ACIT, Panchkula V. M/s Haryana Warehousing Corporation, Panchkula

ITA 176/CHANDI/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9949 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 03-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B K NOHRIA
• Section: 143(3); 37; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 176/CHD/2016 ASSESSMENT YEAR: 2009-10 THE ACIT, VS M/S HARYANA WAREHOUSING PANCHKULA CIRCLE, CORPORATION, SECTOR 2, PANCHKULA. PANCHKULA. PAN: AAATH7482H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANOJ MISHRA RESPONDENT BY : SHRI B.K.NOHRIA DATE OF HEARING : 24.05.2016 DATE OF PRONOUNCEMENT : 24.05.2016 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS) PANCHKULA DATED 28.12.2015 FOR ASSESSMENT YEAR 2009-2010 ON THE FOLLOWING GROUNDS : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED TO ALLOWED THE ISSUE ON ACCOUNT OF REVISION PAY SCALES OF RS. 9,48,15,000/-BEING AS PRIOR PERIOD EXPENSES AND NOT ALLOWABLE U/S 37 OF THE INCOME TAX ACT AND QUASHING THE ORDER U/S 263 O N THIS ISSUE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) HAS ERRED TO ALLOWED THE ISSUE ON ACCOUNT OF MISC EXPENSES OF RS. 50,16,675/- AND QUASHING THE ORDER U/S 263 ON THIS ISSUE . 2 2. BRIEFLY THE FACTS OF THE CASE ARE THAT EARLIER ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX A CT WAS FRAMED ON 19.12.2011. THE ASSESSMENT ORDER WAS CANCELLED BY CIT, PANCHKULA UNDER SECTION 263 OF TH E ACT VIDE ORDER DATED 06.03.2014. THE ASSESSING OFF ICER FRAMED THE ASSESSMENT ORDER AFRESH IN VIEW OF THE DIRECTIONS GIVEN UNDER SECTION 263 OF THE ACT AND P ASSED THE ASSESSMENT ORDER DATED 23.03.2015 UNDER SECTION 143(3) READ WITH SECTION 263 OF THE ACT MAKING THE ABOVE IMPUGNED ADDITIONS AS RAISED IN THE DEPARTMEN TAL APPEAL. THE ASSESSEE PREFERRED THE APPEAL BEFORE I TAT CHANDIGARH BENCH AGAINST THE ORDER UNDER SECTION 26 3 OF THE ACT DATED 06.03.2014 IN ITA 291/2014 FOR ASSESSMENT YEAR 2009-10 AND ON BOTH THE ABOVE GROUN DS OF APPEAL, THE TRIBUNAL SET ASIDE THE ORDER UNDER S ECTION 263 OF THE ACT VIDE ORDER DATED 21.10.2015. 3. THE ADDITIONS MADE IN THE ASSESSMENT ORDER DATED 23.03.2015 WERE CHALLENGED BEFORE LD. CIT(APPEALS). THE LD. CIT(APPEALS) VIDE IMPUGNED ORDER DELETED BOTH T HE ADDITIONS BECAUSE THE ORDER UNDER SECTION 263 HAVE BEEN SET ASIDE BY THE TRIBUNAL. THIS GROUND HAS BE EN, THEREFORE, ALLOWED FOR STATISTICAL PURPOSES. 4. AFTER HEARING RIVAL CONTENTIONS, WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE REVENUE. BOTH THE ABOVE ADDITIONS WERE MADE IN THE ORDER UNDER SECTION 143( 3) READ WITH SECTION 263 OF THE ACT. SINCE THE ORDER UNDER SECTION 263 OF THE ACT OF ABOVE ADDITIONS HAVE BEEN SET 3 ASIDE AND QUASHED, THEREFORE, BOTH THE ABOVE GROUND S OF APPEAL OF THE REVENUE HAVE BECOME INFRUCTUOUS AND N O GRIEVANCE IS LEFT FOR THE REVENUE. 5. IN VIEW OF THE ABOVE, DEPARTMENTAL APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (BHAVNESH SAINI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 24 TH MAY, 2016. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD