The Asst. Commr. of Income Tax, Gamdhidham Circle , Ahmedabad V. Friends Bulk Handlers Ltd., Gandhidham-Kutch

ITA 263/RJT/2022

AI Insights

The case involves two appeals by the Assistant Commissioner of Income Tax, Gandhidham Circle, against M/s. Friends Bulk Handlers Ltd., concerning the assessment orders for the years 2007-08 and 2008-09. Initially, the assessee's income was accepted under section 143(3) of the Income Tax Act, 1961. However, following a search under section 132, reassessments were made under sections 153A and 263, leading to additional income being assessed. The CIT(A) later quashed these additions, which were based on a revision order that was itself quashed by the ITAT in a related case. The Revenue's appeals to the ITAT Rajkot were dismissed, affirming the CIT(A)'s decisions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135852 (ITAT-RAJKOT)
• Duration Of Justice: 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 03-10-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 10-11-2022
• Other Referred Cases: ITA Nos. 153 & 154/Rjt/2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकरअपीलीयअधिकरण , राजकोटनयायपीी , राजकोट। INTHEINCOMETAXAPPELLATETRIBUNAL RAJKOTBENCH,RAJKOT [ConductedthroughE-CourtatAhmedabad] BEFORESHRIWASEEMAHMED,ACCOUNTANTMEMBER& SHRISIDDHARTHANAUTIYAL,JUDICIALMEMBER आयकरअपीलसं./ITANos.262&263/RJT/2022 (धििाधरणवरध/AssessmentYears:2007-08&2008-09respectively) TheACIT, GandhidhamCircle, Gandhidham-Kutch बिाम / Vs. M/s.FriendsBulkHandlersLtd. MaitriBhavan,PlotNo.18 Sector-8,Gandhidham Kutch-370201 PAN:AAACF8951G स्ायीलेखासं./जीआइआरसं./PAN/GIRNo.: ( अपीला्् /Appellant) .. ( प्य्् /Respondent) अपीला््ओरसे/Appellantby: ShriK.C.Thacker,AR प्य््कीओरसे/Respondentby: ShriV.J.Boricha,Sr.DR सुिवाईकीतारीख/DateofHearing 04/10/2023 घोरणाकीतारीख/DateofPronouncement 08/11/2023 आदेश /ORDER PERWASEEMAHMED,ACCOUNTANTMEMBER: ThepresenttwoappealsaredirectedattheinstanceoftheRevenueagainsttwo separateordersoftheld.CommissionerofIncomeTax(Appeals)[CIT(A)inshort], [NFAC-Delhi],bothdated13/09/2022passedfortheAssessmentYears(AYs)2007-08 &2008-09respectively. 2.Sincetheissuesareinter-connected,boththeseappealswereheardtogetherand arebeingdisposedofbythisconsolidatedorderforthesakeofconvenience. ITANos.262&263/RJT/2022 ACITvs.M/s.FriendsBulkHandlersLtd. Asst.Years–2007-08&2008-09respectively -2- First,wetakeuptheappealinITANo.262/RJT/2022forAY2007-08. 3.Inthiscase,theassesseefiledthereturnofincomedeclaringanincomeofRs. 5,08,546/-DATED23/10/2007whichwasacceptedintheassessmentframedu/s143(3) oftheITAct,1961(hereinaftercalledas“theAct”)videorderdated10/12/2009. Thereafter,asearchwasconductedu/s132oftheActatthepremisesoftheassessee. Accordingly,theproceedingsu/s153AoftheActwereinitiatedandtheassessmentu/s 143(3)r.w.s.153A(1)(b)oftheActvideorderdated28/03/2014,atthereturned income,wasframed.Subsequently,theproceedingsu/s263oftheActwereinitiatedto revisetheassessmentorderframedu/s143(3)r.w.s.153A(1)(b)oftheAct.Finally, theLd.Pr.CITintheorderdated29/02/2016cancelledtheassessmentframedbythe AssessingOfficeru/s143(3)rws153A(1)(b)oftheActanddirectedtomakeafresh assessmentaspertheprovisionsoflawaftergivingreasonableopportunityofbeing heardtotheassessee. 3.1.InconsequencetothedirectionsissuedbytheorderofLd.Pr.CITu/s263of theAct,theAssessingOfficerframedtheassessmentdated30/12/2016aftermaking thefollowingadditions: Add:(i)Additionu/s14AoftheAct..Rs.64,83,796/- (ii)Disallowanceofforeignexchangeratedifference..Rs.2,97,796/- 4.AggrievedassesseecarriedthemattertotheLd.CIT(A)whofoundthatthe orderpassedbytheLd.PCITu/s263oftheActhasbeenquashedbytheITATinITA Nos.153&154/Rjt/2016dated25/03/2022.Accordingly,theLd.CIT(A)wasofthe viewthatoncethefoundation,basedonwhichtheadditionsmadebytheAssessing Officerhavebeenquashed,therecannotbeanydisallowanceintheconsequential order.Therelevantfindingoftheld.CIT(A)isreproducedasunder: ITANos.262&263/RJT/2022 ACITvs.M/s.FriendsBulkHandlersLtd. Asst.Years–2007-08&2008-09respectively -3- “5.5.Asseenfromtheabove,itisamplyclearthattherevisionorderpassedbythePCIT u/s.263oftheActdated29.02.2016(supra),basedonwhichtheAOframedtheimpugned consequentialorderu/s.143(3)rws263oftheActdated30.12.2016,hasbeenquashedbythe Hon’bleITAT,RajkotBench.Accordingly,asanaturalcorollary,theimpugnedconsequential orderpassedbytheAOu/s.143(3)rws263oftheAct9supra),whereintheAOmadean aggregateadditionofRs.67,81,592/-hasnolegstostand.Therefore,Iamoftheconsidered optionthattheimpugnedadditionmadebytheAOofRs.67,81,592/-cannotbesustainedinthe yesofthelaw.” 5.6.Subjecttoabovediscussionandobservations,theAOisdirectedtodeletetheimpugned additionmadeofRs.67,81,592/-.Thus,thegroundsofappealraisedbytheassesseearetreated asallowed.” 5.Beingaggrieved,theRevenueisinappealbeforeus.Boththeld.DRandthe ld.ARbeforeusvehementlysupportedtheordersoftheauthoritiesbelowasapplicable tothem. 6.Wehaveheardtherivalcontentionsofboththepartiesandperusedthe materialsavailableonrecord.Admittedly,theAssessingOfficerhasmadetheaddition inconsequencetothedirectionissuedbytheld.PCITu/s263oftheActwhichhave beenquashedbytheITATinITANos.153&154/Rjt/2016videorderdated 25/03/2022.Theabovefindingsoftheld.CIT(A)havenotbeencontrovertedbytheld. DRappearingonbehalfoftheRevenue.Inviewoftheabove,weholdthatoncethe foundation,basedonwhichtheadditionsweremadebytheAssessingOfficerhave beenquashed,thequestionofmakinganyotheraddition,asdiscussedabove,doesnot arise.Thus,wedonotfindanyinfirmityintheorderpassedbytheld.CIT(A).The sameisherebyupheld.Hence,groundsofappealraisedbytheRevenuearedismissed. 6.1Intheresult,theappealoftheRevenueisdismissed. Now,wetakeuptheRevenue’sappealinITANo.263/RJT/2022forAY2008-09 7.WefindthatthecaptionedappealoftheRevenueisidenticaltothefactsofthe ITANo.262/RJT/2022forAY2007-8(supra).Inviewofthepari-materiafacts ITANos.262&263/RJT/2022 ACITvs.M/s.FriendsBulkHandlersLtd. Asst.Years–2007-08&2008-09respectively -4- concerningtheidenticalissue,ourdecisioninITANo.262/RJT/2022shallapplymutatis mutandistothecaptionedappealoftheRevenueforAY2008-09. 8.Asaresult,theappealoftheRevenueinITANo.263/RJT/2022forAY2008-09 isherebydismissed. 9.Inthecombinedresult,boththeappealsoftheRevenuearedismissed. ThisOrderpronouncedinOpenCourton08/11/2023 Sd/-Sd/- (SIDDHARTHANAUTIYAL)(WASEEMAHMED) JUDICIALMEMBERACCOUNTANTMEMBER (TrueCopy) Ahmedabad;Dated08/11/2023 टी.सी.िायर,व.धि.स./T.C.NAIR,Sr.PS