Goldstone Technologies Limited, Hyderabad, Hyderabad V. ACIT, Central Circle-3, Hyderabad, Hyderabad

ITA 279/HYD/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3820 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 22-10-2020
• Assessment Year: 2009-2010
• Appeal Filed On: 20-02-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Assessment record; Set aside
• Section: 143(3); 153A; 143(2); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 1093 /HYD./2017 ASSESSMENT YEAR: 200 7 - 08 & ITA NO. 279/HYD./2017 ASSESSMENT YEAR: 2009 - 10 M/S GOLDSTONE TECHNOLOGIES LTD. VS. ACIT, CENTRAL CIRCLE 3 / HYDERABAD ACIT, CIRCLE 2(1) HYDERABAD PAN: AAACG7478F (APPELLANT) (RESPONDENT) FOR ASSESSEE : SH. P.MURALI MOHANA RAO, A.R. FOR REVENUE : S H. Y.V.S.T. SAI, CIT, D.R. DATE OF HEARING : 2 2 /1 0 /20 20 DATE OF PRONOUNCEMENT : 03 / 1 1 /2020 O R D E R PER SMT. P. MADHAVI DEVI, J .M. BOTH THESE ARE ASSESSEES APPEAL S FOR THE AY 2007 - 08 AND 2009 - 10 RESPECTIVELY , AGAINST SEPARATE ORDER S OF LD.CIT(A) - 11 , HYDERABAD DATED 29.09.2016 AND LD.CIT(A) - 12 HYDERABAD DATED 26.04.2017 . ITA NO. 1093 /HYD/201 7 AY 20 07 - 08 ITA NO.279/HYD/2017 AY 2009 - 10 M/S GOLDSTONE TECHNOLOGIES LTD., HYD. 2 2. IN BOTH THESE APPEALS , THE ASSESSEE IS AGGRIEVED BY THE DISALLOWANCE OF CLAIM OF DEDUCTION U/S 10A OF THE I.T. ACT, 1961. IN ADDITION TO THE GROUNDS RAISED AGAINST THE SAID DISALLOWANCE, THE ASSESSEE HAS RAISED ADDITION AL GROUNDS OF APPEAL STATING THAT THE A.O. HAS FAILED TO ISSUE NOTICE U/S 143(2) OF THE I.T.ACT, 1961 BEFORE PROCEEDING WITH THE ASSESSMENT PROCEEDINGS U/S 143 ( 3) R.W.S. 153A OF THE ACT AND THEREFORE, ASSESSMENT ORDERS U/S 143(3) R.W.S.153A OF THE I.T. ACT,1961 (FOR BOTH THE AYS) ARE NOT SUSTAINABLE. ALONG WITH ADDITIONAL GROUNDS OF APPEAL , ASSESSEE HAS SUBMITTED AN APPLICATION FOR ADMISSION OF ADDITIONAL GROUNDS BY PLACING RELIANCE ON THE JUDGEMENT OF HONBLE SUPREME COURT IN THE CASE OF N ATIONAL THERMAL POWER CO. LTD. VS. CIT ( 1998) REPORTED IN 229 ITR 383. IN SUPPORT OF THE CONTENTIONS IN THE ADDITIONAL GROUNDS, LD. COUNSEL FOR THE ASSESSEE HAS ALSO FILED COPY OF THE ORDER SHEET ENTRIES OF THE ASSESSMENT PROCEEDINGS TO DEMONSTRATE THAT NOTICE U/S 143(2) OF THE ACT WAS NOT ISS UED TO THE ASSESSEE. 3 . THE LD.DR WAS THEREFORE ASKED TO VERIFY THE ASSESSMENT RECORDS AND REPORT AS TO WHETHER NOTICE U/S 143(2) OF THE ACT HAS BEEN ISSUED TO THE ASSESSEE OR NOT FOR BOTH THE A.YS. ON 22.10.2020 , WHEN THE CASE WAS CALLED FOR HEARING TH ROUGH VIDEO CONFERENC ING, THE LD.DR HAS REPORTED THAT HE HAS GONE THROUGH THE ASSESSMENT RECORD FOR BOTH THE AYS BUT HE DID NOT FIND ANY NOTICE ISSUED TO ASSESSEE U/S 143(2) OF THE ACT FOR AY 2007 - 08 AND 2009 - 10. ITA NO. 1093 /HYD/201 7 AY 20 07 - 08 ITA NO.279/HYD/2017 AY 2009 - 10 M/S GOLDSTONE TECHNOLOGIES LTD., HYD. 3 4. LD.COUNSEL FOR THE ASSESSEE THEREFORE SUBMITTED THAT IN VIEW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF ACIT VS HOTEL BLUE MOON (2010) , THE ASSESSMENT ORDERS (FOR BOTH THE AYS) ARE LIABLE TO BE SET ASIDE. HE ALSO PLACED RELIANCE UPON THE LA TEST DECISION OF HONBLE SUPREME COURT IN THE CASE OF CIT VS. LAXM AN DAS KHANDELWAL IN CIVIL APPEAL NOS. 6261 AND 6262/2019 (ARISING OUT OF SLP (CIVIL) NOS. 19320 - 19321 OF 2019) JUDGEMENT DATED 13 TH AUGUST, 2019 WHEREIN THE HONBLE SUPREME COURT HAS REITERATED ITS EARLIER DECISION IN THE CASE OF ACIT VS. HOTEL BLUEMOON (SUPRA) REPORTED IN 1 8 8 TAXMAN N.COM 1 1 3. 5. RESPECTFULLY FOLLOWING THE DECISION OF HONBLE SUPREME COURT CITED (SUPRA), WE HOLD THAT THE ASSESSMENT ORDER S PASSED BY AO FOR BOTH THE AYS WITHOUT ISSU ANCE OF NOTICE U/S 143(2) OF THE ACT ARE NOT SUSTAINABLE. SINCE THE ASSESSMENT ORDERS FOR BOTH THE AYS ARE SET ASIDE, WE ARE NOT ADJUDICATING OTHER GROUNDS OF APPEAL AS IT WOULD RESULT IN AN ACADEMIC EXERCISE AT THIS STA G E. 6 . IN THE RESULT, THE APPEAL S OF THE ASSESSEE FOR BOTH THE AYS 2007 - 08 AND 2009 - 10 ARE PARTLY ALLOWED . ORDER PRONOUNCED IN OPEN COURT ON 03 RD NOVEMBER , 2020 . SD/ - SD/ - (A. MOHAN ALANKAMONY) (P . MADHAVI DEVI) ACCOUNTANT M EMBER JUDICIAL MEMBER DATED: 03 RD NOVEMBER, 2020 . * GMV ITA NO. 1093 /HYD/201 7 AY 20 07 - 08 ITA NO.279/HYD/2017 AY 2009 - 10 M/S GOLDSTONE TECHNOLOGIES LTD., HYD. 4 COPY OF ORDER FORWARDED TO: 1. M/S GOLD STONE TECHNOLOGIES LTD., C/O P. MURALI & CO., CAS, 6 - 3 - 655/2/3, 1ST FLOOR, SOMAJIGUDA, HYDERABAD 500 082 . 2. ACIT, CENTRAL CIRCLE 3, HYDERABAD / ACIT, CIRCLE 2(1) HYDERABAD . 3. CIT ( A ) 11, HYDERABAD CIT(A) - 12, HYDERABAD 4. PR.CIT (CENTRAL), HYDERABAD 5. THE D.R. ITAT HYDERABAD 6 . GUARD FILE