ACIT Corporate Range 1 (OSD), CHENNAI V. Dharani Sugars & Chemical Limited, CHENNAI

ITA 3454/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5070 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 20-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N DEVANATHAN
• Keywords: Set aside
• Section: 263

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , ! ' , $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.3454/CHNY/2018 ( )( / ASSESSMENT YEAR : 2004-05 THE ASSISTANT COMMISSIONER OF INCOME TAX (OSD), CORPORATE RANGE 1, CHENNAI - 600 034. V. M/S DHARANI SUGARS & CHEMICALS LTD., 57, PGP HOUSE, STERLING ROAD, NUNGAMBAKKAM, CHENNAI - 600 034. PAN : AAACD 1281 F (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI SRIDHAR DORA, JCIT -.+, / 0 / RESPONDENT BY : SH. N. DEVANATHAN, ADVOCATE 1 / 2$ / DATE OF HEARING : 24.04.2019 34) / 2$ / DATE OF PRONOUNCEMENT : 17.05.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -1, CHENNAI, D ATED 27.09.2018 AND PERTAINS TO ASSESSMENT YEAR 2004-05. 2. SHRI SRIDHAR DORA, THE LD. DEPARTMENTAL REPRESEN TATIVE, SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED PUR CHASE TAX TO THE EXTENT OF 2,04,64,475/- WHICH WAS CLAIMED AS DEDUCTION BY THE 2 I.T.A. NO.3454/CHNY/18 ASSESSEE ON ACCOUNT OF WAIVER OF THE SAME. ACCORDI NG TO THE LD. D.R., THE ADMINISTRATIVE COMMISSIONER BY AN ORDER DATED 2 6.03.2009, SET ASIDE THE ORDER OF THE ASSESSING OFFICER FOR VERIFI CATION OF DEDUCTION CLAIMED BY THE ASSESSEE. ON APPEAL BY THE ASSESSEE BEFORE THIS TRIBUNAL AGAINST THE ORDER OF THE ADMINISTRATIVE CO MMISSIONER PASSED UNDER SECTION 263 OF THE INCOME-TAX ACT, 1961 (IN S HORT 'THE ACT'), ACCORDING TO THE LD. D.R., THIS TRIBUNAL SET ASIDE THE ORDER OF THE ADMINISTRATIVE COMMISSIONER ON THE GROUND THAT THER E WAS NO FINDING WITH REGARD TO SATISFACTION OF THE COMMISSIONER WHE THER THE ASSESSMENT ORDER IS ERRONEOUS OR PREJUDICIAL TO THE INTERESTS OF REVENUE. REFERRING TO THE GROUNDS OF APPEAL RAISED BEFORE THIS TRIBUNAL, THE LD. D.R. SUBMITTED THAT THE ADMINISTRATIVE COMMISSIONER RECORDED HIS S ATISFACTION IN THE SHOW CAUSE NOTICE. THIS WAS NOT INDEPENDENTLY EXAM INED BY THE CIT(APPEALS). THEREFORE, ACCORDING TO THE LD. D.R. , THE ORDER OF THE CIT(APPEALS) CANNOT STAND. 3. WE HEARD SH. N. DEVANATHAN, THE LD.COUNSEL FOR T HE ASSESSEE ALSO. ADMITTEDLY, THE ORDER PASSED BY THE ADMINIST RATIVE COMMISSIONER UNDER SECTION 263 OF THE ACT WAS SET ASIDE BY THIS TRIBUNAL. THE PRESENT APPEAL ARISES AGAINST THE ORDER PASSED BY THE ASSES SING OFFICER CONSEQUENT TO THE ORDER OF THE ADMINISTRATIVE COMMI SSIONER UNDER SECTION 263 OF THE ACT. ADMITTEDLY, AS ON DATE, TH E ORDER PASSED BY THE ADMINISTRATIVE COMMISSIONER WAS SET ASIDE AND IT IS NOT IN EXISTENCE. 3 I.T.A. NO.3454/CHNY/18 THEREFORE, THERE IS NO JUSTIFICATION ON THE PART OF THE ASSESSING OFFICER TO PASS THE CONSEQUENTIAL ORDER. THE CONSEQUENTIAL OR DER PASSED BY THE ASSESSING OFFICER HAS NO INDEPENDENT LEG TO STAND I N THE ABSENCE OF THE ORDER OF THE ADMINISTRATIVE COMMISSIONER PASSED UND ER SECTION 263 OF THE ACT. ONCE THIS TRIBUNAL SET ASIDE THE ORDER OF THE ADMINISTRATIVE COMMISSIONER UNDER SECTION 263 OF THE ACT, THIS TRI BUNAL IS OF THE CONSIDERED OPINION THAT THE CONSEQUENTIAL ORDER PAS SED BY THE ASSESSING OFFICER CANNOT STAND INDEPENDENTLY. THEREFORE, THE CIT(APPEALS) HAS RIGHTLY ALLOWED THE APPEAL OF THE ASSESSEE. THEREF ORE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE COURT ON 17 TH MAY, 2019 AT CHENNAI. SD/- SD/- ( ! ' ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 17 TH MAY, 2019. KRI. 4 I.T.A. NO.3454/CHNY/18 / -278 98)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 :2 () /CIT(A)-1, CHENNAI 4. PRINCIPAL CIT, CHENNAI-1, CHENNAI 5. 8; -2 /DR 6. <( = /GF.