Miles Bronson Education Society, Guwahati V. Income Tax Officer, Ward-3(2) , Guwahati

ITA 28/GTY/2013

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6492 (ITAT-GUWAHATI)
• Duration Of Justice: 6 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2004-2005
• Appeal Filed On: 21-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RABINDRO SINGH J
• Keywords: Question of law; Cancellation of registration
• Section: 148; 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH, GUWAHATI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 28 TO 33 / GAU / 2013 ASSESSMENT YEARS :2004-05 TO 2009-10 MILES BRONSON EDUCATION SOCIETY, C/O MIELS EDUCATION SOCIETY, P.O. BORJHAR, GUWAHATI-15 [ PAN NO.AAAAM 4217 E ] V/S . INCOME TAX OFFICER, WARD-3(2), GUWAHATI /APPELLANT .. / RESPONDENT ITA NO. 147 / GAU / 2014 ASSESSMENT YEARS :2010-11 MILES BRONSON EDUCATION SOCIETY, C/O MIELS EDUCATION SOCIETY, P.O. BORJHAR, GUWAHATI-15 [ PAN NO.AAAAM 4217 E ] V/S . INCOME TAX OFFICER, WARD-3(2), GUWAHATI /APPELLANT .. / RESPONDENT /BY ASSESSEE SHRI SOMNATH GHOSH, ADVOCATE /BY REVENUE SHRI RABINDRO SINGH, JCIT-DR /DATE OF HEARING 03-07-2019 /DATE OF PRONOUNCEMENT 31-07-2019 / O R D E R PER BENCH:- ITA NO.28-33/GAU/13 & 147/GAU/14 A.YS.04-05 TO 09 -10 & 10-11 MILES BRONSON EDUCATION SOCIETY VS. ITO WD-3(2) GA U PAGE 2 THESE SEVEN APPEAL(S) PERTAIN TO A SINGLE ASSESSEE , NAMELY, M/S MILES BRONSON EDUCATION SOCIETY. RELEVANT ASSESSMENT YEAR (S) IN ISSUE ARE 2004- 05 TO 2010-11. THE COMMISSIONER OF INCOME TAX (APPE ALS)-GUWAHATI HAS PASSED HIS SEPARATE LOWER APPELLATE ORDERS DATED, 1 2.11.2012 & 02.04.2014 IN CASE NOS.GUWA-227, 235-238 & 243/2011-12 AND GUWA- 85/2013-14; RESPECTIVELY U/S 143(3)R.W.S.147 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT HEARD BOTH THE PARTIES REPRESENTING FOR THE ASSESSE E SHRI SOMNATH GOHSH ADVOCATE AND SHRI RABINDRO SINGH JCIT-DR AT R EVENUES BEHEST. 2. IT TRANSPIRES DURING THE COURSE OF HEARING THAT ALL THE ASSESSEES SEVEN APPEAL(S) EXCEPT ITA NO.33/GAU/2013 RAISE IDENTICA L SUBSTANTIVE GROUNDS WHEREIN THE LOWER AUTHORITIES HAVE TAKEN NOTE OF CI TS ACTION CANCELLING THE TAXPAYERS REGISTRATION U/S 12AA(3) OF THE ACT IN H IS ORDER DATED 01.12.2010. THE ASSESSING OFFICER APPEARS TO HAVE TAKEN NOTE OF THE SAID CANCELLATION OF REGISTRATION TO INITIATE THIS RE-OPENING FOLLOWED B Y CONSEQUENTIAL RE-ASSESSMENT FRAMED IN ALL SIX CASES DENYING EXEMPT BENEFIT U/S 11 OF THE ACT. MR. GHOSH AT THIS STAGE INFORMS US THAT THE ASSESSEE HAD FILED I TA NO.147/GAU/2014 BEFORE THIS TRIBUNAL CHALLENGING CORRECTNESS OF THE CITS ORDER CANCELLING ITS REGISTRATION ON 01.12.2010. HE PLACES ON SERVED COP Y OF THE SAID CO-ORDINATE BENCHS ORDER DATED 04.06.2019 RESTORING THIS REGIS TRATION ISSUE BACK TO THE CIT FOR DE NOVO PROCEEDINGS. LEARNED DEPARTMENTAL REPRESENTATIVE I S VERY VERY FAIR IN NOT DISPUTING ALL THESE INTERVENING DE VELOPMENTS. WE CONCLUDE IN THESE PECULIAR FACTS AND CIRCUMSTANCES THAT THE ASS ESSEES INSTANT SIX APPEAL(S) EXCEPT ITA NO.33/GAU/2013 ALSO HAVE TO FO LLOW SUIT AS THE IMPUGNED RE-OPENING IS INDEED THE OFFSHOOT FOR CIT S ORDER CANCELLING ITS REGISTRATION GRANTED EARLIER WAY BACK IN THE YEAR 2 001. WE ACCORDINGLY RESTORE ALL THESE SIX CASES BACK TO THE ASSESSING OFFICER. WE MAKE IT CLEAR THAT THE ASSESSING OFFICER SHALL BE AT LIBERTY TO FINALIZE C ONSEQUENTIAL ASSESSMENT(S)IN THE MEANTIME BUT THE SAME SHALL BE KEPT IN ABEYANCE TILL THE FINAL OUTCOME OF ITA NO.28-33/GAU/13 & 147/GAU/14 A.YS.04-05 TO 09 -10 & 10-11 MILES BRONSON EDUCATION SOCIETY VS. ITO WD-3(2) GA U PAGE 3 THE CITS PROCEEDINGS (SUPRA). THESE SIX APPEAL(S) ITA 28-32/GAU/2013 AND ITA 147/GAU/2014 ARE ALLOWED FOR STATISTICAL PURPOS ES IN ABOVE TERMS. 3. WE NOW LEFT WITH ASSESSEES APPEAL ITA NO.33/GAU /2013 FOR ASSESSMENT YEAR 2009-10. THIS TAXPAYER HAS RAISED A N ADDITIONAL GROUND AS WELL IN THE INSTANT APPEAL SEEKING TO CHALLENGE VAL IDITY OF THE IMPUGNED RE- OPENING FOLLOWED BY CONSEQUENTIAL RE-ASSESSMENT ON THE GROUND THAT ASSESSING OFFICER HAD INITIATED THE PROCEEDINGS WIT HIN THE TIME LIMIT OF ISSUANCE OF SCRUTINY NOTICE U/S 143(2) OF THE ACT. THE ASSESSEE INVITES OUR ATTENTION TO ITS PAPER BOOK INDICATING THE RETURN I N QUESTION DATED 24.09.2009 FILED FOR THE IMPUGNED ASSESSMENT YEAR. LEARNED COU NSEL THEN QUOTES SEC. 143(2) OF THE ACT STIPULATING TIME LIMIT FOR ISSUIN G SCRUTINY NOTICE WITHIN SIX MONTHS OF END OF THE FINANCIAL YEAR IN WHICH THE RE TURN HAS BEEN FIELD. THE RELEVANT TIME PERIOD OF SIX MONTHS UNDER THE SUCH S TATUTORY PROVISION EXPIRED ON 30.09.2010. THE ASSESSEE ACCORDINGLY CONTENDS TH AT THE ASSESSING OFFICER INITIATED SEC. 148 R.W.S. 147 PROCEEDINGS VIDE NOTI CE DATED 07.06.2010 I.E. WITHIN THE TIME PERIOD ISSUING SCRUTINY NOTICE. HE RELIED ON HONBLE MADRAS HIGH COURTS DECISION (2010) 323 ITR 346 CIT VS. TCP. LTD. THAT SEC. 148 R.W.S. 147 PROCEEDINGS DURING THE PENDENCY OF SCRUTINY ASS ESSMENT WITHIN THE TIME PRESCRIBED U/S. 143(2) OF THE ACT ARE NOT SUSTAINAB LE IN LAW. 4. MR SINGH HAS CONTESTED ASSESSEES ARGUMENTS THAT HE IS RAISING INSTANT LEGAL ISSUE CHALLENGING VALIDITY OF RE-OPENING FOR THE FIRST TIME BEFORE THE TRIBUNAL. THE ASSESSEE IN TURN INVITES OUR ATTENTIO N TO ITS ADDITIONAL GROUND TO THIS EFFECT. WE THEREFORE DECLINE REVENUES INSTAN T TECHNICAL ARGUMENT GOING BY HONBLE APEX COURTS LANDMARK DECISION IN NTPC V S. CIT (1998) 229 ITR 383 (SC) AND THAT TRIBUNAL CAN VERY WELL ENTERTAIN PURE QUESTION OF LAW IN CASE THE RELEVANT FACTS ARE ALREADY AVAILABLE ON RECORD. THIS TRIBUNALS SPECIAL BENCHS DECISION IN ALL CARGO GLOBAL LOGISTICS LTD VS. DCIT (2012) 137 ITD 26 (MUM) HAS ALSO CONSIDERED THE SAID DECISION TO CONC LUDE THAT ASSESSEE OR THE DEPARTMENT CAN VERY WELL RAISE ANY ADDITIONAL GROUN D FOR ARRIVING AT CORRECT ITA NO.28-33/GAU/13 & 147/GAU/14 A.YS.04-05 TO 09 -10 & 10-11 MILES BRONSON EDUCATION SOCIETY VS. ITO WD-3(2) GA U PAGE 4 TAXABLE INCOME IN A GIVEN CASE TO PROVIDE THE RELEV ANT FACTS FORM PART OF RECORD. WE THEREFORE ENTERTAIN AND ACCEPT THE ASSES SEES INSTANT ADDITIONAL LEGAL GROUND CHALLENGING CORRECTNESS VALIDITY OF RE -OPENING OR RE-ASSESSMENT GOING BY HONBLE MADRAS HIGH COURT DECISION (SUPRA) . ITS OTHER SUBSTANTIVE GROUNDS ON MERITS ARE RENDERED INFRUCTUOUS. THIS AS SESSEES APPEAL ITA NO.33/GAU/2013 IS ALLOWED THEREFORE. 5. TO SUM UP, ASSESSEES SIX APPEAL(S) 28 TO 32/GAU /2013 AND ITA NO.147/GAU/2014 ARE ALLOWED FOR STATISTICAL PURPOSE S IN ABOVE TERMS AND ITA NO.33/GAU/2013 IS ALLOWED. ORDERED ACCORDINGLY. ORDER PRONOUNCED IN ACCORDANCE WITH RULE 34(3) OF T HE ITAT RULES BY PUTTING ON NOTICE BOARD ON 31/07/2019 SD/- SD/- ( ) (&' ) ( A.L.SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) GUWAHATI, *DKP (- 31 / 07 /201 9 / COPY OF ORDER FORWARDED TO:- 1. /ASSESSEE-MILES BRONSON EDUCATION SOCIETY C/O MIELS EDUCATION SOCIETY, P.O. BORJHAR, GUWAHAT I-15 2. /REVENUE-ITO WARD-3(2), GUWAHATI 3. 3 4 9 / CONCERNED CIT GUWAHATI 4. 4- / CIT (A) GUWAHATI 5. < ''3, 3, 9 / DR, ITAT, GUWAHATI 6. B / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY (ON TOUR) 3,