Ejaz Tanning Company, CHENNAI V. ACIT Non Corporate Circle4, CHENNAI

ITA 3039/CHNY/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0471 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 07-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G CHANDRABABU
• Assessee Lawyers: K RAVI
• Keywords: Set aside
• Section: 153

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.3039/CHNY/2018 ( [ [ / ASSESSMENT YEARS: 2011-12) M/S. EJAZ TANNIN COMPANY, NEW NO.15, OLD NO.98, V.V. KOIL STREET, PERIAMET, CHENNAI 600 003. VS THE ACIT, NON-CORPORATE CIRCLE 4, CHENNAI PAN: AAAFE7758D ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI K.RAVI, ADVOCATE / RESPONDENT BY : SHRI G. CHANDRABABU, ADDL.CIT /DATE OF HEARING : 08.12.2020 /DATE OF PRONOUNCEMENT : 23.12.2020 / O R D E R PER S.JAYARAMAN, AM: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-5, CHENNAI, IN ITA NO75/CIT(A)-5/2016-17 DATED 27.09.2018 FOR THE ASSESSMENT YEAR 2011-12. 2 ITA NO.3039/CHNY/2018 2. M/S. EJAZ TANNING CO., THE ASSESSEES ASSESSMENT PASSED U/S.143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) DATED 31.12.2013 FOR THE ASSESSMENT YEAR 2011-12 WAS SUBJECT MATTER OF REVISION U/S.263 OF THE ACT AND THE CIT(A), CHENNAI-9 BY AN ORDER U/S.263 OF THE ACT IN C.NO.12/263(ET)/CIT-9/14-15 DATED 19.12.2014, INTER ALIA, SET ASIDE WITH CERTAIN DIRECTIONS TO THE AO TO PASS ORDER AS PER LAW. THE AO GAVE EFFECT TO THE ORDER U/S.263 OF THE ACT, BY AN ORDER DATED 26.02.2016 DETERMINING THE INCOME AT RS.2,37,76,280/-. ON APPEAL, THE LD.CIT(A) DISMISSED THE APPEAL IN ITA NO.75/CIT(A)- 5/2016-17 DATED 27.09.2018. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL. 3. THE CASE WAS HEARD THROUGH VIDEO CONFERENCING. THE LD.AR SUBMITTED THAT ALTHOUGH THE ASSESSEE HAS TAKEN VARIOUS GROUNDS IN APPEAL , HE PLEADED THAT THE ORDER DATED 26.02.2016 PASSED BY THE AO GIVING EFFECT TO THE ORDER PASSED U/S.263 DATED 19.12.2014 IS BARRED BY LIMITATION U/S.153(5) OF THE ACT AND HENCE PLEADED TO QUASH THE ORDER. PER CONTRA, THE LD.DR SUPPORTED THE ORDER OF THE LD.AO. 4. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH RELEVANT ORDERS / MATERIAL. AS PER SUB-SECTION (3) OF SECTION 153 OF THE ACT, AN ORDER OF FRESH ASSESSMENT IN PURSUANCE OF AN ORDER U/S.263 OF THE ACT, 3 ITA NO.3039/CHNY/2018 SETTING ASIDE OR CANCELLING AN ASSESSMENT, MAY BE MADE AT ANY TIME BEFORE THE EXPIRY OF NINE MONTHS FROM THE END OF THE FINANCIAL YEAR IN WHICH THE ORDER U/S.263 OF THE ACT IS PASSED BY THE COMMISSIONER. THEREFORE, THE ORDER GIVING EFFECT TO THAT ORDER PASSED BY THE AO DATED 26.02.2016 IS CLEARLY BEYOND THE TIME LIMIT ALLOWED U/S.153(3) OF THE ACT AND HENCE THE LD.ARS PLEA IS SUSTAINED. THE ORDER OF THE AO DATED 26.02.2016 IS QUASHED. 5. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED ON 23 RD DECEMBER, 2020 AT CHENNAI. SD/- SD/- /CHENNAI, /DATED 23 RD DECEMBER, 2020 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. [ /GF ( ) (DUVVURU R.L REDDY) /JUDICIAL MEMBER ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER