M/s. Liberty Shoes Ltd., Karnal V. DCIT, Karnal

ITA 2693/DEL/2012

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5106 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 02-08-2017
• Assessment Year: 2002-2003
• Appeal Filed On: 01-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SATISH K GOEL
• Keywords: Difference of opinion; Change of opinion
• Section: 143(3); 80HHC; 148; 54; 154; 15

Judgement Text

ITA NO. 2693 /DEL/2012 ASSESSMENT Y EAR: 200 2 - 0 3 PAGE 1 OF 5 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH D BENCH NEW DELHI) BEFORE SHRI G.D. AGRAWAL, PRESIDENT & SHRI AMIT SHUKLA , JUDICIAL MEMB E R I N ITA NO. 2693 /DEL/201 2 ASSESSMENT YEAR: 20 0 2 - 0 3 LIBERTY SHOES LTD. RAILWAY ROAD KARNAL VS. D C IT KARNAL CI RCLE , AAYAKAR BHAWAN, SECTOR - 12, URBAN ESTATE, KARNAL (APPLICANT) (RESPONDENT) (PAN: A A ACL3146K ) ASSESSEE BY: SHRI SATISH K. GOEL , ADVOCATE REVENUE BY: NONE DATE OF HEARING 0 2 / 0 8 /201 7 DATE OF PRONOUNCEMENT 0 8 / 0 8 /201 7 ORDER PER AMIT SHUKLA, JUDICIAL MEMBER : THE AFORESAID APPEAL HA S BEEN FILED BY THE ASSESSEE AGAINST IMPUGNED ORDER DATED 0 6 . 3 .201 2 , PASSED BY THE LD. CIT (APPEALS) - KARNAL FOR THE QUANTUM OF ASSESSMENT PASSED U/S 1 5 4 F OR THE A.Y. 200 2 - 0 3 . IN THE GROUNDS OF APPEAL THE ASSESSEE HAS RAISED FOLLOWING GROUNDS: - 1. T HAT THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) IS AGAINST LAW AND FACTS. PAGE 2 OF 5 2. THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE OF THE APPELLANT THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IN UPHOLDING THE VALIDITY OF ORDERS PASSED BY AO U/S 154 DT.10.6.2010 IN RESPECT ORIGINAL ASSESSMENT FRAMED U/S 143(3) VIDE ORDERS DT.28.5.2003 AND LATER REASSESSMENT FRAMED U/S 143(3) /147 VIDE ORDERS DT.31.12.2007 IS ALTOGETHER ARBITRARY, ILLEGAL, VOID AND UNCALLED FOR. 3. THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE OF THE APPELLANT THE ORDER THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IN CONFIRMING THE ORDER OF THE AO U/S 154 IN REDUCING THE CLAIM OF DEDUCTION U/S 80HHC FROM RS. 1,14,30,764/ - TO RS.62,64,268/ - AS A RESULT OF CHANGE OF OPINION, DIFFERENT INTERPRETATION OF PROVISIONS OF LAW ON DEBATABLE ISSUES IS ALTOGETHER ARBITRARY, ILLEGAL, VOID AND UNCALLED FOR. 2. AT THE O UTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PROCEEDINGS U/S 154 HAVE BEEN INITIATED AGAINST THE ASSESSMENT ORDER PASSED U/S 148 READ WITH SECTION 143(3)/147 WHICH WAS IN PURSUANCE OF REOPENING OF U/S 147. NOW THE ENTIRE ASSESSMENT ORDER DATE D 31.12.2007 IN RELATION TO WHICH THE PRESENT SECTION 154 ORDER HAS BEEN PASSED STANDS QUASHED BY THE TRIBUNAL VIDE ORDER DATED 30.11.2005 IN ITA NO. 733/DEL/2011. THEREFORE, THE PRESENT PROCEEDINGS U/S 154 HAVE BECOME INFRUCTUOUS. THE LD. CIT DR SUBMITTED THAT THOUGH THIS ISSUE IS TO BE ARGUED WITH SR. DR WHO IS ON LEAVE, SUBMITTED THE MATTER CAN BE DECIDED ON THE BASIS OF MATERIAL ON RECORD. 3. ON PERUSAL OF THE ORDER U/S 154 DATED 10.6.2010, IT IS SEEN THAT THE ASSESSING OFFICER HAS NOTED THAT ASSESSMEN T U/S 143(3)/147 WAS COMPLETED ON 31.1.2007 THAT AN INCOME OF RS. 4,68,94,050/ - AFTER ALLOWING DEDUCTIONS U/S 80HHC AND DEDUCTION AND 80IA AT RS. 83,92,827/ - RESPECTIVELY. THEREAFTER THE ASSESSEE PAGE 3 OF 5 HAD FILED AN APPLICATION U/S 154 REGARDING CLAIM OF DEDUCTIO N U/S 80IA WHICH WAS WRONGLY CALCULATED BY THE ASSESSING OFFICER. AGAINST THE SAID APPLICATION ORDER WAS PASSED BY THE ASSESSING OFFICER U/S 154 ON 26.2.2008 AT RS. 4,31,06,400/ - . NOW, AGAIN THE ASSESSING OFFICER ISSUED NOTICE U/S 154 THAT EXCESS DEDUCTION WAS ALLOWED U/S 80IA AND 80HHC FOR SUMS AGGREGATING TO RS. 52,16,496/ - . THE ASSESSEE AFTER INVITING THE ASSESSEE S OBJECTIONS, HE AGAIN PASSED ORDER U/S 154 DATED 10.6.2010 WHICH IS IMPUGNED BEFORE US THEREBY COMPUTING THE TOTAL TAXABLE INCOME OF RS. 4,82 ,22,890/ - . THIS HAS BEEN CONFIRMED BY THE LEARNED CIT(APPEALS) ALSO VIDE ORDER DATED 6.3.2012. THE ENTIRE RECTIFICATION PROCEEDINGS U/S 154, IS IN RELATION TO THE ASSESSMENT ORDER PASSED U/S 143(3)/147 DATED 31.12.2007. NOW, THE SAID ASSESSMENT ORDER STAND S QUASHED BY THE TRIBUNAL VIDE ORDER DATED 31.11.2015 WHEREIN THE TRIBUNAL HAS HELD THAT THE ENTIRE REOPENING IS BAD IN LAW. ONCE THE ENTIRE PROCEEDINGS U/S 148 HAS BEEN QUASHED AND RESULTANTLY THE ASSESSMENT ORDER ON WHICH THE PRESENT RECTIFICATION PROCEE DINGS HAVE BEEN INITIATED/ORDER HAS BEEN PASSED THEN IN SUCH SITUATION THE ENTIRE RECTIFICATION PROCEEDINGS U/S 154 HAS NO LEGS STAND AND THE ORDER U/S 154 HAVE BECOME INFRUCTUOUS. ACCORDINGLY, WE HELD THAT THE IMPUGNED ORDER PASSED U/S 154 IS INFRUCTUOUS AND THE APPEAL OF THE ASSESSEE IS ALLOWED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER P RONOUNCED IN THE OPEN COURT ON 0 8 . 0 8 .201 7. S D / - S D / - ( G.D. AGRAWAL ) (AMIT SHUKLA) (PRESIDENT , ITAT ) (JUDICIAL MEMBER) PAGE 4 OF 5 DATED: 0 8 . 0 8 .2017 NARENDER COPY FORWARDED TO: 1) APPELLANT 2) RESPONDENT 3) CIT 4) CIT (APPEALS) 5) DR: ITAT ASSISTANT REGISTRAR DATE DRAFT DICTATED ON 02 .0 8 .2017 DRAFT PLACED BEFORE AUTHOR 03 . 0 8 .2017 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS 8 . 8 .2017 KEPT FOR PRONOUNCEMENT ON 8 . 8 .2017 FILE SENT TO THE BENCH CLERK 8 . 8 .2017 DATE ON WHICH FILE GOES TO THE AR PAGE 5 OF 5 DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.