M/s. Govardhan Overseas Pvt. Ltd., , Kolkata V. PCIT-2, Kolkata

ITA 215/KOL/2022

AI Insights

The case involves Govardhan Overseas Pvt. Ltd., the appellant, contesting an order by the Principal Commissioner of Income Tax (PCIT), Kolkata-2, which initiated revision proceedings under section 263 of the Income Tax Act, 1961. The revision was based on an earlier assessment order under section 143(3) for the assessment year 2017-18, which the PCIT deemed erroneous and prejudicial to the interest of the revenue. The main contention by the assessee was that the revision was initiated without proper jurisdiction and was based on a fundamental misconception of facts and law. However, following the reassessment order, which did not alter the taxable income, the assessee chose to withdraw the appeal, rendering the matter infructuous.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 122938 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 31-01-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 01-05-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Revision of order
• Section: 263; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH ‘C’, KOLKATA [Before Shri Rajesh Kumar, Accountant Member & Shri Sonjoy Sarma, Judicial Member] I.T.A. No. 215/Kol/2022 Assessment Year : 2017-18 Govardhan Overseas Pvt. Ltd. PAN: AAACG 9580 G Vs. PCIT, Kolkata-2 Appellant Respondent Date of Hearing 01.02.2023 Date of Pronouncement 03.02.2023 For the Assessee Shri P.K. Himmat Singka, AR For the Revenue Shri G. Hukugha Sema, CIT ORDER Per Shri Sonjoy Sarma, JM: This appeal by the assessee is directed against the order passed by the ld. PCIT-2, Kolkata dated 24.03.2022 pertaining to the A.Y. 2017-18 which in turn have arisen from the order passed by the ld. AO u/s 143(3) of the I.T. Act dated 07.11.2017. The assessee has raised the following grounds of appeal: “i. That on facts and in the Circumstances of the case and in law, Ld. PCIT grossly erred in initiating the revision proceeding u/s 263 even though the Assessment Order u/s 143(3) dated 26-12-2019 passed by the AO was neither erroneous non prejudicial to the interest of the revenue. ii. That the order dated 24-03-2022 u/s 263 of the Act by the Ld. PCIT, Kolkata-2 has been made without satisfying preconditions contained in the Act and is therefore without jurisdiction and thus deserves to be quashed as such. iii. That the order dated 24-03-2022 u/s 263 framed by the Ld. PCIT, Kolkata-2 in a very casual manner without due diligence without considering the explanation and is based on fundamental misconception of the facts and provision of law and thus not in accordance with law and therefore untenable. iv. That on fact in the circumstances of the case and in law, the order passed by the PCIT u/s 263 of the Act, setting aside the assessment framed u/s 143(3) of the Act as erroneous and prejudicial to the interest of revenue is without jurisdiction, bad in law and void ab-initio. 2 ITA No. 215/Kol/2022 AY: 2017-18 Govardhan Overseas Pvt. Ltd. v. That the finding of Ld. PCIT that order of AO is erroneous and prejudicial to the interest of revenue on the following basis is factually incorrect, legally misconceived, contrary to evidence on record and in any way initiation of revision proceedings is vague, arbitrary and based on surmises consideration and therefore unsustainable. (a) The assessee had allegedly paid Rs. 32,40,861/- PF & ESI, Bonus & Leave Encashment after due date required to be added with total income and brought to tax despite PF & ESI Rs. 2,56,610/- were paid within due dates of respective act and balance Rs. 29,84,253/- on account of bonus and leave encashment were paid within due date of filing income tax return u/s 139(1).” 2. At the outset, ld. counsel for the assessee submitted before us that assessee did not want to press the instant appeal as in the case of assessee in pursuant to order u/s 263 passed by the ld. Pr. CIT dated 24.03.2022, ld. AO was framed an assessment order dated 31.01.2023 u/s 143(3) read with section 263 without making any addition in terms of the revisionary order passed u/s 263 of the Act. Therefore, the ld. AR fairly submitted that he may be allowed to withdraw this appeal, since the matter become infructuous. On the other hand, ld. DR has no objection on such prayer made by the ld. AR of the assessee. 3. We after considering the submission made by the parties and considering the prayer made by the ld. AR of the assessee, we dismiss the appeal as withdrawn. 4. In the result, the appeal of the assessee is dismissed. Order pronounced in the open court on 03.02.2023. Sd/- Sd/- (Rajesh Kumar) (Sonjoy Sarma) Accountant Member Judicial Member Dated: 03.02.2023 Biswajit, Sr. PS 3 ITA No. 215/Kol/2022 AY: 2017-18 Govardhan Overseas Pvt. Ltd. Copy of the order forwarded to: 1. Appellant- Govardhan Overseas Pvt. Ltd., C/o. P.K. Himmatsinghka & Co., 41, B.B. Ganguly Street, Central Plaza, 2nd Floor, Kolkata -700012. 2. Respondent – PCIT, Kolkata-2. 3. Ld. CIT 4. Ld. CIT(A) 5. Ld. DR True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata