DCIT, Central Circle-1, Lucknow V. M/s F.I Hospital, Lucknow

ITA 159/LKW/2009

• Counselvise Citation: 15923714 RSA 2009
• Duration Of Justice: 4 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 05-08-2013
• Assessment Year: 2001-2002
• Appeal Filed On: 16-03-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. S. V. MEHROTRA, ACCOUNTANT MEMBER ITA NOS.149; 150 & 151/LKW/2009 ASSESSMENT YEARS:2004-05; 2005-06 & 2006-07 DCIT CENTRAL CIRCLE-I LUCKNOW V. M/S CLASSIC ENTERPRISES 118/86, KHA CANTT. ROAD LUCKNOW PAN:AAEFC3657M (APPELLANT) (RESPONDENT) ITA NOS.159; 160; 161 & 162/LKW/2009 ASSESSMENT YEARS:2001-02; 2004-05; 2005-06 & 2006-07 DCIT CENTRAL CIRCLE-I LUCKNOW V. M/S F.I. HOSPITAL 37, CANTT. ROAD LUCKNOW PAN:AAAFF9766L (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. VIVEK MISTRA, D.R. RES P ONDENT B Y : SHRI. B. P. YADAV, ADVOCATE DATE OF HEARIN G : 05.08.2013 DATE OF PRONOU NCEMENT: 08.08.2013 O R D E R PER SUNIL KUMAR YADAV: PURSUANT TO THE DIRECTIONS OF TH E HON'BLE HIGH COURT OF ALLAHABAD, LUCKNOW BENCH; THESE APPEALS WE RE LISTED FOR HEARING ON 5 TH AUGUST, 2013. 2. THE HON'BLE HIGH COURT HAS PASSED THE JUDGMENT VIDE ORDER DATED 17 TH APRIL, 2013 WITH A DIRECTION TO TH E TRIBUNAL TO DECIDE THE APPEALS STRICTLY ON MERITS EXPEDITIOUSLY SAY WI THIN A PERIOD OF TH REE MONTHS, AS THE MATTER IS TOO OLD. ON RECEIPT OF THIS ORDER OF THE HON'BLE HIGH COURT OF ALLAHABAD, LUCKNOW BENCH; THE HO N'BLE PRESIDENT OF ITAT WAS DULY :-2-: INFORMED ON 18 TH JUNE, 2013 FOR CONSTITUTING A BENCH AT ITAT LUCKNOW AS THE BENCH OF ITAT LUCKNOW IS NOT PROP ERLY FUNCTIONING ON ACCOUNT OF NON- AVAILABILITY OF THE ACCO UNTANT MEMBER. THE HON'BLE PRESIDENT OF ITAT ACCORDINGLY SENT AN ACCOUNT ANT MEMBER ON OFFI CIAL TOUR FOR TH E PERIOD W.E.F. 5 TH AUGUST 2013 TO 8 TH AUGUST, 2013 AND THIS MATTER WAS LISTED FOR HEARING ON THE VERY FIRST DAY I.E. 5 TH AUGUST, 2013 IN ORDER TO MAKE STRICT COMPLIANCE OF THE DIRECTION OF THE HON'BLE HIGH COURT. 3. DURING THE COURSE OF HEARING, IT IS NOTICE D THAT BEFORE THE LD. CIT(A) THE ASSESSEES HAVE ASSAILED THE ASSESSMENT ORDERS BY QUESTIONING THE VALIDITY OF THE ASSESSMENT ORDERS BY RAISING A GROUND TH AT THE ASSESSING OFFICER ERRED ON FACTS AND IN LAW IN INITIATING PROCEEDINGS UNDER SECTION 153C OF THE INCOME-TAX ACT, 1961 (HER EINAFTER CALLED IN SHORT THE ACT') WITHOUT ACQUIRING ANY VALID JURISDIC TION AND WITHOUT RECORDING PROPER SATISFACTION AS STIPULATED UNDER THE AC T, BESIDES RAISING VARIOUS GROUNDS ON MERIT. THE LD. CIT(A) KNOCKED DOWN THE ASSESSMENT BY HOLDING THAT ASSUMPTION OF JURISDICTION BY THE THEN ASSESSING OFFICER BY ISSUANCE OF NOTICE UNDER SECTION 153C OF THE ACT IS VITIATED IN LAW. HOWEVER, THE GROUNDS RAISED ON MERIT BY THE ASSESS EES WERE NOT ADJUDICATED BY THE LD. CIT(A). AGAINST THE ORDER OF THE LD. CIT(A), THE REVENUE PREFERRED APPEALS BEFORE THE TRIBUNAL ON A SOLITARY GROUND THAT THE LD. CIT( A) HAS IGNORED THE PROVISIONS OF SECTION 124(3)(B) OF THE ACT WHICH DEBARS THE ASSESSEE FROM CALLING IN QUESTION THE JURISDICTION OF THE ASSESSING OFFICER AFTER THE EXPIRY OF TIME ALLOWED BY THE NO TICE UNDER SECTION 142(1) OF THE ACT FOR MAKING THE RETURN. THE TRIBUNAL VIDE ITS ORDER DATED 29 TH APRIL, 2009 DI SMISSED THE APPEALS OF THE REVENUE BY CONFIRMI NG THE ORDERS OF THE LD. CIT(A). 4. THE REVENUE HAD CHALLENGED THE ORDER OF THE TRIBUNAL BEFORE THE HON'BLE HIGH COURT AND THE HON'BLE HIGH COURT HAS REVERS ED THE ORDER OF THE TRIBUNAL DATED 29 TH APRIL, 2009 VIDE ITS ORDER DATED 17 TH APRIL, 2013 AND DIRECTED THE TRIBUNAL TO DECIDE THE APPEALS OF TH E REVENUE STRICTLY ON MERITS EXPEDITIOUSLY SAY WITHIN A PERI OD OF THREE MONTHS, AFTER UPHOLDING :-3-: THE VALIDITY OF INITIATION OF PROCEED INGS UNDER SECTION 158BD READ WITH SECTION 158BC OF THE ACT. 5. NOW THE ONEROUS RESPONSIBILITY OF TH E TRIBUNAL IS TO ADJUDICATE THE APPEALS ON MERIT WITHIN A PRESCRIBED PE RIOD BUT IN THE AB SENCE OF SPECIFIC FINDINGS OF THE LD. CIT(A)/FIRST APPELL ATE AUTHORITY ON THE GROUNDS ON MERIT, IT HAS BECOME VERY DIFFICULT TO EXPRES S OUR VIEW ON MERIT. MOREOVER, NONE OF THE PARTIES HAS RAISED ANY GROUND BEFORE THE TRIBUNA L ON MERIT WITH REGARD TO THE ADDITIONS MADE BY THE A SSESSING OFFICER. WE ARE, THEREFORE, OF THE VIEW THAT WHILE ADJUDICATING THE ISSUES ON MERIT RELATING TO THE ADDITIONS MADE BY THE ASSESSING OFFI CER, THE TRIBUNAL SHOULD HAVE THE BENEFIT OF THE FINDINGS OF THE LD. CIT(A) ON MERIT IN THE INTE REST OF JUSTICE SO THAT THE ISSUES CAN BE PROPERLY ADJU DICATED. SINCE THE ASSESSEES HAVE RAISED GROUNDS ON MERIT BE FORE THE LD. CIT(A) RELATI NG TO VARIOUS ADDITIONS, WE DIRECT THE LD. CIT(A) TO ADJUDICATE THE GROUNDS RAISED BY THE ASSESSEES BEFORE HIM ON MERIT WITHIN A PERIOD OF THREE MONTHS FROM THE DATE OF THIS ORDER OF THE TRIBUNAL AFTE R AFFORDING PROPER OPPORT UNITY OF BEING HEARD TO THE ASSESSEES. SINCE THE HON'BLE HI GH COURT HAS FIXED THE TIME LIMIT FOR DISPOSAL OF THE APPEALS ON MERIT AND THE TIME LIMIT IS ALREADY EXPIRED ON 16 TH JULY, 2013, WE DIRECT THE ASSESSEES TO APPEAR BEFORE THE LD. CIT(A) ON 14 TH AUGUST, 2013 AND PROSECUTE THEIR APPE ALS EFFECTIVELY SO THAT THE LD. CIT(A) CAN DISPOSE OF THE APPEALS ON MERIT WITHIN THE AF ORESAID PERIOD. ACCORDINGLY THESE APPEALS STAND A LLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEALS OF THE ASSESSEES ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN TH E OPEN COURT ON 8.8.2013. SD/- SD/- [S. V. MEHROTRA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:8.8.2013 JJ:0608 :-4-: COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR