AGENCIES RAJASTHAN PRIVATE LIMITED, JAIPUR V. ITO, WARD-6(2), JAIPUR

ITA 196/JPR/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6660 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 17-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: HEMANG GARGIEYA
• Keywords: Revision of order; Set aside; Bogus
• Section: 263; 63; 143(3)

Judgement Text

1 VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,B JAIPUR JH JESK LH-'KEKZ] YS[KK LNL; ,O LAANHI XKSLKBZ] U;KF;D LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA, AM & SHRI SANDEEP GOS AIN, JM VK;DJ VIHY LA-@ ITA NO.196/JP/2020 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2015-16 M/S. AGENCIES RAJASTHAN PVT. LTD. A-2, BANGUR HOUSE, PRITHVI RAJ ROAD C SCHEME, JAIPUR CUKE VS. THE PR.CIT JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AABCA5667 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MAHENDRA GARGIEYA, ADVOCATE & SHRI HEMANG GARGIEYA, ADVOCATE JKTLO DH VKSJ LS@ REVENUE BY: SHRI B.K. GUPTA, CIT- DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 08/09/2020 MN?KKS'K.KK DH RKJH[K@ DATE OF PRONOUNCEMENT: 11/09/2020 VKNS'K@ ORDER PER SANDEEP GOSAIN, J.M. THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST ORDER OF LD. PR.CIT (A), JAIPUR DATED 24.01.2020 FOR THE ASSESSMENT YEAR 2015-16 PASSED UNDER SECTION 263 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) ON THE GROUNDS MENTIONED HEREINBELOW. 1. THE IMPUGNED ORDER DATED 24-01-2020 PASSED U/S 263 OF THE ACT BY THE LD PR.CIT, JAIPUR IS BARRED BY LIMITATIO N AND HENCE THE SAME IS PRAYED TO BE QUASHED. 2. THE LD PR.CIT, JAIPUR ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN INVOKING THE PROVISIONS OF SECTION 263 OF T HE ACT AND THEREFORE, ITA NO.196/JP/2020 M/S. AGENCIES RAJASTHAN PVT. LTD. VS PR.CIT, JAIPUR 2 THE IMPUGNED ORDER DATED 24-01-2020 PASSED U/S 263 OF THE ACT KINDLY BE QUASHED. 3. THE LD PR.CIT, JAIPUR ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN ASSUMING JURISDICTION U/S 263 OF THE ACT BY WRONGLY AND INCORRECTLY HOLDING THAT THE AO FAILED TO INITIATE PENALTY PROCEEDINGS U/S 271(1) OF THE ACT, HENCE THE ASSESSMENT ORDER PASSED BY THE AO ON DATED 30-12-2017 U/S 143(3) WAS ERRONEOUS AND PR EJUDICIAL TO THE INTEREST OF REVENUE. THE VERY ASSUMPTION OF JURISDI CTION IS CONTRARY TO THE PROVISIONS OF LAW AND FACTS ON RECORD. HENCE, T HE PROCEEDINGS SO INITIATED U/S 263 OF THE ACT AND THE IMPUGNED ORDER DATED 24-01-2020 DESERVES TO BE QUASHED. DUE TO PREVAILING COVID-19 PANDEMIC CONDITION, THE HEARING OF THE APPEALS ARE CONCLUDED THROUGH VIDEO CONFERENCE. 2.1 BRIEF FACTS OF THE CASE ARE THAT ASSESSMENT U/ S 143(3) OF THE ACT WAS COMPLETED ON 30-12-2017 BY THE AO AND THUS THE AO MADE THE ADDITION / DISALLOWANCE UNDER DIFFERENT HEADS. LATE R ON, THE LD. PR.CIT CONSIDERED THAT THE AO HAD FAILED TO INITIATE THE PENALTY PROCEEDINGS U/S 271(1) OF THE ACT DESPITE RECORDING OF CLEAR CUT F INDINGS ABOUT THE BOGUS NATURE OF THE SHORT TERM CAPITAL LOSS CLAIMED BY THE ASSESSEE. THEREFORE, THE LD. PR. CIT AFTER PROVIDING ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE INVOKED THE PROVISIONS OF SECTION 2 63 OF THE ACT VIDE ORDER DATED 24-01-2020 BY HOLDING THAT THE ORDER PA SSED BY THE AO U/S 143(3) OF THE ACT WAS ERRONEOUS INSOFAR AS IT IS PR EJUDICIAL TO THE INTEREST OF REVENUE AS THE AO HAS HAD FAILED TO INITIATE THE PENALTY PROCEEDINGS U/S 271(1) OF THE ACT. ITA NO.196/JP/2020 M/S. AGENCIES RAJASTHAN PVT. LTD. VS PR.CIT, JAIPUR 3 2.2 WE HAVE HEARD THE LD. COUNSELS FOR BOTH THE PAR TIES AND BOTH PARTIES HAVE ADDRESSED THEIR COUNTER ARGUMENTS AS WELL AS HAVE ALSO PLACED ON RECORDS/ JUDGEMENTS SUPPORTING THEIR CAUSE. HOWEVER , AT THIS STATE, WE ARE NOT INCLINED TO GO IN DETAIL REGARDING THE MERIT O F THE ORDER PASSED U/S 263 OF THE ACT BY THE LD. PR. CIT,BECAUSE THE GLARING F ACT HAS BEEN BROUGHT BEFORE US THAT ITAT COORDINATE BENCH, JAIPUR HAD AL READY DELETED THE ENTIRE ADDITION MAINLY WITH RESPECT TO WHICH THE LD . CIT (ADM) INVOKED SECTION 263 OF THE ACT. SINCE THE VERY ADDITIONS AR E NOT IN EXISTENCE AT THIS STAGE, THEREFORE, SUSTAINING THE PRESENT ORDER OF LD. PR.CIT U/S 263 OF THE ACT IS NOT IN ACCORDANCE WITH LAW. HOWEVER, THE LD. DR SUBMITTED BEFORE US THAT THEY HAVE CHALLENGED THE ORDER PASSE D BY THE ITAT JAIPUR BENCH BEFORE THE HON'BLE RAJASTHAN HIGH COURT AS IT AT HAS WRONGLY DELETED THE ADDITION. 2.3 BE THAT AS IT MAY, NO ORDER OF HON'BLE RAJASTHA N HIGH COURT STAYING OPERATION OF THE ORDER OF ITAT JAIPUR BENCH IN DELETING THE ADDITION HAS BEEN PLACED BEFORE US. THEREFORE, IN S UCH CIRCUMSTANCES AS OF NOW, THERE ARE NO ADDITIONS IN EXISTENCE AS THOS E VERY ADDITIONS ON THE BASIS OF WHICH THE LD. PR. CIT HAD INVOKED THE PROV ISIONS OF SECTION 263 OF THE ACT HAD ALREADY STOOD DELETED BY THE ITAT CO ORDINATE BENCH, ITA NO.196/JP/2020 M/S. AGENCIES RAJASTHAN PVT. LTD. VS PR.CIT, JAIPUR 4 JAIPUR. THEREFORE, WE ALLOW THE PRESENT APPEAL OF T HE ASSESSEE AND SET ASIDE THE ORDER PASSED U/S 263 OF THE ACT BY THE LD . PR. CIT UNDER PECULIAR FACTS AND CIRCUMSTANCES OF THE CASE. HOWEVER, WE GI VE LIBERTY TO THE DEPARTMENT TO INITIATE APPROPRIATE PROCEEDINGS IN C ASE THE ORDER PASSED BY THE ITAT COORDINATE BENCH, JAIPUR DELETING THE ADDI TION IS MODIFIED/REVERSED BY HON'BLE RAJASTHAN HIGH COURT A T ANY FUTURE DATE. IN THIS VIEW OF THE MATTER, THE APPEAL OF THE ASSESSEE IS ALLOWED. 3.0 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED IN TERMS INDICATED HEREINABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 11/09/202 0. SD/- SD/- JESK LH-'KEKZ LANHI XKSLKBZ (RAMESH C. SHARMA) (SANDEEP GOSAI N) YS[KKLNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 11 /09/2020. *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT - M/S.AGENCIES RAJASTHAN PVT. LTD. JAIPUR 2. IZR;FKHZ@ THE RESPONDENT-THE PR.CIT, JAIPUR 3. VK;DJ VK;QDR@ CIT 4. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR . 5. XKMZ QKBZY@ GUARD FILE {ITA NO. 196JP/2020} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSTT. REGISTRAR