The Lakshmi Vilas Bank Limited, CHENNAI V. DCIT, Trichy

ITA 3210/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7815 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2017
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 10-01-2017
• Assessment Year: 1993-1994
• Appeal Filed On: 23-11-2016
• Court: TRIBUNAL
• Department Lawyers: R DURAI
• Assessee Lawyers: G SITTARAMANC A
• Keywords: Opportunity of being heard

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : CHENNAI , . ! '# BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G.PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A.NO.3210/MDS./2016 / ASSESSMENT YEAR : 1993-94 THE LAKSHMI VILAS BANK LTD., LVB HOUSE, 4/1,SARDAR PATEL ROAD, GUINDY,CHENNAI 600 032 . VS. THE DCIT, CIRCLE 2(1) TRICHY. [PAN AAACT 4291 P] ( $% / APPELLANT) ( &'$% /RESPONDENT) / APPELLANT BY : MR.G.SITTARAMAN,C.A. /RESPONDENT BY : MR.R.DURAI PANDIAN,JCIT,DR / DATE OF HEARING : 10 - 01 - 201 7 !' / DATE OF PRONOUNCEMENT : 27 - 02 - 2017 ( / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-1,TRICHY DATED 23.09.2016 AND PERTAINING TO ASSESSMENT YEAR 1993-94. ITA NO. 3210/MDS./2016 :- 2 -: 2. THE MAIN GRIEVANCE OF THE ASSESSEE IN ITS APPEA L IS THAT THE LD.CIT(A) ERRED IN SUSTAINING THE ADDITION OF 30,14 ,010/- MADE BY THE AO TOWARDS BROKEN PERIOD INTEREST. 3. THE FACTS OF THE CASE ARE THAT THE ASSESSEE FIL ED AN APPEAL FOR THE SAME ASSESSMENT YEAR IN ITA NO.805/MDS./199 8. IN THE FIRST ROUND, THE TRIBUNAL VIDE ORDER DATED 17 TH AUGUST, 2005 HAS SET ASIDE THE ORDER OF THE LOWER AUTHORITIES AND HAD REMITTED THE ISSUES TO THE FILE OF CIT,TRICHY TO CONSIDER THE ISSUES DENOVO AF TER GIVING THE ASSESSEE AN ADEQUATE OPPORTUNITY OF BEING HEARD. IN RESPONSE, THE CIT-1, TRICHY PASSED A FRESH ORDER DATED 20.12.200 5 DIRECTING THE AO TO FOLLOW THE DIRECTION OF THE TRIBUNAL. AGGRIEVED WITH THE ORDER OF LD. CIT, THE ASSESSEE CARRIED THE APPEAL BEFORE THE TRI BUNAL. 3.1. IN THE SECOND ROUND, THE TRIBUNAL IN ITA NO.1 45/MDS./2006 VIDE ITS ORDER DATED 31.01.2008 REMITTED THE ISUSE TO THE FILE OF CIT WITH THE FOLLOWING OBSERVATIONS:- 6. WE HAVE CAREFULLY GONE THROUGH THE SUBMISSIONS. WE FIND THAT THERE IS COGENCY IN THE SUBMISSION OF THE ASSE SSEE IN THIS REGARD. HENCE, THIS MATTER IS REMITTED TO THE FILE FO THE CIT TO CONSIDER THIS SUBMISSION OF THE ASSESSEE AND VERIFY THE CORRECTNESS OF THE STATEMENTS ARITHMETICALLY AND OT HERWISE AND ACCORDINGLY DECIDE THE ISSUE. 3.2 IN RESPONSE, THE LD.CIT(A)-1, TRICHY OBSERVED THAT REMEDY FOR THIS GRIEVANCE OF THE ASSESSEE LIES BEFORE THE CIT-1,TRICHY (NOW ITA NO. 3210/MDS./2016 :- 3 -: NAMED AS PRINCIPAL COMMISSIONER OF INCOME TAX -1, T RICHY). FURTHER, AT THE TIME APPELLATE PROCEEDINGS, THE LD.A.R SUBMI TTED THAT THE ASSESSEE HAS NOT APPROACHED THE PRINCIPAL COMMISSIO NER OF INCOME TAX-1, TRICHY, SO FAR FOR GIVING EFFECT TO THE ORDE R OF TRIBUNAL. HENCE, LD.CIT(A) FINALLY OBSERVE THAT THE BALL NOW LIES IN THE COURT OF PRINCIPAL COMMISSIONER OF INCOME TAX-1, TRICHY AND THE APPEAL STANDS DISMISSED AS NOT MAINTAINABLE. AGGRIEVED, THE ASSES SEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. IN THIS CASE THE ORIGINAL ASSESSMENT ORDER DATED 26.03.1996 PASSED U/S.143(3) OF THE ACT WAS SUBJECT TO REVISIO N PASSED BY THE CIT U/S.263 OF THE ACT VIDE ITS ORDER DATED 30.03.1998. THIS ORDER PASSED BY THE CIT WAS SUBJECT TO APPEAL BEFORE THE TRIBUNA L IN ITA NO.805/MDS./1998 WHEREIN THE TRIBUNAL REMITTED THE ISSUE TO THE FILE OF CIT TO CONSIDER THE DENOVO AFTER GIVING THE OPPO RTUNITY OF HEARING TO THE ASSESSEE VIDE ORDER DATED 17.08.2005. CONSEQ UENT TO THIS, CIT PASSED FRESH ORDER U/S.263 OF THE ACT ON 20.12.2005 WHEREIN THE CIT DIRECTED TO THE AO TO VERIFY THE AMOUNT RELATING TO THE BROKEN PERIOD INTEREST AND DECIDE ACCORDINGLY. CONSEQUENT TO THI S, THE ASSESSEE ONCE AGAIN CARRIED THE MATTER TO THE TRIBUNAL. THE TRIBUNAL IN ITA NO.145/MDS./2006 DATED 31.01.2008 REMITTED THE MATT ER TO THE FILE OF AO AFTER VERIFYING THE SUBMISSIONS PRESENTED BY THE ASSESSEE. IN THE ITA NO. 3210/MDS./2016 :- 4 -: MEANTIME, THE AO PASSED THE PRESENT IMPUGNED ASSESS MENT ORDER ON 28.12.2006 FOR WHICH HE HAS NO JURISDICTION AS A MA TTER WAS ALREADY REMITTED BY THE TRIBUNAL VIDE ORDER DATED 31.01.200 8 CITED SUPRA. BEING SO, WHEN THIS IS PENDING BEFORE THE CIT FOR P ASSING A CONSEQUENTIAL ORDER, THE AO CANNOT INTERFERE SO AS TO PASS PRESENT IMPUGNED ASSESSMENT ORDER. ACCORDINGLY, THE SAME IS QUASHED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED. ORDER PRONOUNCED ON 27 TH FEBRUARY, 2017, AT CHENNAI. S D/ - SD/ - ( . ) ( G.PAVAN KUMAR ) ! / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER #$ / CHENNAI %& / DATED: 27 TH FEBRUARY, 2017. K S SUNDARAM &'(()*( +* / COPY TO: ( 1 . / APPELLANT 3. ( ,(- . / CIT(A) 5. */0 (1 / DR 2. / RESPONDENT 4. ( , / CIT 6. 02(3 / GF