M/s. Gaurav Oil Industries Kukshi Distt. Dhar, Kukshi V. Pr. CIT-I, Indore

ITA 453/Ind/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3230 (ITAT-INDORE)
• Duration Of Justice: 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 11-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA
• Keywords: Revision of order; Transfer pricing
• Section: 143(3); 263

Judgement Text

[ITA NO.453/IND/2019] [M/S. GOURAV OIL INDUSTRIES, KUKSHI] , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.453/IND/2019 ASSESSMENT YEAR: 2014-15 M/S. GAURAV OIL INDUSTR IES SINGHANA ROAD, KUKSHI DIST. DHAR-454331 (MP) / VS. PR.CIT - 1, INDORE ( APPELLANT ) ( REVENUE ) P.A. NO. AAFFG5373F APPELLANT BY SHRI MANOJ GUPTA, A.R. RESPONDENT BY SMT. ASHIMA GUPTA, D.R. DATE OF HEARING: 26.11.2019 DATE OF PRONOUNCEMENT: 04.12.2019 / 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 19.3.2019 PERTAINING TO THE ASSESSMENT YEAR 2014-15. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: [ITA NO.453/IND/2019] [M/S. GOURAV OIL INDUSTRIES, KUKSHI] 2 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE THE LD. PR. 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 PR. CIT-1 INDORE U/S 263 OF THE I.T . ACT, 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 IS AGAINST INVOKING THE PROVISIONS OF SECTION 263 OF THE INCOME TAX ACT, 19 61 (HEREINAFTER CALLED AS THE ACT), THEREBY SETTING ASID E THE ORDER PASSED U/S 143(3) OF THE ACT. THE FACTS GIVING RISE TO THE PRESENT APPEAL ARE THAT THE CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT. THE ASSESSMENT WAS FRAMED VIDE ORDER DATED 22.8.2016, THEREBY THE A.O. M ADE ADDITION IN RESPECT OF PRE-PAID EXPENSES AND ON ACCOUNT OF GP RATIO OF RS.56,667/- AND RS.1 LAKH RESPECTIVELY. [ITA NO.453/IND/2019] [M/S. GOURAV OIL INDUSTRIES, KUKSHI] 3 THEREAFTER, LD. PR. CIT ISSUED A NOTICE U/S 263 OF TH E ACT CALLING UPON THE ASSESSEE THAT AS TO WHY THE ASSESSMENT FRAMED SHOULD NOT BE REVISED. THE BASIS OF NOTICE WAS THAT THE A.O. FAILED TO EXAMINE AND MAKE PROPER ENQUIRY IN RESPECT OF LARGE SPECIFIED DOMESTIC TRANSACTIONS, DEPOSIT/WITHDRAWAL MADE FROM THE BANK AND HELD BY THE ASSESSEE. IN RESPONSE TO THE NOTICE, THE ASSESSEE FI LED REPLY AND OPPOSED INVOKING OF POWER U/S 263 OF THE ACT. HOWEVER, THE LD. PR. CIT REJECTED THE OBJECTIONS OF THE ASSESSEE AND PROCEEDED TO REVISE THE ASSESSMENT ORDER. AGGRIEVED BY THE IMPUGNED ORDER, THE ASSESSEE IS BEF ORE THIS TRIBUNAL BY WAY OF THE PRESENT APPEAL. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBMITTE D THAT SO FAR ISSUE OF REFERRING THE MATTER TO THE TPO I S CONCERNED, THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THIS TRIBUNAL IN THE CASE OF SWASTIK COAL CORPORATION PVT. LTD. VS. PR.CIT-2 IN ITA [ITA NO.453/IND/2019] [M/S. GOURAV OIL INDUSTRIES, KUKSHI] 4 NO.486/IND/2018 DATED 26.7.2019 AND IN RESPECT OF THE OTHER ISSUES, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ALL DETAILS WERE BEFORE THE A.O. IT IS NOT THE CASE O F NO ENQUIRY. 4. ON THE CONTRARY, LD. CIT(DR) OPPOSED THESE SUBMISSIONS AND SUPPORTED THE ORDER OF LD. CIT(A). LD. CIT(DR) TAKEN US THROUGH THE ASSESSMENT ORDER TO DEMONSTRATE THAT THE A.O. HAS FAILED TO EXAMINE THESE ISSUES AND NO ENQUIRY WAS MADE. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IN THE PRESENT CASE, THE ASSESSMENT WAS REVISED ON THE GROUND THAT THE A.O. HA S NOT MADE ANY ENQUIRY RELATED TO DEPOSITS AND WITHDRAWALS IN THE BANK ACCOUNT AND ALSO THE POSITION OF STOCK. IT IS ALSO OBSERVED BY THE LD. PR. CIT THAT THE A.O. HAS NOT REFERRED THE MATTER TO TPO IN RESPECT OF LARGE SPECIF IED [ITA NO.453/IND/2019] [M/S. GOURAV OIL INDUSTRIES, KUKSHI] 5 DOMESTIC TRANSACTIONS, WHICH HE WAS REQUIRED TO REFER T O TPO FOR COMPUTING THE ARMS LENGTH PRICE IIN VIEW OF THE PROVISIONS OF SECTION 92CA OF THE ACT. 6. SO FAR THE ISSUE OF REFERRING THE LARGE SPECIFIC DOME STIC TRANSACTIONS TO THE TPO, WE HAVE ALREADY DECIDED THE ISS UE IN FAVOUR OF THE ASSESSEE IN THE CASE OF SWASTIK COAL CORPORATION PVT. LTD. VS. PR. CIT-2 (SUPRA). FOR THE SAME REASONING, WE HOLD THAT THE LD. PR. CIT WAS NOT JUSTIF IED IN REVISING HIS ORDER ON THE GROUND OF NON REFERRING O F SPECIFIC DOMESTIC TRANSACTIONS IN VIEW OF THE FACT THAT THE PROV ISIONS WERE WITHDRAWN. HOWEVER, IN RESPECT OF OTHER ISSUE S, VIZ. DEPOSIT/WITHDRAWAL FROM BANK ACCOUNT AND STOCK, LOOKING TO THE FACTS AND THE ASSESSMENT ORDER, WE DO NOT SEE AN Y REASON TO DISTURB THE DIRECTION OF THE LD. PR. CIT. WE THEREFORE, MODIFY THE IMPUGNED ORDER. THE A.O. IS HEREBY DIRECTED TO EXAMINE THE ISSUES RELATED TO DEPOSIT/WITHDRAWAL OF THE AMOUNT FROM THE BANK ACCOUNT [ITA NO.453/IND/2019] [M/S. GOURAV OIL INDUSTRIES, KUKSHI] 6 HELD BY THE ASSESSEE AND ALSO THE ISSUE OF STOCK BY MAK ING NECESSARY ENQUIRY. HENCE, THE APPEAL OF THE ASSESSEE I S PARTLY ALLOWED IN TERMS HEREIN ABOVE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PART LY ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 04. 12.2019. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER JUDICIAL MEMBER INDORE; DATED : 04/12/2019 VG/SPS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER ASSISTANT REGISTRAR, INDORE