The ACIT, Central Circle-1, RAJKOT-GUJARAT V. M/s. Italica Floor Tiles Pvt. Ltd.,

ITA 167/RJT/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89131 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 10 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 18-02-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 22-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M L MEENA
• Assessee Lawyers: VIJAY RANJAN; J C RANPURA
• Keywords: Reopening of assessment; Reason to believe
• Section: 115JB; 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH RAJKOT 00 , , BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ ITA NO. 122, 123 AND 124/RJT/2013 ! '# $'/ ASSESSMENT YEAR: 2005-06, 2006-07 AND 2007-08 ITALICA FLOOR TILES P. LTD. SURVEY NO.111/112, BANDHUNAGAR AT MAKANSAR, 8-A, NATIONAL HIGHWAY TAL. MORBI, DIST. RAJKOT. VS ACIT, CENT.CIR.1 RAJKOT. ./ ITA NO. 166, 167 AND 168/RJT/2013 ! '# $'/ ASSESSMENT YEAR: 2005-06, 2006-07 AND 2007-08 ACIT, CENT.CIR.1 RAJKOT. VS ITALICA FLOOR TILES P. LTD. SURVEY NO.111/112, BANDHUNAGAR AT MAKANSAR, 8-A, NATIONAL HIGHWAY TAL. MORBI, DIST. RAJKOT. %& / (APPELLANT) '( %& / (RESPONDENT) REVENUE BY : SHRI M.L. MEENA, CIT-DR ASSESSEE(S) BY : SHRI VIJAY RANJAN, ADVOCATE AND SHRI J.C. RANPURA, CA / DATE OF HEARING : 18/02/2015 / DATE OF PRONOUNCEMENT: 27/02/2015 )/ O R D E R PER BENCH: 1. ITA NO.122/RJT/2013 AND 166/RJT/2013 ARE CROSS A PPEALS FILED BY THE ASSESSEE AND THE REVENUE FOR THE ASSTT.YEAR 2005-06 AGAINST THE ORDER OF THE CIT(A)-IV, AHMEDABAD DATED 7.2.201 3. ITA NO.122/RJT/2013 (ITALICA FLOOR TILES) VS.ACIT, RA JKOT)-6 APPEALS 2 2. ITA NO.123/RJT/2013 AND 167/RJT/2013 ARE CROSS A PPEALS FILED BY THE ASSESSEE AND THE REVENUE FOR THE ASSTT.YEAR 2006-07 AGAINST THE ORDER OF THE CIT(A)-IV, AHMEDABAD DATED 7.2.201 3. 3. ITA NO.124/RJT/2013 AND 168/RJT/2013 ARE CROSS A PPEALS FILED BY THE ASSESSEE AND THE REVENUE FOR THE ASSTT.YEAR 2007-08 AGAINST THE ORDER OF THE CIT(A)-IV, AHMEDABAD DATED 7.2.201 3. 4. IN THE ASSESSES APPEAL, ASSESSEE HAS RAISED COM MON GROUND NO.2 AND 3, CHALLENGING THE REOPENING OF THE ASSESSMENT BY THE AO, AND THE SAME READ AS UNDER: 2.0 THE LEARNED COMMISSIONER OF INCOME TAX (A PPEALS)-IV, AHMEDABAD [HEREINAFTER REFERRED TO AS THE 'CIT(A)'] ERRED ON FACTS AS ALSO IN LAW IN HOLDING THAT, RE-OPENING OF ASSESSMENT U/S 147 OF THE ACT IS BASED ON SUFFICIENT TANGIBLE MATE RIAL WHICH RELATES TO THE YEAR UNDER CONSIDERATION AND THAT TH ERE IS FAILURE ON THE PART OF THE APPELLANT TO DISCLOSE FULLY AND TRU LY ALL NECESSARY FACTS NECESSARY FOR ASSESSMENT AND THEREBY DISMISSI NG THE GROUND OF APPEAL RELATED TO REOPENING OF ASSESSMENT. THAT ON FACTS AS ALSO IN LAW THE REOPENING OUGHT TO HAVE BEEN HELD A S INVALID AND THE SAME MAY KINDLY BE HELD AS INVALID. 3.0 THE ID. CIT(A) ALSO ERRED IN NOT FOLLOWING DECISION OF THE HON'BLE HIGH COURT OF GUJARAT IN THE CASE OF FUTURA CERAMICS PRIVATE LIMITED, STATING THAT THE SAME IS RENDERED UNDER VAT ACT, THOUGH, CONTRARY TO THAT, HE HAS VALIDATED REOPENIN G OF ASSESSMENT PROCEEDINGS U/S 147 OF THE ACT MERELY ON THE BASIS OF SHOW CAUSE NOTICE OF THE CENTRAL EXCISE DEPARTMENT WHICH IS YET TO BE ADJUDICATED. 3.1 THAT ON FACTS AS ALSO THE LD. CIT(A) OUGHT TO HAVE FOLLOWED THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT A ND HELD THE REOPENING OF ASSESSMENT AS INVALID. THE REOPENING M AY KINDLY BE HELD AS INVALID. 5. THE BRIEF FACTS OF THE CASE ARE THAT IN THE INST ANT CASE, THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE ASSTT.Y EAR 2005-06 ON 30.10.2005 DISCLOSING TOTAL LOSS AT RS.37,94,863/- AND BOOK PROFIT UNDER SECTION 115JB WAS CALCULATED AT RS.12,98,608/-. TH E RETURN WAS PROCESSED UNDER SECTION 143(1) OF THE ACT. ITA NO.122/RJT/2013 (ITALICA FLOOR TILES) VS.ACIT, RA JKOT)-6 APPEALS 3 SIMILARLY FOR ASSTT.YEAR 2006-07, THE ASSESSEE FILE D ITS RETURN ON 8.12.2006 DISCLOSING TOTAL INCOME AT RS.27,29,510/- . THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(1) OF THE ACT AT THE SAME FIGURE. SIMILARLY FOR ASSTT.YEAR 2007-08, THE ASSESSEE FIL ED ITS RETURN ON 29.10.2007 DISCLOSING TOTAL INCOME AT RS.70,24,240/ -. THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(1) OF THE ACT AT TH E VERY SAME FIGURE. 6. THEREAFTER, THE AO ISSUED NOTICE UNDER SECTION 1 48 OF THE ACT FOR ESCAPEMENT OF INCOME ASSESSABLE TO TAX FOR THE ASST T.YEARS 2005-06, 2006-07 AND 2007-08 ALL DATED 23.12.2011, AND THE R EASONS RECORDED FOR REOPENING OF THE ASSESSMENT READS AS UNDER. TH E REASONS RECORDED FOR ALL THE YEARS ARE EXACTLY SIMILAR. 1. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANU FACTURING OF CERAMIC TILES. THE CASE OF THE ASSESSEE WAS CENTRAL IZED WITH THIS CIRCLE WITH THE SOLE PURPOSE OF ASSESSING THE INCOM E OF THE ASSESSEE, IN LIGHT OF THE VARIOUS FINANCIAL IRREGUL ARITIES NOTED AND UNEARTHED BY THE DIRECTORATE GENERAL OF CENTRAL EXC ISE INTELLIGENCE, AHMEDABAD ZONAL UNIT. AS PER THEIR FI NDING, THERE IS SUPPRESSION OF SALE OF RS.18,46,87,977/- AND SUCH I RREGULARITIES HAVE BEEN HIGHLIGHTED IN THE SHOW CAUSE NOTICE OF T HE EXCISE DEPARTMENT. A COPY OF THE SHOW CAUSE LETTER ISSUED BY THE EVASION WING OF THE CENTRAL EXCISE DEPARTMENT WAS F ORWARDED TO THIS OFFICE ON 22.12.2009 FROM THE OFFICE OF THE CI T CENTRAL-II AHMEDABAD THROUGH THE ADDL. CIT, CENTRAL RANGE, BAR ODA, WHICH IS PLACED ON RECORD. 2. THE FACTS OF THE CASE IS THAT, THE DIRECTORATE G ENERAL OF CENTRAL EXCISE INTELLIGENCE, AHMEDABAD ZONAL UNIT [HEREIN A FTER REFERRED TO AS DGCEI FOR THE SAKE OF BREVITY] COLLECTED AN I NTELLIGENCE, INDICATING THAT THE MANUFACTURERS OF CERAMIC GLAZED AND VITRIFIED TILES OF MORBI AND OTHER PARTS OF THE STATE OF GUJA RAT, ARE ENGAGED IN LARGE SCALE EVASION OF CENTRAL EXCISE DUTY BY AD OPTING MODUS OPERANDI LIKE REMOVING FINISHED GOODS FROM THEIR RE GISTERED FACTORY PREMISES BY NOT DECLARING THE ACTUAL MRP OF THEIR PRODUCTS IN THE CENTRAL EXCISE INVOICE, MIS-DECLARING IN THE CENTRAL EXCISE ITA NO.122/RJT/2013 (ITALICA FLOOR TILES) VS.ACIT, RA JKOT)-6 APPEALS 4 INVOICES THE ACTUAL EX-FACTORY PRICES OF SUCH TILES , WHICH IS RECOVERABLE FROM THEIR BUYERS, SALE OF TILES IN THE MARKET AT PRICES WHICH VARY ACCORDING TO THE QUALITY AND GRADE AND T HAT THE INVOICES ARE PREPARED FOR THIRD QUALITY, WHEREAS, S UPPLY IS MADE OF FIRST QUALITY, THAT THE DIFFERENTIAL VALUE, OVER AN D ABOVE THE VALUE DECLARED IN THE CENTRAL EXCISE INVOICES, WAS COLLEC TED BY THEM IN CASH FROM THE BUYERS AND SUCH CASH AMOUNTS ARE NOT ACCOUNTED FOR IN THEIR STATUTORY RECORDS, ETC. THUS, THE ALLE GATION IS THAT, THE ASSESSEE HAD ADOPTED A FRAUDULENT METHOD TO KEEP TH E LANDED COST OF TILES AT THE BAREST MINIMUM AT THE DESTINAT ION SO THAT IT DOES NOT EXCEED THE ARTIFICIAL MRP DECLARED IN THE CENTRAL EXCISE INVOICES. SUBSEQUENTLY, IN ORDER TO TRANSFER SUCH C ASH AMOUNTS FROM DEALERS, DIFFERENT METHODS WERE ADOPTED BY THE M VIZ., IN CASE OF TRANSFER FROM WITHIN THE STATE OF GUJARAT, CASH AMOUNTS WERE MOSTLY TRANSFERRED THROUGH ANGADIAS AND WHERE TRANSFER IS FROM LOCATIONS OUTSIDE GUJARAT, CASH AMOUNTS WERE S OMETIMES COLLECTED PERSONALLY BY THE AUTHORIZED REPRESENTATI VES OR THEIR SALES PERSONNEL DURING THEIR VISIT TO THE DEALERS O R EVEN BY THE ANGADIAS. EVIDENCES OF SUCH TRANSFER OF CASH ALSO F ORMS PART OF THE EXHAUSTIVE SHOW CAUSE ISSUED BY THE CED. DISCRE ET VERIFICATION FROM THE BANKS REVEALED THAT, OVER RS 1000 CRORES WERE EXCHANGED HANDS AS UNACCOUNTED CASH AMOUNTS, I N THE AFORESAID MANNER, THROUGH A NUMBER OF SHROFFS SITUA TED IN MORBI, RAJKOT, HIMMATNAGAR AND AHMEDABAD. THEREFORE, THE D GCEI CONDUCTED A DETAILED INVESTIGATION IN THE MATTER AN D FACTORY PREMISES OF THE ASSESSEE WAS COVERED UNDER SEARCH O N 17.1.2008 DURING WHICH SEVERAL INCRIMINATING DOCUMENTS WERE R ECOVERED, WHICH LEAD TO THE CONFIRMATION OF THE INTELLIGENCE. RECORDS AND DOCUMENTS AS LISTED IN THE ANNEXURES TO THE PANCHNA MAS DATED 17.1.2008 DRAWN AT THE FACTORY PREMISES OF THE ASSE SSEE, WERE SEIZED BY THEM FOR FURTHER INVESTIGATION. REPORT ON SUCH DETAILED INVESTIGATION IS CONTAINED IN THE SHOW CAUSE NOTICE ISSUED BY THE EXCISE DEPARTMENT. IN THE SAID REPORT, CORROBORATIV E EVIDENCES WERE ALSO GATHERED AND KEPT ON RECORD BY THE EXCISE DEPARTMENT. HENCE, THE SAID REPORT OF THE EXCISE DEPARTMENT IS FOOLPROOF AND THERE IS SUBSTANTIAL MATERIAL EVIDENCE OF SUPPRESSI ON OF SALE. THE SHOW CAUSE NOTICE BY THE EXCISE DEPARTMENT ALSO QUA NTIFIED THE EXTENT OF SUPPRESSED SALE. 3. I HAVE, THEREFORE REASONS TO BELIEVE THAT THE AS SESSEE'S INCOME TO THE ABOVE EXTENT HAS ESCAPED ASSESSMENT WITHIN T HE MEANING OF SECTION 147 OF THE I T ACT AND THAT, SUCH ESCAPE MENT WAS BY REASON OF THE OMISSION AND FAILURE OF THE ASSESSEE TO DISCLOSE FULLY AND TRULY ALL MATERIAL FACTS. HENCE, THE ASSESSMENT IS REQUIRED TO BE REOPENED. ITA NO.122/RJT/2013 (ITALICA FLOOR TILES) VS.ACIT, RA JKOT)-6 APPEALS 5 7. THE ASSESSEE CHALLENGED VALIDITY OF REOPENING OF THE ASSESSMENT ON THE BASIS OF THE ABOVE REASONS BEFORE THE LOWER AUTHORITIES UNSUCCESSFULLY. 8. BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFOR E US. 9. WE HAVE HEARD RIVAL SUBMISSION AND PERUSED THE R ECORDED REASONS UNDER SECTION 148(2) OF THE ACT FOR ISSUANC E OF NOTICE UNDER SECTION 148 OF THE ACT. 10. WE FIND THAT IT IS AN ESTABLISHED POSITION OF L AW THAT WHEN VALIDITY OF NOTICE ISSUED UNDER SECTION 148 IS CHALLENGED, T HE VALIDITY OF THE SAME HAS TO BE JUDGED ON THE TOUCH STONE OF THE REA SONS AS RECORDED BY THE AO UNDER SECTION 148(2) OF THE ACT ALONE, AN D NO OTHER MATERIAL CAN BE TAKEN INTO CONSIDERATION FOR JUDGING THE VAL IDITY OF NOTICE. 11. FURTHER, IT IS ALSO AN ESTABLISHED POSITION THA T THE NOTICE UNDER SECTION 148 CAN BE ISSUED ONLY WHEN THE AO HAS FORM ED A BONA FIDE BELIEF BASED ON THE REASONS HAVING BACKING OF THE M ATERIAL, WHICH ARE SPECIFIC, DEFINITE, RELEVANT AND RELIABLE. IT IS N OT ENOUGH FOR THE AO TO HAVE MATERIAL IN HIS POSSESSION, BUT HE ALSO MUST P ERFORM FURTHER NECESSARY MENTAL ACT OF ACCEPTING MATERIAL AND INFO RMATION AS RELIABLE, LEADING TO THE FORMATION OF BELIEF WHICH CAN BE ACT ED UPON. 12. FURTHER, THE BELIEF FORMED MUST BE OF ESCAPEMEN T OF INCOME FROM ASSESSMENT OF INCOME TAX, WHICH IS CHARGEABLE TO IN COME-TAX. 13. FURTHER, THE BELIEF MUST NOT BE A MERE PRETENCE , BUT THE BELIEF MUST BE REAL ABOUT ESCAPEMENT OF TAXABLE INCOME FRO M INCOME TAX, BASED ON RELEVANT AND RELIABLE MATERIALS. THE BELI EF ENTERTAINED BY THE AO MUST NOT BE ARBITRARY OR IRRATIONAL. IT CAN BE EXAMINED WHETHER THE REASONS ARE RELEVANT AND HAVE A BEARING ON THE MATT ER IN REGARD TO WHICH THE AO IS REQUIRED TO ENTERTAIN THE BELIEF BE FORE HE CAN ISSUE NOTICE UNDER SECTION 148 OF THE ACT. ITA NO.122/RJT/2013 (ITALICA FLOOR TILES) VS.ACIT, RA JKOT)-6 APPEALS 6 14. KEEPING IN VIEW THE ABOVE ESTABLISHED POSITION OF LAW, IT IS TO BE ADJUDICATED THAT WHETHER THE REASONS AS RECORDED IN THE INSTANT CASE WAS A VALID REASON FOR FORMING A BELIEF OF ESCAPEME NT OF INCOME TAX OF THE INCOME, WHICH IS OTHERWISE ASSESSABLE TO INCOME -TAX. 15. WE FIND, ON AN ANALYSIS OF THE REASONS AS RECOR DED, THAT THE AO HAS FIRSTLY RECORDED THE NATURE OF THE BUSINESS OF THE ASSESSEE AND THE BACKGROUND UNDER WHICH THE AO RECORDED THAT DIRECTO R GENERAL OF CENTRAL EXCISE INTELLIGENCE, AHMEDABAD (DGCEI) IN T HE CASE OF THE ASSESSEE FOUND THAT THERE WAS A SUPPRESSION OF SALE S FOR THE PURPOSE OF LEVY OF EXCISE DUTY, AND ACCORDINGLY, ISSUED SHOW C AUSE NOTICE, A COPY OF WHICH WAS RECEIVED BY HIM FROM CIT, CENTRAL-2, A HMEDABAD. THEREAFTER, THE AO RECORDED THE BACKGROUND UNDER WH ICH THE DGCEI MADE INVESTIGATION AND SEARCH IN THE CASE OF THE AS SESSEE AND THE BACKGROUND UNDER WHICH SHOW CAUSE NOTICE CAME TO BE ISSUED IN THE CASE OF THE ASSESSEE BY THE DGCEI. 16. ACCORDING TO THE AO, THE REPORT CONTAINED IN TH E SHOW CAUSE NOTICE OF EXCISE DEPARTMENT IS FOOLPROOF, AND THERE IS SUBSTANTIAL MATERIAL EVIDENCE OF SUPPRESSION OF SALES AND THE S AID SHOW CAUSE NOTICE ALSO QUANTIFIED THE EXTENT OF SUPPRESSED SAL E. ACCORDING TO THE AO FOR THE ABOVE REASONS, HE BELIEVED THAT THE ASSE SSEES INCOME TO THE EXTENT OF THE SALE FOUND BY THE EXCISE DEPARTMENT T O HAVE BEEN SUPPRESSED FOR LEVY OF EXCISE DUTY HAS ESCAPED ASSE SSMENT UNDER THE INCOME TAX ACT, AND SUCH ESCAPEMENT WAS FOR OMISSIO N AND FAILURE ON THE PART OF THE ASSESSEE TO DISCLOSE FULLY AND TRUL Y ALL THE MATERIAL FACTS. HE, THEREFORE, ISSUED NOTICE UNDER SECTION 148 OF T HE ACT FOR ALL THE YEARS UNDER CONSIDERATION. 17. WE FIND THAT THE AO, IN THE ABOVE RECORDED REAS ONS, HAS CONCLUDED THAT THE SHOW CAUSE NOTICE ISSUED BY THE EXCISE DEPARTMENT IS FOOLPROOF AND SUBSTANTIAL MATERIAL EVIDENCE OF S UPPRESSION OF SALES. ITA NO.122/RJT/2013 (ITALICA FLOOR TILES) VS.ACIT, RA JKOT)-6 APPEALS 7 18. IN OUR CONSIDERED VIEW, THE ABOVE CONCLUSION OF THE AO IS CONTRARY TO THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF FUTURA CERAMICS PVT. LTD. VS. STATE OF GUJARAT, SCA NO.6500 OF 2012 ORDER DATED 20.12.2012, WHEREIN, THE HONBLE HIGH C OURT WHILE DECIDING THE ISSUE UNDER VAT ACT ON A SIMILAR SHOW CAUSE NOT ICE ISSUED BY THE CENTRAL EXCISE AUTHORITY HAS HELD AS UNDER: . MERELY BECAUSE THE EXCISE DEPARTMENT ISSUED A S HOW-CAUSE NOTICE, THAT CANNOT BE A GROUND TO PRESUME AND CONCLUDE THA T THERE WAS EVASION OF EXCISE DUTY IMPLYING THEREBY THAT THERE WAS ALSO EVASION OF TAX UNDER THE VAT ACT. IT IS NOT EVEN THE CASE OF T HE DEPARTMENT THAT SUCH SHOW-CAUSE NOTICE PROCEEDINGS HAS CULMINATED I NTO ANY FINAL ORDER AGAINST THE PETITIONER. WE WONDER WHAT WOULD HAPPEN TO THE ORDER OF REASSESSMENT, IF ULTIMATELY THE EXCISE DEPARTMENT W ERE TO DROP THE PROCEEDINGS WITHOUT LEVYING ANY DUTY OR PENALTY FRO M THE PETITIONER. 19. FURTHER, THE SHOW CAUSE NOTICE ISSUED BY THE EX CISE DEPARTMENT CONTAINS THE ALLEGATION OF THE EXCISE DEPARTMENT TH AT THE ASSESSEE HAS SUPPRESSED SALES FOR THE PURPOSE OF MAKING PAYMENT OF EXCISE DUTY. A PERUSAL OF RECORDED REASONS DOES NOT SHOW THAT THE AO VERIFIED THE PARTICULARS DECLARED BY THE ASSESSEE IN ITS INCOME- TAX RETURN. NOWHERE IN THE RECORDED REASONS, THE SALE DECLARED BY THE A SSESSEE IN ITS INCOME-TAX RETURN, HAS BEEN BROUGHT ON RECORD. THE AO, AS PER THE RECORDED REASONS, HAS NOT VERIFIED THE INCOME-TAX R ETURN OF THE ASSESSEE VIS--VIS THE ALLEGED ESCAPEMENT OF INCOME TO ARRIVE AT THE SATISFACTION TO THE EFFECT THAT THE ASSESSEE HAS NO T DISCLOSED SUCH INCOME IN THE RETURN OF INCOME, AND HAS CONCLUDED T HAT THE ALLEGED SALES, ON WHICH THE EXCISE DUTY WAS ALLEGEDLY NOT P AID BY THE ASSESSEE, WAS INCOME CHARGEABLE TO INCOME-TAX, AND HAS ESCAPE D THE ASSESSMENT UNDER THE INCOME TAX ACT. 20. IN OUR CONSIDERED VIEW THE INFORMATION CONTAINE D IN THE SHOW CAUSE NOTICE OF THE EXCISE DEPARTMENT CAN BE REASON TO SUSPECT BY THE AO, BUT WITHOUT VERIFYING THE RELEVANT PARTICULARS DECLARED IN THE INCOME-TAX RETURN, IT CANNOT BE REASON TO BELIEVE A BOUT THE ESCAPEMENT OF TAXABLE INCOME UNDER THE INCOME TAX ACT. ITA NO.122/RJT/2013 (ITALICA FLOOR TILES) VS.ACIT, RA JKOT)-6 APPEALS 8 21. IN VIEW OF THIS, IN OUR CONSIDERED VIEW, THE RE OPENING OF THE ASSESSMENT BASED ON THE ABOVE RECORDED REASONS, IS BAD IN LAW AND CANNOT BE SUSTAINED. WE, THEREFORE, HOLD ACCORDING LY, AND CONSEQUENTLY, CANCEL THE IMPUGNED REASSESSMENT ORDE RS FOR ALL THE YEARS. 22. IN VIEW OF OUR ABOVE DECISION IN RESPECT OF GRO UND NOS.2 AND 3 OF THE APPEALS OF THE ASSESSEE FOR ASSESSMENT YEARS 20 05-06, 2006-07 AND 2007-08 INVOLVING JURISDICTIONAL ISSUE, THE OTH ER GROUNDS OF APPEALS TAKEN BY THE ASSESSEE HAVE BECOME INFRUCTUOUS/ACADE MIC IN NATURE. THEREFORE, THE OTHER GROUNDS OF APPEALS ARE NOT REQ UIRED TO BE ADJUDICATED SEPARATELY BY US. 23. AS WE HAVE QUASHED THE REASSESSMENT ORDER DATED 15.12.2011, WHILE DISPOSING OF APPEALS OF THE ASSESSEE FOR ASSE SSMENT YEARS 2005- 06, 2006-07 AND 2007-08, THE APPEALS FILED BY THE REVENUE FOR THE ASSESSMENT YEARS 2005-06, 2006-07 AND 2007-08 HAVE BECOME INFRUCTUOUS AND HENCE DISMISSED. 24. IN THE RESULT, THE APPEALS OF THE ASSESSEE FOR THE ASSESSMENT YEARS 2005-06, 2006-07 AND 2007-08 ARE ALLOWED, AN D THAT OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON FRIDAY THE 27 TH FEBRUARY, 2015 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 27/02/2015