The DCIT, Circle-1(1)(1), Ahmedabad V. M/s. Adani Enterprises Ltd., Ahmedabad

ITA 3506/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6310 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2007-2008
• Appeal Filed On: 15-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SU RENDRA KUMAR
• Assessee Lawyers: P M MEHTA
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 3506/AHD/2015 (ASSESSMENT YEAR: 2007-08) DCIT, CIRCLE-1(1)(1), AHMEDABAD V/S M/S. ADANI ENTERPRISES LTD. ADANI HOUSE, NR. MITHAKHALI CIRCLE, NAVRANGPURA, AHMEDABAD- 380009 (APPELLANT) (RESPONDENT) PAN: AABCA2804L APPELLANT BY : SHRI SURENDRA KUMAR CIT/D R RESPONDENT BY : SHRI P.M. MEHTA, A.R. ( )/ ORDER DATE OF HEARING : 15 -01-201 8 DATE OF PRONOUNCEMENT : 16 -01-2018 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-3, AHMEDABAD DATED 06.10.2015 PERTAINING TO A.Y. 2007- 08. ITA NO. 3506 /AHD/2015 . A.Y. 2007-08 2 2. THE GRIEVANCE OF THE REVENUE READ AS UNDER:- ' THE ID, CIT(A) HAS ERRED IN LAW AND ON FACTS IN ALL OWING THE APPEAL OF THE ASSESSEE MERELY ON THE GROUND THAT THE HON'BLE ITAT HAS SET-ASIDE THE ORDER U/S 263 OF THE ACT PASSING BY THE HON'BLE CIT WITHOUT G OING INTO THE MERIT IN RESPECT OF THE ADDITION OF RS.43,28,51,653/- MADE BY THE AS SESSING OFFICER TREATING THE EXPENDITURE CLAIMED OF OPTION PREMIUM PAYMENT - HED GE UNDER THE HEAD 'EXCHANGE RATE DIFFERENCE' AS SPECULATIVE TRANSACTION . 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE A SSESSMENT ORDER FRAMED U/S. 143(3) OF THE ACT VIDE ORDER DATED 21.02.2011 WAS S ET ASIDE BY THE COMMISSIONER BY ASSUMING POWER U/S. 263 OF THE ACT VIDE ORDER DATED 22.03.2013. THAT ORDER OF THE COMMISSIONER WAS CHAL LENGED BEFORE THE TRIBUNAL AND THE TRIBUNAL THROUGH THIRD MEMBER VIDE ORDER DATED 07.08.2015 IN ITA NO. 1474/AHD/2013 HAS QUASHED THE ORDER OF T HE CIT FRAMED U/S. 263 OF THE ACT. THE RELEVANT FINDING OF THE THIRD MEMBE R READ AS UNDER;- I RELYING UPON THE DECISIONS OF HONBLE APEX COUR T IN THE CASE OF MALABAR INDUSTRIAL CO. LTD. (SUPRA), HONBLE JURISDICTIONAL HIGH COURT IN THE CASES OF AMIT CORPN (SUPRA) AND FRIENDS AND FRIENDS SHIPPING (P.) LTD. (SUPRA), HOLD THAT THE LD. COMMISSIONER OF INCOME-TAX WAS NOT JUSTIFIED IN INV OKING THE PROVISIONS OF SECTION 263 OF THE INCOME-TAX ACT, 1961. ACCORDINGL Y, THE QUESTION REFERRED TO ME IS ANSWERED IN NEGATIVE, I.E., IN FAVOUR OF THE ASS ESSEE. 4. SINCE THE VERY BASIS OF THE PRESENT ASSESSMENT ORDE R WAS REMOVED BY THE TRIBUNAL, THE SUPER STRUCTURE THAT IS THE ASSESSMEN T ORDER DATED 21.11.2013 FRAMED U/S. 143(3) R.W.S. 263 OF THE ACT BECOMES NO N-EST. ITA NO. 3506 /AHD/2015 . A.Y. 2007-08 3 5. ON THE AFOREMENTIONED FACTS, WE DO NOT FIND ANY ERR OR OR INFIRMITY IN THE FINDINGS OF THE LD. CIT(A). APPEAL FILED BY THE REV ENUE IS ACCORDINGLY DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 16 - 01- 20 18 SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUN TANT MEMBER AHMEDABAD: DATED 16/01/2018 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD