HDFC SECURITIES LTD, MUMBAI V. DCIT 4(1), MUMBAI

ITA 3501/MUM/2014

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3328 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 16-12-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 16-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: YOGESH A THAR
• Keywords: Reopening of assessment; Recovery proceedings; Tangible material; Difference of opinion; Revised return; Change of opinion
• Section: 143(3); 142(1); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES H, MUMBAI BEFORE SHRI JASON P. BOAZ (AM) AND SHRI RAM LAL NEG I (JM) ITA NO. 3501/MUM/2014 ASSESSMENT YEAR: 2007-08 M/S. HDFC SECURITIES LTD. OFFICE FLOOR 8, ALPHA BLDG-B, I THINK TECHNO CAMPUS, KANJUR MARG, MUMBAI- 400042 PAN- AAACH8215R VS. DY. CIT - 4 (1), ROOM NO. 640, AAYAKAR BHAWAN, M.K.ROAD, MUMBAI- 400020. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. YOGESH A. THAR RESPONDENT BY : SHRI. ABHISHEK SHARMA. DATE OF HEARING: 12/01/2016 DATE OF PRONOUNCEMENT: 20/01/2016 O R D E R PER JASON P. BOAZ, AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER OF THE CIT (APPEALS)-8, MUMBAI DATED 03/02/2014 FOR ASST. YEAR 2007-08. 2. THE FACTS OF THE CASE, BRIEFLY, ARE AS UNDER:- 2.1 THE ASSESSEE COMPANY, A MEMBER OF BSE AND NSE A ND ENGAGED IN THE BUSINESS OF SHARE AND STOCK BROKER AND SHARE TR ADING FILED ITS RETURN OF INCOME FOR ASST. YEAR 2007-08 ON 29/10/20 07. A REVISED RETURN WAS SUBSEQUENTLY FILED ON 29/03/2008 DECLA RING TOTAL INCOME OF RS. 9,22,22,770/-. THE RETURN WAS PROCESSED U/S 143(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS T HE ACT) AND THE CASE WAS SUBSEQUENTLY TAKEN UP FOR SCRUTINY. THE ASSESSM ENT WAS 2 ITA NO. 3501/MUM/2014 ASSESSMENT YEAR: 2007-08 COMPLETED U/S 143(3) OF THE ACT VIDE ORDER DT. 24/1 1/2009 WHEREIN THE INCOME OF THE ASSESSEE WAS DETERMINED AT RS. 10 ,26,09,230 IN VIEW ADDITIONS INTER ALIA DISALLOWANCES MADE U/S 40(A)(IA) OF THE ACT FOR NO N DEDUCTION OF TAX AT SOURCE ON PAYMENTS MADE TOWARD S TRANSACTION CHARGES, V-SAT CHARGES AND LAN CHARGES, DISALLOWANC E OF PENALTY PAID TO STOCK EXCHANGE ETC. ON APPEAL BY THE ASSESSEE, T HE CIT(A) DISPOSED OFF THE ASSESSEES APPEAL ALLOWING THE ASSESSEE PAR TIAL RELIEF, WHEREBY THE ASSESSEES, INCOME CAME TO BE DETERMINED AT RS. 9,23,97,956/-. 2.2 SUBSEQUENTLY, THE ASSESSING OFFICER (AO) INI TIATED PROCEEDINGS U/S 147 OF THE ACT AND AFTER RECORDING THE REASON F OR FORMATION OF BELIEF THAT INCOME OF THE ASSESSE EXIGIBLE TO THE TAX HAD ESCAPED ASSESSMENT, THE AO ISSUED NOTICE U/S 148 OF THE ACT DT. 29/03/2012 TO THE ASSESSEE. IN RESPONSE THERETO, THE ASSESSEE VIDE LETTER DT.23/10/2012 SUBMITTED THAT THE RETURN OF INCOME F ILED ON 29/03/2008 BE TREATED AS FILED IN COMPLIANCE TO THE NOTICE U/S 148 OF THE ACT. THE RE-ASSESSMENT WAS COMPLETED VIDE U/S 1 43(3) R.W.S 147 OF THE ACT VIDE ORDER DT. 14/02/2013 WHEREIN THE INCOM E OF THE ASSESSEE WAS DETERMINED AT RS.. 10,11,49,370/- IN VIEW OF A DISALLOWANCE U/S 40(A)(IA) OF THE ACT IN RESPECT OF NON DEDUCTION OF TAX AT SOURCE U/S 194J OF THE ACT ON PAYMENT OF DATA CIRCUIT/ BANDWI TH CHARGES AMOUNTING TO RS. 87,51,410/-. 2.3 AGGRIEVED BY THE ORDER OF ASSESSMENT FOR ASST. YEAR 2007-08 DT. 14/02/2013 PASSED U/S 143(3) R.W.S.147 OF THE ACT, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(APPEALS)-8, MUMBAI. THE LD. CIT(A) DISPOSED OFF THE APPEAL VIDE ORDER DT. 03/02 /2014 ALLOWING THE ASSESSEE PARTIAL RELIEF. 3. AGGRIEVED BY THE ORDER OF THE CIT(APPEALS)-8, M UMBAI DT. 03/02/2014 FOR ASST. YEAR 2007-08, THE ASSESSEE HAS PREFERRED THIS APPEAL RAISING THE FOLLOWING GROUNDS:- 3 ITA NO. 3501/MUM/2014 ASSESSMENT YEAR: 2007-08 GROUND NO. 1 REOPENING OF ASSESSMENT UNDER SECTION 147 OF THE A CT IS BAD IN LAW: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LEARNED CIT(A) ERRED IN UPHOLDING THE ACTION OF THE DEPUTY COMMISSIONER OF INCOME-TAX, RANGE - 4(1), MUMBAI ('THE AO') THAT TH E REOPENING OF ASSESSMENT UNDER SECTION 147 OF THE ACT WAS JUSTIFI ED AND IN ACCORDANCE WITH THE PROVISIONS OF THE LAW. 2. THE APPELLANT PRAYS THAT IT BE HELD THAT THE RE- ASSESSMENT ORDER UNDER SECTION 147 OF THE ACT BE ANNULLED AS VOID AB -INITIO AND/OR OTHERWISE BAD IN LAW. WITHOUT PREJUDICE TO GROUND NO. I: GROUND NO. II DISALLOWANCE OF DATA CIRCUIT/BANDWIDTH CHARGES AMOUNTING TO RS. 87,51,410/- UNDER SECTION 40(A)(IA) OF THE A CT FOR PURPORTED NON DEDUCTION OF TAXES UNDER SECTION 194J OF THE ACT: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LEARNED CIT(A) ERRED IN UPHOLDING THE ACTION OF THE AO OF DISALLOWING THE DATA CIRCUIT/BANDWIDTH CHARGES AMOU NTING TO RS. 87,51,4101- UNDER SECTION 40(A)(IA) OF THE ACT ON THE ALLEGED GROUND THAT SUCH CHARGES IS IN THE NATURE OF 'FEE F OR TECHNICAL SERVICES' AND THE APPELLANT IS LIABLE TO DEDUCT TAX AT SOURCE UNDER SECTION 194J OF THE ACT. 2. THE APPELLANT PRAYS THAT THE AFORESAID DISALLOWA NCE OF DATA CIRCUIT! BANDWIDTH CHARGES AMOUNTING TO RS. 87,51,4 101- UNDER SECTION 40(A)(IA) OF THE ACT BE DELETED. 4 ITA NO. 3501/MUM/2014 ASSESSMENT YEAR: 2007-08 WITHOUT PREJUDICE TO GROUND NO. I: GROUND NO. III NON-ADJUDICATING THE WITHOUT PREJUDICE GROUND OF APPEAL FILED BEFORE HON'BLE CIT(A): 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LEARNED CIT(A) ERRED IN NON-ADJUDICATING THE WITHOU T PREJUDICE GROUND OF APPEAL AND WITHOUT APPRECIATING THE FACTS THAT THE RECIPIENT/PAYEE HAVE ALREADY PAID TAXES ON THEIR IN COME AND RECOVERING THE SAME AGAIN FROM THE APPELLANT AMOUNT S TO RECOVERY OF TAX TWICE WHICH IS AGAINST THE CARDINAL PRINCIPLE OF INCOME TAX. 2. THE APPELLANT PRAYS THAT THE WITHOUT PREJUDICE . GROUND OF APPEAL FILED BEFORE HON'BLE CIT(A) BE ADJUDICATED. GROUND NO. IV: GENERAL: THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER AND /OR AMEND THE ABOVE GROUND OF APPEAL. 4. GROUND NO. 1 REOPENING OF ASSESSMENT U/S 147 OF THE ACT 4.1.1 AT THE OUTSET, THE LD. AR FOR THE ASSESSEE CHALLENGED THE RE- OPENING OF THE ASSESSMENT FOR ASTT. YEAR 2007-08 U/ S 147 OF THE ACT. THE LD. AR FOR THE ASSESSEE DREW THE ATTENTION OF T HE BENCH TO THE REASONS RECORDED BY THE AO WHICH ARE EXTRACTED AT P ARA 4 ON PAGE 2 OF THE RELEVANT ORDER OF RE-ASSESSMENT DT. 14/02/2013. IT WAS SUBMITTED BY THE LD. AR THAT THE REASON RECORDED BY THE AO FO R INITIATION OF RE- ASSESSMENT PROCEEDINGS U/S 147 OF THE ACT WAS BAD I N LAW AS THERE WAS NO FRESH TANGIBLE MATERIAL THAT CAME INTO THE POSSE SSION OF THE AO AFTER 5 ITA NO. 3501/MUM/2014 ASSESSMENT YEAR: 2007-08 COMPLETION OF THE ORIGINAL SCRUTINY ORDER OF ASSESS MENT U/S 143(3) OF THE ACT VIDE ORDER 24/11/2009. IT IS CONTENDED THAT THE REASONS WERE RECORDED ON THE BASIS OF THE VERY SAME MATERIAL WHI CH WAS AVAILABLE AT THE TIME OF PASSING THE ORIGINAL ORDER OF ASSESSMEN T U/S 143(3) OF THE ACT AND THEREFORE THE RE-OPENING OF ASSESSMENT WAS NOTHING BUT A CHANGE OF OPINION. 4.1.2 IN THIS REGARD, THE LD. AR DREW THE ATTENTIO N OF THE BENCH TO THE PAPER BOOK FILLED BY THE ASSESSEE, AND PARTICULARLY TO PAGES 66A AND 66B THEREOF WHICH IS A COPY OF NOTICE U/S 142(1) OF THE ACT ISSUED BY THE AO TO THE ASSESSEE CALLING FOR SUBMISSION OF VARIO US DETAILS INCLUDING PARTY WISE/HEAD WISE BREAK UP OF EXPENDITURE TO BE FILED IN CONNECTION WITH ASSESSMENT PROCEEDINGS. IT IS SUBMITTED THAT I N REPLY THERETO, THE ASSESSEE FILED LETTER DT. 22/07/2009 SUBMITTING, INTER ALIA , THE DETAILED BREAKUP OF EXPENDITURES, PLACED AT PAGE 67 TO 70 OF THE PAPER BOOK. DRAWING THE ATTENTION OF THE BENCH TO PAGES 68 AND 69 OF THE PAPER BOOK, THE LD. AR SUBMITTED THAT IT IS ON THE BASIS OF THESE DETAILS FILED BY THE ASSESSEE THAT THE AO MADE THE FOLLOWING DISA LLOWANCES. U/S 40(A)(IA) OF THE ACT, IN THE ORIGINAL ORDER OF ASSE SSMENT AT PARA 4 ON PAGE 2 THEREOF :- (I) TRANSACTIONAL CHARGES PAID TO STOCK EXCHANGE RS. 86,24,480/- (II) V- SET CHARGES RS. 4,74,000/- (III) LAN CHARGES RS. 66,000/- ------------------------- TOTAL RS. 91,64,480/- 4.1.3 IT IS SUBMITTED THAT IT IS ON THE BASIS OF THE VERY SAME SUBMISSION OF THE ASSESSEE I.E. PARTICULARLY AT PAG E 69 THEREOF UNDER THE HEAD COMMUNICATION CHARGES, THAT THE ITEM DATA CIR CUIT/BANDWITH CHARGES RS. 15,863,802/- HAS BEEN TAKEN BY THE AO, ON THE BASIS OF WHICH THE REASONS HAVE BEEN RECORDED BY THE AO FOR INITIATION OF RE- 6 ITA NO. 3501/MUM/2014 ASSESSMENT YEAR: 2007-08 ASSESSMENT PROCEEDINGS, AS RECORDED AT PAGE 2 OF TH E RE-ASSESSMENT ORDER DT. 14/02/2013. THE LD.AR CONTENDS THAT THE AFORESAID FACTS ON RECORD CLEARLY ESTABLISH THAT THE AO HAS RECORDED THE REASONS FOR INITIATION OF RE-ASSESSMENT PROCEEDINGS ON A CHANGE OF OPINION BASED ON THE SAME SET OF MATERIAL WHICH WERE ALREADY FORMED A PART OF THE RECORD CONSIDERED BY HIM WHILE MAKING THE ORIGINAL ASSESSM ENT U/S 143(3) OF THE ACT AS NO FRESH MATERIAL HAD COME TO THE POSSES SION OF THE AO THEREAFTER. IN SUPPORT OF HIS CONTENTIONS THAT, IN THE ABOVE FACTUAL MATRIX OF THE CASE, THE INITIATION OF PROCEEDINGS U /S 147 OF THE ACT FOR THE SECOND REOPENING OF THE ASSESSMENT FOR ASST. YE AR 2007-08 IS BAD IN LAW, THE LD. AR PLACED RELIANCE ON THE FOLLOWING JU DICIAL PRONOUNCEMENTS:- (I) CIT VS. ORIENT CRAFT LTD. OF THE HONBLE DEL HI HIGH COURT IN ITA NO 555/2012 DT. 12/12/2012. (II) WADIA GHANDIY & CO IN ITA NO. 7191/MUM/2011 DT. 30/06/2015. (III) SAF YEAST CO.PVT. LTD, ITA NO. 2984/MUM/201 1 DT. 31/07/2015. (IV) MOTILAL R. TODI, IN ITA NO. 2910/MUM/2013, D T. 22/09/2015. (V) M. SAYARCHAND MEHTA (HUF) IN ITA NO. 1997/MUM/ 2012 DT. 30/09/2015. (VI) DELTA AIR LINES INC VS. ITO IN ITA 3476/MUM/20 08 DT. 30/11/2012. 4.2 PER CONTRA, THE LD. DR FOR REVENUE VEHEMENTLY SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW ON THE ISSUE OF VALIDITY O F INITIATION OF PROCEEDINGS FOR RE-ASSESSMENT FOR ASST. YEAR 2007-0 8. IT WAS CONTENDED THAT THE LD. CIT(A) HAD ADDRESSED THIS ISSUE AND RE JECTED THE ASSESSEES CONTENTIONS ON THE GROUND THAT THE ASSESSEE HAD NO T MADE FULL DISCLOSES OF MATERIAL PERTAINING TO THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT AND THEREFORE THIS WAS NOT A CASE OF CHANGE OF OPINION. ON BEING QUERIED AS TO ANY FRESH MATERIAL COMING INTO THE PO SSESSION OF THE AO AFTER COMPLETION OF THE ORIGINAL ASSESSMENT U/S 143 (3) VIDE ORDER DT. 24/11/2009, THE LD. DR COULD NOT CONTROVERT THE SUB MISSION OF THE LD. 7 ITA NO. 3501/MUM/2014 ASSESSMENT YEAR: 2007-08 AR THAT NO FRESH TANGIBLE MATERIAL HAD COME INTO TH E POSSESSION OF THE AO BEFORE RECORDING THE REASONS FOR RE-OPENING THE ASSESSMENT U/S 147 OF THE ACT FOR A SECOND TIME. 4.3.1 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERU SED AND CAREFULLY CONSIDERED THE MATERIAL ON RECORD; INCLUDING THE JU DICIAL PRONOUNCEMENTS CITED (SUPRA). AT THE OUTSET IT IS N ECESSARY TO EXAMINE, WHETHER AT THE TIME OF RE-OPENING THE ASSESSMENT FO R THE SECOND TIME U/S 147 OF THE ACT, THE AO HAD IN HIS POSSESSION SO ME NEW TANGIBLE MATERIAL WHICH WAS NOT AVAILABLE WITH HIM AT THE TI ME OF ORIGINAL ASSESSMENT SO THAT IT DOES NOT AMOUNT TO A CHANGE O F OPINION. FOR THIS PURPOSE IT IS NECESSARY TO EXAMINE THE REASONS RECO RDED WHICH ARE AS UNDER:- THE ASSESSEE FILED ITS RETURN OF INCOME FOR A.Y. 20 07-08 ON 29.03.2008 DECLARING TOTAL INCOME AT RS. 9,22,22,76 9/- AND WAS SUBSEQUENTLY TAKEN FOR SCRUTINY AND ASSESSED AT AN INCOME OF RS. 102,60,92,030/-. AS PER SECTION 40(A)(IA) OF I.T.ACT, 1961 NO DEDUCT ION IS TO BE ALLOWED IN RESPECT OF ANY INTEREST, COMMISSION, BRO KERAGE, ROYALTY FEES FOR PROFESSIONAL SERVICES, OR FEES FOR TECHNICAL SERVICES PAYABLE TO RESIDENT, BEING RESIDENT, FOR C ARRYING OUT ANY WORK ON WHICH TAX IS DEDUCTIBLE AT SOURCE UNDER CHAPTER XVIIB AND SUCH TAX HAS BEEN DEDUCTED OR, AFTER DEDU CTION HAS NOT BEEN PAID DURING THE PREVIOUS YEAR, OR IN THE S UBSEQUENT YEAR BEFORE THE EXPIRY OF THE TIME PRESCRIBED UNDER SUB-SECTION (1) OF SECTION 200. THE SCRUTINY OF PROFIT AND LOSS ACCOUNT REVEALED TH AT THE ASSESSED HAD DEBITED AN AMOUNT OF RS. 1,58,63,802/- TOWARDS DATA CIRCUIT/BAND WITH CHARGES AS PER SCHEDULE11(P ). THIS PAYMENT QUALIFIES TO BE CALLED A TECHNICAL SERVICE S AS FOR THIS 8 ITA NO. 3501/MUM/2014 ASSESSMENT YEAR: 2007-08 ENTIRE HIGHLY SOPHISTICATED SYSTEM AND SERVICES INV OLVING SPECIALIZED KNOWLEDGE, EXPERIENCE; THE TRANSACTION WOULD NOT HAVE BEEN POSSIBLE. JUST BECAUSE THESE SERVICES ARE BEING PROVIDED THROUGH HIGHLY SOPHISTICATED COMPUTERIZED AUTOMATED, PAYMENT MADE FOR DATA CIRCUIT/BAND WITH CHARGES SHO ULD HAVE BEEN TREATED AS PROFESSIONAL FEES U/S 194J. AS THE ASSESSEE HAS NOT DEDUCTED ANY TAX ON THE PAY MENT MADE OF RS. 1,58,63,802/- TOWARDS DATA CIRCUIT/ BAN K WITH CHARGES, THE SAME SHOULD BE ADDED BY THE ASSESSEE IN THE STATEMENT COMPUTATION OF INCOME UNDER THE PROVISION S OF SECTION 40(A)(IA) OF THE I. T.ACT, 1961. FAILURE TO DISALLOW THE AMOUNT RESULTED IN UNDER AS SESSMENT OF INCOME CHARGEABLE TO TAX BY RS. 1,58,63,802/-. THER E TO TAX THE AMOUNT OF RS. 1,58,63,802/- WHICH HAS ESCAPED ASSES SMENT PROCEEDINGS U/S 147 IS REQUIRED TO BE INITIATED IN THE ASSESSEE CASE. 4.3.2 IT IS SEEN FROM A PERUSAL OF THE REASONS RECO RDED BY THE AO FOR INITIATING RE-ASSESSMENT PROCEEDINGS A SECOND T IME FOR ASSESSMENT YEAR 2007-08, VIS--VIS THE DETAILS AVAI LABLE ON RECORD WITH THE ASSESSING OFFICER, PLACED AT PAGE 66A TO 7 0 OF THE ASSESSEES PAPER BOOK, THAT THE REASONS ARE RECORDE D ON THE BASIS OF MATERIAL ON RECORD AVAILABLE WITH THE ASSESSING OFFICER FROM THE ORIGINAL ASSESSMENT PROCEEDINGS CULMINATING IN THE ORDER OF ASSESSMENT U/S.143(3) OF THE ACT DATED 24/11/2009 F OR ASSESSMENT YEAR 2007-08. THIS, IN OUR VIEW, CLEARLY CONSTITUTES A CHANGE OF OPINION BY THE ASSESSING OFFICER, BASED O N THE EXISTING MATERIAL ON RECORD AND NOT IN VIEW OF ANY FRESH MAT ERIAL HAVING INTO HIS POSSESSION. THUS, SINCE WE FIND THAT IT IS AMPL Y CLEAR THAT THE ASSESSING OFFICER HAD ALREADY CONSIDERED THESE MATE RIALS AT PAGE- 9 ITA NO. 3501/MUM/2014 ASSESSMENT YEAR: 2007-08 66A TO 70 OF THE PAPER BOOK WHILE COMPLETING THE OR IGINAL ASSESSMENT U/S.143(3) OF THE ACT, INITIATION OF RE- ASSESSMENT PROCEEDINGS UNDER SECTION 147 OF THE ACT ON THE BAS IS OF THE VERY SAME MATERIAL AMOUNTS TO CHANGE OF OPINION. 4.3.3 AS HELD BY THE HONBLE APEX COURT WHILE AFFIR MING THE VIEW EXPRESSED BY THE FULL BENCH OF THE HONBLE DELHI HI GH COURT IN KELVINATOR OF INDIA LTD. (2010) 320 ITR 561(SC), TH ERE SHOULD BE TANGIBLE MATERIAL BEFORE THE ASSESSING OFFICER FROM WHICH HE COULD ENTERTAIN THE BELIEF THAT INCOME OF THE ASSESSEE CH ARGEABLE TO TAX HAD ESCAPED ASSESSMENT. IN THE CASE ON HAND, WE FIN D THAT IT IS APPARENT FROM THE REASONS RECORDED THAT THERE IS NO SUCH NEW TANGIBLE MATERIAL THAT CAME INTO THE POSSESSION OF THE AO WHEN HE RECORDED THE REASONS FOR INITIATING RE-ASSESSMENT P ROCEEDINGS U/S. 147 OF THE ACT FOR ASSESSMENT YEAR 2007-08. IN THIS VIEW OF THE MATTER, THE RE-OPENING OF ASSESSMENT ON RE-APPRECIA TION OR RE- EXAMINATION OF THE SAME SET OF FACTS AND MATERIAL WHICH WERE AVAILABLE WITH THE ASSESSING OFFICER AT THE TIME OF COMPLETING THE ORIGINAL ASSESSMENT COMPLETED U/S.143(3) OF THE ACT ON 24/11/2009, IS TANTAMOUNT TO CHANGE OF OPINION WHIC H IS NOT PERMISSIBLE IN LAW. IN THE ABOVE FACTUAL LEGAL MATR IX OF THE CASE ON HAND AND THE JUDICIAL PRECEDENTS CITED IN THE MATTE R, WE HOLD THAT INITIATION OF RE-ASSESSMENT PROCEEDINGS U/S. 147 OF THE ACT IS INVALID AND CONSEQUENTLY, THE IMPUGNED ORDER OF ASS ESSMENT FOR THE AY 2007-08 PASSED UNDER SECTION143 (3) R.W.S. 1 47 OF THE ACT VIDE ORDER DATED 14.2.2013 PASSED IN PURSUANCE THER ETO IS TO BE QUASHED. WE HOLD AND DIRECT ACCORDINGLY. CONSEQUENT LY, GROUND NO.1 RAISED BY THE ASSESSEE IS ALLOWED. 5. IN VIEW OF OUR DECISION RENDERED IN RESPECT OF G ROUND NO.1, GROUND NOS. 2 TO 4 RAISED BY THE ASSESSEE BECOME RE DUNDANT AND, THEREFORE, NO ADJUDICATION IS CALLED FOR THEREON. 10 ITA NO. 3501/MUM/2014 ASSESSMENT YEAR: 2007-08 6. IN THE RESULT, THE ASSESSEES APPEAL FOR THE A.Y 2007-08 IS ALLOWED AS INDICATED ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH JANUARY, 2016 SD/- SD/- ( RAM LAL NEGI ) (JASON P.BOAZ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED: 20/01/2016 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A)- 4. / CIT 5. '#$ % , %' , / DR, ITAT, MUMBAI 6. $() * / GUARD FILE. + + + + / BY ORDER, + //TRUE COPY// , ,, ,/ // /+- . +- . +- . +- . (DY./ASSTT. REGISTRAR) %' %' %' %', , , , / ITAT, MUMBAI PRAMILA