M/s. Shree Ram Straw Products Ltd., Uttrakhand V. ITO, New Delhi

ITA 2349/DEL/2013

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2977 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 29-02-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 22-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIMA BARNWAL SENIOR
• Keywords: Period of limitation
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH G GG G : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 2349/DEL/2013 2349/DEL/2013 2349/DEL/2013 2349/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2005 2005 2005 2005 - -- - 06 0606 06 M/S SHREE RAM STRAW M/S SHREE RAM STRAW M/S SHREE RAM STRAW M/S SHREE RAM STRAW PRODUCTS LIMITED, PRODUCTS LIMITED, PRODUCTS LIMITED, PRODUCTS LIMITED, (NOW KNOWN (NOW KNOWN (NOW KNOWN (NOW KNOWN AS AMBA DEVI AS AMBA DEVI AS AMBA DEVI AS AMBA DEVI PAPER MILLS LIMITED), PAPER MILLS LIMITED), PAPER MILLS LIMITED), PAPER MILLS LIMITED), CHAMUNDA VIHAR, CHAMUNDA VIHAR, CHAMUNDA VIHAR, CHAMUNDA VIHAR, RAM NAGAR ROAD, KASHIPUR, RAM NAGAR ROAD, KASHIPUR, RAM NAGAR ROAD, KASHIPUR, RAM NAGAR ROAD, KASHIPUR, U.S. NAGAR, U.S. NAGAR, U.S. NAGAR, U.S. NAGAR, UTTARAKHAND. UTTARAKHAND. UTTARAKHAND. UTTARAKHAND. PAN : AAGCS7117K. PAN : AAGCS7117K. PAN : AAGCS7117K. PAN : AAGCS7117K. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -8(3), 8(3), 8(3), 8(3), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI GAUTAM JAIN, ADVOCATE. RE SPONDENT BY : SMT. ANIMA BARNWAL, SENIOR DR. DATE OF HEARING : 29.02.2016 29.02.2016 29.02.2016 29.02.2016 DATE OF PRONOUNCEMENT : 03.03.2016 03.03.2016 03.03.2016 03.03.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEA R 2005-06 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XI, NE W DELHI DATED 31 ST JANUARY, 2013. 2. GROUND NO.1 OF THE CONCISE GROUNDS OF APPEAL OF THE ASSESSEE READS AS UNDER:- 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) XI, NEW DELHI HAS GROSSLY ERRED BOTH IN L AW AND ON FACTS IN UPHOLDING THE INITIATION OF PROCEEDINGS U/S 147 OF THE ACT AND ASSUMPTION OF JURISDICTION TO FRAME AN ASSESSMENT U/S 147/143(3) OF THE ACT DESPITE THE FA CT THAT THERE WAS NO MATERIAL ON RECORD TO FORM REASON TO ITA-2349/DEL/2013 2 BELIEVE THAT INCOME OF THE APPELLANT HAD ESCAPED ASSESSMENT AND THUS BOTH DESERVE TO BE QUASHED AS S UCH. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D HAVE PERUSED RELEVANT MATERIAL PLACED BEFORE US. THE CO PY OF REASONS RECORDS IS PLACED AT PAGE 72 OF THE ASSESSEES PAPE R BOOK, WHICH READS AS UNDER:- TO THE PRINCIPAL OFFICER, M/S SHREE RAM STRAW PRODUCTS LTD., CHAMUNDA VIHAR, RAM NAGAR ROAD, KASHIPUR, US NAGAR, UTTRAKHAND. SIR, SUB :- SEEKING REASONS FOR INITIATION PROCEEDINGS U /S 148 OF IT ACT, FOR THE AY 2005-06 REG. PLEASE REFER TO YOUR COUNSEL LETTER NO.127/CIT(A)/2005-06 DT. 12.1.2012 ON THE SUBJECT NOTED ABOVE. IN THIS REGARD, IT IS INFORMED THAT THE CASE WAS SELECTED FOR SCRUTINY BY ISSUE OF NOTICE U/S 148 IN PURSUANCE OF CBDT GUIDELINES FOR SELECTION OF CASES UNDER COMPULSORY SCRUTINY CATEGORY WHERE ADDITIONS OF R S.10 LAKHS OR MORE WAS MADE AND SUSTAINED BY THE CIT(A) IN THE PRECEDING F.Y. YOURS FAITHFULLY SD/- (HARI BHUSHAN) INCOME TAX OFFICER, WARD-8(3), NEW DELHI. 4. FROM THE ABOVE, IT IS EVIDENT THAT SECTION 148 W AS UTILIZED FOR THE PURPOSE OF SCRUTINY OF THE CASE. THUS, THE DEPARTM ENT ISSUED NOTICE U/S 148 FOR SCRUTINY OF THE CASE BECAUSE NOTICE U/S 143(2) COULD NOT BE ISSUED WITHIN THE PERIOD OF LIMITATION PRESCRIBED F OR ISSUING NOTICE U/S 143(2). IN OUR OPINION, SECTION 147 IS NOT A SUBST ITUTE FOR GETTING MORE TIME FOR ISSUE OF NOTICE U/S 143(2). OTHERWISE, TH ERE WOULD BE NO SANCTITY OF THE TIME LIMIT FOR ISSUE OF NOTICE U/S 143(2). WHEN THE ASSESSEE HAS FILED THE RETURN OF INCOME AND THE DEP ARTMENT WANTS TO ITA-2349/DEL/2013 3 SCRUTINIZE THE RETURN, IT MUST ISSUE NOTICE U/S 143 (2) WITHIN THE TIME LIMIT PRESCRIBED IN THE SAID SECTION. IN VIEW OF T HE ABOVE, WE ARE OF THE CONSIDERED OPINION THAT NOTICE U/S 148 CANNOT BE IS SUED FOR SCRUTINY OF THE CASE. IN THE REASONS RECORDED, THERE IS NO SAT ISFACTION OF THE ESCAPEMENT OF INCOME WHICH IS A SINE QUA NON FOR ASSUMING JURISDICTION U/S 148. IN VIEW OF THE ABOVE, WE QUA SH THE NOTICE U/S 148 AND CONSEQUENTIALLY, THE ASSESSMENT ORDER FRAMED IN PURSUANCE TO SUCH NOTICE IS ALSO QUASHED. 5. SINCE WE HAVE QUASHED THE ASSESSMENT ORDER FRAME D IN PURSUANCE TO NOTICE U/S 148, THE OTHER GROUNDS RAIS ED BY THE ASSESSEE IN THIS APPEAL HAVE BECOME INFRUCTUOUS AND NEED NO ADJUDICATION. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 03.03.2016 . SD/- SD/- (SUDHANSHU SRIVASTAVA (SUDHANSHU SRIVASTAVA (SUDHANSHU SRIVASTAVA (SUDHANSHU SRIVASTAVA ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S SHREE RAM STRAW M/S SHREE RAM STRAW M/S SHREE RAM STRAW M/S SHREE RAM STRAW PRODUCTS LIMITED, PRODUCTS LIMITED, PRODUCTS LIMITED, PRODUCTS LIMITED, (NOW KNOWN AS AMBA DEVI PAPER MILLS LIMITED), (NOW KNOWN AS AMBA DEVI PAPER MILLS LIMITED), (NOW KNOWN AS AMBA DEVI PAPER MILLS LIMITED), (NOW KNOWN AS AMBA DEVI PAPER MILLS LIMITED), CHAMUNDA VIHAR, RAM NAGAR ROAD, KASHIPUR, CHAMUNDA VIHAR, RAM NAGAR ROAD, KASHIPUR, CHAMUNDA VIHAR, RAM NAGAR ROAD, KASHIPUR, CHAMUNDA VIHAR, RAM NAGAR ROAD, KASHIPUR, U.S. NAGAR, UTTARAKHAND. U.S. NAGAR, UTTARAKHAND. U.S. NAGAR, UTTARAKHAND. U.S. NAGAR, UTTARAKHAND. 2. RESPONDENT : INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD INCOME TAX OFFICER, WARD- -- -8(3), NEW DELHI. 8(3), NEW DELHI. 8(3), NEW DELHI. 8(3), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR