Trupti Marketing Private Limited, Margao V. ACIT, Circle - 1, Margao

ITA 283/PAN/2017

AI Insights

The case involves Trupti Marketing Pvt. Ltd., which appealed against the order of the CIT(A), Panaji-1, concerning the assessment for the year 1998-99. The primary contention was the alleged failure of the lower authorities to issue a notice under section 143(2) of the Income Tax Act, 1961, which the assessee argued invalidated the assessment/re-assessment. The Tribunal, referencing a landmark decision in Allcargo Global Logistics Ltd. vs. DCIT and other precedents, accepted the legal argument presented by the assessee and quashed the reopening of the assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136922 (ITAT-PANAJI)
• Duration Of Justice: 5 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 15-01-2023
• Assessment Year: misc
• Appeal Filed On: 09-11-2017
• Other Referred Cases: Allcargo Global Logistics Ltd. vs. DCIT, NTPC vs. CIT, CIT vs. Laxman Das Khandelwal, ACIT vs. Geno Pharmaceuticals Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148; 143(3); 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH “SMC”, PANAJI – VIRTUAL COURT SHRI S.S. GODARA, JUDICIAL MEMBER ITA No.283/PAN/2017 Assessment Year : 1998-99 Trupti Marketing Pvt. Ltd., Vila Flores da Silva, Erasmo Carvalhi Street, Margao, Goa – 403601 PAN : AAACT5508K Vs. ACIT, Circle 1, Margao, Goa Appellant Respondent आदेश / ORDER PER S.S. GODARA, JM : This assessee‟s appeal for AY 1998-99 arises against the CIT(A), Panaji-1‟s order dated 24-08-2017 passed in case No.128/PNJ/07-08 in proceedings under Section 147 r.w.s. 143(3) of the Income Tax Act, 1961, in short „the Act‟. Heard both the parties. Case file perused. 2. It emerges during the course of hearing that the assessee has filed its petition dated 17.02.2022 seeking to raise an additional Assessee by Shri Nishant Thakkar, Advocate Revenue by Shri N. Shrikanth Date of hearing 16-01-2023 Date of pronouncement 19-01-2023 ITA No.283/PAN/2017 Trupti Marketing Pvt. Ltd. 2 ground that both the learned lower authorities failure in issuing section 143(2) notice vitiates the entire assessment / re-assessment herein dated 31.03.2005. The Revenue vehemently opposed the assessee‟s foregoing petition at this alleged belated stage. I find no merit in the revenue‟s instant technical objection as this tribunal‟s landmark special bench decision in Allcargo Global Logistics Ltd. vs. DCIT (2012) 137 ITD 237 (Mumbai Trib); after considering NTPC vs. CIT (1998) 229 ITR 383 (SC), has settled the law that such a pure legal question very well be entertained in order to determine the correct tax liability of an assessee provided all the relevant facts are already on record. 3. Learned DR could hardly dispute that such a notice appears to have nowhere been issued going by the detailed assessment discussion dated 31.03.2005 despite the fact that the assessee‟s letter dated 07.03.2004 (in response to section 148 notice) had clearly submitted that its earlier original return dated 27.11.1998 be treated as the one filed in response to initiation of re-assessment proceedings. ITA No.283/PAN/2017 Trupti Marketing Pvt. Ltd. 3 4. Faced with the situation, I quote CIT vs. Laxman Das Khandelwal (2019) 417 ITR 325 (SC), ACIT vs. Geno Pharmaceuticals Ltd. (2013) 32 taxman.com 162 (Bom) to quash the impugned reopening itself for foregoing clinching reason. All other pleadings on merits stand rendered academic. 5. This assessee‟s appeal is allowed in above terms. Order pronounced in the Open Court on 19 th January, 2023. Sd/- (S.S. GODARA) JUDICIAL MEMBER प ु णे Pune; ददन ांक Dated : 19 th January, 2023 GCVSR आदेश की प्रतिलिपि अग्रेपिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant; 2. प्रत्यर्थी / The Respondent; 3. The CIT(A), Panaji -1, Goa 4. 5. The Pr.CIT, Panaji विभागीय प्रविविवि, आयकर अपीलीय अविकरण, पुणे “SMC” / DR „SMC‟, ITAT, Panaji 6. गार्ड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune ITA No.283/PAN/2017 Trupti Marketing Pvt. Ltd. 4 Date 1. Draft dictated on 17-01-2023 Sr.PS 2. Draft placed before author 18-01-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.