Asstt.CIT, Cir.-2, Jalgaon, Jalgaon V. Tulsi Extrusion Limited, Jalgaon

ITA 368/PUN/2011

• Counselvise Citation: 36824514 RSA 2011
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 05-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAURATH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH; A PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, J.M. AND SHRI R.K. PANDA, A.M . I.T.A. NO. 368/PN/2011 : A.Y. 2007-08 ASSTT. CIT CIR. 2, JALGAON .. APPELLAN T VS. TULSI EXTRUSIONS LTD., PLOT NO. N-99, MIDC AREA JALGAON 425 001 PAN AAACT 8441 P RESPONDENT APPELLANT BY: SHRI NAURATH RESPONDENT BY: SHRI SUNIL GANOO DATE OF HEARING : 08-05-2012 DATE OF PRONOUNCEMENT: ____ -05-2012 ORDER PER SHAILENDRA KUMAR YADAV, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-II NASIK DATED 18-1-2011 FO R A.Y. 2007-08 ON THE FOLLOWING GROUNDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) ERRED IN QUASHING THE ASSESSMENT ON THE BASIS OF NOTICE U/S 143(2) WHICH HAS BEEN VALIDLY ISSUED. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) ERRED IN INTERPRETING THE APPLICABILITY OF CIRCULAR WHICH HAS BEEN ISSUED SUBSEQUENT TO ISSUE OF NOTICE U/S 143(2) OF THE ACT. 2. THE ASSESSEE IS A PUBLIC LIMITED COMPANY AND ENGAGED IN THE MANUFACTURING AND TRADING OF PVC PIPES, FABRICATED FITTINGS AND TRADING OF CEMENT AN D STEEL. THE ASSESSEE HAS CHALLENGED THE VALIDITY OF NOTICE U/S 143(2) DATED 16-10-2008. THE UNDISPUTED FACTS ARE THAT THE NOTICE U/S 143(2) OF THE ACT WAS ITA NO. 368/PN/2011 TULSI EXTRUSIONS A.Y. 2007-08 2 ISSUED ON 16-10-2008 AND SERVED ON THE ASSESSEE ON 22-10-2008 IN RESPECT OF RETURN OF INCOME FILED ON 31- 10-2007 FOR A.Y. 2007-08. CLAUSE (II) OF SUB-SECTIO N (2) OF SECTION 143 OF THE ACT HAS BEEN AMENDED BY FINAN CE ACT 2008 AND ACCORDINGLY NO NOTICE UNDER THE CLAUSE (II) SHALL BE SERVED ON THE ASSESSEE AFTER EXPIRY O F SIX MONTHS FROM THE END OF THE FINANCIAL YEAR IN WHICH THE RETURN IS FURNISHED. THE ASSESSEE HAS FILED ITS RE TURN OF INCOME ON 31-10-2007. THEREFORE, IN VIEW OF THE AMENDED PROVISO NOTICE UNDER SUB-SECTION (2) OF SECTION 143 WAS REQUIRED TO BE SERVED ON THE ASSESS EE WITHIN THE PERIOD OF SIX MONTHS FROM THE END OF FINANCIAL YEAR IN WHICH RETURN WAS FURNISHED I.E. O N OR BEFORE 30-9-2008. UNDISPUTEDLY NOTICE U/S 143(2) W AS ISSUED ON 16-10-2008. HENCE IT WAS NOT ISSUED AND SERVED ON THE ASSESSEE IN STIPULATED TIME LIMIT I.E . ON OR BEFORE 30-9-2008. THE AMENDMENT MADE IN SECTION 143(2) OF THE ACT W.E.F. 1-4-2008 BY THE FINANCE AC T 2008 HAS DULY BEEN DULY EXPLAINED/CLARIFIED IN PARA 42 BY THE CBDT IN CIRCULAR NO. 1/2009[F.NO. 142/09/2009-TPL] DATED 27-3-2009 AND ACCORDINGLY IT IS VERY CLEAR THAT THE NOTICE ISSUED U/S 143(2) DAT ED 16-10-2008 IS BARRED BY LIMITATION AND HENCE IT IS INVALID AND BAD IN LAW. IN VIEW OF THIS, THE IMPUGN ED NOTICE U/S 143(2) OF THE ACT DATED 16-10-2008 WAS BEYOND THE TIME LIMIT SPECIFIED AS PER AMENDED PROV ISO TO SECTION 143(2) OF THE ACT WHICH IS INVALID AND B AD IN LAW AND ALSO BARRED BY LIMITATION. HENCE IMPUGNED NOTICE U/S 143(2) WAS QUASHED BY THE CIT(A). ACCORDINGLY, THE ASSESSMENT BASED ON SUCH INVALID IMPUGNED NOTICE U/S 143(2) HAS RIGHTLY BEEN QUASHED . THE REASONED AND FACTUAL AND LEGAL FINDING OF THE CIT(A) NEEDS NO INTERFERENCE FROM OUR SIDE. ITA NO. 368/PN/2011 TULSI EXTRUSIONS A.Y. 2007-08 3 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. DECISION IS PRONOUNCED IN THE OPEN COURT ON 11 TH MAY 2012. SD/- SD/- (R.K. PANDA) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE DATED THE 11 TH MAY 2012. ANKAM COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-(A) II NASIK 4. THE CIT II NASIK 4. THE D.R, ITAT PUNE BENCH, PUNE 6. GUARD FILE BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL