ASST CIT CEN CIR 15 & 16, MUMBAI V. KIRAN H SHAH, MUMBAI

ITA 2531/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 84011 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 28-10-2014
• Assessment Year: 2000-2001
• Appeal Filed On: 16-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASGHAR ZAIN
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER ./I.T.A. NO. 2531/M/2012 ( AY: 200 0 - 2001 ) ./I.T.A. NO. 2532/M/2012 ( AY: 200 1 - 2002 ) ./I.T.A. NO. 2533/M/2012 ( AY: 200 2 - 2003 ) ./I.T.A. NO. 2534/M/2012 ( AY: 200 3 - 2004 ) ./I.T.A. NO. 2535/M/2012 ( AY: 200 4 - 2005 ) ./I.T.A. NO. 2536/M/2012 ( AY: 200 5 - 2006 ) ./I.T.A. NO. 2537/M/2012 ( AY: 200 6 - 2007 ) ACIT, CENTRAL CIRCLE - 15 & 16, R.NO.401, 4 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400 020. / VS. SHRI KIRAN H. SHAH, 4/5, AMRUT TOWERS, 247 TELANG ROAD,MATUNGA, MUMBAI 400 019. ./ PAN : AACPS 0379 N ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI ASGHAR ZAIN / RESPONDENT BY : SHRI PARESH SHAPARIA / DATE OF HEARING : 28.10.2014 / DATE OF PRONOUNCEMENT : 28.10.2014 / O R D E R PER BENCH: THERE ARE 7 APPEALS UNDER CONSIDERATION. ALL THESE APPEALS ARE FILED BY THE REVENUE INVOLVING A Y S 2000 - 01 TO 2006 - 07 AND THEY EMANATE FROM THE ASSESSMENT ORDERS PASSED U/S 143(3) R.W.S. 263 OF THE ACT. SINCE, THE ISSUE INVOLVED IN ALL THESE APPEALS IS IDENTICAL, THEREFORE, FOR THE SAKE OF CONVENIENCE, THEY ARE CLUBBED, HEARD COMBINEDLY AND DISPOSED OF IN THIS CONSOLIDATED ORDER. APPEAL WISE ADJUDICATION IS GIVEN IN THE FOLLOWING PARAGRAPHS OF THIS ORDER. 2 2. SINCE, THE ONLY GROUND RAISED BY THE REVENUE IN ALL THESE APPEALS IS IDENTICAL, THEREFORE, FOR THE SAKE OF RE FERENCE AND ADJUDICATION , WE SHALL TAKE UP THE GROUND RAISED FOR THE AY 2000 - 2001 WHICH READS AS UNDER: ON THE FACTS AND IN THE CIRCUMSTNCES OF THE CASE AND IN LAW, THE LD CIT (A) - 39 HAS ERRED IN HOLDING THAT THE ASSESSMENT ORDER U/S 143(3) R.W.S 153A & 263 BECAME AN ORDER PASSED WITHOUT JURISDICTION, RELYING ON THE ORDER OF THE ITAT WHICH HAS NOT BECOME FINAL. 3. AT THE OUTSET, B EFORE US, SHRI PARESH SHAPARIA, LD COUNSEL FOR THE ASSESSEE FILED A COPY OF THE ORDER OF THE TRIBUNAL ON THE REVISIONAL ORDER PASSED BY THE CIT U/S 263 OF THE ACT. LD COUNSEL BROUGHT OUR ATTENTION TO PARA 16 OF THE SAID TRIBUNALS ORDER VIDE ITA NO.3168/M /2009 AND OTHERS, DATED 30.12.2011 AND READ OUT THE RELEVANT PORTION FROM THE SAID PARA WHICH READS AS UNDER: 16THEREFORE, IT IS VERY MUCH POSSIBLE THAT ASSESSEE HAS APPROXIMATELY RS. 90 LACS IN THE FORM OF SUNDRY DEBTORS BEFORE 31.3.1999. THESE DOCUM ENTS AND DISCUSSION CLEARLY SHOW THAT THE VIEW TAKEN BY THE AO IS ONE OF THE POSSIBLE VIEWS AND AS DISCUSSED EARLIER ONCE AN ENQUIRY HS BEEN MADE BY THE AO AND HE HAS TAKEN ONE OF THE POSSIBLE VIEWS, THEN SUCH ORDER CANNOT BE CALLED ERRONEOUS AND PREJUDICI AL TO THE INTEREST OF THE REVENUE. IN THESE CIRCUMSTANCES, WE QUAHS THE ORDERS PASSED U/S 263. 4. FROM THE ABOVE, IT IS EVIDENT THAT THE TRIBUNAL QUASHED THE REVISIONAL ORDER OF THE CIT PASSED U/S 263 OF THE ACT FOR ALL THE AYS UNDER CONSIDERATION . LD C OUNSEL BROUGHT OUR ATTENTION TO THE ORDER OF THE CIT (A) AND MENTIONED THAT THE CIT (A) DELETED THE ADDITION AND ALLOWED THE APPEAL OF THE ASSESSEE FOLLOWING THE SAID ORDER FO THE TRIBUNAL (SUPRA) QUASHING THE ORDER PASS ED BY THE CIT U/S 263 OF THE ACT . T HUS, IT IS THE SUMMARY ARGUMENT OF THE LD COUNSEL THAT ALL THE 7 APPEALS UNDER CONSIDERATION HAVE TO BE DISMISSED SINCE THE SOURCE ORDER S PASSED BY THE CIT U/S 263 FOR ALL THE YEARS WERE QUASHED. 5. ON THE OTHER HAND, LD DR RELIED ON THE ORDER OF THE AO . 6 . AFTER HEARING BOTH THE PARTIES, WE HAVE PERUSED THE SAID ORDER OF THE CIT (A) - 39, MUMBAI DATED 13.1.2012 AND FIND PARA 17 IS RELEVANT IN THIS REGARD. CONSIDERING THE IMPORTANCE OF THE SAID PARA 17, THE SAME IS EXTRACTED WHICH READS AS UNDER: 17SINCE , THE HONBLE ITAT HAS QUASHED THE ORDER PASSED U/S 263 BY THE CIT, CENTRAL - II, MUMBAI THE CONSEQUENT ORDER PASSED BY THE AO U/S 143(3) R.W.S 263 OF THE I.T. ACT BECOMES AN ORDER PASSED WITHOUT ANY JURISDICTION AND HENCE THE ADDITION MADE ILN THAT ORDER CA NNOT BE SUSTAINED. IN VIEW OF THIS, THE AO IS DIRECTED TO DELETE THE ADDITIONS MADE IN THE IMPUGNED ASSESSMENT ORDER. 3 7. CONSIDERING THE ABOVE, WE ARE OF THE OPINION THAT ALL THE APPEALS UNDER CONSIDERATION ARE NOT MAINTAINABLE SINCE THE SOURCE ORDER Z PA SSED BY THE CIT U/S 263 ARE QUASHED BY THE SAID TRIBUNALS ORDER (SUPRA). THEREFORE, THE DECISION GIVEN BY THE CIT (A) WHO HELD THAT THE ASSESSMENT ORDER PASSED U/S 143(3) R.W.S 263 OF THE ACT IS WI THOUT JURISDICTION AND DIRECTING THE AO T O DELETE THE ADD ITIONS MADE IN THE IMPUGNED ASSESSMENT ORDER, IS FAIR AND REASONABLE. ACCORDINGLY, GROUND RAISED BY THE REVENUE IN ALL THE PRESENT APPEALS IS DISMISSED. 8. IN THE RESULT, ALL THE 7 APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH OCTOBER, 2014. S D / - S D / - (SANJAY GARG ) (D. KARUNAKARA RAO ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; 28/10/2014 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI