TVH Energy Resources Pvt Ltd. , CHENNAI V. DCIT Central Circle 1(2), CHENNAI

ITA 2484/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5682 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 11-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SRI RAM BHARATH
• Assessee Lawyers: G GOPALAN RETD
• Section: 131; 263

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , , ' # BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.2484/MDS/2017 & '& / ASSESSMENT YEAR : 2011-12 M/S TVH ENERGY RESOURCES PVT. LTD., NO.16/17, 3 RD CROSS STREET, TVH NOVELLA, R.A. PURAM, CHENNAI - 600 028. PAN : AACCT 8802 G V. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(2), CHENNAI - 600 034. ()*/ APPELLANT) (+,)*/ RESPONDENT) )* - . / APPELLANT BY : SHRI G. GOPALAN, RETD. JCIT +,)* - . / RESPONDENT BY : SHRI SRIRAM BHARATH, CIT / - 0' / DATE OF HEARING : 22.11.2017 12' - 0' / DATE OF PRONOUNCEMENT : 30.11.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -18, CHENN AI, DATED 08.08.2017 AND PERTAINS TO ASSESSMENT YEAR 2011-12. 2. SHRI G. GOPALAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT IN THE FIRST ROUND OF LITIGATION, TH IS TRIBUNAL FOUND THAT 2 I.T.A. NO.2484/MDS/17 THE ASSESSING OFFICER HAS NOT APPLIED HIS MIND AND REASON FOR CONCLUSION REACHED WAS NOT REFLECTED IN THE ASSESSM ENT ORDER AND, ACCORDINGLY, THIS TRIBUNAL CONFIRMED THE ORDER PASS ED BY THE PRINCIPAL COMMISSIONER IN EXERCISE OF HIS POWER UND ER SECTION 263 OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). A COPY OF THE ORDER OF THIS TRIBUNAL IN I.T.A. NO.2466/MDS/2014 DATED 0 6.08.2015 IS AVAILABLE AT PAGE 44 OF THE PAPER-BOOK. ACCORDING TO THE LD. REPRESENTATIVE, INSPITE OF THE DIRECTION OF THIS TR IBUNAL, THE ASSESSING OFFICER HAS NOT EXAMINED THE ISSUES INDEP ENDENTLY AND THERE WAS NO DISCUSSION IN THE ASSESSMENT ORDER. W ITHOUT ANY DISCUSSION, THE ASSESSING OFFICER IN THE COMPUTATIO N OF INCOME MADE ADDITION IN THE ORDER PASSED UNDER SECTION 143 (3) OF THE ACT DATED 26.03.2014. ACCORDINGLY, ACCORDING TO THE LD . REPRESENTATIVE, THE ORDER DATED 26.03.2014 WAS SET ASIDE BY THE PRI NCIPAL COMMISSIONER WHICH WAS CONFIRMED BY THIS TRIBUNAL A LSO. THEREFORE, ACCORDING TO THE LD. REPRESENTATIVE, THE ORDER OF THE ASSESSING OFFICER DATED 26.03.2014 IS NOT IN EXISTE NCE. 3. THE LD. REPRESENTATIVE FOR THE ASSESSEE FURTHER SUBMITTED THAT WHEN THIS TRIBUNAL CONFIRMED THE ORDER OF THE PRINCIPAL COMMISSIONER WHEREIN THE ORDER OF THE ASSESSING OFF ICER DATED 3 I.T.A. NO.2484/MDS/17 26.03.2014 WAS SET ASIDE, THE ASSESSING OFFICER WAS DIRECTED TO RE- EXAMINE THE ISSUE AND PASS A SPEAKING ORDER. ACCOR DING TO THE LD. REPRESENTATIVE, THE ASSESSING OFFICER HAS NOT COMPL IED WITH THE DIRECTION OF THIS TRIBUNAL, THEREFORE, THE CIT(APPE ALS) IS NOT JUSTIFIED IN DISCUSSING THE MATTER ON MERIT AND DISALLOW THE CLAIM OF THE ASSESSEE. REFERRING TO THE ORDER OF THE CIT(APPEAL S), THE LD. REPRESENTATIVE SUBMITTED THAT THE CIT(APPEALS) MAIN LY PLACED RELIANCE ON THE STATEMENT RECORDED UNDER SECTION 13 1 OF THE ACT. ACCORDING TO THE LD. REPRESENTATIVE, THE ASSESSING OFFICER HAS NO AUTHORITY TO ADMINISTER OATH DURING THE COURSE OF S URVEY OPERATION. THEREFORE, ACCORDING TO THE LD. REPRESENTATIVE, THE STATEMENT RECORDED UNDER SECTION 131 OF THE ACT DURING THE CO URSE OF SURVEY PROCEEDING CANNOT BE A BASIS FOR MAKING ADDITION. THEREFORE, THE CIT(APPEALS) IS NOT JUSTIFIED IN CONFIRMING THE ORD ER OF THE ASSESSING OFFICER. 4. WE HEARD SHRI SRIRAM BHARATH, THE LD. DEPARTMENT AL REPRESENTATIVE ALSO. IT IS NOT IN DISPUTE THAT THI S TRIBUNAL DIRECTED THE ASSESSING OFFICER TO RE-EXAMINE THE MATTER AFRE SH AND PASS A SPEAKING ORDER. THIS TRIBUNAL SPECIFICALLY OBSERVE D THAT IT IS INCUMBENT UPON THE ASSESSING OFFICER TO DISCUSS THE REASON IN THE 4 I.T.A. NO.2484/MDS/17 ASSESSMENT ORDER WHILE ALLOWING OR DISALLOWING THE CLAIM OF THE ASSESSEE. INSPITE OF THE SPECIFIC DIRECTION OF THE TRIBUNAL, THE ASSESSING OFFICER HAS SIMPLY REFERRED THE ISSUE IN THE ASSESSMENT ORDER WHICH WAS SET ASIDE BY THE PRINCIPAL COMMISSI ONER AND CONFIRMED BY THIS TRIBUNAL AND MADE ADDITION. THER EFORE, AS RIGHTLY SUBMITTED BY THE LD. REPRESENTATIVE FOR THE ASSESSE E, THE ASSESSING OFFICER HAS NOT COMPLIED WITH THE DIRECTION OF THE TRIBUNAL. THE ASSESSING OFFICER IS BOUND TO COMPLY WITH THE DIREC TION OF THE TRIBUNAL. IF AT ALL THE ASSESSING OFFICER FEELS TH AT HE IS AGGRIEVED BY THE ORDER OF THIS TRIBUNAL, IT IS OPEN TO HIM TO TA KE UP THE MATTER IN APPEAL BEFORE THE HIGH COURT. IN THIS CASE, ADMITT EDLY, NO APPEAL WAS FILED BEFORE THE HIGH COURT. THE DEPARTMENT AL LOWED THE ORDER OF THIS TRIBUNAL TO ATTAIN FINALITY, THEREFORE, THE ASSESSING OFFICER IS NOT JUSTIFIED IN MAKING ADDITION ON THE BASIS OF TH E ORDER DATED 24.03.2014, WHICH WAS NOT IN EXISTENCE AT ALL. THER EFORE, THE CIT(APPEALS) IS ALSO NOT CORRECT IN DISPOSING OF TH E MATTER ON MERIT. 5. IN VIEW OF THE ABOVE, WE ARE UNABLE TO UPHOLD TH E ORDER OF THE LOWER AUTHORITY. ACCORDINGLY, THE ORDERS OF BO TH THE AUTHORITIES BELOW ARE SET ASIDE AND THE ENTIRE ISSUE IS REMITTE D BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SH ALL RE-EXAMINE 5 I.T.A. NO.2484/MDS/17 THE MATTER AS DIRECTED BY THIS TRIBUNAL IN THE ORDE R DATED 06.08.2015, BRING ON RECORD ALL THE FACTS AND MATER IAL AND PASS A SPEAKING ORDER BY RECORDING REASONS FOR THE CONCLUS ION REACHED THEREIN. 6. IT IS MADE CLEAR THAT THE ASSESSING OFFICER CANN OT IGNORE THE OBSERVATION AND DIRECTION ISSUED BY THIS TRIBUNAL. THE DISOBEDIENCE OR NON-COMPLIANCE OF OBSERVATION AND DIRECTION OF T HIS TRIBUNAL WILL BE VIEWED SERIOUSLY AND APPROPRIATE REMEDIAL PROCEE DING WILL BE INITIATED IN FUTURE. 7. WITH THE ABOVE OBSERVATION, THE APPEAL OF THE AS SESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 30 TH NOVEMBER, 2017 AT CHENNAI. SD/- SD/- ( ) ( . . . ) (S. JAYARAMAN) (N.R.S. GANESAN) ' / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 30 TH NOVEMBER, 2017. KRI. 6 I.T.A. NO.2484/MDS/17 - +056 76'0 /COPY TO: 1. )* /APPELLANT 2. +,)* /RESPONDENT 3. / 80 () /CIT(A)-18, CHENNAI-34 4. PRINCIPAL CIT, CENTRAL-1, CHENNAI 5. 69 +0 /DR 6. :& ; /GF.