DCIT, New Delhi V. M/s. Eastern Medikit Ltd., New Delhi

ITA 2099/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61752 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-07-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 03-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY BAHADUR
• Section: 143(3); 263; 144

Judgement Text

ITA NO. 2099/DEL/2012 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B, NEW DELHI BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 2099/DEL/2012 A.Y. : 2005-06 DY. COMMISSIONER OF INCOME TAX, CIRCLE 11(1), NEW DELHI VS. M/S EASTERN MEDIKIT LTD., 3, G.C. NARANG MARG, NEW DELHI (PAN/GIR NO. : AAACE0706G) (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSESSEE BY : NONE DEPARTMENT BY : SH. SANJAY BAHADUR, C.I.T.(D.R.) ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-XIII, NEW DEL HI DATED 15.2.2012 PERTAINING TO ASSESSMENT YEAR 2005-06. 2. THE GROUNDS RAISED READ AS UNDER:- I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN QUASHING THE ORD ER PASSED U/S. 144 READ WITH SECTION 263 OF THE ITAT A CT, 1961. II) THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AM END ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF HEARING . ITA NO. 2099/DEL/2012 2 3. IN THIS CASE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING EXPORTING AND TRADING OF MEDICAL DISPOS ABLE ITEMS. ORIGINAL ASSESSMENT U/S. 143(3) WAS PASSED ON 28.12 .2007 DETERMINING TOTAL INCOME AT ` 7,24,47,260/-. SUBS EQUENTLY THE ABOVE ORDER PASSED BY THE ASSESSING OFFICER WAS SET ASID E BY THE LD. COMMISSIONER OF INCOME TAX U/S. 263 OF THE I.T. ACT VIDE HIS ORDER DATED 31.12.2009 ON THE GROUND THAT THE ORDER PASSE D BY THE ASSESSING OFFICER ON 28.12.2007 WAS ERRONEOUS AS WELL AS PRE-JUDICIAL TO THE INTEREST OF REVENUE. THE ORDER PASSED BY TH E LD. COMMISSIONER OF INCOME TAX U/S. 263 WAS CHALLENGED IN THE APPEAL BEFORE THE ITAT. THE ITAT IN I.TA. NO. 1000/DEL/2010 DATED 3.8.2010 H AS ALLOWED THE APPEAL OF THE ASSESSEE AND ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX U/S. 263 WAS SET ASIDE. SUBSEQUENT TO THE LD. COMMISSIONER OF INCOME TAXS ORDER U/S. 263 IN THIS CASE ASSESSMENT WAS FRAMED BY THE ASSESSING OFFICER IN THIS CASE A T A TOTAL INCOME OF ` 10,22,78,530/-. 4. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX (A) HELD THAT SINCE THE ORDER PASSED U/S. 263 OF THE I .T. ACT BY THE LD. COMMISSIONER OF INCOME TAX HAS BEEN SET ASIDE BY TH E ITAT, DELHI BENCH. HENCE THE ORDER PASSED BY THE ASSESSING OFFICER U/S. 143(3) READ WITH SECTION 263 TO GIVE EFFECT TO THE C.I.T. S DIRECTION CANNOT SURVIVE. HENCE, HE HELD THAT ORDER PASSED BY TH E ASSESSING OFFICER U/S. 143(3) DATED 28.12.2010 HAS BECOME INFRUCTUOUS . 5. AGAINST THE ABOVE ORDER THE ASSESSEE IS IN APPEA L BEFORE US. 6. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIV E. NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWEVER, IN O UR CONSIDERED OPINION, THE MATTER CAN BE DISPOSED OF BY PERUSING THE RECORDS AND ITA NO. 2099/DEL/2012 3 HEARING THE DEPARTMENTAL REPRESENTATIVE. WE H AVE CAREFULLY CONSIDERED THE ISSUE. WE FIND THAT ASSESSMENT IN T HIS CASE HAS BEEN FRAMED PURSUANT TO THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX U/S. 263 OF THE I.T. ACT. THE SAID ORDER OF THE L D. COMMISSIONER OF INCOME TAX WAS SET ASIDE BY THE TRIBUNAL. UNDER SUCH CIRCUMSTANCES, THERE IS NO INFIRMITY IN THE LD. COMMISSIONER OF INCO ME TAX (A)S CONCLUSION THAT SINCE THE TRIBUNAL HAS SET ASIDE TH E ORDER U/S. 263, THE ASSESSMENT ORDER PASSED PURSUANT TO THE SAID ORDER U/S. 263 CANNOT SURVIVE. ACCORDINGLY, WE AFFIRM THE ORDER OF THE L D. COMMISSIONER OF INCOME TAX (A). 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09/7/2012, U PON CONCLUSION OF HEARING. SD/- SD/- [ [[ [R.P. TOLANI R.P. TOLANI R.P. TOLANI R.P. TOLANI] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 09/7/2012 SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES