DCIT, Trichy V. K.S.V.Cotton Mills (P) Limited, Karur

ITA 475/CHNY/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2555 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 21-03-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN JT
• Assessee Lawyers: M NARAYANAN RETD
• Keywords: Deemed to accrue or arise in india
• Section: 68; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI [BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER] I.T.A.NO.475/MDS/2013 ASSESSMENT YEAR : 2004-05 THE DY. CIT CIRCLE I(1) TRICHY VS M/S K.S.V. COTTON MILLS (P) LTD. NO.H-32, HOUSING BOARD GANDHI GRAM COLONY SOUTH KARUR 639 004 [PAN AAACK 4551 H] (APPELLANT) (RESPONDENT) C.O.NO.73/MDS/2013 ASSESSMENT YEAR : 2004-05 M/S K.S.V. COTTON MILLS (P) LTD. NO.H-32, HOUSING BOARD GANDHI GRAM COLONY SOUTH KARUR 639 004 VS THE DY. CIT CIRCLE I(1) TRICHY (CROSS OBJECTOR) (RESPONDENT) APPELLANT BY : SHRI N. MADHAVAN, JT. CIT RESPONDENT BY : SHRI M. NARAYANAN, RETD. ADDL. CIT DATE OF HEARING : 07-05-2013 DATE OF PRONOUNCEMENT : 09-05-2013 O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE RE VENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), TIRUCHIRAPALLI, DATED 21.12.2012. I.T.A.NO. 475/13 C.O.NO.79/13 :- 2 -: 2. THE SOLE ISSUE INVOLVED IN THE APPEAL OF THE REVEN UE IS THAT THE LD. CIT(A) ERRED IN ALLOWING THE SET OFF OF LOS S AGAINST THE DEEMED INCOME ASSESSED U/S 68 OF THE INCOME-TAX ACT. 3. IN THE CROSS OBJECTION, THE SOLE GROUND TAKEN BY TH E ASSESSEE IS THAT THE LD. CIT(A) ERRED IN NOT ADJUDI CATING GROUND NO.3 OF THE APPEAL TAKEN BEFORE HIM WHEREIN THE ASSESSE E HAS CHALLENGED THE ORDER OF THE ASSESSING OFFICER ON THE GROUND TH AT SINCE THE REASONS FOR REOPENING BY THE ASSESSING OFFICER HAD BEEN DRO PPED BY THE ASSESSING OFFICER THEN THE LD. CIT(A) SHOULD HAVE Q UASHED THE RE- ASSESSMENT ORDER. 4. AT THE OUTSET, BOTH THE PARTIES AGREED BEFORE US T HAT THE LD. CIT(A) HAS NOT ADJUDICATED GROUND NO.3 OF THE APPEA L TAKEN BEFORE HIM WHICH READS AS FOLLOWS: THE ASSESSING OFFICER HAVING UNDERSTOOD THAT INTE REST CLAIM WAS ADMISSIBLE IN FULL, OUGHT TO HAVE DROPPED THE ACTION U/S 148 WITHOUT ENTERING INTO ISSUE ALREADY CONCLUDED IN THE ORIGINAL ASSESSMENT THAT CURRENT L OSS COULD BE SET OFF AGAINST INCOME ASSESSED UNDER THE HEAD O THER SOURCES. 5. THEREFORE, BOTH THE PARTIES AGREED THAT THE MATTER SHOULD BE RESTORED BACK TO THE FILE OF THE LD. CIT(A) FOR ADJ UDICATING THE ABOVE QUOTED GROUND OF APPEAL OF THE ASSESSEE. I.T.A.NO. 475/13 C.O.NO.79/13 :- 3 -: 6. THAT BEING SO, WE RESTORE THE ABOVE QUOTED GROUND O F APPEAL TO THE FILE OF THE LD. CIT(A) FOR ADJUDICATI ON OF THE SAME AFTER ALLOWING REASONABLE AND PROPER OPPORTUNITY OF HEAR ING TO BOTH THE PARTIES. 7. AS THE JURISDICTIONAL ISSUE IN THE CROSS OBJECTION OF THE ASSESSEE IS RESTORED TO THE FILE OF THE LD. CIT(A) FOR ADJUDICATION, BOTH THE PARTIES BEFORE US HAVE AGREED THAT THE CONSEQUE NTIAL ISSUE RAISED IN THE APPEAL OF THE REVENUE ALSO BE RESTORED TO TH E FILE OF THE LD. CIT(A) FOR ADJUDICATION AFRESH IF THE JURISDICTIONA L ISSUE IS DECIDED AGAINST THE ASSESSEE. THUS, THE GROUNDS OF APPEAL OF THE REVENUE AND THAT OF CROSS OBJECTION OF THE ASSESSEE ARE AL LOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT, BOTH, THE APPEAL OF THE REVENUE AND THE CROSS OBJECTION OF THE ASSESSEE, ARE ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED ON THURSDAY, THE 09 TH OF MAY, 2013, AT CHENNAI. SD/- SD/- (V. DURGA RAO) JUDICIAL MEMBER (N.S.SAINI) ACCOUNTANT MEMBER DATED: 09 TH MAY, 2013, RD COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR