ITO-WARD-7(2), Nagpur V. M/S TRUPATI BALAJI SAHAKARI PAT SANSTHA LTD., Nagpur

ITA 19/NAG/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 1580 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 10-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA KANE
• Assessee Lawyers: JAYANT RANADE
• Keywords: Reassessment proceedings

Judgement Text

1 ITA NO. 19/NAG/2014 IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. (S.M.C.) I.T.A. NO.19 / NAG/2014 ASSESSMENT YEAR : 2006 - 07. THE INCOME - TAX OFFICER, TIRUPATI BALAJI SAHAKARI PAT WARD - 7(2), NAGPUR. VS. SANSTHA LTD., NAGPUR. PAN AAAAT7758D. APPELLANT. RESPONDENT. APPELLANT BY : SHRI NARENDRA KANE. RESPONDENT BY : SHRI JAYANT RANADE. DATE OF HEARING : 10 - 11 - 20 15. DATE OF PRONOUNCEMENT : 17 TH NOV., 2015. O R D E R. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(APPEALS) - II, NAGPUR DATED 2 8 - 11 - 2013 AND PERTAINS TO ASSESSMENT YEAR 2010 - 11. THE GROUNDS OF APPEAL READ AS UNDER : 1 WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(APPEALS) WAS CORRECT IN HOLDING THE RE - ASSESSMENT PROCEEDINGS AS BAD IN LAW MERELY FOR THE REASON THAT REASONS RECORDED FOR REOPENING OF THE ASSESSMENT WAS NOT INTIMATED TO THE ASSESSEE? 2 WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(APPEALS) WAS JUSTIFIED IN CANCELLING THE REOPENING ASSESSMENT AND NOT DIRECTING THE A.O. TO PROVIDE REASONS AND TO DEAL WITH THE OBJECTION OF THE ASSESSEE THEREOF IN VIEW OF THE DECISION OF THE APEX COURT IN THE CASE OF GKN DRIVESHAFT 25 9 ITR 19? 2 ITA NO. 19/NAG/2014 2. IN THIS CAS E LEARNED CIT(APPEALS) HAS QUASHED THE REASSESSMENT PROCEEDINGS FOR THE REASON THAT REASON FOR REOPENING THAT WAS REQUESTED BY THE ASSESSEE WAS NOT SUPPLIED BY THE AO. FOR THIS PROPOSITION LEARNED CIT(APPEALS) HAS PLACED RELIANCE UPON THE JURISDICTIONAL H IGH COURT DECISION IN THE CASE OF CIT VS. V IDESH SANCHAR NIGAM LTD. REPORTED IN 340 ITR 36. 3. NOW THE REVENUE IS AGGRIEVED THAT THE ASSESSMENT PROCEEDINGS SHOULD NOT HAVE BEEN QUASHED BUT LEARNED CIT(APPEALS) SHOULD HAVE DIRECTED THE AO TO PROVIDE REAS ONS TO DEAL WITH THE OBJECTIONS THERETO IN VIEW OF THE DECISION OF HONBLE APEX COURT IN THE CASE OF GKN DIVERSHAFT 254 ITR 19. 3. UPON CAREFUL CONSIDERATION, I NOTE THAT IN THE APEX COURT ORDER IN THE CASE OF GKN DIVERSHAFT IT WAS NOT EXPOUNDED THAT WHE N THE AO DOES NOT PROVIDE THE REASONS FOR REOPENING AND COMPLETE THE ASSESSMENT, THE CIT(APPE A LS) SHOULD INVARIABLY REMIT THE MATTER TO THE AO AND DIRECT HIM TO PROVIDE REASONS OF REOPENING. HONBLE JURISDICTIONAL HIGH COURT HAS CONSIDERED IDENTICAL ISSU E IN THE CASE OF VIDESH SANCHAR NIGAM LTD. (SUPRA) AND HELD AS UNDER : THE FINDING OF FACT RECORDED BY THE TRIBUNAL IS THAT IN THE NPRESENT CASE THE REASONS RECORDED FOR REOPENING OF THE ASSESSMENT THOUGH REPEATEDLY ASKED BY THE ASSESSEE WERE FURNISHED ONLY AFTER COMPLETION OF THE ASSESSMENT. THE TRIBUNAL FOLLOWING THE JUDGMENT OF THIS COURT IN THE CASE OF CIT VS. FOMENTO RESORTS & HOTELS LTD., IT APPEAL NO. 71 OF 2006, HAS HELD THAT THOUGH THE REOPENING OF THE ASSESSMENT IS WITHIN THREE YEARS FROM THE END OF THE RELEVANT ASSESSMENT YEAR, SINCE THE REASONS RECORDED FOR REOPENING OF THE ASSESSMENT WERE NOT FURNISHED TO THE ASSESSEE TILL THE COMPLETION OF ASSESSMENT, THE REASSESSMENT ORDER CANNOT BE UPHELD. MOREOVER, SPECIAL LEAVE PETITION FILED BY THE REV ENUE AGAINST THE DECISION OF THIS COURT IN THE CASE OF CIT VS. FOMENTO RESORTS & HOTELS LTD. (SUPRA) HAS BEEN DISMISSED BY THE APEX COURT, VIDE ORDER DT. 16 TH JULY, 2007. IN THIS VIEW OF THE MATTER, THE PRESENT APPEAL IS ALSO DISMISSED WITH NO ORDER AS TO COSTS. 3 ITA NO. 19/NAG/2014 WHEN I ANALYSIS THE FACTS OF THE PRESENT CASE ON THE ANVIL OF AFORESAID HIGH COURT DECISION, I FIND THAT THE ASSESSEE HAS NOT BEEN PROVIDED WITH REASON OF REOPENING BY THE AO DESPITE THE ASSESSEE MAKING A REQUEST DURING THE COURSE OF ASSESSMENT. AS A MATTER OF FACT THERE IS NO RECORD AS TO WHETHER THE REASON OF REOPENING HAS BEEN COMMUNICATED TO THE ASSESSEE BY THE AO. HENCE , IN THESE CIRCUMSTANCES, RESPECTFULLY FOLLOWING THE HONBLE JURISDICTIONAL HIGH COURT DECISION AS ABOVE, I UPHOLD THE ORDER OF LEARNED CIT(APPEALS). 3. IN THE RESULT, THIS APPEAL FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 17 TH DAY OF NOV., 2015. SD/ - ( SHAMIM YAHYA) ACCOUNTANT MEMBER. NAGPUR, DATED: 17 TH NOV., 2015. COPY FORWARDED TO : 1. TIRUPATI BALAJI SAHAKARI PAT SANSTHA LTD., . MIDC, HINGNA ROAD, NR. BALAJI HIGH SCHOOL, DIGDOH, NAGPUR - 440016. 2. I.T.O. , WARD - 7(2), NAGPUR. 3. C.I.T. - II, NAGPUR. 4. C.I.T. NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY. BY ORDER WAKODE ASSISTANT REGISTRAR, ITAT, NAGPUR