DCIT, Circle-8(1), Kolkata, Kolkata V. M/s ITC Ltd., Kolkata

ITA 321/KOL/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6527 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 16-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G HANGSING
• Assessee Lawyers: SUSHMITA BASU LD
• Section: 263

Judgement Text

1 ITA NO.321/KOL/2017 ITC LTD., AY- 2009-10 , D , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: KOL KATA () .., . ' # $% % , '() [BEFORE SHRI A. T. VARKEY, JM & DR. A. L. SAINI, A M] I.T.A. NO. 321/KOL/2017 ASSESSMENT YEAR: 2009-10 DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-8(1), KOLKATA. VS. M/S. ITC LTD. (PAN: AAACI5950L) APPELLANT RESPONDENT DATE OF HEARING 17.04.2018 DATE OF PRONOUNCEMENT 26.04.2018 FOR THE APPELLANT SHRI G. HANGSING, CIT FOR THE RESPONDENT SMT. SUSHMITA BASU, LD. AR ORDER PER SHRI A.T.VARKEY, JM THE APPEAL FILED BY THE REVENUE IS AGAINST THE ORDE R OF LD. CIT(A)-3, KOLKATA DATED 20.12.2016 FOR AY 2009-10. 2. AT THE OUTSET, IT HAS BEEN BROUGHT TO OUR NOTICE BY THE LD. COUNSEL FOR THE ASSESSEE THAT THE LD. CIT(A) TAKING NOTE OF THE FACT THAT TH E ASSESSMENT ORDER DATED 26.06.2015 WAS PURSUANT TO THE ORDER PASSED U/S. 263 OF THE INCOME -TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) PASSED BY THE LD. CIT, KOLKATA-3 BY ORDE R DATED 18.03.2015. ACCORDING TO THE LD. COUNSEL, THE TRIBUNAL VIDE ORDER DATED 03.02.20 16 HAS QUASHED THE 263 ORDER OF THE LD. CIT, KOLKATA-3 DATED 18.03.2015. THEREFORE, SINCE T HE LD. CITS ORDER PASSED U/S. 263 OF THE ACT HAS BEEN QUASHED, THE ASSESSMENT ORDER GIVI NG EFFECT TO THE ORDER OF THE LD. CIT DOES NOT SURVIVE. BASED ON THE SAID FACTUAL ASPECT , THE LD. CIT(A) HAS ALLOWED THE APPEAL OF THE ASSESSEE WHICH DOES NOT CALL FOR ANY INTERFE RENCE. THE LD. DR COULD NOT CONTROVERT THE SAID FACT BROUGHT TO OUR NOTICE BY THE LD. AR. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE NOTE THAT THE LD. CIT, KOLKATA-3 VIDE ORDER DATED 18.03.2015 PASSED AN ORDER U/S. 263 OF THE ACT AND THE AO HAS GIVEN EFFECT TO THE ORDER OF THE LD. CIT BY PASSING AN ORDER ON 26.06.2015, WHICH WAS CHALLENGED BY THE AS SESSEE BEFORE THE LD. CIT(A) WHEREIN THE LD CIT (A) TAKING NOTE OF THE FACT THAT THE TRI BUNAL VIDE ORDER DATED 03.02.2016 WAS PLEASED TO QUASH THE CITS ORDER PASSED U/S. 263 OF THE ACT, ALLOWED THE APPEAL OF ASSESSEE. 2 ITA NO.321/KOL/2017 ITC LTD., AY- 2009-10 IN SUCH A SCENARIO, THE AOS ORDER GIVING EFFECT TO THE CITS ORDER PASSED U/S. 263 OF THE ACT CANNOT SURVIVE, WHEN THE FOUNDATION OF THE AOS ORDER DATED 26.06.2015 HAS BECOME NON-EST IN THE EYES OF LAW BY THE OPERATION OF TRIB UNALS ORDER. THEREFORE, THE ASSESSMENT ORDER OF AO IN SUCH A SCENARIO CANNOT SURVIVE ON IT S OWN AND, THEREFORE, WE CONFIRM THE ORDER OF THE LD. CIT(A) AND DISMISS THE APPEAL OF T HE REVENUE. 4. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISSE D. ORDER IS PRONOUNCED IN THE OPEN COURT ON 26TH APRI L, 2018. SD/- SD/- (DR. A. L. SAINI) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED :26TH APRIL, 2018 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT DCIT, CIRCLE-8(1), KOLKATA. 2 RESPONDENT M/S. ITC LTD., 37, J. N. NEHRU ROAD, C HOWRINGHEE, KOLKATA-700 071. 3 . THE CIT(A), KOLKATA 4. 5. CIT , DR, ITAT, KOLKATA. / TRUE COPY, BY ORDER, SENIOR PVT. SECY .