Steel Trading Corporation, Kolkata V. ITO, Ward-36(2)), Kolkata, Kolkata

ITA 1624/KOL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78452 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-07-2014
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 08-11-2012
• Court: TRIBUNAL
• Department Lawyers: M L SARDAR
• Assessee Lawyers: V N DUTTA
• Section: 143(3); 12

Judgement Text

, A , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA () BEFORE , /AND . . . . ' '' ''# '#'# '#, $% ) [BEFORE SHRI MAHAVIR SINGH, JM & SHRI ABRAHAM P. GEORGE, AM] & / I.T.A NO.1624/KOL/2012 '( )*/ ASSESSMENT YEAR: 2007-08 STEEL TRADING CORPORATION V INCOME-TAX OFFICER, WD-36(2), KOLKATA (PAN: AAVFS3019A) (,- /APPELLANT ) (./,-/ RESPONDENT ) DATE OF HEARING: 27.05.2014 DATE OF PRONOUNCEMENT: 21.07.2014 FOR THE APPELLANT: SHRI V. N. DUTTA, ADVOCATE FOR THE RESPONDENT: SHRI M. L. SARDAR, JCIT, SR. DR $0 / ORDER PER SHRI MAHAVIR SINGH, JM : THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-XX, KOLKATA IN APPEAL NO. 295/CIT(A)-XX/WD-36(2)/09-10/KOL DATED 07.09.2012. ASSESSMENT WAS FRAMED BY ITO, WARD-36(2), KOLKATA U/S. 143(3) OF THE INCOME-TAX A CT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2007-08 VIDE HIS ORDER DA TED 04.12.2009. 2. THE FIRST ISSUE IN THIS APPEAL OF ASSESSEE IS ON THE ISSUE OF ASSUMPTION OF JURISDICTION BY THE AO EVEN THOUGH NOTICE U/S. 143(2) OF THE ACT IS SUED BY AO IS BARRED BY LIMITATION. 3 . WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FA CTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE CIT(A) HAS UPHELD THE VALIDITY OF NOTICE ISSUED U/S. 143(2) OF THE ACT VIDE PARA 3.2 AS UNDER: 3.2. I HAVE PERUSED THE ASSESSMENT ORDER AND CONSI DERED THE SUBMISSION OF THE APPELLANT. THE FACT OF THE CASE IS THAT THE NOTICE U/S. 143(2) WAS SERVED ON 26.09.2008. AS PER AMENDED PROVISO TO SECTION 143(2) WHICH IS A S FOLLOWS:-PROVIDED THAT NO NOTICE UNDER CLAUSE (II) SHALL BE SERVED ON THE ASSESSEE A FTER THE EXPIRY OF SIX MONTHS FROM THE END OF THE FINANCIAL YEAR IN WHICH THE RETURN IS FU RNISHED. THIS AMENDMENT IS OF PROCEDURAL IN NATURE, THEREFORE, THE SAME IS EFFECT IVE FROM 01.04.2008. IN VIEW OF THESE FACTS, THE NOTICE U/S. 143(2) WAS REQUIRED TO BE SE RVED ON/OR BEFORE 30.09.2008 WHICH WAS SERVED ON 26.09.2008, THEREBY, THE SAME WAS SERVED WITHIN THE TIME. THEREFORE, THIS GROUND OF APPEAL IS DISMISSED. AGGRIEVED, NOW ASSESSEE IS IN APPEAL BEFORE US. 2 ITA NO.1624/K/2012 STEEL TRADING CORPORATION. AY 2007-08 4. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE BEFO RE US READ OUT THE SECOND PROVISO TO SECTION 143(2) OF THE ACT, AS EFFECTIVE FOR AY 2007 -08, WHICH READS AS UNDER: LAW AS AMENDED BY FINANCE ACT, 2008 EFFECTIVE FROM 01.04.2008; THE SECOND PROVISO TO SECTION 143(2) AS PER AMENDED PROVISO READ AS UNDER :- PROVIDED THAT NO NOTICE UNDER CLAUSE (II) SHALL BE SERVED ON THE ASSESSEE AFTER THE EXPIRY OF SIX MONTHS FROM THE END OF THE FINANCIAL YEAR IN WHICH RETURN IS FURNISHED. THE MATTER WAS BROUGHT TO THE NOTICE OF THE LD. AO BUT IT WAS POINTED BY HIM THAT PROVISION OF SEC. 143(2) AS AMENDED BY FINANCE ACT, 2008 WOULD APPLY. WE FIND THAT IN THE PRESENT CASE NOTICE U/S.143(2) OF THE ACT WAS SERVED ON ASSESSEE ON 19-09- 2008 AGAINST THE RETURN FOR THE AY 2007-08 FILED ON 30-07-2007. ACCORDING TO REVENUE NOTICE U/S. 143(2) OF THE ACT CAN BE SERVED, IN TERMS OF A BOVE AMENDMENT, TILL 30-09-2008. ACCORDING TO ASSESSEE, THIS AMENDMENT IS PROSPECTIVE AND NOT RETROSPECTIVE AND WILL APPLY TO THE CASE OF ASSESSEE. WE FIND THAT THE PROVISION OF SECTION 143 (2) OF THE ACT I.E. THE SECOND PROVISO AS AMENDED BY THE FINANCE ACT 2008, EFFECTIVE FROM 01- 04-2008 WILL APPLY TO THE FACTS OF THE PRESENT CASE AND BY VIRTUE OF THE SAME, THE TIME-LI MIT FOR ISSUANCE OF NOTICE U/S. 143(2) OF THE ACT IS SIX MONTHS ONLY AND WHICH IS ALREADY EXPIRED ON 31 ST JANUARY, 2008. THE NOTICE ISSUED U/S. 143(2) OF THE ACT BY THE REVENUE AND SERVED ON ASSESSSEE ON 19-09-2008 IS BAD IN LAW AND HENCE QUASHED. 5. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. 6. ORDER IS PRONOUNCED IN THE OPEN COURT 21.07.2014 SD/- SD/- . . . . ' '' ''# '#'# '#, ,, , $% , (ABRAHAM P. GEORGE ) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 21 ST JULY, 2014 12 '3' 4 JD.(SR.P.S.) $0 5 . 6$ )7- COPY OF THE ORDER FORWARDED TO: 1 . ,- / APPELLANT STEEL TRADING CORPORATION, P-22, SWALLO W LANE, KOLKATA-70 001. 2 ./,- / RESPONDENT ITO, WARD-36(2), KOLKATA. 3 . 0' ( )/ THE CIT(A), KOLKATA 4. 5. 0' / CIT KOLKATA <= .' / DR, KOLKATA BENCHES, KOLKATA / ./ TRUE COPY, $0'>/ BY ORDER, ' /ASSTT. REGISTRAR .