M/s. Castron Technologies Ltd., Kolkata V. ACIT, Hqrs.-1, Kolkata, Kolkata

ITA 157/KOL/2019

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4765 (ITAT-KOLKATA)
• Duration Of Justice: 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 29-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C J SINGH SRDR
• Assessee Lawyers: S JHAJHARIA F
• Keywords: Deemed dividend
• Section: 263; 143(3); 2(22)(e)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (A), KOLKATA [ BEFORE SHRI P.M. JAGTAP, VICE PRESIDENT & SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER ] I.T.A. NO. 157/KOL/2019 ASSESSMENT YEAR: 2012-13 M/S. CASTRON TECHNOLOGIES LTD.......................................................APPELLANT 14, BENTINCK STREET, R.NO. 8, 1 ST FLOOR, KOLKATA 700 001. [PAN: AABCC 0646 G] DCIT, CIRCLE 3(1) KOLKATA............................................RESPONDENT KOLKATA. APPEARANCES BY: SHRI S. JHAJHARIA, F CA APPEARING ON BEHALF OF THE ASSESSEE. SHRI C.J. SINGH, SR. DR (JCIT) APPEARING ON BEHALF OF THE REVENUE DATE OF CONCLUDING THE HEARING : FEBRUARY 01, 2019 DATE OF PRONOUNCING THE ORDER : FEBRUARY 15, 2019 ORDER PER P.M. JAGTAP, VICE PRESIDENT THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) 12 KOLKATA DATED 20.12.2018. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WHICH IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF FERRO ALLOYS. IN THE ASSESSMENT ORIGINALLY COMPLETED U/S 143(3) VIDE AN ORDER DATED 31.03.2015 THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE AO AT RS. 1,51,47,818/- AS AGAINST THE RETURNED INCOME OF RS. 1,34,05,730/- . THE SAID ASSESSMENT WAS SUBSEQUENTLY SET ASIDE BY THE CONCERNED LD. CIT VIDE HIS ORDER DATED 01.03.2017 PASSED U/S 263 AND IN THE FRESH ASSESSMENT MADE BY THE AO U/S 143(3) READ WITH SECTION 263 VIDE AN ORDER DATED 28.06.2017, THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED AT RS. 2,38,62,490/- AFTER MAKING ADDITION OF RS. 87,14,672/- ON ACCOUNT OF DEEMED DIVIDEND U/S 2(22)(E) OF THE ACT. 2 I.T.A. NO. 157/KOL/2019 ASSESSMENT YEAR: 2012-13 M/S. CASTRON TECHNOLOGIES LTD. ON APPEAL, THE LD. CIT(A) VIDE HIS APPELLATE ORDER DATED 20.10.2018 UPHELD THE ORDER PASSED BY THE AO U/S 143(3) READ WITH SECTION 263 OF THE ACT. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY LEARNED COUNSEL FOR THE ASSESSEE, AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE TRIBUNAL AGAINST THE ORDER DATED 01.03.2017 PASSED BY THE LD. CIT U/S 263 AND WHILE DISPOSING OF THE SAME VIDE AN ORDER DATED 04.04.2018 PASSED IN ITA NO. 945/KOL/2017, THE TRIBUNAL QUASHED THE ORDER PASSED BY THE LD. CIT U/S 263 OF THE ACT HOLDING THE SAME TO BE BAD IN LAW. CONSEQUENTLY, THE ORDER PASSED BY THE AO U/S 143(3) READ WITH SECTION 263 HAS BECOME NON-EST IN THE EYES OF LAW AND THE SAME IS LIABLE TO BE CANCELLED. WE ACCORDINGLY CANCELL THE ORDER PASSED BY THE AO U/S 143(3) RED WITH SECTION 263 AND ALLOW THIS APPEAL OF THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH FEBRUARY, 2019. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER VICE PRESIDENT DATED: 15/02/2019 BISWAJIT, SR. PS 3 I.T.A. NO. 157/KOL/2019 ASSESSMENT YEAR: 2012-13 M/S. CASTRON TECHNOLOGIES LTD. COPY OF ORDER FORWARDED TO: 1. M/S. CASTRON TECHNOLOGIES LTD., 14, BENTINCK STREET, R. NO. 8, 1 ST FLOOR, KOLKATA 700 001. 2. DCIT, CIRCLE 3(1), KOLKATA. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR / H.O.O. ITAT, KOLKATA