Gagan Infraenergy Ltd., New Delhi V. Pr. CIT Delhi- 4, New Delhi

ITA 3435/DEL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0768 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2010-2011
• Appeal Filed On: 29-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B S RAJPUROHIT
• Keywords: Prejudicial to interest
• Section: 143(3); 14A; 115JB; 263; 154

Judgement Text

1 ITA NO. 3435/DEL/2015 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEM BER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER ITA NO. 3435/DEL/2015 ( A.Y 2010-11) GAGAN INFRAENERGY LTD. 28, NAJAFGARH ROAD NEW DELHI AABCN6118L (APPELLANT) VS PR. CIT DELHI-4 DELHI (RESPONDENT) APPELLANT BY MS. ANANYA KAPOOR, ADV RESPONDENT BY SH. B. S. RAJPUROHIT, SR. DR ORDER PER SUCHITRA KAMBLE THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER U/S 263 OF THE INCOME TAX ACT, 1961 PASSED BY PRINCIPAL CIT, DELHI -4 VIDE ORDER DATED 31/3/2015 FOR ASSESSMENT YEAR 2010-11. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE ORDER DATED 31.03.2015 PASSED BY THE LEARNED PRINCIPAL CO MMISSIONER OF INCOME-TAX, (PR. CIT) UNDER SECTION 263 OF THE IN COME-TAX ACT, 1961 (THE ACT) HOLDING THE ASSESSMENT ORDER DATED 26.03.2013 TO BE ERRONEOUS AND PREJUDICIAL TO INTERESTS OF REVENUE ON CERTAIN ISSU ES, IS BEYOND JURISDICTION, BAD IN LAW AND VOID AB INITIO. DATE OF HEARING 06.09.2018 DATE OF PRONOUNCEMENT 19.09.2018 2 ITA NO. 3435/DEL/2015 1.1. THAT THE PR. CIT ERRED ON FACTS AND IN LAW IN EXERCISING REVERSIONARY POWERS UNDER SECTION 263 OF THE ACT IN RESPECT OF C ERTAIN ISSUES, WITHOUT APPRECIATING THAT THE TWIN CONDITIONS OF THAT SECTI ON VIZ., ASSESSMENT ORDER BEING ERRONEOUS AS WELL AS PREJUDICIAL TO THE INTER ESTS OF THE REVENUE, WERE NOT SATISFIED IN THE APPELLANTS CASE. 2. THAT THE PR. CIT ERRED ON FACTS AND IN LAW IN SE TTING ASIDE THE ASSESSMENT ORDER ON CERTAIN ISSUES ALLEGEDLY ON THE GROUND THA T THE ASSESSING OFFICER DID NOT ADD BACK DISALLOWANCE U/S 14A WHILE COMPUTI NG BOOK PROFIT U/S 115JB OF THE ACT. 2.1 THAT THE PR. CIT ERRED ON FACTS AND IN LAW IN S ETTING ASIDE THE ASSESSMENT ORDER, WHILE ARRIVING AT THE CONCLUSION THAT ALTHOU GH THE APPELLANT ADD BACK THE AMOUNT DISALLOWABLE U/S 14A WHILE COMPUTIN G INCOME NORMAL UNDER NORMAL PROVISIONS OF THE ACT, BUT, DID NOT AD D BACK THE SAME WHILE COMPUTING BOOK PROFIT U/S 115JB OF THE INCOME TAX A CT. 2.2. THAT THE PR. CIT ERRED ON FACTS AND IN LAW IN SETTING ASIDE THE ASSESSMENT ORDER, WHILE ARRIVING AT THIS CONCLUSION THAT THE A SSESSING OFFICER DID NOT CONSIDER THE UNCONTROVERTED FACT OF THE NON-INCLUSI ON DISALLOWANCE U/S 14A IN THE COMPUTATION OF BOOK PROFITS. 2.3. THAT THE PR. CIT ERRED ON FACTS AND IN LAW IN SETTING ASIDE THE ASSESSMENT ORDER ON THE GROUND WHICH HAS ALREADY ATTAINED ITS FINALITY. 3. AT THE TIME OF HEARING, THE LD. AR SUBMITTED THA T THE ORDER GIVING EFFECT OF SECTION 263 BY THE ASSESSING OFFICER WAS PASSE D VIDE ORDER DATED NIL FOR ASSESSMENT YEAR 2010-11 AND THE ASSESSING OFFICER H AS GRANTED THE RELIEF TO THE ASSESSEE. THEREFORE, THE LD. AR SUBMITTED THAT THIS APPEAL BECOME INFRUCTUOUS AND BE DISMISSED. 4. THE LD. DR DID NOT OBJECT TO THE SAME. 3 ITA NO. 3435/DEL/2015 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE O RDER DATED NIL PASSED U/S 143 (3) READ WITH SECTION 263 OF THE INCOME TAX ACT, 1961 PRODUCED BY THE LD. AR AT THE TIME OF HEARING WHEREIN THE ASSESSIN G OFFICER D. S. RATHI DEPUTY CIT, CIRCLE (10(1) , NEW DELHI HELD AS UNDER : REPLY FURNISHED BY THE AR IS DULY CONSIDERED. AFT ER CONSIDERING THE REPLY AND DOCUMENTATION FILED BY THE ASSESSEE IT IS ASCER TAINED THAT AS THE MATTER HAS ALREADY BEEN DECIDE! VIDE ASSESSMENT ORDER U/S 143(3) DATED 26.03.2014 SUBSEQUENTLY FOLLOWED BY RECTIFICATION O RDER U/S 154 AND THE DISALLOWANCE OF RS. 76,62,074/ HAS BEEN MADE IN THE NORMAL AS WELL AS 115JB COMPUTATION OF THE ASSESSEE FOR THE RELEVANT ASSESSMENT YEAR. IN THE LIGHT OF THE ABOVE FACTS AND CIRCUMSTANCES OF T HE CASE, THE INCOME OF THE ASSESSEE COMPANY IS ASSESSED AT RS. 76,62,074/ AS ORIGINALLY ASSESSED U/S 143(3) VIDE ORDER DATED 26/3/2014 BY THE A.O. IN LIGHT OF THIS ORDER AS WELL AS THE SUBMISSION O F THE LD. AR, THIS APPEAL BECOMES INFRUCTUOUS AND HENCE DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH SEPTEMBER, 2018. SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 19/09/2018 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 3435/DEL/2015 DATE OF DICTATION 06.09.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 07.09.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 1 9 .09.2018 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 1 9 .09.2018 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 1 9 .09.2018 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER