M/S Heaven Construction and Engineering Pvt. Ltd., Ranchi V. ITO,Ward-!(1), Ranchi

ITA 226/RAN/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8682 (ITAT-RANCHI)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 10-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDAN DAS
• Keywords: Reassessment proceedings
• Section: 143(3); 147; 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH : RANCHI [BEFORE HONBLE SHRI S.S. GODARA, JM] I.T.A NO. 226/RAN/201 8 ASSESSMENT YEAR : 2010-1 1 M/S HEAVEN CONSTRUCTION & ENGINEERING VS- ITO, WARD-1(1), RANCHI PVT. LTD. [PAN: AABCH 9922 N] (APPELLANT) ( RESPONDENT) FOR THE APPELLANT : SHRI DEVESH PODDAR, ADVOCATE FOR THE RESPONDENT : SHRI CHANDAN DAS, J CIT DATE OF HEARING : 11.01.2019 DATE OF PRONOUNCEMENT : 09.04.2019 ORDER 1. THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2010- 11 IS DIRECTED AGAINST THE CIT(A)-RANCHIS ORDER DATED 26.04.2018 PASSED IN CASE NO. CIT(A), RANCHI/10220/2016-17 INVOLVING PROCEEDINGS U/S 144 READ WITH SECTION 147 OF THE INCOME TAX ACT, 1961 ( IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES ONLY ARGUMENT RAISED DURING THE COURSE OF HEARING IS THAT THE ASSESSING OFFICERS SECTION 48 NOTICE DATED 22.10.2 019 FORMING PART OF RECORD OUGHT TO HAVE BEEN SERVED ON THE PRINCIPAL OFFICER THAN THE COMPANY ITSELF. THE REVENUE STRONGLY SUPPORTS THE IMPUGNED REASSESSMENT / REOPENING. I FIND IN THIS BACKDROP OF PLEADINGS THAT THE TRIBUNALS CO-ORDINA TE BENCH DECISION IN I.T.A. NOS. 4 & 24/RAN/2015 M/S PREMIER IMPLEMENTS AND EQUIPMEN TS PVT. LTD. VS. ITO DECIDED ON 28.02.2017 HAS QUASHED SIMILAR SECTION 1 47 / 148 PROCEEDINGS AS FOLLOWS: M/S HEAVEN CONSTRUCTION & ENGINEERING PVT. LTD. ITA NO.226/RAN/2018 ASSESSMENT YEAR: 2010-11 P PP PA AA AG GG GE EE E | || | 2 22 2 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE INSTANT CASE THE UNDISPUTED FACTS OF THE CASE ARE THAT THE NOTICE FOR INITIATION OF REASSESSMENT PROCEEDINGS U/S 148 OF T HE ACT WAS ISSUED TO M/S PREMIER IMPLEMENTS AND EQUIPMENTS PVT. LTD. THE CO NTENTION OF THE ASSESSEE IS THAT SINCE THE REASSESSMENT NOTICE U/S 148 WAS NOT ISSUED TO THE PRINCIPAL OFFICER OF THE ASSESSEE COMPANY M/S PREMIER IMPLEMENTS AND EQUIPMENTS PVT. LTD. THE SAID NOTICE WAS NOT A VALID NOTICE IN ACCORDANCE WI TH THE SECTION 282(2)(C ) OF THE ACT AND, THEREFORE, THE REASSESSMENT FRAMED U/S 147 READ WITH SECTION 143(3) OF THE ACT DATED 30.12.2013 IS NOT A VALID ORDER AND T HE SAME SHOULD BE QUASHED. THE LD. DR, SHRI CHAWDHURY HAS NOT CONTROVERTED THE SUBMISSIONS OF THE LD. AR OF THE ASSESSEE. WE FIND THAT THE HONBLE LUCKNOW BENC H OF THE TRIBUNAL IN THE CASE OF HARSINGAR GUTKHA (P) LTD VS. DCIT (SUPRA) HAS HE LD THAT WHEN NOTICE U/S 148 OF THE ACT WAS NOT SERVED ON THE PRINCIPAL OFFICER OF THE COMPANY, IT WAS NOT A VALID NOTICE U/S 282(2)(C ) OF THE ACT AND CONSEQUE NTLY THE REASSESSMENT ORDER PASSED IN PURSUANCE TO THE NOTICE IS ALSO BAD IN LA W. TO THE SAME EFFECT ARE THE DECISIONS OF THE AMRITSAR BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. MUKAND LAL & SONS (SUPRA) AND THE PUNE BENCH OF THE TRIBUNAL I N THE CASE OF KONKANI BHARAT DAIRY FARM (AOP) VS. ACIT (SUPRA). RESPECTFULLY FOL LOWING THE SAME, WE HOLD THAT AS THE NOTICE U/S 148 OF THE ACT WAS NOT ISSUE D TO THE PRINCIPAL OFFICER OF THE ASSESSEE COMPANY IT IS NOT A VALID NOTICE. CONSEQUE NTLY THE REASSESSMENT ORDER DATED 30.12.2013 PASSED U/S 147 OF THE ACT READ WIT HY SECTION 143(3) OF THE ACT IS BAD IN LAW AND , HENCE, WE QUASH THE REASSESSMENT O RDER DATED 30.12.2013 AND ALLOW THIS GROUND OF APPEAL OF THE ASSESSEE. 7. AS WE HAVE QUASHED THE REASSESSMENT ORDER PASSED U/S 147 OF THE ACT DATED 30.12.2013 THE OTHER GROUNDS OF APPEAL TAKEN BY THE ASSESSEE ON THE MERITS OF THE ADDITION HAS BECOME ONLY ACADEMIC IN NATURE AND HEN CE INFRUCTUOUS AND ACCORDINGLY THEY ARE DISMISSED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. 3. I ADOPT THE ABOVE DETAILED REASONING MUTATIS M UTANDIS TO QUASH THE IMPUGNED REOPENING AS WELL FOR WANT OF VALID SERVICE OF SECT ION 148 NOTICE ON THE ASSESSEES PRINCIPAL OFFICER. OTHER ISSUES ON MERITS ARE RENDE RED INFRUCTUOUS. 4. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 09.04.2019 SD/- [ S.S.GODARA ] JUDICIAL MEMBER DATED : 09.04.2019 M/S HEAVEN CONSTRUCTION & ENGINEERING PVT. LTD. ITA NO.226/RAN/2018 ASSESSMENT YEAR: 2010-11 P PP PA AA AG GG GE EE E | || | 3 33 3 SB, SR. PS COPY OF THE ORDER FORWARDED TO: 1. M/S HEAVEN CONSTRUCTION & ENGINEERING PVT. LTD., H NO. 24, KUSAI, KUMAR TOLI, DORANDA, RANCHI-834002. 2. ITO, WARD-1(1), RANCHI. 3..C.I.T(A).- 4. C.I.T.- RANCHI 5. CIT(DR), RANCHI BENCH. TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, RAN CHI BENCH