DCIT, Bangalore V. M/s IBM India Pvt. Ltd., Bangalore

ITA 410/BANG/2015

• Counselvise Citation: 41021114 RSA 2015
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 19-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G R REDDY
• Section: 143(3); 260A; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI ABRAHAM P GEORGE , ACCOUNTANT MEMBER ITA NO. 410 / BANG/20 15 (ASSESSMENT YEAR: 2005 - 06 ) DEPUTY COMMISSIONER OF INCOME - TAX CIRCLE 3( 1) (1) , BANGALORE. VS. APPELLANT M/S. IBM INDIA PVT. LTD., SUBRAMANYA ARCADE, BANNERGHATTA ROAD, BANGALORE - 560099. RESPONDENT PAN:AAACI4403L APPELLANT BY: SHRI G.R. REDDY, CIT(DR). RESPONDENT BY: SHRI AJAY ROTTI, CA. DATE OF HEARING : 08/07/2015. DATE OF PRONOUNCEMENT: 24 / 07 /2015. O R D E R PER SMT. P. MADHAVI DEVI, JM : THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER OF THE CIT(A), BANGALORE - 3, BANGALORE, DATED 31/12/2014 FOR THE ASSESSMENT YEAR 2005 - 06. 2. THE ONLY GRIEVANCE OF THE REVENUE IN THIS APPEAL IS THAT THE CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE BY PLACING RELIANCE ON THE ORDER OF THE TRIBUNAL IN THE ASSESSEE S OWN ITA NO . 410/BANG/205 M/S.IBM INDIA PVT. LTD. PAGE 2 OF 3 CASE WITHOUT APPRECIATING THE FACT THAT THE SAME HAS NOT BECOME FINAL IN VIEW OF THE DEPARTMENTAL APPEAL U/S 260A OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] PENDING BEFORE THE HON BLE HIGH COURT OF KARNATAKA. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSMENT ORDER U/S 143(3) OF THE ACT WAS PASSED ON 26/12/2008 ASSESSING THE TOTAL INCOME OF THE ASSESSEE AT RS.5,46,19,33,785/ - . SUBSEQUENTLY THE CIT INVOKED JURISDICTION U/S 263 OF THE ACT AND PASSED AN ORDER DATED 2 1 /3/2011 SETTING ASIDE THE ASSESSMENT ORDER. AGAINST TH E SAME, ASSESSEE PREFERRED AN APPEAL BEFORE THE ITAT AND THE ITAT BY ORDER DATED 0 5/ 0 7/2013 HAS QUASHED THE ORDER U/S 263 RESTORING THE ASSESSMENT ORDER PASSED U/S 143(3). MEANWHILE, AO HAD PASSED THE ASSESSMENT ORDER U/S 143(3) R.W.S 263 OF THE ACT GIVIN G EFFECT TO THE ORDER OF THE CIT U/S 263 OF THE ACT AGAINST WHICH , THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) , WHO ALLOWED THE SAME OBSERVING THAT THE ORDER U/S 263 HAS ALREADY BEEN QUASHED BY THE TRIBUNAL AND THEREFORE THE APPEAL IS INFRUCTUOUS A ND DOES NOT SURVIVE. AGAINST THIS ORDER OF THE CIT(A), REVENUE IS IN APPEAL BEFORE US. 4. HAVING HEARD BOTH THE PARTIES AND HAVING GONE THROUGH THE MATERIAL ON RECORD AND ALSO THE ORDER OF THE TRIBUNAL DATED 0 5/ 0 7/2013 IN THE ASSESSEE S OWN CASE AG AINST ORDER U/S 263 OF THE ACT DATED 21/3/2011, WE FIND THAT THE ORDER U/S 263 HAS BEEN QUASHED BY THE TRIBUNAL. THEREFORE, THE ORDER GIVING EFFECT TO THE ITA NO . 410/BANG/205 M/S.IBM INDIA PVT. LTD. PAGE 3 OF 3 ORDER U/S 263 DOES NOT SURVIVE AND THE CIT(A) HAS RIGHTLY HELD THE APPEAL TO BE INFRUCTUOUS. 5. IN THE RESULT, THE REVENUE S APPEAL IS DISMISSED. PRON OUNCED IN THE OPEN COURT ON 24 TH JU LY , 201 5 . S D/ - S D/ - ( ABRAHAM P GEORGE ) ( SMT. P.MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER EKSRINIVASULU COPY TO: 1. APPELL ANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE T RIBUNAL BANGALORE