The ACIT,Navsari Circle, Navsari V. M/s. Naranlala Pvt.Ltd., Navsari

ITA 1977/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85861 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2002-2003
• Appeal Filed On: 09-08-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MK SINGH

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD .., , BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ I.T.A. NO. 1977/AHD/2011 ( / ASSESSMENT YEAR : 2002-03) THE ASST.CIT NAVSARI CIRCLE, NAVSARI / VS. NARANLALA LTD. NEAR RAILWAY STATION NAVSARI ./ ./ PAN/GIR NO. : AAACN 7719 C ( # / APPELLANT ) .. ( $% # / RESPONDENT ) #& / APPELLANT BY : SHRI M.K. SINGH, SR.DR $% #'& / RESPONDENT BY : SHRI SULABH PADSHAH, AR ()'* / DATE OF HEARING 13/02/2015 +,-.'* / DATE OF PRONOUNCEMENT 27/03/2015 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-VALSAD (CIT(A) IN SHORT) DATED 31/05/2011 PERTAINING TO ASSESSMENT YEAR (AY) 2002-03. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE HONBLE CIT(A) ERRED IN DELETING THE ADDITION OF RS .18,41,107/- MADE ON ACCOUNT OF DISALLOWANCE RETENTION MONEY. ITA NO1977 /AHD /2011 ACIT VS. NARANLALA P.LTD. ASST.YEAR 2002-03 - 2 - 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD.CIT(A) OUGHT TO HAVE UPHELD THE ADDITION MADE BY THE AO. 3. IT IS, THEREFORE, PRAYED TO SET ASIDE THE ORDER PAS SED BY THE CIT(A) AND THAT OF THE ORDER PASSED BY THE AO BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR A MEND ANY GROUNDS OF APPEAL. 2. THIS IS A SECOND ROUND OF LITIGATION. BRIEFLY ST ATED FACTS ARE THAT THE CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTIN Y ASSESSMENT AND THE ASSESSMENT U/S.143(3) R.W.S.254 OF THE INCOME TAX A CT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ORDER DAT ED 27/12/2010, THEREBY THE ASSESSING OFFICER (AO IN SHORT) CONFIRM ED THE ADDITION MADE ON ACCOUNT OF THE RETENTION MONEY AS WELL AS ON LIC ENCE FEE. AGAINST THIS, THE ASSESSEE FILED AN APPEAL BEFORE THE LD.CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND FOLLOWING THE E ARLIER ORDER PASSED IN AYS 2007-08, 2008-09 ALLOWED THE APPEAL. AGGRIEVED BY THE ORDER OF THE LD.CIT(A), NOW THE REVENUE IS IN APPEAL BEFORE US. 3. IT IS POINTED OUT BY THE LD.CIT-DR THAT THE LD.C IT(A) HAS NOTED IN THE ORDER THAT THE ISSUE HAS BEEN DECIDED IN FAVOUR OF ASSESSEE IN AYS 2002-03, 2005-06 AND 2006-07 BY THE PREDECESSORS OF THE LD.CIT(A). HE SUBMITTED THAT IN RESPECT OF THE ASSESSMENT YEAR 20 06-07, THE COORDINATE BENCH OF THIS TRIBUNAL (ITAT C BENCH AHMEDABAD) I N ITA NO.1831/AHD/2009, DATED 17/06/2011, HAD RESTORED TH E ISSUE TO THE FILE OF AO TO DECIDE IT AFRESH AFTER FOLLOWING THE JUDGEMEN T OF HONBLE APEX ITA NO1977 /AHD /2011 ACIT VS. NARANLALA P.LTD. ASST.YEAR 2002-03 - 3 - COURT IN THE CASE OF ROTORK CONTROLS INDIA P.LTD. V S. CIT 314 ITR 62 AND OF HONBLE PUNJAB & HARYANA HIGH COURT IN THE C ASE OF CIT VS. SUBRATA DUTTA CHOUDHARY 197 TAXMAN 71. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT THE COORDINATE BENCH (ITAT C BENCH A HMEDABAD) IN ITA NO.1831/AHD/2009 FOR AY 2006-07(SUPRA) HAS GIV EN DIRECTION TO THE AO THAT READS AS UNDER:- 8. ON CONSIDERATION OF THE FACTS OF THE CASE IT I S CLEAR THAT EARLIER THE ISSUE WAS DECIDED AGAINST THE ASSESSEE BY ITAT AHME DABAD BENCH IN THE CASE OF THE ASSESSEE ITSELF, COPIES OF THE SAME ARE FILED IN THE PAPER BOOK. THE AUTHORITIES BELOW HAVE GONE BY THE FINDIN GS GIVEN AGAINST THE ASSESSEE IN THE EARLIER YEARS AND CONFIRMED THE ADD ITION ON THIS ISSUE. THEREFORE, COMPLETE FACTS OF THE CASE WERE NOT EXAM INED AND VERIFIED INCLUDING THE AMOUNT IF ANY INCURRED BY THE ASSESSE E FOR BUSINESS PURPOSE OUT OF THE RETENTION AMOUNT. HOWEVER, AFTER PASSING OF THE IMPUGNED ORDERS, THERE IS A CHANGE ON THE MATTER IN ISSUE AND THE POINTS HAVE NOW BEEN DECIDED IN FAVOUR OF THE ASSESSEE WHI CH IS ALSO NOT DISPUTED BY THE LEARNED DR. HOWEVER, THE AUTHORITIE S BELOW HAVE NO OCCASION TO EXAMINE THE FACTS OF THE CASE IN THE LI GHT OF THE ABOVE DECISIONS CITED BY THE LEARNED COUNSEL FOR THE ASSE SSEE. BOTH THE PARTIES AGREED THAT THE MATTER MAY BE REMANDED TO THE FILE OF THE AO FOR RECONSIDERATION OF THE ISSUE IN THE LIGHT OF THE DE CISION DELIVERED BY THE HON'BLE PUNJAB & HARYANA HIGH COURT AND THE HON'BLE SUPREME COURT (SUPRA). WE FIND FORCE IN THE SUBMISSIONS OF BOTH T HE PARTIES THAT THE MATTER REQUIRES RECONSIDERATION IN THE LIGHT OF THE ABOVE DECISIONS. WE ACCORDINGLY, SET ASIDE THE ORDERS OF THE AUTHORITIE S BELOW AND RESTORE THIS ISSUE TO THE FILE OF THE AO FOR RECONSIDERATIO N OF THE SAME IN THE LIGHT OF THE ABOVE DECISIONS CITED BY THE LEARNED C OUNSEL FOR THE ASSESSEE. THE AO SHALL ALSO VERIFY THE DETAILS FILE D BY THE ASSESSEE ON THIS ISSUE AND SHALL PASS REASONED ORDER IN ACCORDA NCE WITH LAW BY ITA NO1977 /AHD /2011 ACIT VS. NARANLALA P.LTD. ASST.YEAR 2002-03 - 4 - GIVING REASONABLE SUFFICIENT OPPORTUNITY OF BEING H EARD TO THE ASSESSEE. IN THE RESULT, THESE GROUNDS OF APPEAL OF THE ASSES SEE ARE ALLOWED FOR STATISTICAL PURPOSES. 4.1. SINCE THE FACTS ARE IDENTICAL TO THE FACTS OF ASSESSEES OWN CASE FOR AY 2006-07 AND FOLLOWING THE TRIBUNAL ORDER, THE IS SUE IS RESTORED BACK TO THE FILE OF AO TO DECIDE THE SAME IN THE LIGHT O F THE DIRECTION GIVEN BY THE COORDINATE BENCH IN ITA NO.1831/AHD/2009 FOR AY 2006-07(SUPRA). 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 27 TH DAY OF MARCH, 2015 AT AHMEDABAD. SD/- SD/- ( .. ) ( ) ( N.S. SAINI ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 27/ 03 /2015 2*..,(.../ T.C. NAIR, SR. PS ITA NO1977 /AHD /2011 ACIT VS. NARANLALA P.LTD. ASST.YEAR 2002-03 - 5 - !'#$%&' &$ / COPY OF THE ORDER FORWARDED TO : 1. # / THE APPELLANT 2. $% # / THE RESPONDENT. 3. 345 6 / CONCERNED CIT 4. 6 ( ) / THE CIT(A)-VALSAD 5. 7(8$45 , *45. , 3 / DR, ITAT, AHMEDABAD 6. 8:;<) / GUARD FILE. ! / BY ORDER, %7$ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 26.2.15 (DICTATION-PAD 5- P AGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ..26.2.15 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.27.3.15 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER