M/s Sovereign Exports, Ludhiana V. DCIT, Ludhiana

ITA 431/CHANDI/2010

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68583 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-11-2013
• Assessment Year: 2002-2003
• Appeal Filed On: 27-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Retrospective amendment; Difference of opinion; Change of opinion
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 431/CHD/2010 ASSESSMENT YEAR : 2002-03 SOVEREIGN EXPORTS, VS. D.C.I.T. CIRCLE-VS. 168-B, INDUSTRIAL ESTATE LUDHIANA LUDHIANA AAJFS 6585P (APPELLANT) (RESPONDENT APPELLANT BY SHRI SUDHIR SEHGAL RESPONDENT BY: SHRI MANJIT SINGH DATE OF HEARING 27 .11.2013 DATE OF PRONOUNCEMENT 28.11.2013 O R D E R PER T.R.SOOD, A.M THIS APPEAL IS DIRECTED AGAINST THE ORDER DATED 16. 2.2010 OF THE LD. CIT(A)-II, LUDHIANA. 2 IN THIS APPEAL THE ASSESSEE HAS RAISED FOLLOWING GROUNDS. 1 THAT THE LD. CIT(A)-II, LUDHIANA HAS ERRED IN UPHOLDING THE ACTION OF THE ASSESSING OFFICER IN RE OPENING ASSESSMENT BY INITIATING PROCEEDINGS U/S 147/148 OF THE ACT. 2 THAT THE LD. CIT(A)-II, LUDHIANA HAS ALSO ERRED I N UPHOLDING THAT THE NOTICE WAS ISSUED BY THE ASSESSI NG OFFICER WAS NOT BARRED BY LIMITATION AS PER PROVISI ONS OF SECTION 147 AND REOPENING THE CASE WAS NOT ON ACCOU NT OF CHANGE OF OPINION OF ETH ASSESSING OFFICER. 3 THAT THE LD. CIT(A)-II, LUDHIANA HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER OF C HARGING THE INTEREST U/S 234D OF THE ACT EVEN THOUGH THE SA ME WAS NOT APPLICABLE FOR THE ASSESSMENT YEAR UNDER CONSIDERATION . 3. OUT OF ABOVE, GROUNDS NO. 1 & 2 WERE NOT PRESSED BEFORE US, THEREFORE, SAME ARE DISMISSED AS NOT PRESSED. 2 4 THE LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT SE CTION 234D WAS INTRODUCED W.E.F. 1.6.2003 AND THEREFORE, IS NOT APPLICABLE IN THIS YEAR. 5 ON THE OTHER HAND, THE LD. DR FOR THE REVENUE SU BMITTED THAT SECTION 234D HAS BEEN AMENDED RETROSPECTIVELY BY FINANCE ACT, 2012 WITH RETROSPECTIVE EFFECT FROM 1. 6.2003. 6 AFTER CONSIDERING THE RIVAL SUBMISSIONS WE FIND THAT EXP 2 HAS BEEN INSERTED BY FINANCE ACT, 2012 WITH RETROSP ECTIVE EFFECT FROM 1.6.2003 TO SECTION 234D OF THE ACT. T HEREFORE, WE SET ASIDE THE ORDER OF THE CIT(A) AND DIRECT THE AO TO VERIFY THE APPLICABILITY OF SECTION 234D IN THE LIG HT OF EXP 2 AND DECIDE THE ISSUE ACCORDINGLY. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28.11.2013 SD/- SD/- (SUSHMA CHOWLA) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 28.11.2013 SURESH COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT/THE C IT(A)/THE DR