ACIT, CHITTORGARH V. M/s. Banswara Syntex Ltd., BANSWARA

ITA 396/JODH/2014

• Counselvise Citation: 39623314 RSA 2014
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 24-09-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 04-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P MEENA
• Section: 143(3); 260A; 263

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL : JODHPUR BENCH : JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K. SAINI, ACCOUNTANT MEMBER. ITA NO. 396 /JODH/2014 (A.Y. 200 8 - 09 ) ACIT, CIRCLE, CHITTORGARH. VS. M/S. BANSWARA SYNTEX LTD., DAHOD ROAD, BANSWARA. (APPELLANT) PAN NO. AAACB 8103 F (RESPONDENT) ASSESSEE BY : SHRI P.C. PARWAL. DEPARTMENT BY : SHRI O.P. MEENA D.R. DATE OF HEARING : 24 / 0 9 /201 4 . DATE OF PRONOUNCEMENT : 01 / 1 0/201 4 . O R D E R PER N.K. SAINI, A.M TH IS IS AN APPEAL BY THE D EPARTMENT AGAINST THE ORDER DATED 30 /04 /201 4 OF L D . CIT(A) , UDAIPUR . THE FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: ON THE FACTS AND IN THE PRESENT CIRCUMSTANCES OF THE CASE, THE LD. CIT HAS ERRED IN: - 1. ALLOWING THE APPEAL OF THE ASSESSEE ON THE BASIS OF ITATS ORDER DATED 06/05/2013 WITHOUT APPRECIATING THE FACT THAT ITAT WAS NOT JUSTIFIED 2 IN HOLDING THAT ORDER OF THE A.O. CANNOT BE REVISED BY THE CIT U/S. 263 OF THE I.T. ACT. 2. ALLOWING THE APPEAL OF THE ASSESSEE ON THE BASIS OF THE ITATS ORDER DATED 06/05/2013. A) WITHOUT APPRECIATING THE FACT THAT THE ASSESSMENT ORDER HAS RIGHTLY BEEN REVISED BY THE LD. CIT U/S. 263 OF THE I.T. ACT, SINCE THE ORDER OF THE A.O. WAS NOT ONLY ERRONEOUS BUT ALSO PREJUDICIAL TO THE INTEREST OF THE REVENUE. B) WITHOUT APPRECIATING THE FACT THAT APPEAL BEFORE THE HON'BLE HIGH COURT U/S. 260A OF THE I.T. ACT, HAS BEEN FILED BY THE DEPARTMENT AGAINST THE ORDER OF HON'BLE ITAT DATED 06/05/2013. THAT THE APPELLANT CRAVES TO ADD, AMEND, ALTER, DELETE OR MODIFY ANY OR ALL THE ABOVE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING. 2 FACTS RELATING TO THIS CASE, IN BRIEF, ARE THAT THE ASSESSEE WAS ENGAGED IN MANUFACTURING, TRADING, EXPORT & IMP ORT OF ALL TYPES OF YARN, FABR IC, READYMADE GARMENTS AND ALLI ED MATERIALS OF TEXTILES ETC. THE ASSESSEE FILED ITS RETURN OF INCOME DECLARING LOSS OF RS. 12,98,19,337/ - AND THE ORIGINAL ASSESSMENT WAS COMPLETED U/S. 143(3) OF THE I.T. ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT IN SHORT) ON 09/12/2010 BY ASSESSING THE TOTAL LOSS AT RS. 12,90,95,661/ - . SUBSEQUENT TO THIS, ASSESSMENT , SO COMPLETED U/S. 143(3) OF THE ACT , THE LD. CIT BY EXERCISING THE POWER U/S. 263 OF THE ACT HELD THAT THE ASSESSMENT ORDER DATED 09/12/2010 WAS PREJUDICIAL TO THE INTEREST OF THE REVENUE AND CANCELLED THE SAME VIDE ORDER DATED 23/12/2011 PASSED U/S. 263 OF THE ACT AND DIRECTED THE ASSESSING OFFI CER TO SUITABLY MODIFY THE ASSESSMENT 3 ORDER ON PARTICULAR ISSUES MENTIONED IN THE SAID ORDER. IN COMPLIANCE TO THIS DIRECTION, THE ASSESSING OFFICER PASSED THE FRESH ASSESSMENT ORDER DATED 28/03/2013 . A GAINST THE SAID ORDER, ASSESSEE PREFERRED AN APPEAL. IN THE MEANTIME, ITAT WHILE DECIDING THE APPEAL OF THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT PASSED U/S. 263 OF THE ACT , IN I.T.A.NO. 37/JODH/2013 , SET ASIDE THE SAID ORDER OF THE LD. CIT AND RESTORED THE ORIGINAL ASSESSMENT ORDER DATED 09/12/2010 OF THE ASSESSING OFFICER VIDE ORDER DATED 06/05/2013. THE A SSESSEE ON THE AFORESAID BASIS SUBMITTED TO THE LD. CIT (A) THAT SINCE THE ORDER PASSED BY THE LD. CIT U/S. 263 OF THE ACT HAD BEEN QUASHED , THE CONSEQUENTIAL ORDER PASSED BY THE ASSESSING OFFICER WAS ALSO INVALID. 3. THE LEARNED CIT(A), AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, HELD THAT THE APPEAL BECAME INFRUCTUOUS BECAUSE THE ORIGINAL ASSESSMENT PASSED BY THE ASSESSING OFFICE R IN THIS CASE WAS RESTORED AND THE ASSESSMENT ORDER AGAINST WHICH THE APPEAL WAS FILED BEFORE HIM WAS INCONSEQUENCE TO THE ORDER DATE D 23/1 2/2011 PASSED BY THE LD. CIT UDAIPUR U/S. 263 OF THE ACT WHICH HAD BEEN SET A S I DE BY THE ITAT VIDE ORDER DATED 06/05/2013 . NOW THE DEPARTMENT IS IN APPEAL. 4 4. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. IN THE PRESENT CASE, IT IS AN ADMITTED FACT THAT THE APPEAL BEFORE THE LD. CIT(A) WAS F ILED BY THE ASSESSEE AGAINST THE ASSESSMENT ORDER DATED 28/03/2013 WHICH WAS PASSED ON THE DIRECTION OF THE LD. CIT VIDE ORDER DATED 23/12/2011 PASSED U/S. 263 OF THE ACT. THE SAID ORDER DATED 23/12/2011 WAS SET ASIDE BY THE ITAT IN I.T.A.NO. 37/JODH/2013 VIDE ORDER DATED 06/05/2013. THEREFORE, THE CONSEQUENTIAL ASSESSMENT ORDER DATED 28/03/2013 AGAINST WHICH THE APPEAL WAS FILED BY THE ASSESSEE BEFORE THE LD. CIT(A) WAS ALSO INVALID, HENCE, THE APPEAL BECAME INFRUCTUOUS AND THE LD. CIT(A) RIGHTLY HELD SO . IN THAT VIEW OF THE MATTER, WE DO NOT SEE ANY MERIT IN THIS APPEAL OF THE DEPARTMENT. 5. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMISSED. ( ORDER PRONOUNCED IN THE COURT ON 01 ST OCTOBER , 201 4) . S D/ - SD/ - ( HARI OM MARATHA ) (N.K.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 01 ST OCTOBER , 201 4 . VR/ - COPY TO: 5 1. THE APPELLANT 2. THE RESPONDENT 3. THE LD. CIT 4. THE CIT(A) 5. THE D.R SR. PRIVATE SECRETARY , ITAT, JODHPUR .