THE INCOME TAX OFFICER, WARD-2, ELURU, Eluru V. M/s Ambica Family Holdings, Eluru

ITA 258/VIZ/2012

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9532 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2003-2004
• Appeal Filed On: 18-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LUCAS PETER
• Section: 143(3); 263; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH : VISAKHAPATNAM BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA.NO.258/VIZAG/2012 ASSESSMENT YEAR 2003-2004 THE INCOME TAX OFFICER WARD-2, ELURU. VS. M/S. AMBICA FAMILY HOLDINGS, ELURU PAN AAMFA2199L (APPELLANT) (RESPONDENT) FOR REVENUE : MR. LUCAS PETER FOR ASSESSEE : -NONE- DATE OF HEARING : 02.03.2015 DATE OF PRONOUNCEMENT : 03.03.2015 ORDER PER J.SUDHAKAR REDDY, A.M. THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S), VISAKHAPATNAM DATED 12.02.2012 FOR THE ASSESSMENT Y EAR 2003- 04 ON THE FOLLOWING GROUNDS : 1. THE CIT(A) ERRED ON FACTS AND IN LAW. 2. THE CIT(A) OUGHT TO HAVE GONE THROUGH THE FACTS OF THE CASE INSTEAD OF SIMPLY ALLOWING ASSESSEES APPEAL O N THE GROUND THAT THE ASSESSMENT ORDER, WHICH WAS SUBJECT ED TO APPEAL, HAS NO LEGS TO STAND, SINCE THE HONBLE ITAT HAD SET ASIDE THE ORDER OF THE CIT PASSED U/S.263. 3. THE CIT(A) OUGHT TO HAVE BEEN TAKEN INTO COGNIZANCE OF THE FACT THAT THE ORDER OF HONBLE ITAT AGAINST THE ORDER U/S. 263 HAS NOT BECOME FINAL AS THE MATTER WAS CAR RIED TO THE HONBLE HIGH COURT OF A.P., HYDERABAD U/S. 2 60A OF THE I.T. ACT. 4. THE CIT(A) OUGHT TO HAVE RECOGNIZED THE FACT THAT T HE ACTION OF THE ASSESSING OFFICER IN BRINGING TO TAX THE 2 ITA.NO.258/VIZAG/2012 M/S. AMBICA FAMILY HOLDINGS, ELURU DIVIDEND INCOME OF RS.32,85,889 RECEIVED BY THE ASSESSEE FROM ITS ASSOCIATE CONCERN COMPANY M/S. AMBICA AGARBATHIES & AROMA INDUSTRIES LTD., THROUGH BOOK ENTRIES ON 3.10.2002, IS ACCORDING TO LAW. 5. THE CIT(A) ERRED IN NOT APPRECIATING THE FACT THAT THE DIVIDEND INCOME WAS NOT EXEMPT IN THE HANDS OF THE ASSESSEE AS THE PROVISIONS OF EXEMPTION U/S.10(33) WAS OMITTED BY THE FINANCE ACT, 2002 W.E.F. 1.4.2003. 6. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE ISSUANCE OF NOTICE. WE, THEREFORE, PROCEED TO DISPO SE OF THIS CASE EXPARTE, QUA THE ASSESSEE, ON MERITS, AFTER HEARING THE LEARNED D.R. MR. LUCAS PETER. 3. ON PERUSAL OF GROUNDS, IT DEMONSTRATES THAT THE ORDER OF THE FIRST APPELLATE AUTHORITY HAS TO BE UP HELD AND THE APPEAL OF THE REVENUE TO BE DISMISSED. THE ORDER PA SSED UNDER SECTION 263 BY COMMISSIONER OF INCOME TAX HAS BEEN SET ASIDE BY THE TRIBUNAL. UNDER THESE CIRCUMSTANCES, THE CON SEQUENTIAL ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) READ WITH SECTION 263 HAS BEEN RIGHTLY QUASHED BY THE FI RST APPELLATE AUTHORITY. THEREFORE, GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 03.03.20 15. SD/- SD/- (SAKTIJIT DEY) (J. SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBER VISAKHAPATNAM, DATED 03 RD MARCH, 2015. VBP/- 3 ITA.NO.258/VIZAG/2012 M/S. AMBICA FAMILY HOLDINGS, ELURU COPY TO 1. THE INCOME TAX OFFICER, WARD-2, KKS TOWERS, R.R. PET, ELURU 534 002. 2. M/S. AMBICA FAMILY HOLDINGS, ANASUYA BHAVAN, CHADALAVADA VARI STREET, POWER PET, ELURU. 3. CIT(A), VISAKHAPATNM 4. CIT, RAJAHMUNDRY 5. ADDL. COMMISSIONER OF INCOME TAX, ELURU RANGE, E LURU. 6. D.R. ITAT, VISAKHAPATNAM BENCH, VISAKHAPATNAM. 7. GUARD FILE //BY ORDER // ASST. REGISTRAR ITAT, VISAKHAPATNAM.