Guna Wines, CHENNAI V. ITO, Cuddalore

ITA 1628/CHNY/2006

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4990 (ITAT-CHENNAI)
• Duration Of Justice: 4 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2002-2003
• Appeal Filed On: 22-06-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SRINIVAS
• Assessee Lawyers: V SRINIVASAN
• Keywords: Opportunity of being heard
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH C, CHENNAI B E F O R E DR. O.K.NARAYANAN, VICE PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER .. I.T.A. NO.1628(MDS)/2006 ASSESSMENT YEAR: 2002-03 M/S. GUNA WINES, THE INCOME-TAX OFFICER, CUDDALORE ROAD, VS. TDS WARD I, PANRUTI 607 106. CUDDALORE. PAN AAFFG0029G. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V.SRINIVASAN RESPONDENT BY: SHRI B.SRINIVAS O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE ASSESSEE. THE RELEVA NT ASSESSMENT YEAR IS 2002-03. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-VI II AT CHENNAI ITA NO.1628(MDS)/2006 2 AND ARISES OUT OF THE ASSESSMENT ORDER COMPLETED UN DER SECTION 144 READ WITH SECTION 184(5) OF THE INCOME-TAX ACT, 196 1. 2. THE ASSESSMENT HAVING BEEN COMPLETED UNDER SECT ION 144, THE ASSESSING AUTHORITY HAS INVOKED SECTION 18 4(5) AND DENIED THE BENEFIT OF DEDUCTION AVAILABLE IN THE HANDS OF THE ASSESSEE FIRM IN RESPECT OF PAYMENTS MADE TO ITS PARTNERS. IT IS TH E CASE OF THE ASSESSEE THAT THE ASSESSING OFFICER HAS NOT CONSIDE RED THE ENTIRE FACTS OF THE CASE BEFORE INVOKING SECTION 184(5). THEREFORE IT IS ITS CASE THAT THE ASSESSING AUTHORITY HAS ERRED IN TREA TING THE ASSESSEE FIRM AS AN ASSOCIATION OF PERSONS FOR THE PURPOSE O F ASSESSMENT. 3. AFTER HEARING BOTH SIDES WE FIND THAT THERE IS SUBSTANCE IN THE ARGUMENT OF THE LEARNED COUNSEL APPEARING FOR T HE ASSESSEE. THIS ISSUE NEEDS A CAREFUL RECONSIDERATION IN THE H ANDS OF THE ASSESSING AUTHORITY. ACCORDINGLY WE SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND REMIT BACK THE FILE TO THE ASSESSIN G AUTHORITY FOR REDOING THE ASSESSMENT IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE AN EFFECTIVE OPPORTUNITY OF BEING HEARD. 4. IN RESULT THE APPEAL FILED BY THE ASSESSEE IS T REATED AS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.1628(MDS)/2006 3 ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON TUESDAY, THE 7 TH DAY OF JUNE, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 7 TH JUNE, 2011. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.