Entertainment Society of Goa., Panaji V. The Commissioner Of Income Tax, Panaji., Panaji

ITA 240/PAN/2015

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3480 (ITAT-PANAJI)
• Duration Of Justice: 6 year(s) 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 21-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRA BHAT JHA
• Assessee Lawyers: GAURANG PANANDIK ER
• Keywords: Revision of order; Set aside
• Section: 143(3); 12AA; 201; 13; 263; 12

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI, BENCH PANAJI , , BEFORE SHRI LALIET KUMAR, JM AND DR. MITHA LAL MEENA, AM ITA NO. 240 /PAN/201 5 (A Y: 201 0 - 201 1 ) ENTERTAINMENT SOCIETY OF GOA, OLD GMC HERITAGE PRECINT, D.B.MARG, CAMPAL, PANAJI - GOA PAN : A AATE 2498 Q VS CIT, PANAJI, GOA - 403001 ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI GAURANG PANANDIK ER, ADV. /REVENUE BY : SHRI PRABHAT JHA, CIT DR / DATE OF HEARING : 0 4 /1 0 /202 1 / DATE OF PRONOUNCEMENT : 0 4 /10 /202 1 / O R D E R PER BENCH : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE OR DER DATED.20.03.2015, PASSED BY THE PR. CIT , PANAJI FOR THE ASSESSMENT YEAR 2010 - 2011, ON THE FOLLOWING GROUNDS : - 1. THE LEARNED CIT ERRED IN EXERCISING JURISDICTION UNDER SECTION 263 OF THE ACT IN RESPECT OF THE ASSESSMENT ORDER PASSED BY THE ASSESSING O FFICER CONSIDERING THE APPELLANT TRUST AS A REGISTERED TRUST U/S 11, 12 AND 13 OF I T ACT. 2. THE LEARNED CIT ERRED IN HOLDING THAT THE ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) OF THE ACT DATED 31/01/2013 IS ERRONEOUS AND PREJUDICIAL T O THE INTEREST OF THE REVENUE. 3. THE LEARNED CIT OUGHT NOT TO HAVE EXERCISED JURISDICTION IN RESPECT OF MATTERS ACCEI3IED'AFTER DUE APPLICATION OF MIND BY THE ASSESSING OFFICER. 4. THE LEARNED CIT ERRED IN GIVING DIRECTIONS U/S 263 OF IT ACT TO THE ASSESSING OFFICER BY IGNORING THE APPEAL FILED BY THE APPELLANT TRUST BEFORE JURISDICTIONAL BOMBAY HIGH COURT AGAINST THE ORDER OF THE CIT WITHDRAWING ITS REGISTRATION U/S 12AA(3) OF IT ACT. 2 5. THE LEARNED CIT ERRED IN EXERCISING JURISDICTION UNDER SECT ION 263 OF IT ACT ON THE GROUND THAT THE DEDUCTIONS CLAIMED BY THE APPELLANT TRUST IN THE STATUS OF A REGISTERED TRUST WERE ALLOWED TO IT BY THE ASSESSING OFFICER DESPITE THE FACT THAT NO SUCH DEDUCTIONS WERE ALLOWED BY THE ASSESSING OFFICER TO THE APPELLA NT TRUST IN HER ASSESSMENT ORDER PASSED FOR THE YEAR. 6. ON THE FACTS AND CIRCUMSTANCE SOF THE CASE THE ORDER OF OTHE LEARNED THE LEARNED CIT(A) U/S 263 OF IT ACT WAS NOT IN ACCORDANCE WITH THE LAW BECAUSE THE ASSESSING OFFICERS ACTION OF NOT CONSIDER ING THE ISSUE OF WITHDRAWAL OF REGISTRATION OF THE APPELLANT TRUST GRANTED EARLIER U/S.12A OF IT ACT AT THE TIME OF PASSING THE ASSESSMENT FOR THE YEAR HAS NOT CAUSED ANY LOSS OF REVENUE TO THE INCOME TAX DEPARTMENT. 2. FACTS IN BRIEF ARE THAT THE ASSES SEE FILED ITS RETURN OF INCOME ON 10.10.2010 FOR A.Y.2010 - 2011 DECLARING TOTAL INCOME AT RS.NIL. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND THE AO COMPLETED THE ASSESSMENT U/S.143(3) OF THE ACT, WHEREBY THE AO ACCEPTED THE RETURNED INCOME OF TH E ASSESSEE. THEREAFTER THE PR.CIT, PANAJI INVOKING ITS POWER U/S.263 OF THE ACT SET ASIDE THE ORDER PASSED BY THE AO /S.143(3) OF THE ACT HOLING THAT THE ORDER PASSED BY THE AO IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE. NOW, THE ASSESSEE IS I N APPEAL BEFORE THE TRIBUNAL AGAINST THE ORDER PASSED U/S.263 OF THE ACT. 3. LEARNED AR, AT THE OUTSET, DREW OUR ATTENTION TO THE ORDER OF THE HONBLE BOMBAY HIGH COURT BY VIRTUE OF WHICH THE ORDER U/S.12A OF THE ACT WAS GRANTED IN FAVOUR OF THE ASSESSEE ALONG WITH OTHER BUNCH OF APPEAL, VIDE ORDER DATED 4 TH FEBRUARY, 2020 IN TAX APPEAL NO.15/2013. IT WAS FURTHER SUBMITTED THAT THE ORDER PASSED BY THE PR.CIT INVOKING JURISDICTION U/S.263 OF THE ACT WAS ON THE PREMISES THAT THE ASSESSEE WAS NOT HAVING REGIS TRATION U/S.12A OF THE ACT. IT WAS SUBMITTED THAT THE SINCE THE ORDER PASSED BY THE HONBLE BOMBAY HIGH COURT AT GOA HAS APPROVED 3 12AA IN FAVOUR OF THE ASSESSEE , THEREFORE, THE ORDER PASSED BY THE PR.CIT IS REQUIRED TO BE QUASHED. 4. ON THE OTHER HAND, LEA RNED. DR RELIED ON THE ORDER PASSED BY THE PR.CIT, DATED 20.03.2015. 5. WE HAVE HEARD THE RIVAL CONTENTION OF THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE PR.CIT IN PARAGRAPHS 3 & 4 AT PAGES 2 & 3 OF HIS ORDER HAS CLEARLY MENTIONED THAT TH E MATTER IS PENDING BEFORE THE HONBLE JURISDICTIONAL HIGH COURT AGAINST THE ORDER PASSED U/S.12AA(3) OF THE ACT. NOW, SINCE THE ORDER U/S.12AA OF THE ACT HAS BEEN RESTORED BY THE HONBLE HIGH COURT OF BOMBAY AT GOA VIDE DATED 04.02.2020, THE VERY BASIS O F PASSING ORDER AND INVOKING THE JURISDICTION U/S.263 OF THE ACT IS NOT AVAILABLE TO THE PR.CIT. IN VIEW OF THE ABOVE, WE DO NOT FIND ANY MERIT IN THE ORDER PASSED BY THE PR.CIT AS THE ORDER PASSED BY THE AO U/S.143(3) OF THE ACT WAS NEITHER ERRONEOUS NOR PREJUDICIAL TO THE INTEREST OF REVENUE. IN THE LIGHT OF THE ABOVE, THE ORDER PASSED BY THE PR.CIT IS HEREBY QUASHED. 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 04 / 10 / 2021. SD/ - SD/ - ( ) (DR. M ITHA LAL MEENA ) ( ) (LALIET KUMAR) / ACCOUNTANT MEMBER / JUDICIAL MEMBER /PANAJI ; DATED 04/10 /202 1 PRAKASH KUMAR MISHRA, SR.P.S. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - ENTERTAINMENT SOCIETY OF GOA, OLD GMC HERITAGE PRECINT, D.B.MARG, CAMPAL, PANAJI - GOA 2. / THE RESPONDENT - 4 / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , /ITAT, PANAJI PR.CIT, BELAGAVI 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, PANJAJI 6. / GUARD FILE. //TRUE COPY//