M/s S.P.Enterprises, V. CIT,

ITA 214/RAN/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0335 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 06-06-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DEEPAK ROUSHAN SR S C
• Assessee Lawyers: S K PODDAR; M K CHOUDHARY
• Section: 40A(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI CIRCUIT BENCH, RANCHI BEFORE SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 214/RAN/2014 (ASST. YEAR : 2009-10) M/S. S.P. ENTERPRISES, 251, TATA KANDRA MAIN ROAD, ADITYAPUR, JAMSHEDPUR. VS. CIT, JAMSHEDPUR. PAN NO. AATFS 9150 L (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S.K. PODDAR & SHRI M.K. CHOUDHARY ADV. DEPARTMENT BY : SHRI DEEPAK ROUSHAN SR.SC DATE OF HEARING : 27/10/2015. DATE OF PRONOUNCEMENT : 27/10/2015. O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF COMMISSIONER OF INCOME TAX, JAMSHEDPUR, DATED 31/03 /2014 PASSED UNDER SECTION 263 OF THE ACT BY RAISING THE FOLLOWI NG GROUNDS OF APPEAL:- 1. FOR THAT THE LD. CIT WAS NOT JUSTIFIED IN SETTING A SIDE THE ORDER PASSED BY LD. ASSESSING OFFICER BY PASSING AN ORDER U/S 263. LD. CIT HELD IN AN ILLEGAL WAY THAT THE ORDER PASSE D WAS ERRONEOUS AND PREJUDICIAL TO REVENUE. 2. FOR THAT THE REFERENCE TO THE DECISIONS MENTIONED I N THE ORDER PASSED U/S 263 IS MISPLACED RATHER THEY ARE IN FAVO UR OF THE ASSESSEE TO SUGGEST THAT LD. CIT PASSED AN ORDER U/ S 263 WITHOUT SUFFICIENT REASON AND WITHOUT CONSIDERING T HE PROVISION OF SEC. 263 JUDICIOUSLY. 2 ITA NO. 214/RAN/2014 3. FOR THAT LD. CIT HELD THAT LD. ASSESSING OFFICER FA ILED TO INITIATE PROCEEDINGS U/S 271E, AS SUCH, THE ORDER PASSES IS PREJUDICIAL TO REVENUE. ALL THE FACTS WERE BEFORE THE LD. ASSE SSING OFFICER AND FOLLOWING THE DECISION OF HON'BLE JHARKHAND HIG H COURT INITIATION OF PROCEEDINGS U/S 271E WOULD HAVE BEEN ILLEGAL. THE FINDING OF LD. CIT THEREFORE IS UNJUSTIFIED AND INCORRECT. 4. FOR THAT THE SUGGESTION OF LD. CIT THAT THE DISALLO WANCE WAS CALLED FOR U/S 40A(3) FOR THE PAYMENT MADE IN CASH. REPAYMENT OF ADVANCES WILL NOT QUALIFY FOR DISALLOW ANCE. FURTHER, THE DISALLOWANCE U/S 40A(3) IS SUBJECTIVE AND NOT ABSOLUTE. IF THE LD. ASSESSING OFFICER WAS SATIS FIED THAT THE DISALLOWANCE WAS NOT CALLED FOR DISALLOWANCE CANNOT BE MADE LD. CIT PASSED AN ORDER U/S 263 TO SUGGEST THAT PAY MENT MADE IN CASH IS A DISALLOWABLE ITEM AS PER PROVISIO N OF LAW WHICH IS NOT CORRECT. 5. FOR THAT IN ANY VIEW OF THE CASE, THE ORDER PASSED U/S 263 IS UNJUSTIFIED, ILLEGAL AND INCORRECT. LD. CIT HAS FA ILED TO BRING ON RECORD, ANY JUSTIFIABLE REASON TO SUGGEST THAT THE ORDER PASSED WAS ERRONEOUS OR PREJUDICIAL TO REVENUE, AS SUCH, O RDER PASSED U/S 263 IS FIT TO BE CANCELLED. 6. FOR THAT OTHER GROUNDS IN DETAIL WILL BE ARGUED AT THE TIME OF HEARING. 2. AT THE TIME OF HEARING, AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT HE WANTS TO WITHDRAW THE APPEAL FILE D BY THE ASSESSEE AND SOUGHT PERMISSION OF THE BENCH. HE ALSO MADE A N ENDORSEMENT TO THIS EFFECT ON THE GROUNDS OF APPEAL FILED BEFORE U S WITH FORM NO. 36 MEMORANDUM OF APPEAL. 3 . DEPARTMENTAL REPRESENTATIVE HAD NO OBJECTION TO WITHDRAWAL OF THE APPEAL FILED BY THE ASSESSEE. HENCE, APPEAL FI LED BY THE ASSESSEE IS DISMISSED AS WITHDRAWN. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON TUESDAY, THE 27 TH DAY OF OCTOBER, 2015 AT RANCHI. SD/- SD/- (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 27 TH OCTOBER, 2015. 3 ITA NO. 214/RAN/2014 VR/- COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., RANCHI 4 ITA NO. 214/RAN/2014 DATE INITIAL ORIGINAL DICTATION PAD IS ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 27/10/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 28/10/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 28/10/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 28/10/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 28/10/2015 SR.PS 6. DATE OF PRONOUNCEMENT 27/10/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 28/10/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER