RRPR Holding Private Limited, New Delhi V. DCIT, New Delhi

ITA 2645/DEL/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69474 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 06-11-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 02-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Section: 143(3); 14A; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI SHAMIM YAHYA ITA NO. 2645/DEL/2013 A.YR. 2009-10 RRPR HOLDING PVT. LTD., VS. DCIT CIR. 15(1), E-186, GREATER KAILASH I, NEW DELHI. NEW DELHI-48. ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : MS. LALITA KRISHNAMURTHY CA RESPONDENT BY : MS. NIDHI SRIVASTAVA DR O R D E R PER R.P. TOLANI, J.M: : THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF CIT, DELHI-V, NEW DELHI PASSED U/S 263 OF THE INCOME-TAX ACT, 1961 RE LATING TO A.Y. 2009-10.. VARIOUS GROUNDS ARE RAISED WHICH IN EFFECT RAISE TH E SOLE CHALLENGING ACTION U/S 263 OF THE ACT BY THE CIT. 2. LEARNED COUNSEL FOR THE ASSESSEE CONTENDS THAT O RIGINAL ASSESSMENT ORDER WAS PASSED U/S 143(3) ON 30-12-2011. THE ASSE SSEE HAD FILED RETURN DECLARING LOSS OF RS. 49,01,73,918/-. THE ASSESSING OFFICER, HOWEVER, DISALLOWED THE ENTIRE LOSS AND COMPUTED THE INCOME AS UNDER: INCOME FROM BUSINESS NIL INCOME FROM CAPITAL GAINS (SHORT TERM CAPITAL LOSS) (-) 1,04,37,190 INCOME FROM OTHER SOURCES (NET INTEREST INCOME) 11,27,234 TOTAL INCOME NIL 2 2.1. THE DISALLOWANCES AS REFERRED BY THE CIT IN 26 3 ORDER HAVE BEEN DISCUSSED BY THE ASSESSING OFFICER IN THE BODY OF T HE ASSESSMENT ORDER AND IN VIEW THEREOF ENTIRE LOSS RETURNED BY THE ASSESSEE I .E. AMOUNTING TO RS. 49,01,73,918/- HAS BEEN DISALLOWED. 2.2. AGGRIEVED AGAINST THIS ORIGINAL ASSESSMENT ORD ER THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A) QUA THESE VERY D ISALLOWANCES. VIDE ORDER DATED 12-10-2012 THE CIT(A) DECIDED THE APPEAL PART LY ALLOWING THE RELIEF AGAINST WHICH BOTH THE PARTIES I.E. THE REVENUE BY WAY OF APPEAL AND THE ASSESSEE BY WAY OF CROSS-OBJECTIONS ARE BEFORE THE ITAT. THE GROUNDS RAISED BY BOTH THE PARTIES ARE THE VERY SAME WHICH HAVE BE EN CONSIDERED TO BE ERRONEOUS AND PREJUDICIAL TO THE INTERESTS OF REVEN UE AND ORDER TO BE RAISED BY CIT U/S 263. 2.3. IN SUM AND SUBSTANCE WHILE EXERCISING POWERS U /S 263 THE CIT DID NOT APPRECIATE THAT ALL THESE DISALLOWANCES WERE ACTUAL LY MADE IN THE FORM OF DISALLOWANCE, THE LOSS INTO NIL INCOME EFFECTIVELY DISALLOWANCES OF RS. 49,01,73,918/-. BESIDES, THE LD. CIT PROBABLY WAS N OT INFORMED THAT ASSESSEE HAD PREFERRED THE APPEAL AGAINST THESE DISALLOWANCE S AND CIT(A) WAS SEIZED WITH THE APPEAL JURISDICTION. IT IS PLEADED THAT TH E ISSUES WHICH ARE SUBJECT MATTER OF APPELLATE JURISDICTION OF CIT(A) CANNOT B E REVISED BY THE CIT U/S 263. LD. COUNSEL SUPPORTED HER ARGUMENTS BY REFERRI NG TO THE EVIDENCE PLACED ON PAPER BOOK. 3. LD. DR IS HEARD 4. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. FROM THE RECORD IT CLEARLY EMERGES THAT THE ASSESSING OFFICER HAD 3 IN EFFECT MADE DISALLOWANCE U/S 14A BY REDUCING THE RETURNED LOSS TO NIL INCOME QUA WHICH ASSESSEE FILED REGULAR APPEALS BEF ORE CIT(A) WHO WAS DULY SEIZED WITH THE APPELLATE JURISDICTION. IN THE SE CIRCUMSTANCES, THE CIT CANNOT PROPOSE TO REVISE THE ORDER OF ASSESSING OFF ICER U/S 263. BESIDES, THE ISSUES ARE PENDING DECISION ON MERIT BEFORE THE ITA T AGAINST REGULAR ASSESSMENT. IN VIEW OF THE ABOVE, WE HOLD THAT THE EXERCISE OF 263 JURISDICTION BY THE CIT IS NOT TENABLE AND HIS ORDE R PASSED U/S 263 IS QUASHED. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 8-11-2013. SD/- SD/- ( SHAMIM YAHYA ) ( R.P. TOLANI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 8-11-2013. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR