Hotel Vamsi Krishna Pvt. Ltd, Bhubaneswar V. ACIT, Berhampur

ITA 304/CTK/2011

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7605 (ITAT-CUTTACK)
• Duration Of Justice: 5 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 21-10-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 31-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY CHARAN ROUT
• Assessee Lawyers: P C SETHI
• Keywords: Reopening of assessment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N. S SAINI, ACCOUNTANT MEMBER ITA NO S . 304,205 & 306/CTK/2011 ASSESSMENT YEARS : 2006 - 07, 2007 - 08 & 2008 - 09 HOTEL VAMSI KRISHNA PVT LTD., NEW COLONY, SAMANDIR ROAD, AT/PO: RAYAGADA. VS. ACIT, BERHAMPUR CIRCLE, BERHAMPUR PAN/GIR NO. AABCF 7604 R (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI P. C. SETHI, AR REVENUE BY : SHRI ABHAY CHARAN ROUT , DR DATE OF HEARING : 21 /10 / 2016 DATE OF PRONOUNCEMENT : 21 /10 / 2016 O R D E R THESE APPEALS ARE FLED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) , BERHAMPUR , DATED 21.2.2011 FOR A.Y. 2006 - 07, DATED 24.2.2011 FOR A.Y. 2007 - 08 AND DATED 31.3.2011 FOR THE ASSESSMENT YEAR 2008 - 09, RESPECTIVELY . 2. IN ALL THE YEARS, IN GROUND NO.1 OF THE APPEAL, THE ASSESSEE HAS CHALLENGED THE REOPENING OF ASSESSMENT U/S.147 OF THE ACT IS BAD IN LAW AND, THEREFORE, THE ORDER OF REASSESSMENT SHOULD BE QUASHED. 2 ITA NOS.304,205 & 306/CTK/2011 ASSESSMENT YEARS:2006 - 07, 2007 - 08 & 2008 - 09 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE O N RECORD. LD A.R. SUBMITTED THAT THE ASSESSEE FILED RETURN OF INCOME FOR THE FIRST TIME ON ISSUANCE OF NOTICE U/S.148 OF THE ACT IN ALL THE YEARS UNDER APPEAL. HE SUBMITTED THAT AFTER FILING THE RETURN, THE ASSESSEE FILED A LETTER DATED 10.3.2009 REQUESTING FOR DR OPPING THE PROCEEDINGS INITIATED U/S.147 OF THE ACT, COPY OF WHICH IS PLACED AT PAGE 2 OF PAPER BOOK. 4. WHEN QUESTIONED BY THE BENCH WHETHER REASONS FOR REOPENING OF ASSESSMENT U/S.147 OF THE ACT WAS GIVEN TO THE ASSESSEE AND WAS ALLOWED OPPORTUNITY TO MA KE HIS SUBMISSIONS THEREON, LD A.R. OF THE ASSESSEE VERY FAIRLY ADMITTED THAT THIS WAS NOT DONE IN ACCORDANCE WITH THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF GKN DRIVESHAFTS (INDIA) LTD VS. ITO 259 ITR 19 (SC). HE THEREAFTER PRAYED THAT THE MA TTER SHOULD BE RESTORED BACK TO THE FILE OF THE AO FOR ADJUDICATING THE ISSUE OF REOPENING OF ASSESSMENT AF RESH AFTER PROVIDING THE ASSESSEE WITH THE COPY OF RECORDED REASONS AND AFTER ALLOWING OPPORTUNITY TO THE ASSESSEE TO MAKE HIS SUBMISSIONS THEREON I N ACCORDANCE WITH THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF GKN DRIVESHAFTS (INDIA) LTD (SUPRA). 5. THE LD D.R. HAD NO OBJECTION TO THE ABOVE SUBMISSION OF LD A.R. OF THE ASSESSEE. 6. IN VIEW OF ABOVE, I SET ASIDE THE ORDERS OF LOWER AUTHORIT IES AND REMAND THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FOR ADJUDICATING 3 ITA NOS.304,205 & 306/CTK/2011 ASSESSMENT YEARS:2006 - 07, 2007 - 08 & 2008 - 09 THE ISSUE OF REOPENING OF ASSESSMENT A FTER PROVIDING THE ASSESSEE WITH THE COPY OF REASONS RECORDED FOR REOPENING THE ASSESSMENT AND ALSO CONSIDERING THE SUBMISSIONS OF TH E ASSESSEE ON THE RECORDED REASONS. THE ASSESSING OFFICER SHALL ALLOW A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE BEFORE REFRAMING THE ASSESSMENT AS PER LAW. GROUND NO.1 OF APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 7. AS I HAVE RESTORED THE ISSUE OF REOPENING OF ASSESSMENT TO THE FILE OF THE AO FOR AFRESH ADJUDICATION, THEREFORE, GROUND NOS.2 TO 4 OF THE APPEAL OF THE ASSESSEE ON MERITS OF ADDITIONS ARE ALSO RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER FOR ADJUDICATION AFRE SH. THUS GROUND NOS.2 TO 4 ARE ALLOWED FOR STATISTICAL PURPOSES. 8 . IN THE RESULT, THE APPEAL S FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCE D IN THE OPEN COURT ON 21 /10 /2016 IN THE PRESENCE OF PARTIES. ( N. S SAINI ) A CCOUNTANT MEMBER CUTTACK; DATED 21 /10 /2016 B.K.PARIDA, SPS 4 ITA NOS.304,205 & 306/CTK/2011 ASSESSMENT YEARS:2006 - 07, 2007 - 08 & 2008 - 09 COPY OF THE ORDER FORWARDED TO : BY ORDER, ASST.REGISTRAR, ITAT, CUTTACK 1. THE APPELLANT : HOTEL VAMSI KRISHNA PVT LTD., NEW COLONY, SAMANDIR ROAD, AT/PO: RAYAGADA 2. THE RESPONDENT: ACIT, BERHAMPUR CIRCLE, BERHAMPUR 3. THE CIT(A), B ERHAMPUR 4. CIT , BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//