Indusface Pvt. Ltd., Vadodara V. The ACIT, Circle-1(1)(2), Vadodara

ITA 1990/AHD/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6392 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 04-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAHESH SHAH; MSA KHAN
• Keywords: Capital asset
• Section: 143(3); 234B

Judgement Text

ITA NO.: 1990/AHD/2017 ASSESSMENT YEAR: 2013-14 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD D BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR VP AND MADHUMITA ROY JM] ITA NO.: 1990/AHD/ 2017 ASSESSMENT YEAR: 2013-14 INDUSFACE PVT. LTD., .....APPELLA NT A-2-3 STATUS PLAZA, OPP. RELISH RESORT, NEAR HERO HONDA SHOWROOM, AKSHAR CHOWK, VADODAA 390 007. [PAN: AABCI 2626 J] VS ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1)(2), VADODARA ..........RESPON DENT APPEARANCES BY S N SOPARKAR, MILIN MEHTA, BANDISH SOPARKAR AND PAR IN SHAH FOR THE APPELLANT MAHESH SHAH AND MSA KHAN FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : NOVEMBER 13, 2018 DATE OF PRONOUNCEMENT : FEBRUARY 8, 2019 O R D E R PER PRAMOD KUMAR, VP: 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HA S CHALLENGED CORRECTNESS OF THE ORDER DATED 27 TH JUNE 2017, PASSED BY THE CIT(A) IN THE MATTER OF A SSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961, FOR THE ASSESSMENT YEA R 2013-14. 2. GRIEVANCES RAISED BY THE APPELLANT ARE AS FOLLOW S : 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-1, VADODARA [THE CIT(A)] ERRED IN FACT AND IN LAW IN CHARGING TO TA X GAINS ARISING ON TRANSFER OF LONG TERM CAPITAL ASSET AT THE RATE APP LICABLE TO SHORT-TERM CAPITAL GAIN. 2. THE LEARNED CIT(A) ERRED IN FACT AND IN LAW IN HOLD ING THAT SECTION 50 INSTEAD OF SECTION 112 OF THE INCOME TAX ACT, 1961 (THE ACT) IS APPLICABLE FOR DETERMINING THE RATE AT WHICH CAPITA L GAINS, ARISING ON TRANSFER OF LONG TERM CAPITAL ASSET, IS CHARGEABLE TO TAX. ITA NO.: 1990/AHD/2017 ASSESSMENT YEAR: 2013-14 PAGE 2 OF 2 3. THE LEARNED CIT(A) ERRED IN FACT AND IN LAW IN CONF IRMING THE ACTION OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1(1)(2 ), VADODARA (THE AO) IN CHARGING INTEREST U/S. 234B OF THE ACT. 3. VIDE OUR ORDER OF EVEN DATE IN THE CASE OF ASHIS H TANDON, THE THEN CHAIRMAN OF THE COMPANY, WE HAVE MADE CERTAIN OBSERVATIONS WITH RES PECT TO THE NATURE OF TRANSACTION WHICH HAS RESULTED IN THE IMPUGNED INCOME IN THE HANDS OF THIS ASSESSEE AS ALSO IN THE CASE OF ASHISH TANDON. THESE OBSERVATIONS MAY HAVE SOME RE LEVANCE IN THE ADJUDICATION ON THIS APPEAL AS WELL. HOWEVER, AS THAT DECISION WAS NOT AVAILABLE AT THE POINT OF TIME WHEN THIS APPEAL WAS HEARD, WE CONSIDER IT APPROPRIATE TO REM IT THE MATTER TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION IN ACCORDANCE WITH THE LAW BY WA Y OF A SPEAKING ORDER ON SPECIFIC CONTENTIONS RAISED BY THE ASSESSEE, AFTER GIVING YE T ANOTHER OPPORTUNITY OF HEARING TO THE ASSESSEE. 4. IN VIEW OF THE ABOVE DISCUSSIONS AND BEARING IN MIND ENTIRETY OF THE CASE, WE REMIT THE MATTER TO THE FILE OF THE CIT(A) IN TERMS OF DI RECTION ABOVE. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. PRONOUNCED IN THE OPEN COURT TODAY ON THE 8 TH DAY OF FEBRUARY, 2019. SD/- SD/- MADHUMITA ROY PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMB ER) AHMEDABAD, DATED THE 8 TH DAY OF FEBRUARY, 2019. PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD