M/s Siri Media Private Limited, Hyderabad V. ACIT, Circle-13(1), Hyderabad, Hyderabad

ITA 1642/HYD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98698 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-10-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 24-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B KURMI NAIDU
• Assessee Lawyers: V RAGHAVENDRA RAO
• Keywords: Reopening of assessment; Audit objection
• Section: 147; 148; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI S. RIFAUR RAHAMAN, ACCOUNTANT MEMBER ITA.NO.1642/HYD/2014 ASSESSMENT YEAR 2006-2007 M/S. SIRI MEDIA PVT. LTD., HYDERABAD. PAN AAACD7097H VS. ACIT, CIRCLE 13(1) HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE : MR. V. RAGHAVENDRA RAO FOR REVENUE : MR. B. KURMI NAIDU DATE OF HEARING : 15.10.2015 DATE OF PRONOUNCEMENT : 20.11 .2015 ORDER PER S. RIFAUR RAHMAN, A.M. THIS APPEAL BY THE ASSESSEE COMPANY IS DIRECTED AGAINST THE ORDER PASSED BY LD. CIT(A)-V, HYDERABAD AND IT PERTAINS TO THE A.Y. 2006-2007. 2. THOUGH THE ASSESSEE HAS RAISED SEVERAL GROUNDS BEFORE THE TRIBUNAL, THE PRELIMINARY ISSUE THAT NEEDS TO BE ADDRESSED IS WITH REGARD TO THE VALIDIT Y OF REOPENING OF ASSESSMENT UNDER SECTION 147 OF THE I. T. ACT, 1961; THE CASE OF THE ASSESSEE IS THAT REOPENING UN DER SECTION 147 OF THE ACT, BEYOND THE PERIOD OF FOUR Y EARS, WITHOUT THE APPROVAL OF THE COMMISSIONER OF INCOME TAX IS INVALID IN LAW IN THE LIGHT OF PROVISIONS OF SEC TION 151 OF 2 ITA.NO.1642/HYD/2014 M/S. SIRI MEDIA P. LTD., HYDERABAD. THE ACT INASMUCH AS THE SECTION PRESCRIBES RECORDIN G OF REASONS BY THE ASSESSING OFFICER BEFORE SEEKING APP ROVAL OF THE COMMISSIONER WHEREAS, IN THE INSTANT CASE, T HE COMMISSIONER HAS SENT THE FILE TO THE ASSESSING OFF ICER BASED ON AUDIT OBJECTION AND THE ASSESSING OFFICER HAS NOT RECORDED HIS SATISFACTION IN THE ASSESSMENT REC ORD. ADMITTEDLY, THE PROCEEDINGS UNDER SECTION 148 WERE INITIATED WITHOUT OBTAINING PRIOR APPROVAL OF THE COMMISSIONER AND IN FACT LEARNED D.R, WHEN CALLED U PON TO FURNISH THE RECORD, SUBMITTED THAT THE COMMISSIO NER OF INCOME TAX HAS DIRECTED THE ASSESSING OFFICER TO TA KE ACTION UNDER SECTION 148 BECAUSE THE AUDIT PARTY DI D NOT ACCEPT THE REPLY WHEREAS, NO REASONS WERE RECORDED IN THE ORDER SHEET OF THE ASSESSMENT FILE. IT IS NOT IN DI SPUTE THAT FOUR YEARS HAVE ELAPSED FROM THE END OF THE RELEVAN T ASSESSMENT YEAR, BY THE TIME THE NOTICE WAS ISSUED BY THE ASSESSING OFFICER. SECTION 151 OF THE ACT PROVIDES THAT A NOTICE CAN BE ISSUED UNDER SECTION 148 ONLY UPON RECORDING OF REASONS BY THE ASSESSING OFFICER WITH A FURTHER CONDITION THAT THE COMMISSIONER OF INCOME T AX SHOULD BE SATISFIED THAT IT IS A FIT CASE FOR THE I SSUANCE OF SUCH NOTICE. 3. IN THE CASE OF PARASHURAM POTTERY WORKS CO. LTD., VS. ITO (1977) 106 ITR 1 (SC) THE HONBLE SUP REME COURT OBSERVED THAT THERE MUST BE A POINT OF FINALI TY IN ALL LEGAL PROCEEDINGS, THAT STALE ISSUES SHOULD NOT BE REACTIVATED UNLESS OTHERWISE AUTHORISED UNDER LAW. IN THE INSTANT CASE, MANDATE OF SECTION 151 OF THE ACT WAS NOT 3 ITA.NO.1642/HYD/2014 M/S. SIRI MEDIA P. LTD., HYDERABAD. FULFILLED BY THE ASSESSING OFFICER SINCE THE REASON S FOR REOPENING OF THE ASSESSMENT WERE NOT RECORDED IN TH E ORDER SHEET OF THE FILE. HAVING REGARD TO THE CIRCU MSTANCES OF THE CASE, WE ARE OF THE VIEW THAT THE RE-ASSESSM ENT PROCEEDINGS ARE INVALID IN LAW AND DESERVE TO BE QU ASHED. WE ORDER ACCORDINGLY. 4. SINCE THE RE-ASSESSMENT PROCEEDINGS ARE QUASHED, IT IS NOT NECESSARY FOR US TO CONSIDER THE OTHER ISSUES ON MERITS SINCE THEY ARE OF ACADEMIC IMPORTA NCE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20.11.2015. SD/- SD/- (D.MANMOHAN) (S. RIFAUR RHAMAN) VICE PRESIDENT ACCOUNTANT MEMBER HYDERABAD, DATED 20 TH NOVEMBER, 2015. VBP/- COPY TO 1. M/S. SIRI MEDIA P. LTD., PLOT NO.854E, ROAD NO.44, JUBILEE HILLS, HYDERABAD. 2. ACIT, CIRCLE 13(1), HYDERABAD 3. CIT(A) - V, HYDERABAD 4. CIT - I, HYDERABAD 5. D.R. ITAT B BENCH, HYDERABAD 6. GUARD FILE