Dy. Commissioner of Income Tax, Circle-3(1), Hyderabad V. RCC Laboratories India Private Limited, Hyderabad

ITA 1641/Hyd/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6066 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 26-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N SWAPNA
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Assessment record
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 1641/HYD/2017 ASSESSMENT YEAR: 2011-12 DY. CIT, CIRCLE-3(1), HYDERABAD. VS. RCC LABORATORIES INDIA PVT LTD., HYDERABAD. PAN AADCR1813J (APPLICANT) (RESPONDENT) REVENUE BY : SMT. N. SWAPNA ASSESSEE BY : SHRI P. MURALI MOHANA RAO DATE OF HEARING : 05-06-2018 DATE OF PRONOUNCEMENT : 05-06-2018 ORDER PER P. MADHAVI DEVI, J.M.: THIS IS REVENUES APPEAL FOR THE A.Y 2011-12 AGAINST THE ORDER OF THE CIT(A)-3, HYDERABAD, DATED 20.07.2017. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY, ENGAGED IN THE BUSINESS OF PRE-CLINICAL TESTING OF DRUGS, FILED ITS RETURN OF INCOME FOR THE A.Y 2011-12 ON 30.09.2011, ADMITTING TOTAL INCOME AT RS. NIL, AFTER SET OFF OF CARRIED FORWARD BUSINESS LOSSES OF RS. 5,74,61,053/-. THE A.O ACCEPTED THE RETURNED INCOME OF THE ASSESSEE IN THE ASSESSMENT COMPLETED U/S 143(3) OF THE ACT. 2 ITA.NO. 1641/HYD/2017 RCC LABORATORIES, HYDERABAD. 3. SUBSEQUENTLY, THE CIT ASSUMED JURISDICTION U/S 263 OF THE ACT AND PERUSED THE ASSESSMENT RECORDS AND PASSED AN ORDER U/S 263 OF THE IT ACT DIRECTING THE A.O TO REDO THE ASSESSMENT. CONSEQUENTLY, THE A.O PASSED THE ASSESSMENT ORDER U/S 143(3) R.W.S 263 OF THE IT ACT, AGAINST WHICH, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A), WHO ALLOWED THE SAME AND THE REVENUE IS IN APPEAL BEFORE US IN THIS APPEAL. 4. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ORDER U/S 263 OF THE IT ACT WAS CHALLENGED BY THE ASSESSEE BEFORE THE ITAT AND THE ITAT HAS SET ASIDE THE ORDER U/S 263 OF THE IT ACT AND CONSEQUENTLY THE ORDER U/S 143(3) R.W.S 263 OF THE IT ACT IS TO BE SET ASIDE, AS RIGHTLY DONE BY THE CIT(A). THE COPY OF THE ORDER OF THE ITAT IN ITA NOS. 459 & 1259/HYD/2016 DATED 28.04.2017 HAS BEEN FILED BEFORE US. 5. TAKING THE SAME INTO CONSIDERATION, WE FIND THAT THE BASIS FOR THE ASSESSMENT ORDER U/S 143(3) R.W.S 263 OF THE IT ACT I.S THE ORDER U/S 263 OF THE IT ACT HAS BEEN SET ASIDE BY THE TRIBUNAL, AND THEREFORE THE CONSEQUENTIAL ASSESSMENT ORDER CANNOT BE SUSTAINED. IN VIEW OF THE SAME, WE SEE NO REASON TO INTERFERE WITH THE ORDER OF THE CIT(A). ACCORDINGLY REVENUES APPEAL IS DISMISSED. 3 ITA.NO. 1641/HYD/2017 RCC LABORATORIES, HYDERABAD. 6. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 05 TH JUNE, 2018. SD/- SD/- (S. RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 05 TH JUNE, 2018 KRK 1) RCC LABORATORIES IND PVT LTD., GENOME VALLEY, TURKAPALLY, SHAMEERPET MANDAL, HYDERABAD-78. 2) DY. CIT, CIRCLE-3(1) HYDERABAD. 3) CIT(A)-3, HYDERABAD 4) ADDL.CIT, RANGE-3AS, HYDERABAD. 4) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 5) GUARD FILE.