Appeal details
Counselvise Citation
[2017] 128 COUNSELVISE.COM (IT) 1185 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 year(s) 16 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
12-04-2017
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
H
Next Hearing Date
23-01-2017
Assessment Year
2010-2011
Appeal Filed On
26-03-2015
Judgement Text
, , , , INCOME-TAX APPELLATE TRIBUNAL -HBENCH MUMBAI , , , BEFORE S/SHRI RAJENDRA,ACCOUNTANT MEMBER AND RAM LAL NEGI,JUDICIAL MEMBER ./I.T.A./1793/MUM/2015 , /ASSESSMENT YEAR: 2010-11 DELOITTE TOUCHE TOHMATSU INDIA PRIVATE LIMITED 12, DR. ANNIE BESANT ROAD, OPP. SHIV SAGAR ESTATE,WORLI,MUMBAI-400 018. PAN:AABCD 1147 H VS. ACIT, 1 5TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD MUMBAI-400 020. ( /APPELLANT ) ( / RESPONDENT ) REVENUE BY: SHRI RAHUL RAMAN-DR ASSESSEE BY: SHRI J.D. MISTRI-AR / DATE OF HEARING:23.02.2017 / DATE OF PRONOUNCEMENT: 12.04.2017 ,1961 254(1) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) PER RAJENDRA, AM - CHALLENGING THE ORDER DT.24.2.15 OF CIT-I, MUMBAI, PASSED U/S. 263 OF THE ACT, THE ASSESSEE HAS FILED THE PRESENT APPEAL.ASSESSEE-COMPANY, ENGA GED IN THE BUSINESS OF PROVIDING MANAGE -MENT CONSULTANCY AND SALE/MAINTENANCE OF SOFTWARE, FILED ITS RETURN OF INCOME ON 12.10. 2010, DECLARING INCOME OF RS.47.55 LAKHS. LATER ON, A REVISED COMPUTATION OF INCOME WAS FILED ON 30.03.2012,DECLARING INCOME OF RS.3.89CROR ES.IN THE REVISED RETURN DEPRECIATION WAS CLAIMED AT RS.58.11 LAKHS AS AGAINST RS.3.80 CRORES ,CLAIMED IN THE ORIGINAL RETURN.THE AO COMPLETED THE ASSESSMENT U/S.143(3) OF THE ACT ON 2 8.03.2003. 2. AFTER THE PERUSAL OF THE RECORDS THE CIT OBSERVED T HAT THE ORDER PASSED BY THE AO WAS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVEN UE.ACCORDINGLY,HE ISSUED A NOTICE U/S. 263 OF THE ACT ON 19.01.2015,ASKING IT TO EXPLAIN AS TO WHY THE REVISIONARY ORDER SHOULD NOT BE PASSED.IN RESPONSE TO THE NOTICE,THE ASSESSEE,IN IT S LETTER DT.4.02.2015,CHALLENGED THE JURISDICTION OF THE CIT AS UNDER :- FURTHER WE WOULD LIKE TO STATE THAT AS PER THE NEW JURISDICTION EFFECTIVE FROM NOV. 2014 , JURISDICTION OF OUR CLIENTS CASE WOULD BE WITH THE COMMISSIONER OF INCOME TAX-6, MUMBAI. HOWEVER,THE CIT PASSED THE REVISIONARY ORDER AND SE T ASIDE THE ORDER PASSED BY THE AO WITH CERTAIN DIRECTIONS. 3. BEFORE US,THE AUTHORISED REPRESENTATIVE (AR) ARGUED THAT CIT-I HAD NO JURISDICTION OVER THE ASSESSEE, THAT IN ITS FIRST REPLY IT HAD OBJECT ED TO ISSUING OF NOTICE, THAT THE CIT DID NOT DISPOSE THE GROUND ABOUT JURISDICTION WHILE PASSING THE ORDER. HE REFERRED TO THE JURISDICTION OF PRINCIPAL COMMISSIONERS OF INCOME TAX -1 TO 35 W .E.F. 15.11.2014.THE DEPARTMENTAL REPRESENTATIVE(DR) STATED THAT MATTER COULD BE DECI DED ON MERITS. 1793/M/15(10-11) DELOITTE TOUCHE 2 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL BEFORE US. WE FIND THAT IN REPLY TO THE SHOW CAUSE NOTICE ISSUED U/S.263 BY TH E CIT(PG-54 OF PB),THE ASSESSEE HAD SPECIFICALLY MENTIONED THAT JURISDICTION WAS WITH C IT-6, MUMBAI.WE FIND THAT THE CIT HAS MENTIONED ON THAT PAPER AS UNDER:- ON A SPECIFIC REQUEST CASE ADJ. TO 10.2.15.THIS IS FINAL OPPORTUNITY. FROM THE ABOVE LETTER,IT IS CLEAR THAT FROM THE VER Y BEGINNING THE ASSESSEE HAD LODGED ITS OBJECTION BEFORE THE CIT ABOUT JURISDICTIONAL ISSUE .EVEN THEN THE CIT PASSED THE REVISIONARY ORDER.IN OUR OPINION IT WAS DUTY OF THE CIT TO DEAL WITH THE JURISDICTIONAL OBJECTION BEFORE PASSING THE FINAL ORDER.THE JURISDICTION OF THE PR. CIT-1 HAD CHANGED W.E.F.15.11.2014 AND THE SAID FACT WAS BROUGHT TO HIS NOTICE.IGNORING THE JU RISDICTIONAL ISSUE,HE PASSED THE ORDER ABOUT AN ASSESSEE WHO WAS NOT ASSESSED IN HIS CHARGE.AS T HE ORDER PASSED BY HIM IS WITHOUT JURISDICTION,SO SAME HAS TO BE DECLARED TO BE AN IN VALID ORDER.DECIDING THE FIRST GROUND OF APPEAL IN FAVOUR OF THE ASSESSEE ,WE REVERSE THE RE VISIONARY ORDER PASSED BY THE CIT. AS WE HAVE HELD THAT ORDER PASSED BY THE CIT WAS IN VALID,SO,WE ARE NOT DECIDING THE CASE ON MERITS. AS A RESULT APPEA L FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH APRIL, 2017. 12 , 2017 SD/- SD/- ( / RAM LAL NEGI ) ( / RAJENDRA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; /DATED : 12.04.2017. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR H BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.
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