Karnataka State Beverages Corporation Limited, Bangalore V. ACIT, Bangalore

ITA 186/BANG/2011

• Counselvise Citation: 18621114 RSA 2011
• Duration Of Justice: 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 18-01-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 24-02-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ARCHANA CHOWDHRY
• Assessee Lawyers: N RAMA PRASAD
• Keywords: Set aside
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B BEFORE SHRI N.K SAINI, ACCOUNTANT MEMBER AND SMT. P MADHAVI DEVI, JUDICIAL MEMBER ITA NO.186/BANG/2011 (ASST. YEAR - 2004-05) M/S KARNATAKA STATE BEVERAGES CORPORATION LTD., BANGALORE. . APPELLANT VS. THE ASTT. COMMISSIONER OF INCOME-TAX, CIRCLE-11(5), BANGALORE. . RESPONDENT PAN NO.AAACK 1421A. APPELLANT BY : SHRI N RAMA PRASAD RESPONDENT BY : SMT. ARCHANA CHOWDHRY DATE OF HEARING : 18-01-2012 DATE OF PRONOUNCEMENT : 18-01-2012 O R D E R PER P MADHAVI DEVI, JUDICIAL MEMBER : THIS APPEAL IS FILED BY THE ASSESSEE. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) I AT ITA NO.186/B/11 2 BANGALORE DATED 03.09.2010. THE APPEAL ARISES OUT OF THE ASSESSMENT COMPLETED U/S 143(3) OF THE INCOME-TAX ACT, 1961. 2. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE CIT(A) IN DISMISSING THE ASSESSEES APPEAL AS NOT M AINTAINABLE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A GOVERNMENT OF KARNATAKA UNDERTAKING INCORPORATED ON 2.6.2003 T O CANALIZE SALE OF INDIAN MADE LIQUOR AND BEER IN THAT STATE. THE ASS ESSEE FILED ITS RETURN OF INCOME. IT WAS PROCESSED U/S 143(3) OF T HE INCOME-TAX ACT. SUBSEQUENTLY, THE CIT(A) REVISED THE SAME U/S 263 O F THE INCOME-TAX ACT VIDE ORDER DATED 26.8.2008. MEANWHILE, THE ASS ESSEE FILED AN APPEAL BEFORE THE CIT(A). PENDING THE APPEAL, THE ASSESSING OFFICER ALSO PASSED CONSEQUENTIAL ORDER U/S 143(3) READ WIT H SEC. 263 OF THE INCOME-TAX ACT. THIS WAS BROUGHT TO THE NOTICE OF THE CIT(A) AND VIDE ORDER DATED 3.9.2010 IMPUGNED IN THIS APPEAL, THE CIT(A) HELD THE ORDER DATED 30/10/2006 I.E ASSESSMENT ORDER U/S 143(3) TO BE NON- EST AND DISMISSED THE APPEAL. 4. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. ITA NO.186/B/11 3 5. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT CIT VIDE ORDERS U/S 263 HAS SET ASIDE THE ASSESSMENT ORDER A ND REMANDED THE SAME TO THE ASSESSING OFFICER WITH A FEW DIRECTIONS AND THIS REVISION ORDER DID NOT DEAL WITH PRIVILEGE FEE DISALLOWED BY THE AO. THEREFORE, ACCORDING TO HIM, THE APPEAL FILED BY TH E ASSESSEE IS MAINTAINABLE. 6. THE LEARNED DR HOWEVER, SUPPORTED THE ORDER OF THE CIT(A). 7. HAVING CONSIDERED THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, WE FIND THAT THE ORDER OF THE CIT(A) IS TO BE UPHELD AS THE ORDER PASSED U/S 143(3) WAS SET ASIDE BY THE REVISI ON ORDER U/S 263 WHEREBY THE ENTIRE ASSESSMENT HAS BEEN SET ASIDE FO R DENOVO CONSIDERATION OF THE AO. THE ASSESSING OFFICER HAS ALSO GIVEN EFFECT TO THE ORDER OF THE CIT U/S 263 BY PASSING ASSESSME NT ORDER U/S 143(3) READ WITH SEC. 263. IN THESE CIRCUMSTANCES, THE OR DER U/S 143(3) DATED 30.10.2006 HAS BECOME NON-EST AND THE APPEAL AGAINS T NON-EST ASSESSMENT IS NOT MAINTAINABLE. 8. IN VIEW OF THE SAME, WE UPHOLD THE FINDING OF T HE CIT(A) AND THE ASSESSEES APPEAL IS DISMISSED. ITA NO.186/B/11 4 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH JAN, 2012. SD/- SD/- (N.K SAINI) (P MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER VMS. BANGALORE DATED : 18/01/2012 COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER ASST. REGISTRAR, I TAT, BANGALORE.