M/S.SAHANI AUTO PARTS CO., MUMBAI V. INCOME TAX OFFICER 19(3)(2), MUMBAI

ITA 1502/MUM/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6983 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 09-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA LD
• Assessee Lawyers: DR P DANIEL LD
• Keywords: Reassessment proceedings
• Section: 147; 148

Judgement Text

ITA.NO.1502/MUM/2018 SAHANI AUTO PARTS COMPANY ASSESSMENT YEAR- 2009-10 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI , , BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.1502/MUM/2018 ( / ASSESSMENT YEAR: 2009-10) SAHANI AUTO PARTS COMPANY 355/1, LAXMI NIVAS V.P.ROAD,GRANT ROAD MUMBAI 400 004 / VS. INCOME TAX OFFICER - 19(3)(2) MATRU MANDIR TARDEO MUMBAI- 400 007 ! ./ ./PAN/GIR NO. AAPFS-1541-P ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) ASSESSEE BY : DR.P.DANIEL, LD.AR REVENUE BY : N. HEMALATHA, LD. DR / DATE OF HEARING : 23/05/2018 / DATE OF PRONOUNCEMENT : 23/05/2018 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2009-10 CONTEST THE ORDER OF LD. COMMISSIONER OF IN COME-TAX (APPEALS)-52 [CIT(A)], MUMBAI, APPEAL NO.CIT(A)-52/IT-93/19(3)(2)/17- 18 DATED 12/12/2017. THE ASSESSMENT FOR IMPUGNED AY WAS FRAMED BY LD. INCOME TAX OFFICER 19(3)(2), MUMBAI [AO] U/S 14 3(3) READ WITH SECTION 147 OF THE INCOME TAX ACT,1961 ON 19/03/2015 WHEREIN THE ASSESSEE HAS BEEN SADDLED WITH ADDITION ON ACCOUNT OF ALLEGED BOGUS ITA.NO.1502/MUM/2018 SAHANI AUTO PARTS COMPANY ASSESSMENT YEAR- 2009-10 2 PURCHASES FOR RS.12,40,727/-. THE ONLY GROUNDS PRESSED BEFORE US ARE GROUND NUMBERS- 2 & 3, WHICH READS AS UNDER:- 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED, BOTH ON FACTS AND IN LAW, IN REJECTING THE CONTENTION OF THE ASSESSEE THAT PROCEEDINGS INITIATED UNDER SECTION 147, READ WITH SECTION 148 ARE BAD AS THE CONDITION AND PROCEDURE PRESCRIBED UNDER STATUTE HAVE NOT BEEN CO MPLIED WITH. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED, BOTH ON FACTS AND IN LAW, IN REJECTING THE CONTENTION OF THE ASSESSEE THAT THE REASSESSMENT ORDER PASSED IS OTHERWISE BAD IN LAW I N ABSENCE OF VALID SERVICE OF NOTICE U/S 148 OF THE IT ACT 1961. 2. THE LD. AUTHORIZED REPRESENTATIVE, SHRI P.DANIEL , DRAWING OUR ATTENTION TO THE DOCUMENTS PLACED BEFORE US, PLEADE D THAT NOTICE U/S 148 WAS NEVER ISSUED TO THE ASSESSEE AND THEREFORE, THE LD. AO HAD NO VALID JURISDICTION UNDER LAW TO REFRAME THE ASSESSMENT. O UR ATTENTION IS DRAWN TO THE FACT THAT LD. FIRST APPELLATE AUTHORITY HAS NOT DEALT WITH THIS VITAL ASPECT OF JURISDICTION AND THEREFORE, THE SAME MAY BE ADJUDICATED. PER CONTRA, LD. DEPARTMENTAL REPRESENTATIVE [DR], MS. N.HEMALATHA SUBMITTED THAT THE ASSESSEE HAD PARTICIPATED IN THE REASSESSMENT PROCEEDINGS. 3. UPON CAREFUL CONSIDERATION, WE FIND THAT ISSUANC E OF STATUTORY NOTICE U/S 148 IS SINE QUA NON TO ASSUME VALID REASSESSMENT JURISDICTION BY LD. AO. THE ONUS IS ON REVENUE TO DEMONSTRATE TH AT A VALID NOTICE WAS ISSUED TO THE ASSESSEE. UPON PERUSAL OF APPELLA TE ORDER, WE FIND THAT THIS ASPECT OF THE MATTER HAS NOT BEEN ADJUDIC ATED BY LD. CIT(A) DESPITE BEING PLEADED BY THE ASSESSEE. THEREFORE, W ITHOUT DELVING MUCH DEEPER INTO THE ISSUE, THE MATTER STAND REMITTED BA CK TO THE FILE OF LD. CIT(A) FOR RE-ADJUDICATION OF THE JURISDICTIONAL IS SUE AS RAISED BY THE ASSESSEE. ITA.NO.1502/MUM/2018 SAHANI AUTO PARTS COMPANY ASSESSMENT YEAR- 2009-10 3 4. RESULTANTLY, THE ASSESSEES APPEAL STAND PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD MAY, 2018 SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 23.05.2018 SR.PS:- THIRUMALESH ! / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. $- , - , / DR, ITAT, MUMBAI 6. ./ / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI