Income Tax Officer-Ward-45(2), Kolkata, Kolkata V. M/s Damani & Co., Kolkata

ITA 2699/KOL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4637 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 02-06-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 03-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S M DAS J
• Assessee Lawyers: S M SURANA
• Keywords: Reopening of assessment; Capital asset converted into stock in trade; Period of limitation; Difference of opinion; Time period of passing order; Reason to believe; Change of opinion
• Section: 143(3); 142(1); 10B; 148; 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH C KOLKATA BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO. 1330 / KOL / 2013 & ITA NO.2699/KOL/2013 ASSESSMENT YEAR :2003-04 DAMANI & CO. 7A, KIRAN SHANKAR ROY ROAD, KOLKATA-700 001 [ PAN NO.AACFD 5802 D ] ITO WARD-45(2), 3, GOVT. PLACE (W), KOLKATA-1 V/S . V/S . ITO, WARD-45(2), 3, GOVERNMENT PLACE, KOLKATA-700 001 M/S DAMAN & CO. 7A, KIRAN SHANKAR ROY ROAD, KOLKATA-700 001 /APPELLANT .. / RESPONDENT / /BY ASSESSEE SHRI S.M.SURANA, ADVOCATE /BY REVENUE SHRI S.M.DAS, JCIT-DR /DATE OF HEARING 02-06-2016 ! /DATE OF PRONOUNCEMENT 22-06-2016 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER:- THESE CROSS-APPEALS BY THE ASSESSEE AND REVENUE AR E AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-XXX, KOLKATA DATED 20.11.2012. ASSESSMENT WAS FRAMED BY ITO WARD-45(2) , KOLKATA U/S 143(3)(II) R.W.S 147 OF THE INCOME TAX ACT, 1961 (H EREINAFTER REFERRED TO AS THE ACT) VIDE HER ORDERS DATED 30.12.2010 FOR ASSESSME NT YEAR 2003-04. ITA NO.1330 & 2699/KOL/2013 A.Y.2 003-04 DAMANI & CO. V. ITO WD-45(2) KOL. PA GE 2 2. BOTH THE APPEAL ARE HEARD TOGETHER AND ARE BEING DISPOSED OF BY WAY OF CONSOLIDATE ORDER FOR THE SAKE OF CONVENIENCE. FIRS T WE TAKE UP ASSESSEES APPEAL. THE GROUNDS RAISED BY THE ASSESSEE PER ITS APPEAL ARE AS UNDER:- ASSESSEES APPEAL IN ITA NO.1330/KOL/2013 1. FOR THAT THE ASSESSMENT ORDER DATED 30.12.2010 I S VOID AND NULLITY IN THE EYE OF LAW AS THERE ARE NO RECORDED REASONS TO BELIEF THAT INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT. 2. WITHOUT PREJUDICE TO GROUND NO. 1 STATED ABOVE, THE RECORDED REASONS ARE INVALID AND IMPROPER AND, AS SUCH, THE ASSESSMENT FRAMED VIDE ORDER DATED 30.12.2010 IS BAD IN THE EY E OF LAW. 3. FOR THAT THE ENTIRE RE-OPENING PROCEEDINGS ARE B AD IN THE EYE OF LAW, AS SUCH, THE ASSESSMENT ORDER U/S. 143(3) R.W. SECT ION 147 DATED 30- 12.2010 IS LIABLE TO BE QUASHED IN THE ABSENCE OF P ROPER SANCTION AS MANDATED BY SECTION 151. 4. FOR THAT THE RE-OPENING OF ASSESSMENT FOR A.Y 20 03-2004 IS BAD IN LAW AND IS BEYOND JURISDICTION INASMUCH THE ASSESSM ENT HAS BEEN REOPENED ON MERE CHANGE OF OPINION ON THE SAME SET OF FACTS. 5. FOR THAT THE CIT(A) OUGHT TO HAVE QUASHED THE EN TIRE REOPENING PROCEEDINGS SINCE THE ORDER WAS PASSED BY THE AO AF TER EXPIRY OF THE LIMITATION PERIOD. 6. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION TO THE EXTENT OF RS.1,80,000/- OUT OF THE TOTAL ADDITION OF RS.42,87 ,937/- MADE BY THE AO ON ACCOUNT OF COMMISSION PAID TO M/S KRIPASANT COMMERCIAL (P) LTD. 7. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION TO THE EXTENT OF RS.10,00,000/- OUT OF THE TOTAL ADDITION OF RS.33,6 3,433/- MADE BY THE AO ON ACCOUNT OF COMMISSION PAID TO M/S SYMCOM SALES SERVICES (P) LTD. 8. FOR THAT ON THE FATS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION TO THE EXTENT OF RS.5,00,000/- OUT OF THE TOTAL ADDITION OF RS.22,51 ,457/- MADE BY THE AO ON ACCOUNT OF COMMISSION PAID TO M/S MAFEX (P) LTD. 9. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.6,99,975/- ITA NO.1330 & 2699/KOL/2013 A.Y.2 003-04 DAMANI & CO. V. ITO WD-45(2) KOL. PA GE 3 MADE BY THE AO ON ACCOUNT OF COMMISSION PAID TO M/ S DAVE COMMERCIAL CO. 10. FOR THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.1,04,84,824.50 MADE BY THE AO ON ACCOUNT OF COM MISSION PAID TO M/S UMANG CREDIT CAPITAL LTD. SHRI S.M. SURANA, LD. AUTHORIZED REPRESENTATIVE APP EARED ON BEHALF OF ASSESSEE AND SHRI S.M. DAS LD. DEPARTMENTAL REPRESE NTATIVE APPEARED ON BEHALF OF REVENUE. 2. THE FIRST ISSUE IN GROUND NO. 1 TO 5 RAISED BY A SSESSEE IN THIS APPEAL AGAINST THE VALIDITY OF REOPENING PROCEEDINGS U/S 1 47 OF THE ACT. FACTS IN BRIEF ARE THAT ASSESSEE IS A PARTNERSHIP FIRM AND ENGAGED IN THE COMMISSION BUSINESS. THE ORIGINAL ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT ON 31.03.2006. DURING THE COURSE OF ORIGINAL ASSESSMEN T A QUERY WITH REFERENCE TO THE COMMISSION PAID TO M/S UMANG CREDIT CAPITAL LTD. WAS RAISED BUT NO REPLY WAS RECEIVED TILL THE COMPLETION OF ASSESSMEN T UNDER SECTION 143(3) OF THE ACT. HOWEVER THE REPLY WAS RECEIVED BY THE AO, CIRCLE-3 FROM M/S UMANG CREDIT CAPITAL LIMITED ON DATED 16.10.2008 WHICH CA TEGORICALLY DENIED FOR HAVING ANY TRANSACTION WITH THE ASSESSEE. ACCORDING LY THE PROCEEDINGS UNDER SECTION 147 WERE INITIATED BY ISSUING A NOTICE UNDE R SECTION 148 OF THE ACT ON DATED 1.4.2009. THE ASSESSEE HAS CHALLENGED THE VAL IDITY OF PROCEEDINGS INITIATED UNDER SECTION 147 OF THE ACT ON THE GROUN D THAT THE INITIATION OF PROCEEDINGS ARE BEYOND 4 YEARS FROM THE ASSESSMENT YEAR 2003-04. LD AR FURTHER CONTENDED THAT REOPENING OF THE CASE UNDER SECTION 147 OF THE ACT CAN BE DONE BEYOND 4 YEARS IF THE ASSESSEE HAS FAILED T O MAKE FULLY AND TRULY DISCLOSURE ALL MATERIAL FACTS NECESSARY FOR ASSESSM ENT. BUT IN THE INSTANT CASE NO SUCH FACT IS MENTIONED IN THE LETTER ISSUED BY T HE AO IN THE REASONS TO BELIEVE THAT ESCAPEMENT OF INCOME WAS BECAUSE OF FA ILURE ON THE PART OF ASSESSEE TO DISCLOSE ALL NECESSARY FACTS FOR ASSESS MENT. THE LD. AR HAS POINTED OUT THAT IN THE ABSENCE OF COMPLIANCE OF ST ATUTORY CONDITION RENDER THE ITA NO.1330 & 2699/KOL/2013 A.Y.2 003-04 DAMANI & CO. V. ITO WD-45(2) KOL. PA GE 4 INITIATION OF RE-ASSESSMENT PROCEEDINGS AND ISSUANC E OF NOTICE, CONSEQUENTIALLY RE-ASSESSMENT ORDER AS VOID BAD IN LAW, ILLEGAL AND WITHOUT JURISDICTION. LD AR HAS DRAWN OUR ATTENTION TOWARDS THE PROVISO TO SEC. 147 OF THE ACT AND SUBMITTED THAT THE ASSESSING OFFICER MI SERABLY FAILED TO SHOW THAT INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT FOR AY 2003-04 BY REASON FOR FAILURE ON THE PART OF ASSESSEE TO MAKE A RETUR N U/S. 139 OF THE ACT OR IN RESPONSE TO NOTICE ISSUED U/S. 142(1) OR SEC. 148 O F THE ACT OR TO DISCLOSE FULLY AND TRULY OR MATERIALS FACTS NECESSARY FOR ITS ASSE SSMENT. LD AR REQUESTED THE BENCH TO QUASH THE RE-ASSESSMENT PROCEEDINGS AS MAD E BY AO. ON THE OTHER HAND, LD. DR STRONGLY SUPPORTED THE OR DER OF AO AND STATED THAT EXPENDITURE CLAIMED BY ASSESSEE BY WAY OF COMMISSIO N TO M/S UMANG CREDIT CAPITAL LTD. WAS CATEGORICALLY DENIED, THEREFORE, A SSESSING OFFICER WAS JUSTIFIED AND RIGHT IN INITIATING THE RE-OPENING AS SESSMENT PROCEEDINGS U/S 147 OF THE ACT. HE HAS CITED JUDGMENT OF HONBLE HIGH C OURT OF MADRAS IN THE CASE OF SWORD GLOBAL INDIA (P) LTD. VS ACIT, 60 TAXMANN. COM 73 AND ORDER OF COORDINATE BENCH OF COCHIN BENCH IN THE CASE OF KONTHIYAPARAMBIL COIR RUBBER PRODUCTS V. ITO (2015) 54 TAXMANN.COM 220 (COCHIN TRIB.) WHICH ARE PLACED ON RECORD. 3. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. BEFORE US LD AR SUBM ITTED ORDERS OF VARIOUS CO- ORDINATE BENCHES OF ITAT AND JUDGMENT OF COURTS WHI CH ARE PLACED ON RECORD. LD. AR HAS CHALLENGED THE INITIATION OF PROCEEDINGS AND ISSUANCE OF NOTICE U/S 147 R.W.S. 148 OF THE ACT IN THE CASE ON HAND. WE F IND IT APPROPRIATE TO REPRODUCE THE REASON RECORDED BY AO FOR INITIATION OF PROCEEDINGS U/S. 147 OF THE ACT WHICH READS AS UNDER : OFFICE OF THE INCOME TAX OFFICER, WARD-45(2), KOLKA TA 3 GOVT. PLACE, WEST, KOLKATA-1 NO:ITO, WD-45(2)/M/S DAMANI &CO/AACFD5802D/2010-11/ 427 DATED:25.08.2010 TO M/S DAMANI & CO. 74 KIRAN SHANKAR ROY ROAD, ITA NO.1330 & 2699/KOL/2013 A.Y.2 003-04 DAMANI & CO. V. ITO WD-45(2) KOL. PA GE 5 KOLKATA-1, SUB: PROCEEDINGS U/S. 147-A.Y. 2003-04-MATTER REG ARDING REF; YOUR LETTER NO. NIL DATED 23.08.2010 PLEASE REFER TO THE ABOVE. AS REQUIRED, THE REASONS TO BELIEVE THAT INCOME H AS ESCAPED ASSESSMENT FOR THE A.Y. 2003-04 IS AS UNDER:- DURING THE COURSE OF SCRUTINY PROCEEDING U/S. 143( 3) FOR THE ASST. YEAR P22003-04, INFORMATION WAS CALLED FOR FROM ACIT/DCIT,CIRCLE-3, KOLKATA IN THE MATTER OF PAYMENTS OF SUB-COMMISSION TO M/S UMANG CREDIT CAPITAL LIMITED. SINCE NO INFORMATION WAS RECEIVED BEFORE THE CASE GETS TIME BARRED, ASSESSMENT WAS CO MPLETED ON 31-03-2006, WITHOUT TAKING ANY ACTION. INFORMATION RECEIVED ON 16-10-2008, DUR ING THE COURSE OF SCRUTINY PROCEEDING U/S 143(3) FOR THE ASST. YEAR 2004-05. IT APPEARS F ROM THE COPY OF THE TRADING, PROFIT & LOSS ACCOUNT OF M/S UMANG CREDIT CAPITAL LIMITED FOR THE ASST. YEAR 2003-04 THAT, ALTHOUGH THE ASSESSEE CLAIMED TO HAVE PAID COMMISSION OF RS.1,04 ,84,824.50 TO THEM DURING ASST. YEAR 2003-04, NO SUCH RECEIPTS OF COMMISSION SHOWN BY M/ S UMANG CREDIT CAPITAL LIMITED IN THEIR RESPECTIVE RETURN OF INCOME. ON THE OTHER HAN D, M/S UMANG CREDIT CAPITAL LIMITED SUBMITTED ONE LETTER BEFORE ACIT, CIRCLE-3, KOLKATA IN THIS MATTER AND DENIED HAVING ANY SUCH TRANSACTION WITH THE ASSESSEE. THEY FILED ONE AFFIDAVIT DATED 24-12-2007 IN THIS MATTER AND FURTHER DENIED HAVING ANY SUCH RECEIPTS OF COMM ISSIONS. HOWEVER, DCIT, C-3, KOLKATA ADDED THE AMOUNT IN THE HAND OF M/S UMANG CREDIT CA PITAL LIMITED FOR ASST. YEAR 2003-04. CONSIDERING THE ABOVE DENIAL OF M/S UMANG CREDIT CA PITAL LIMITED, IT IS CLEAR THAT IT IS NOT ESTABLISHED THAT PAYMENTS OF RS.1,04,84,842/- BY TH E ASSESSEE TO M/S UMANG CREDIT CAPITAL LIMITED IS FOR THE PURPOSE OF HIS BUSINESS/INCOME. THEREFORE, IT IS NOT ALLOWABLE. IVE THEREFORE REASON TO BELIEVE THAT INCOME HAS ESCAPED ASSESSMENT FOR THE ASST. YEAR 2003-04 AT LEAST FOR AN AMOUNT OF RS.1,04,84,824/-. HENCE, THE CASE OF THE ASSESSEE FOR THE ASST. YEAR 2003-04 IS REOPENED U/S 147, AFTER GETTING APP ROVAL FROM CIT-XV, KOLKATA ON 31.03.2009. SD/- S.HALDAR (SAKAR) SIKHA HALDER (SARKAR) INCOME TAX OFFICER, WARD-45(2), KOLKA TA AS OBSERVED THAT ASSESSEES INCOME WAS FIRST ASSESS ED U/S 143(3) ON 31.03.2006 FOR THE AY 2003-04 AND FURTHER NOTICE UN DER SECTION 148 OF THE ACT WAS ISSUED BY AO ON 1.04.2009 WHICH IS BEYOND THE E XPIRY OF FOUR YEARS FROM THE RELEVANT ASSESSMENT YEAR (2003-04). THEREFORE, IT IS THE DUTY OF AO TO SHOW PRIM FACIE AND ESTABLISH IN THE REASON RECORDED THAT INCOME CH ARGEABLE TO TAX HAS ESCAPED ASSESSMENT FOR SUCH ASSESSMENT Y EAR BY THE REASON OF FAILURE ON THE PART OF ASSESSEE TO DISCLOSE FULLY A ND TRULY ALL MATERIAL FACT NECESSARY FOR ALLEGED AY (2003-04). AFTER THE LOGIC AL ANALYSIS THE CONTENTS OF THE REASONS RECORDED THEN IT IS AMPLE CLEAR THAT TH ERE IS NO ALLEGATION OR STIPULATION SHOWING THAT INCOME CHARGEABLE TO TAX A S ESCAPE ASSESSMENT DUE ITA NO.1330 & 2699/KOL/2013 A.Y.2 003-04 DAMANI & CO. V. ITO WD-45(2) KOL. PA GE 6 TO FAILURE ON THE PART OF ASSESSEE TO DISCLOSE FULL Y AND TRULY ALL MATERIAL FACT NECESSARY FOR ASSESSMENT. WE FIND THE CASE CITED BY LD DR THE CASE OF KONTHIYAPARAMBIL COIR RUBBER PRODUCTS (SUPRA) IS DIFFERENT FROM THE FACTS OF THE PRESENT CASE. THE ISSUE FOR ADJUDICATION BEFORE THE COORDINATE BENCH OF COCHIN IN THE ABOVE SAID CASE WAS THAT WHETHER ASSE SSEE HAS DISCLOSED RELEVANT PARTICULARS AT THE TIME OF ORIGINAL ASSESS MENT BUT THEY ARE FOUND TO BE UNTRUE ON THE BASIS OF MATERIAL DISCOVERED ON LATER DATE BY AO, ASSESSMENT WOULD BE VALIDLY RE-OPENED U/S. 147 OF THE ACT BECA USE IN SUCH CASE ASSESSEE WOULD HAVE FAILED TO DISCLOSE TRULY AND FULLY AL MA TERIAL NECESSARY FOR ASSESSMENT AND IT WOULD NOT BE A CASE OF MERE CHANG E OF OPINION. SIMILARLY THE FACTS OF THE CASE SWORD GLOBAL INDIA (P) LTD. (SUPRA) ARE DIFFERENT WITH THE CASE OF THE ASSESSEE. IN THIS CASE ALSO THE ISSUE W AS NOT BASED WHETHER IT IS MANDATORY TO MENTION IN THE REASONS TO BELIEVE THAT THE ASSESSEE HAS FAILED TO DISCLOSE ALL THE MATERIAL FACTS FULLY AND TRULY NEC ESSARY FOR THE ASSESSMENT IN THE CASE OF REASSESSMENT BEYOND 4 YEARS. THE FACTS OF THE CASE SWORD GLOBAL INDIA (P) LTD. (SUPRA) ARE REPRODUCED BELOW : SECTION 147, READ WITH SECTION 10B OF THE INCOME-T AX ACT, 1961 INCOME ESCAPING ASSESSMENT NON-DISCLOSURE OF PRIMA RY FACTS (CHANGE OF OPINION) ASSESSMENT YEAR 2007-08 WHETHER UN DER SECTION 147 CASES HAVING WILLFULLY MADE FALSE OR UNTRUE STATEME NTS AT THE TIME OF ORIGINAL ASSESSMENT AND WHEN THAT FALSITY COMES TO NOTICE, IT IS NOT FAIR ON THE PART OF THE PETITIONER TO TURN AROUND AND SA Y YOU ACCEPTED MY LIE, NOW YOUR HANDS ARE TIED AND YOU CAN DO NOTHING - HELD, YES [PARA 23] [IN FAVOUR OF REVENUE] SECTION 151, READ WITH SECTION 148, OF THE INCOME-T AX ACT, 1961 INCOME ESCAPING ASSESSMENT SANCTION FOR ISSUE OF NOTICE (CONDITIONS PRECEDENT) ASSESSMENT YEAR 2007-08 WHETHER MERE NON- MENTIONING OF SANCTION ACCORDED BY AUTHORITY IN NOT ICE ISSUED UNDER SECTION 148 WOULD IN ANY WAY BE FATAL TO PROCESS OF REOPENING HELD, NO [PARA 20] [IN FAVOUR OF REVENUE] AS WE OBSERVED THAT THE FACTS OF THE CASES CITED BY THE AO ARE DIFFERENT FROM THE FACTS OF THE CASE ON HAND. THEREFORE SUCH CASES SHALL HAVE NO BEARING ON THE INSTANT CASE. ITA NO.1330 & 2699/KOL/2013 A.Y.2 003-04 DAMANI & CO. V. ITO WD-45(2) KOL. PA GE 7 IN THE LIGHT OF THE ABOVE NOTED PRE-POSITION, WE AN ALYSIS THE REASONS RECORDED BY AO IN THE FACTS OF THE PRESENT CASE AND FOUND AM PLY CLEAR THAT THE AO HAS NOT MADE ANY SPECIFIC ALLEGATION AS MENTIONED THERE IN THAT THE INCOME ESCAPE ASSESSMENT DUE TO FAILURE ON THE PART OF ASS ESSEE TO FULLY AND TRULY DISCLOSE OR RELEVANT FACT NECESSARY FOR ASSESSMENT. IN THIS CONNECTION WE ARE PUTTING OUR RELIANCE IN THE JUDGMENT OF HON'BLE DEL HI HIGH COURT IN ITA NO.1108-1109/2010 DATED 03.12.2015 IN THE CASE OF CIT V. VISHISHTH C HAY VYAPARK LTD. WHEREIN PARA-20 IS REPRODUCED BELOW:- 20. IN THE REASONS SUPPLIED TO THE PETITIONER, THE RE IS NO WHISPER, WHAT TO SPEAK OF ANY ALLEGATION, THAT THE PETITIONER HAD FAILED TO DISCLOSE FULLY AND TRULY ALL MATERIAL FACTS NECESSARY FOR ASSESSME NT AND THAT BECAUSE OF THIS FAILURE THERE HAS BEEN AN ESCAPEMENT OF INC OME CHARGEABLE TO TAX. MERELY HAVING A REASON TO BELIEVE THAT INCOME HAD ESCAPED ASSESSMENT IS NOT SUFFICIENT TO REOPEN ASSESSMENTS BEYOND THE FOUR YEAR PERIOD INDICATED ABOVE. THE ESCAPEMENT OF INCO ME FROM ASSESSMENT MUST ALSO BE OCCASIONED BY THE FAILURE O N THE PART OF THE ASSESSEE TO DISCLOSE MATERIAL FACTS, FULLY AND TRUL Y. THIS IS A NECESSARY CONDITION FOR OVERCOMING THE BAR SET UP BY THE PROV ISO TO SEC. 147. IF THIS CONDITION IS NOT SATISFIED, THE BAR WOULD OPER ATE AND NO ACTION UNDER SECTION 147 COULD BE TAKEN. ACCORDINGLY, WE ARE INCLINED TO HOLD THAT AO DID NO T ASSUME VALID JURISDICTION FOR INITIATION OF PROCEEDINGS U/S. 147 OF THE ACT B Y ISSUING NOTICE U/S. 148 OF THE ACT BEYOND FOUR YEARS AFTER COMPLETION OF RELEVANT ASSESSMENT YEAR AS PER REQUIREMENT OF FIRST PROVISO TO SEC. 147 OF THE ACT . HENCE, WE QUASH THE SAME. ACCORDINGLY, LEGAL OBJECTION CONTAINED IN GRO UND 1 TO 5 ARE ALLOWED. 5. AS WE HAVE QUASHED INITIATION OF PROCEEDINGS AND ISSUANCE OF NOTICE U/S 147 R.W.S. 148 OF THE ACT BY ALLOWING LEGAL GROUND OF THE ASSESSEE THEN REMAINING GROUNDS NO. 6 TO 8 OF ASSESSEES APPEAL O N MERITS BECOMES ACADEMIC AND INFRUCTUOUS. HENCE WE DISMISS THE SAME AS HAVING BECOME INFRUCTUOUS. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ITA NO.1330 & 2699/KOL/2013 A.Y.2 003-04 DAMANI & CO. V. ITO WD-45(2) KOL. PA GE 8 COMING TO REVENUES APPEAL IN ITA NO.2699/KOL/2013 7. SINCE WE HAVE ALREADY QUASHED THE RE-ASSESSMENT PROCEEDINGS U/S. 147 OF THE ACT MADE BY AO IN FAVOUR OF ASSESSEE ON LEGAL GROUNDS IN ASSESSEES APPEAL IN ITA NO.1330/KOL/2013, HENCE, G ROUNDS RAISED BY REVENUE IN REGARD TO AY 2003-04 ON MERITS BECOMES A CADEMIC AND INFRUCTUOUS AND WE DISMISS THE SAME AS HAVING BECOM E INFRUCTUOUS. 8. IN THE RESULT, REVENUES APPEAL IS DISMISSED AS BECOME INFRUCTUOUS. 9. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED ON LEG AL GROUNDS AND THAT OF REVENUE IS DISMISSED AS HAVING BECOME INFRU CTUOUS. ORDER PRONOUNCED IN THE OPEN COURT 22/ 06/2016 SD/- SD/- (S.S.VISWANETHRA RAVI) (WASEEM AHMED) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) KOLKATA, *DKP '#$- 22 / 06 /201 6 / COPY OF ORDER FORWARDED TO:- 1. /ASSESSEE DAMANI & CO. 7A, KIRAN SHANKAR ROY ROAD , KOLKATA-700 001 2. /REVENUE-ITO WARD-45(2), 3, GOVT. PLACE, KOLKATA-7 00 001 3. #,#-. / / CONCERNED CIT KOLKATA 4. /- / CIT (A) KOLKATA 5. 234 55-., -.!, / DR, ITAT, KOLKATA 6. 489 :; / GUARD FILE. BY ORDER/ , /TRUE COPY/ / # -.!,