 - 07 SHOULD NOT BE REVERSED. 3 ITA NOS.1431 & 1432/PUN/2017, A.YS. 2007 - 08 & 2008 - 09 6. BEFORE US, MS. NANDITA KANCHAN PLACED ON RECORD A LETTER DATED 24 - 09 - 20 19 ISSUED BY THE OFFICE OF DCIT, CIRCLE - 12, PUNE STATING THAT THE RESPONDENT - REVENUE HAS ACCEPTED THE ORDER OF CIT(A) - 11 IN DELETING THE ADDITIONS FOR A.Y. 2006 - 07 AND NO FURTHER APPEAL RECOMMENDED, SO THEREFORE, IT IS CLEAR THAT THE SITUATION AS ANTICIPAT ED BY THE ASSESSEE THAT THE ORDER OF CIT(A) MAY BE REVERSED IN FURTHER APPELLATE PROCEEDINGS DOES NOT ARISE AT ALL. THEREFORE, AS RIGHTLY HELD BY THE CIT(A) IN THE ORDER FOR A.Y. 2007 - 08 WHICH IS IMPUGNED BEFORE US THAT WHEN THE ADDITION S WERE DELETED INV OLVING SET OFF , THE ENHANCEMENT IS TO BE MADE IN THE SUBSEQUENT YEAR I.E. YEAR UNDER CONSIDERATION . THEREFORE, WE FIND NO INFIRMITY IN HIS ORDER IN DIRECTING THE ASSESSING OFFICER TO ENHANCE THE TOTAL INCOME OF ASSESSEE BY RS.7,22,57,618/ - FOR THE YEAR U NDER CONSIDERATION. IT IS ONLY A CONCERN OF SHRI M. R . BHAGWAT, THE LD. AR THAT THERE SHOULD NOT BE DOUBLE TAXATION FOR A.YS. 2006 - 07 AND 2007 - 08 AND PRAYED TO ISSUE APPROPRIATE DIRECTIONS TO THE ASSESSING OFFICER TO GIVE APPEAL EFFECT FOR A.YS. 2006 - 07 AN D 2007 - 08, SIMULTANEOUSLY. WE FIND FORCE IN THE ARGUMENTS OF SHRI M. R . BHAGWAT, THE LD. AR , T AKING INTO CONSIDERATION THE FACTS AND CIRCUMSTANCES OF THE CASE AS DISCUSSED HERE - IN - ABOVE, WE FIND NO INFIRMITY IN THE ORDER OF CIT(A) AND WE ARE IN AN AGREEMEN T WITH THE REASONS RECORDED BY THE CIT(A) IN PARAS 31 AND 33 OF THE IMPUGNED ORDER AND THEY ARE JUSTIFIED. THEREFORE, WE DEEM IT PROPER TO REMAND THE MATTER TO THE FILE OF ASSESSING OFFICER FOR HIS FRESH CONSIDERATION IN TERMS OF OBSERVATIONS MADE BY THE CIT(A) IN PARAS 31 AND 33. IT IS NEEDLESS TO SAY THE ASSESSING OFFICER SHALL AFFORD REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE AND PASS ORDER AS INDICATED ABOVE. THUS, GROUND NOS. 2 TO 4 ARE ALLOWED FOR STATISTICAL PURPOSES. 4 ITA NOS.1431 & 1432/PUN/2017, A.YS. 2007 - 08 & 2008 - 09 7. IN THE RESULT, T HE APPEAL OF ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 8. TO SUM UP, THE APPEAL IN ITA NO. 1431/PUN/2017 IS PARTLY ALLOWED FOR STATISTICAL PURPOSES AND ITA NO. 1432/PUN/2017 IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH OCTOBER, 2019. SD/ - SD/ - (ANIL CHATURVEDI) (S.S. VISWANETHRA RAVI) ACCOUNTANT MEMBER JUDICIAL MEMBER / PUNE; / DATED : 17 TH OCTOBER, 2019 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 1 1 , PUNE 4. THE PR. COMMISSIONER OF INCOME TAX (CENTRAL), PUNE 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE