Sona Okegawa Precision Forgings Ltd., New Delhi V. ACIT, New Delhi

ITA 2848/DEL/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0164 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 23-03-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 08-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIDUR PURI
• Keywords: Capital expenditure
• Section: 143(3); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH : G NEW DELHI) (DELHI BENCH : G NEW DELHI) (DELHI BENCH : G NEW DELHI) (DELHI BENCH : G NEW DELHI) BEFORE SHRI A.D. JAIN , JUDICIAL MEMBER AND BEFORE SHRI A.D. JAIN , JUDICIAL MEMBER AND BEFORE SHRI A.D. JAIN , JUDICIAL MEMBER AND BEFORE SHRI A.D. JAIN , JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO.2848/DEL./2010 I.T.A. NO.2848/DEL./2010 I.T.A. NO.2848/DEL./2010 I.T.A. NO.2848/DEL./2010 (ASSESSMENT YEAR : 2002 (ASSESSMENT YEAR : 2002 (ASSESSMENT YEAR : 2002 (ASSESSMENT YEAR : 2002- -- -03) 03) 03) 03) SONA OKEGAWA PRECISION FORGINGS LTD., SONA OKEGAWA PRECISION FORGINGS LTD., SONA OKEGAWA PRECISION FORGINGS LTD., SONA OKEGAWA PRECISION FORGINGS LTD., VS. VS. VS. VS. ACIT, CIRCL ACIT, CIRCL ACIT, CIRCL ACIT, CIRCLE 9(1), E 9(1), E 9(1), E 9(1), UGF UGF UGF UGF- -- -6, INDRA PRAKASH BUILDING, 6, INDRA PRAKASH BUILDING, 6, INDRA PRAKASH BUILDING, 6, INDRA PRAKASH BUILDING, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. 21, BARAKHAMBA ROAD, 21, BARAKHAMBA ROAD, 21, BARAKHAMBA ROAD, 21, BARAKHAMBA ROAD, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (PAN/GIR NO. : AABCS4786P) (PAN/GIR NO. : AABCS4786P) (PAN/GIR NO. : AABCS4786P) (PAN/GIR NO. : AABCS4786P) (APPELLANT) (APPELLANT) (APPELLANT) (APPELLANT) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) ASSESSEE BY : SHRI VIDUR PURI, CA ASSESSEE BY : SHRI VIDUR PURI, CA ASSESSEE BY : SHRI VIDUR PURI, CA ASSESSEE BY : SHRI VIDUR PURI, CA REVENUE BY : SHRI AMINDER KUMAR, DR REVENUE BY : SHRI AMINDER KUMAR, DR REVENUE BY : SHRI AMINDER KUMAR, DR REVENUE BY : SHRI AMINDER KUMAR, DR ORDER ORDER ORDER ORDER PER A.D. JAIN, JM THIS IS ASSESSEE APPEAL FOR ASSESSMENT YEAR 2002-03 TAKING TH E FOLLOWING GROUNDS: 1. THE LEARNED CIT (A) ERRED IN LAW IN UPHOLDING THE V ALIDITY OF INITIATION OF REASSESSMENT PROCEEDING U/S 147 OF THE INCOME TAX ACT BY THE ASSESSING OFFICER AFTER THE PERIO D OF FOUR YEARS FROM THE END OF THE RELEVANT ASSESSMENT YEAR EVEN WHEN APPELLANT HAD FULLY AND TRULY DISCLOSED ALL MATERIAL FACTS RELATING TO COMMISSION PAID TO SOLE SELLI NG AGENT IN THE ORIGINAL ASSESSMENT PROCEEDINGS COMPLETED U/S 143 (3) OF THE INCOME TAX ACT. 2. THE LEARNED' CIT(A) ERRED IN LAW AND FACTS IN UPH OLDING THAT THE ASSESSING OFFICER WAS CORRECT IN LAW IN INITIATING REASSESSMENT PROCEEDING U/S 147 OF THE INCOME TAX ACT ON MERE CHANGE IN OPINION EVEN WHEN THE COMPLETE DETAI LS RELATING TO THE COMMISSION PAID TO SO E SE LING AGENT W AS DULY FILED AND HAD BEEN ACCEPTED BY THE ASSESSING OFFIC ER IN THE ORIGINAL ASSESSMENT PROCEEDING COMPLETED U/S 143 (3) OF THE INCOME TAX ACT. I.T.A. NO.2848/DEL./2010 (A.Y. : 2002-03) 2 3. THE LEARNED CIT (A ) ERRED IN FACTS IN U HOLD IN THAT THE REJECTION ORDER DATED 28.10.2009 IN RESPONSE TO OBJEC TIONS RAISED BY THE APPELLANT ON. ISSUING OF NOTICE U/S 148 H AD BEEN SERVED ON APPELLANT. 4. THE LEARNED CIT (A) EARED LAW AND ON FACTS IN NOT CONSIDERING OR DISPOSING OF THE GROUND NO 4 I.E. 'THE LEARNED ASSESSING OFFICER ERRED IN LAW AND ON FACTS WHIL E FRAMING REASSESSMENT ORDER BY TAKING THE ASSESSED INCOME OF RS. 1,24,18,575 AS PER ORIGINAL ASSESSMENT ORDER U/S 14 3 (3) BY IGNORING RELIEF GRANTED TO THE APPELLANT IN THE APPELLATE PROCEEDINGS'. 5. THE LEARNED CIT (A) ERRED IN U HOLDING THE COMMI SSION OF RS. 33 79407/- PAID TO SOLE SELLING AGENT AS CAPITAL EXPENDITURE. 2. AS PER GROUND NO.4, THE LD.CIT(A) HAS NEITHER CONSI DERED NOR DISPOSED OF GROUND NO.4 TAKEN BEFORE HER (THE CIT(A) ), I.E, THE AO HAD ERRED IN TAKING THE ASSESSED INCOME OF `12418575, A S PER THE ORIGINAL ASSESSMENT ORDER U/S 143(3) OF THE I.T. ACT BY IGNORING THE RELIEF GRANTED TO THE ASSESSEE IN THE APPEAL PROCEEDING S. 3. A PERUSAL OF THE IMPUGNED ORDER SHOWS THAT INDEED, THE GRIEVANCE OF THE ASSESSEE IN THIS REGARD IS CORRECT AND J USTIFIED. ACCORDINGLY, THIS ISSUE IS REMITTED TO THE FILE OF THE CIT(A) TO BE DECIDED AFRESH IN ACCORDANCE WITH LAW ON AFFORDING ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. 4. THE ISSUES, INVOLVED IN GROUND NOS.1 TO 3 BEING JURI SDICTIONAL MATTERS, GO TO THE ROOT OF THE ASSESSMENT, AND THEY ARE ALSO REMITTED TO THE FILE OF THE CIT(A) ALONG WITH THE ISSUE INVOLV ED IN GROUND NO.4. 5. GROUND NO.5 PERTAINS TO ASSESSMENT OF COMMISSION PAID O F `33,79,407. THE CIT(A) SHALL ALSO ADJUDICATE ON THIS MATTER ALONG WITH THE ABOVE ISSUES. I.T.A. NO.2848/DEL./2010 (A.Y. : 2002-03) 3 5. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APPEAL O F THE ASSESSEE IS TREATED AS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 23.03.2011. SD/- SD/- [SHAMIM YAHYA] [A.D. JAIN] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE MARCH, 23, 2011. SKB COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A)-XII, NEW DELHI. 5. CIT( ITAT) DEPUTY REGISTRAR, ITAT, DELHI BENCHES