DCIT, Coimbatore V. BILT Industrial Packaging Co. Ltd., Mettupalayam

ITA 1984/CHNY/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9082 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2016
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 09-06-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 14-09-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIVEKANANDAN IRS
• Assessee Lawyers: SURESH BALANI

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , . ! ' , #'$ BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A. NO.1984/MDS/2015 # % &% / ASSESSMENT YEAR : 2011-2012 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1, COIMBATORE VS. BILT INDUSTRIAL PACKAGING CO. LTD, THEKKAMPATTY, VIVEKANANDAPURAM, METTUPALAYAM 641 113. [PAN AABCB 2854K] ( / APPELLANT) ( /RESPONDENT) '( ) * / APPELLANT BY : SHRI. VIVEKANANDAN, IRS, CIT.. +,'( ) * /RESPONDENT BY : SHRI. SURESH BALANI, C.A. ! ) - / DATE OF HEARING : 09-06-2016 ./& ) - / DATE OF PRONOUNCEMENT : 17-06-2016 / O R D E R PER G. PAVAN KUMAR, JUDICIAL MEMBER : THE APPEAL FILED BY THE REVENUE IS DIRECTED AGA INST ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-1, COIM BATORE IN APPEAL NO. 438A/13-14, DATED 15.06.2015 FOR THE ASSESSMENT YEAR 2011-2012 PASSED U/S.143(3) AND 250 OF THE INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT). 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS:- 2 .THE ID.CIT(A)-I, HAS ERRED IN ALLOWING THE ASSESSE E'S APPEAL ITA NO.1984/MDS/2015. :- 2 -: ON THE ADDITION OF RS.9,40,60,914/- HOLDING THAT TH IS AMOUNT PERTAINS TO INVESTMENT MADE BY THE ASSESSEE'S GROU P COMPANIES VIZ., M/S. BALLAPUR INDUSTRIES LIMITED AND M/S.BILT PAPER HOLDINGS LTD., AND IT DOES NOT AMOUNT TO CESS ATION OF LIABILITY ULS.41(1) OF THE LT. ACT,1961. 3. THE ID.CIT(A)-I, FAILED TO CONSIDER THE HON'BLE SUPREME COURT'S DECISION IN THE CASE OF CIT VS. T.V. SUNDAR AM IYENGAR & SONS LTD., CITED IN [1996] 88 TAXMAN 429 (SC) WHE REIN IT WAS HELD THAT AN AMOUNT RECEIVED IN THE COURSE OF A TRA DING TRANSACTION, EVEN THOUGH IT IS NOT TAXABLE IN THE Y EAR OF RECEIPT AS BEING OF CAPITAL CHARACTER, AMOUNT CHANGES ITS C HARACTER WHEN THE AMOUNT BECOMES THE ASSESSEE'S OWN MONEY BECAUSE OF LIMITATION OR BY ANY OTHER STATUTORY OR CONTRACTUAL RIGHT AND SUCH AMOUNT SHOULD BE TREATED AS INCOME O F THE ASSESSEE. 4. THE ID.CIT(A)-I, FAILED TO NOTE THAT ALTHOUGH T HE AMOUNT RECEIVED ORIGINALLY WAS CAPITAL IN NATURE, SINCE TH E AMOUNT REMAINED UNCLAIMED WITH THE ASSESSEE FROM THE YEAR 2004-05 ONWARDS, IT BECOMES TIME BARRED AND THE ASSESSING O FFICER HAS RIGHTLY INVOKED THE PROVISIONS OF SECTION 41 (1) OF THE IT. ACT,1961. 5. FOR THESE AND OTHER GROUNDS THAT MAY BE ADDUCED AT THE TIME OF HEARING, THE ORDER OF THE ID. CIT(A), MAY B E CANCELLED AND THAT OF ASSESSING OFFICER BE RESTORED. 3. AT THE TIME OF HEARING, THE LD. DEPARTMENTAL REPRES ENTATIVE ARGUED THAT THE COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN PARTLY ALLOWING THE ASSESSEE APPEAL MENTIONING THE AMOUNT OF :9,40,60,914/- CANNOT BE MADE AS AN ADDITION ON CESSATION OF LIAB ILITY U/SEC. 41(1) OF THE ACT AS THE INVESTMENTS MADE BY THE GROUP COMPA NIES AND PRAYED FOR SETTING ASIDE THE ORDER OF COMMISSIONER OF INCO ME TAX (APPEALS) AND RESTORE THE ASSESSING OFFICER ORDER. 4. CONTRA, THE LD. AUTHORISED REPRESENTATIVE BROUGHT TO THE KNOWLEDGE OF THE BENCH THAT THE ASSESSEES APPEAL IN ITA NO.1934/MDS/2015, DATED 26.05.2016 FOR THE ASSESSMENT YEAR 2011- ITA NO.1984/MDS/2015. :- 3 -: 12 WAS DISPOSED OFF BY REMITTING THE DISPUTED ISSU E TO THE FILE OF THE LD. ASSESSING OFFICER AND FILED A COPY OF THE TRIBU NAL ORDER. WHEN THE BENCH, QUESTIONED THE LD. AUTHORISED REPRESENTATIV E WHY THE CLUBBING PETITION WAS NOT FILED, THERE WAS NO CONCE IVING ANSWER RECEIVED. 5. WE, CONSIDERING THE APPARENT FACTS AND MATERIAL ON RECORD, SINCE WE HAVE REMITTED THE ASSESSEES APPEAL TO THE FILE OF THE LD. ASSESSING OFFICER, WE CONSIDERED IT APPROPRIATE TO REMIT THE REVENUE APPEAL TO THE FILE OF THE LD. ASSESSING OFFICER FO R FRESH CONSIDERATION. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IN ITA NO. 1984/MDS/2015 IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON FRIDAY, THE 17TH DAY OF JUNE, 2016, AT CHENNAI. SD/- SD/- ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER ( . ! ' ) (G. PAVAN KUMAR) / JUDICIAL MEMBER / CHENNAI 1 / DATED: 17.06.2016 KV 2 ) +#-34 54&- / COPY TO: 1 . '( / APPELLANT 3. ! 6- () / CIT(A) 5. 4 9: +#-# / DR 2. +,'( / RESPONDENT 4. ! 6- / CIT 6. :;% < / GF