Deputy Commissioner of Income TAx Circle-4(1)(2), Bangalore V. M/s MAc Charles India Pvt Ltd , Bangalore

ITA 1523/BANG/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3608 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 06-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Assessee Lawyers: BHARADWAJ SESHADRI
• Keywords: Period of limitation; Difference of opinion; Time period of passing order; Change of opinion; Reassessment proceedings
• Section: 143(3); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 1523 /BANG/201 7 ASSESSMENT YEAR : 2010 - 11 DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE 4(1)(2), BANGALORE, ROOM NO. 229, 2 ND FLOOR, BMTC BUILDING, 80 FEET ROAD, 6 TH BLOCK, KORAMANGALA, BENGALURU - 560095. VS. M/S. MAC CHARLES (INDIA) LTD., 28, SANKEY ROAD, VASANTHANAGAR, BENGALURU 560 052. PAN : AAACM 9877 G APPELLANT RESPONDENT C. O. NO. 81 /BANG/201 8 ASSESSMENT YEAR : 2010 - 11 M/S. MAC CHARLES (INDIA) LTD., 28, SANKEY ROAD, VASANTHANAGAR, BENGALURU 560 052. PAN : A AACM 9877 G VS. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE 4(1)(2), BENGALURU-560095. APPELLANT RESPONDENT REVENUE BY : DR. P. V. PRADEEP KUMAR, ADDL. CIT ASSESSEE BY : SHRI. BHARADWAJ SESHADRI, CA DATE OF HEARING : 26 . 0 7 .201 8 DATE OF PRONOUNCEMENT : 21 . 0 8 .201 8 ITA NO. 1523/BANG/2017 AND C.O. NO. 81/BANG/2018 PAGE 2 OF 4 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF CIT(A), INTER ALIA, ON FOLLOWING GROUNDS: 1. THE ORDER OF THE LD.CIT (A) IS OPPOSED TO THE LAW AND FACTS OF THE CASE. 2. ON FACTS OF THE CASE, WHETHER THE LD CIT (A) IS CORRECT IN ALLOWING THE APPEAL OF THE ASSESSEE MERELY RELYING ON THE ITAT'S DECISION FOR AY 2007-08 & 2008-09, WITHOUT APPRECIATING THE FACTS OF THE CASE. 3. ON THE FACTS OF THE CASE, WHETHER THE LD.CIT (A) IS RIGHT IN APPORTIONING THE STCG WITH STCL WITH DIFFERENT TAX SLABS, I.E., APPORTIONING THE STCL WHICH IS TAXABLE @15% AGAINST THE STCG WHICH IS TAXABLE @30%. 4. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE CIT (A) IN SO FAR AS IT IS RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR DELETE ANY OF THE GROUNDS THAT MAY BE URGED. 2. ASSESSEE HAS ALSO FILED THE C.O. INTER ALIA, ON FOLLOWING GROUNDS: 1. THE RETURN IN REASSESSMENT PROCEEDINGS HAVING BEEN FURNISHED ON 18-8-2014. THE NOTICE UNDER SECTION 143(2) OUGHT TO HAVE BEEN ISSUED BY 30-9-2015 BUT WAS ISSUED ONLY ON 611-2015 AND SO THE ASSESSMENT IS INVALID AND HAS TO BE ANNULLED. 2. REASSESSMENT PROCEEDINGS FOR AY 2010-11 WERE COMPLETED ON 30 MARCH 2016 BEYOND LIMITATION PERIOD AND SO ARE INVALID, AS THE ORIGINAL ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) AND THERE WAS NO FAILURE TO DISCLOSE FULLY AND TRULY ALL MATERIAL FACTS. ITA NO. 1523/BANG/2017 AND C.O. NO. 81/BANG/2018 PAGE 3 OF 4 3. REASSESSMENT PROCEEDINGS OUGHT NOT TO HAVE BEEN INITIATED ON MERE CHANGE OF OPINION. 4. REASSESSMENT PROCEEDINGS ARE SUBJECT TO SECTION 147 AND A DEPARTMENTAL APPEAL FOR EARLIER YEARS AGAINST TRIBUNAL ORDERS FAVOURING THE ASSESSEE IS NOT AN ADEQUATE REASON FOR REOPENING. 5. AO ERRED IN NOT DEALING WITH ALL OF APPELLANT'S OBJECTIONS TO NOTICE UNDER SECTION 148 BEFORE INITIATING PROCEEDINGS AND ISSUING NOTICE UNDER SECTION 143(2) BEFORE DISPOSAL OF THE OBJECTIONS. 6. THE APPELLANT CRAVES LEAVE TO ADD TO. AMEND. ALTER, VARY AND/ OR WITHDRAW ANY OR ALL OF THESE GROUNDS OF APPEAL. FOR THESE AND OTHER GROUNDS THAT MAY BE ADDUCED AT THE TIME OF HEARING. THE RESPONDENT'S CROSS OBJECTIONS BE ALLOWED. 3. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT THE ISSUE INVOLVED IN REVENUES APPEAL IS SQUARELY COVERED BY THE TRIBUNALS ORDER IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2007-08 AND 2008-09 AND THE CIT(A) HAS FOLLOWED THE ORDER OF THE TRIBUNAL WHILE ADJUDICATING THE ISSUE. THEREFORE, THERE IS NO INFIRMITY IN THE ORDER OF THE CIT(A). 4. HAVING CAREFULLY EXAMINED THE ORDER OF THE LOWER AUTHORITIES WE FIND THAT CIT(A) HAS ADJUDICATED THE ISSUE FOLLOWING THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2007-08 AND 2008-09. SINCE WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A), WE CONFIRM THE ORDER OF THE CIT(A). IN THE LIGHT OF THESE FACTS, THE C.O. OF THE ASSESSEE HAS BECOME ACADEMIC AND THE SAME IS DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE AND THE C.O. OF THE ASSESSEE ARE DISMISSED. ITA NO. 1523/BANG/2017 AND C.O. NO. 81/BANG/2018 PAGE 4 OF 4 PRONOUNCED IN THE OPEN COURT ON 21 ST AUGUST, 2018. SD/- SD/- BANGALORE. DATED: 21 ST AUGUST, 2018. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. DR 4. GUARD FILE BY ORDER SR. PRIVATE SECRETARY, ITAT, BANGALORE. ( A. K. GARODIA ) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER