DCIT, Kollam V. Aswamedh Enterprises, Kollam

ITA 365/COCH/2009

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0843 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2011
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 1999-2000
• Appeal Filed On: 17-06-2009
• Court: TRIBUNAL
• Department Lawyers: T J VINCENT
• Assessee Lawyers: A S NARAYANAMOORTHYCA
• Keywords: Rectification of order

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.VIJAYAKUMARAN & SHRI SANJAY ARORA I.T.A.NO.365/COCH/2009 ASSESSMENT YEAR:1999-2000 THE DY . COMMISSIONER OF INCOME-TAX, CIRCLE-1, KOLLAM. VS. M/S. ASWAMEDH ENTERPRISES, PARA MESWAR NAGAR,KOLLAM. (APPELLANT) ( RESPONDENT ) APPELLANT BY SHRI T.J.VINCENT, JR.D.R. RESPONDENT BY SHRI A.S.NARAYANAMOORTHY,CA O R D E R PER N.VIJAYAKUMARAN,J.M: THIS APPEAL BY THE DEPARTMENT IS AGAINST THE SECON D RECTIFICATION ORDER PASSED BY THE ASSESSING OFFICER U/S.154 AND DIRECTED AGAINST THE ORDER OF THE LD. CIT(APPEA LS)-I, TRIVANDRUM, DATED 14-01-2009. THE ASSESSMENT YEAR INVOLVED IS 1999-2000. 2. THE EFFECTIVE GROUND OF THE DEPARTMENT IS GROUND NO.2, WHICH READS AS UNDER: THE LD. CIT(APPEALS) ERRED IN QUASHING THE RECTIFI CATION ORDER U/S.154 OF THE I.T.ACT HOLDING THAT THE ORDER WWAS PASSED BEYOND THE TIME LIMIT PRESCRIBED BY THE INCO ME- TAX ACT. IT MAY BE NOTED THAT EVEN BEFORE GIVING E FFECT TO THE INCOME-TAX APPELLATE TRIBUNALS ORDER VIDE ITA NO.365 /COCH/2009 M/S. ASWAMEDH ENTERPRISES 2 PROCEEDINGS DATED 17-12-2007 THE ORIGINAL ORDER U/S.143(1) HAD BEEN MODIFIED IN PROCEEDINGS DATED 1 9- 11-2007 AND THE SAME WAS SURVIVING. ON GIVING EFF ECT TO THE INCOME-TAX APPELLATE TRIBUNALS ORDER, THE T OTAL INCOME STANDS ENHANCED TO RS.11 LAKHS. HENCE, MODIFICATION OF THE PROCEEDINGS U/S.154 OF THE I.T. ACT IN PROCEEDINGS DATED 19-11-2007 IS VALID. 3. WE HAVE HEARD THE LD. D.R. AND THAT OF THE LD. C OUNSEL FOR THE ASSESSEE. WE HAVE CONSIDERED RIVAL SUBMIS SIONS CAREFULLY AND PEPRUSED THE MATERIALS AVAILABLE ON R ECORD INCLUDING THE PRECEDENTS. THE FIRST RECTIFICATION ORDER U/S.154 WAS PASSED BY THE LD. ASSESSING OFFICER ON 30-03- 2006. ON APPEAL IN THE LEVEL OF THE TRIBUNAL, TRIB UNAL CANCELLED THE RECTIFICATION VIDE ITS ORDER DATED 24 -08-2007. BY THIS ORDER OF THE TRIBUNAL, THE EARLIER INTIMATI ON GOT MERGED AS THE RECTIFICATION PROPOSED WAS QUASHED. 4. THEN THE ASSESSING OFFICER AGAIN STARTED 154 ACT ION IN THE SECOND ROUND AND PASSED AN ORDER ON 19-11-2007. IN APPEAL, THE LD. CIT(APPEALS) HELD THAT THE RECTIFIC ATION ORDER PASSED U/S.154 WAS BEYOND THE TIME LIMIT PRESCRIBED BY THE ACT. THEREFORE, THE LD. CIT(APPEALS) QUASHED THE SAME. THE FINDINGS OF THE LD. CIT(APPEALS) THAT ONCE THE INCOME- TAX APPELLATE TRIBUNAL CANCELLED THE FIRST RECTIFIC ATION ORDER ITA NO.365 /COCH/2009 M/S. ASWAMEDH ENTERPRISES 3 PASSED BY THE ASSESSING OFFICER , THEN THE ONLY ORD ER REMAINING IN EXISTENCE IS THE ORIGINAL INTIMATION O RDER U/S.143(1), WHICH IS DATED 15-6-2001. IT IS A SET TLED PRINCIPLE THAT NO ORDER OF RECTIFICATION U/S.154 CA N BE PASSED AFTER FOUR YEARS FROM THE END OF THE FINANCIAL YEAR . IN THIS CASE, THE SECOND RECTIFICATION ORDER IS PASSED ON 1 9-11- 2007, WHICH IS DEFINITELY BEYOND THE STIPULATED PER IOD OF FOUR YEARS. THE REASON GIVEN BY THE LD. CIT(APPEALS) IS QUITE JUSTIFIED AND IN ACCORDANCE WITH LAW. THEREFORE, WE REJECT THE GROUND OF THE DEPARTMENT AND DISMISS THE PRESEN T APPEAL. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (SANJAY ARORA) (N.VIJAYKUMARAN) ACCOUNTANT MEMBER JUDICIAL M EMBER ERNAKULAM, DATED THE 09 TH MARCH,2011. PM. COPY FORWARDED TO: 1. THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE-1, KOLL AM. 2. M/S. ASWAMEDH ENTERPRISES,PARAMESWAR NAGAR,KOLLAM. 3. CIT(A)-I,TRIVANDRUM. 4. CIT, TRIVANDRUM. 5. D.R.