Delight Cotton (P) Ltd., Indore V. The DCIT 1(1), Indore

ITA 452/Ind/2019

• Counselvise Citation: [2019] 113 COUNSELVISE.COM (IT) 6419 (ITAT-INDORE)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 11-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA
• Keywords: Set aside
• Section: 143(3); 263

Judgement Text

[ITA NO.452/IND/2019] [M/S. DELIGHT COTTON P. LTD., INDORE] , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.452/IND/2019 ASSESSMENT YEAR: 2014-15 M/S. DELIGHT COTTON PVT . LTD. (PRESENTLY KNOWN AS DELIGHT LIFELIKE PRODUCTS PVT. LTD.) 406, CORPORATE HOUSE, 168, RNT MARG INDORE-452001 (MP) / VS. PR.CIT - 1, INDORE ( APPELLANT ) ( REVENUE ) P.A. NO. AACCD6667R APPELLANT BY SHRI MANOJ GUPTA, A.R. RESPONDENT BY SMT. ASHIM A GUPTA, D.R. DATE OF HEARING: 19.11.2019 DATE OF PRONOUNCEMENT: 21.11.2019 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER O F THE LD. PR. CIT-1, INDORE DATED 18.3.2019 PERTAINING TO THE [ITA NO.452/IND/2019] [M/S. DELIGHT COTTON P. LTD., INDORE] 2 ASSESSMENT YEAR 2014-15. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE THE LD. CIT HAS ERRED IN SETTING ASIDE THE ORDER OF THE A.O. PASSED U/S 143(3) OF THE I.T. ACT, FOR EXAMINATIONS OF THE LARGE SPECIFIED DOMEST IC TRANSACTIONS ALLEGEDLY HOLDING IT ERRONEOUS IN SO FAR AS PREJUDICIAL TO IN TEREST OF REVENUE. THE ORDER PASSED BY CIT-1 INDORE U/S 263 OF THE I.T. AC T, IS BAD IN LAW AND FACTS, REQUIRES TO BE QUASHED IN FULL. THE APPELLANT CRAVE TO ADD, AMEND OR ALTER ANY OF T HE GROUND STATED ABOVE, EITHER BEFORE OR AT THE TIME OF HEARING OF APPEAL. 2. THE ONLY EFFECTIVE GROUND IN THIS APPEAL IS AGAINST SETTING ASIDE THE ORDER PASSED U/S 143(3) OF THE INCO ME TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT) BY INVOKIN G THE PROVISIONS OF SECTION 263 OF THE ACT. THE FACTS GIV ING RISE TO THE PRESENT APPEAL ARE THAT THE CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S [ITA NO.452/IND/2019] [M/S. DELIGHT COTTON P. LTD., INDORE] 3 143(3) OF THE ACT WAS FRAMED VIDE ORDER DATED 31.8.201 6. WHILE FRAMING THE ASSESSMENT THE A.O. ACCEPTED THE RET URN DECLARED BY THE ASSESSEE, HOWEVER, SUBSEQUENTLY LD. P R. CIT ISSUED A NOTICE U/S 263 OF THE ACT CALLING UPON T HE ASSESSEE AS TO WHY THE ASSESSMENT ORDER SO FRAMED SHOUL D NOT BE REVISED ON THE BASIS THAT THE A.O. DID NOT EXAM INE LOSS FROM CURRENCY FLUCTUATIONS AND ALSO DID NOT REFER MATTER TO THE TPO FOR COMPUTING VALUE OF SPECIFIED DOMESTIC TRANSACTIONS. THE LD. CIT AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE SET ASIDE THE ASSESSMENT O RDER AND DIRECTED HIM TO PERSE ASSESSMENT AFRESH. THE LD. PR. CIT ACCEPTED THE CONTENTION IN RESPECT OF THE LOSS O N ACCOUNT OF FOREIGN EXCHANGE FLUCTUATION; HOWEVER, IN RESPECT OF THE SUBJECT ISSUE THE ASSESSMENT ORDER WAS SET ASIDE. AGGRIEVED AGAINST THIS, THE ASSESSEE IS IN PRES ENT APPEAL BEFORE THIS TRIBUNAL. LD. COUNSEL FOR THE ASSES SEE AT THE OUTSET SUBMITTED THAT THE ISSUE IS SQUARELY COV ERED [ITA NO.452/IND/2019] [M/S. DELIGHT COTTON P. LTD., INDORE] 4 BY THE DECISION OF THIS TRIBUNAL RENDERED IN THE CASE OF SWASTIK COAL CORPORATION PVT. LTD. VS. PR. CIT (2019) 35 ITJ 489. LD. D.R. FAIRLY CONCEDED THAT THE ISSUE IS COVERED BY THE DECISION OF THIS TRIBUNAL, HOWEVER, SUPPORTED THE ORDER OF THE LD. PR. CIT. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE ISSUE ON WHICH THE OR DER IS REVISED IS WITH REGARD TO THE OPINION OF THE LD. CIT THAT THE A.O. FAILED TO REFER THE SPECIFIED DOMESTIC TRANSACTIO NS TO THE TPO. WE FIND THAT THE IDENTICAL ISSUE WAS BEFORE THIS TRIBUNAL IN THE CASE OF SWASTIK COAL CORPORATION PVT. L TD. VS. PCIT (SUPRA) IN WHICH THE TRIBUNAL DECIDED THE IS SUE AS UNDER: [ITA NO.452/IND/2019] [M/S. DELIGHT COTTON P. LTD., INDORE] 5 [ITA NO.452/IND/2019] [M/S. DELIGHT COTTON P. LTD., INDORE] 6 [ITA NO.452/IND/2019] [M/S. DELIGHT COTTON P. LTD., INDORE] 7 4. TAKING A CONSISTENT VIEW, WE HEREBY SET ASIDE THE ORDER OF LD. PR. CIT AS THE ASSESSMENT ORDER IS NOT PREJUD ICIAL TO THE INTEREST OF REVENUE. [ITA NO.452/IND/2019] [M/S. DELIGHT COTTON P. LTD., INDORE] 8 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 21. 11.2019. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER JUDICIAL MEMBER INDORE; DATED : 21/11/2019 VG/SPS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE