DCIT Circle 1 , Dindigul V. N.Parvathy Textiles , Dindigul

ITA 1763/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5707 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 17-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T N SEETHARAMAN
• Keywords: Reopening of assessment; Tax effect; Reason to believe

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A B ENCH, CHENNAI . . . , . , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.1763/MDS/2017 ( / ASSESSMENT YEAR: 2012-13) THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1, DINDIGUL VS M/S. N. PARVATHY TEXTILES, NO.140A, EAST CAR STREET, DINDIGUL 624 001. PAN: AABFN3571G ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI AR V. SREENIVASAN, JCIT / RESPONDENT BY : SHRI TN SEETHARAMAN, ADVOCATE /DATE OF HEARING : 12.12.2017 !' /DATE OF PRONOUNCEMENT : 12.12.2017 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (A PPEALS)-1, MADURAI DATED 24.04.2017 IN ITA NO.0135/2016-17 FOR THE ASSESSMENT YEAR 2012-13 PASSED U/S. 250(6) R.W.S 14 3(3) & 147 OF THE ACT. 2 ITA NO.1763/MDS/2017 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN ITS APPEAL:- 1. THE ORDER OF THE CIT(A) IS OPPOSED TO LAW ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE. 2. THE CIT(A) ERRED IN HOLDING THAT REOPENING IS BA D IN LAW SINCE IT BASED ON CHANGE IN OPINION WHEN THE STATUTE PERMITS THE A SSESSING OFFICER TO REOPEN THE ASSESSMENT WITHIN FOUR YEARS FROM THE EN D OF THE ASSESSMENT YEAR IF HE HAS A REASON TO BELIEVE THAT ANY INCOME CHARG EABLE TO TAX HAS ESCAPED ASSESSMENT. 3. THE CIT(A) HAS ERRED IN HOLDING THAT WHILE COMPL ETING THE ASSESSMENT THE ASSESSING OFFICER WAS AWARE THAT THE RETURN WAS FIL ED BELATEDLY AND THEREAFTER HAD ALLOWED DEDUCTION U/S.80IA AND THERE FORE THE REOPENING OF ASSESSMENT IS NOT PERMISSIBLE IN LAW. THE CIT(A) OU GHT TO HAVE SEEN THAT THERE IS NO SUCH DISCUSSION IN THE ASSESSMENT ORDER AND HENCE OUGHT NOT TO HAVE CANCELLED THE ENTIRE ASSESSMENT PROCEEDINGS. 4. THE CIT(A) HAS ERRED IN HOLDING THAT THERE WAS R EASONABLE CAUSE AND THE DELAY OF 5 DAYS WAS UNAVOIDABLE DUE TO THE FACT THA T THE SYSTEM WAS NOT FUNCTIONING PROPERLY AND THEREFORE THE ASSESSEE IS ENTITLE TO DEDUCTION U/S.80IA. 5. THE CIT(A) OUGHT TO HAVE SEEN THAT AS PER SECTIO N 80AC, IN ORDER TO CLAIM DEDUCTION U/S.80IA, THE RETURN OF INCOME SHALL BE F ILED WITHIN THE DUE DATE U/S.139(1) AND SINCE THE ABOVE CONDITION WAS NOT SA TISFIED BY THE ASSESSEE, THE ASSESSEE IS NOT ENTITLED TO DEDUCTION U/S.80IA AND HENCE OUGHT TO HAVE SUSTAINED THE ADDITION MADE BY THE ASSESSING OFFICE R. 6. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE ADD UCED AT THE TIME OF HEARING IT IS PRAYED THAT THE ORDER OF THE CIT(A) M AY BE REVERSED AND THAT OF THE ASSESSING OFFICER RESTORED. 3. AT THE OUTSET, THE LD.AR SUBMITTED BEFORE US TH AT THE ABOVE MENTIONED APPEAL IS NOT MAINTAINABLE DUE TO T HE CIRCULAR NO.21/2013 DATED 10.12.2015 ISSUED BY THE CBDT WITH RESPECT TO MONETARY LIMIT. HENCE, IT WAS PLEADED THAT THE APP EAL OF THE 3 ITA NO.1763/MDS/2017 REVENUE MAY BE DISMISSED. THE LD. DR COULD NOT CON TROVERT TO THE SUBMISSION OF THE LD.AR. 4. AFTER HEARING BOTH SIDES WE FIND MERIT IN THE S UBMISSION OF THE LD.AR. THE CBDT HAS DIRECTED THE REVENUE NOT T O FILE APPEAL BEFORE THE TRIBUNAL WHERE THE TAX EFFECT DOES NOT E XCEED RS.10 LAKHS. IN THE ABOVE MENTIONED APPEAL OF THE ASSESSE E THE TAX EFFECT IS LESS THAN RS.10 LAKHS. THEREFORE, WE HERE BY DISMISS THE APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE. 5. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED IN LIMINI. ORDER PRONOUNCED ON THE 12 TH DECEMBER, 2017 AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER #$ /CHENNAI, %& /DATED 12 TH DECEMBER, 2017 RSR & () *) /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. - ( )/CIT(A) 4. - /CIT 5. )./ 0 /DR 6. /1 /GF