ACIT, Patiala V. M/s Krypton Datamatics Ltd., Delhi

ITA 313/CHANDI/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9728 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Next Hearing Date: 25-07-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 05-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ MISHRACI TDR
• Keywords: Opportunity of being heard
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 313/CHD/2016 ASSESSMENT YEAR: 2005-06 THE ACIT, VS M/S KRYPTON DATAMATICS LTD., CENTRAL CIRCLE, # 981, AGGARWAL MILLENIUM PATIALA. TOWER-II, NETAJI SUBHASH PALACE, DISTRICT CENTRE WAZIRPUR, OPP-TV TOWER, PITAMPURA, DELHI 110034. PAN: AABCK1660N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANOJ MISHRA,CI T-DR RESPONDENT BY : SHRI ASHOK GOYAL DATE OF HEARING : 25.07.2016 DATE OF PRONOUNCEMENT : 27.07.2016 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS)-5, LUDHIANA DATED 29.01.2016 FOR ASSESSMENT YEAR 2005-06. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ORIGINAL ASSESSMENT UNDER SECTION 143(3)/153C OF THE IT ACT WAS COMPLETED ON 21.12.2011 AT RS. 27,250/- AS AGAINST RETURNED INCOME OF RS. 430/-. THE ORDER OF THE ASSESSING OFFICER WAS CONSIDERED ERRONEOUS IN SO FA R AS IT WAS FOUND PREJUDICIAL TO THE INTEREST OF REVENUE AND 2 ACCORDINGLY, PROCEEDINGS UNDER SECTION 263 WERE INITIATED BY CIT (CENTRAL), LUDHIANA, WHO PASSED TH E ORDER DATED 06.03.2014 UNDER SECTION 263 OF THE ACT DIRECTING THE ASSESSING OFFICER TO MAKE FRESH ASSESSMENT PROPERLY VERIFYING THE FACTS AND DISALLO WING THE EXPENSES OF RS. 5,91,40,500/- UNDER SECTION 40(A)(IA) OF THE ACT AFTER PROVIDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSING OFFICER, THEN PASSED THE ORDER UNDER SECTION 143(3)/263 OF THE AC T DATED 06.02.2015 MAKING THE ADDITION OF RS. 5,91,40,500/- UNDER SECTION 40(A)(IA) OF THE ACT. 3. THE SAID ADDITION WAS CHALLENGED BEFORE LD. CIT(APPEALS) IN THE PRESENT PROCEEDINGS. THE LD. CIT(APPEALS) FOUND THAT ORDER OF CIT (CENTRAL) UNDE R SECTION 263 OF THE ACT DATED 06.03.2014 HAVE BEEN S ET ASIDE BY THE TRIBUNAL VIDE ORDER DATED 30.11.2015 I N ITA 313/2014 AND ALLOWED APPEAL OF THE ASSESSEE. THEREFORE, LD. CIT(APPEALS) NOTED THAT SINCE THE BA SIS OF THE PRESENT ASSESSMENT ORDER UNDER APPEAL DOES NOT SURVIVE AND RESULTANT DEMAND AND ASSESSMENT HAVE BE EN QUASHED, THEREFORE, APPEAL OF THE ASSESSEE HAS BECO ME INFRUCTUOUS AND IS ACCORDINGLY, DISMISSED AS INFRUCTUOUS. 4. THE REVENUE CONTENDED IN THE PRESENT APPEAL THAT LD. CIT(APPEALS) SHOULD HAVE WAITED FOR THE OUTCOME OF THE APPEAL BEING FILED BEFORE HIGH COURT AGAINST AB OVE ORDER OF THE TRIBUNAL DATED 30.11.2015. 3 5. AFTER CONSIDERING RIVAL SUBMISSIONS, WE DO NOT F IND ANY MERIT IN THE DEPARTMENTAL APPEAL. SINCE THE BA SIS OF THE ASSESSMENT ORDER IN APPEAL WOULD NOT SURVIVE ON QUASHING OF THE ORDER UNDER SECTION 263 OF THE ACT, THEREFORE, LD. CIT(APPEALS) WAS JUSTIFIED IN FOLLOW ING THE ORDER OF THE TRIBUNAL IN HOLDING THAT THERE IS NO B ASIS LEFT FOR THE PRESENT ASSESSMENT ORDER. THE IMPUGNED ASSESSMENT ORDER DATED 06.02.2015 UNDER SECTION 263/143(3) OF THE ACT WAS IN CHALLENGE BEFORE LD. CIT(APPEALS) CHALLENGING THE ADDITION OF RS. 5.91 CRORES. SINCE THE ORDER UNDER SECTION 263 OF THE A CT HAVE BEEN SET ASIDE AND QUASHED, THEREFORE, IMPUGNE D ASSESSMENT ORDER WOULD NOT STAND. THERE IS NO PURP OSE IN KEEPING THE APPEAL PENDING BY THE LD. CIT(APPEAL S) MERELY BECAUSE DEPARTMENTAL APPEAL IS PENDING BEFOR E HON'BLE HIGH COURT. IN THIS VIEW OF THE MATTER, TH ERE IS NO MERIT IN THE DEPARTMENTAL APPEAL, SAME IS ACCORDINGLY, DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( ANNAPURNA GUPTA) (BHAVNESH S AINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 27 TH JULY, 2016. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD