M/S RAJDHANI LAND & HOUSING CORPORATION, Bhopal V. THE Pr. CIT-1, Bhopal

ITA 475/IND/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4895 (ITAT-INDORE)
• Duration Of Justice: 2 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-10-2018
• Assessment Year: 2007-2008
• Appeal Filed On: 09-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AASHIMA GUPTA
• Assessee Lawyers: GIRISH AGRAWAL
• Keywords: Opportunity of being heard
• Section: 143(3); 80IB; 263

Judgement Text

[ITA NO.475/IND/2016] [M/S. RAJDHANI LAND & HOUSING CORPORATION, BHOPAL] , , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.475/IND/2016 ASSESSMENT YEAR: 2007-08 M/S. RAJDHANI LAND & HOUSING CORPORATION, VARDHMAN HOUSE, 130, RADHAVALLAB COMPLEX, MALVIYA NAGAR, BHOPAL / VS. PR. CIT - 1, BHOPAL ( APPELLANT ) ( REVENUE ) P.A. NO. AAHFR4618J APPELLANT BY SHRI GIRISH AGR A WAL, AR RESPONDENT BY SMT. AASHIMA GUPTA, DR DATE OF HEARING: 23.10.2018 DATE OF PRONOUNCEMENT: 26.10.2018 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER O F THE LD. PRINCIPAL COMMISSIONER OF INCOME TAX-1, BHOP AL [ITA NO.475/IND/2016] [M/S. RAJDHANI LAND & HOUSING CORPORATION, BHOPAL] 2 DATED 14.3.2016. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 2. BRIEFLY STATED FACTS ARE THAT ORIGINAL ASSESSMENT U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLE D AS THE ACT) WAS MADE VIDE ORDER DATED 27.11.2009. THE A.O. DISALLOWED CLAIM OF THE ASSESSEE OF DEDUCTION U/S 80IB (10) OF THE ACT. THE MATTER TRAVELLED UP TO THE TRIBUNAL AN D THE TRIBUNAL WAS PLEASED TO SET ASIDE THE ISSUE OF CLAIM OF [ITA NO.475/IND/2016] [M/S. RAJDHANI LAND & HOUSING CORPORATION, BHOPAL] 3 DEDUCTION TO THE FILE OF THE A.O. IN ITA NO.558/IND /2010. THE A.O. IN PURSUANCE TO THE DIRECTION OF THE TRIBUN AL DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE VIDE ORDE R DATED 31.3.2014. THE SAID ORDER WAS REVISED BY THE LD. PR INCIPAL CIT ON THE BASIS THAT THE SAME WAS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE. AGGRIEV ED BY THIS ORDER, THE ASSESSEE IS IN PRESENT APPEAL. GROUNDS IN THIS APPEAL ARE AGAINST REVISING THE ORDER OF THE A.O. BY THE LD. PRINCIPAL CIT. LD. COUNSEL FOR THE ASSESSEE SUBMITTE D THAT THERE IS NO BASIS OF HOLDING THE ORDER OF THE A.O. BEING ERRONEOUS SO FAR IT IS PREJUDICIAL TO THE INTEREST OF THE REVENUE. HE FURTHER REITERATED THE SUBMISSIONS AS MA DE IN THE WRITTEN SUBMISSIONS. FOR THE SAKE OF CLARITY, TH E SYNOPSIS OF WRITTEN SUBMISSIONS IS REPRODUCED AS UND ER: [ITA NO.475/IND/2016] [M/S. RAJDHANI LAND & HOUSING CORPORATION, BHOPAL] 4 [ITA NO.475/IND/2016] [M/S. RAJDHANI LAND & HOUSING CORPORATION, BHOPAL] 5 [ITA NO.475/IND/2016] [M/S. RAJDHANI LAND & HOUSING CORPORATION, BHOPAL] 6 [ITA NO.475/IND/2016] [M/S. RAJDHANI LAND & HOUSING CORPORATION, BHOPAL] 7 [ITA NO.475/IND/2016] [M/S. RAJDHANI LAND & HOUSING CORPORATION, BHOPAL] 8 [ITA NO.475/IND/2016] [M/S. RAJDHANI LAND & HOUSING CORPORATION, BHOPAL] 9 [ITA NO.475/IND/2016] [M/S. RAJDHANI LAND & HOUSING CORPORATION, BHOPAL] 10 3. LD. D.R. OPPOSED THE SUBMISSIONS AND SUPPORTED T HE ORDER OF THE LD. PRINCIPAL CIT. 4. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATE RIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. AS PER THE DIRECTION OF THE TRIBUNAL IN EARLIER ROUND OF LITIG ATION, THE A.O. WAS REQUIRED TO MAKE ENQUIRY WITH REGARD TO COMPLETION OF THE PROJECT, WE FIND THAT THE A.O. HAS MERELY ACCEPTED THE LETTER I SSUED BY BHOPAL MUNICIPAL CORPORATION. 5. IT IS ALSO NOTICED THAT LD. PRINCIPAL CIT REVIS ED THE ORDER OF THE A.O. BY SETTING ASIDE THE ASSESSMENT TO THE FILE OF THE A.O. ONE OF THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE IS T HAT NO SUFFICIENT OPPORTUNITY WAS GRANTED TO THE ASSESSEE AS IT CAN B E SEEN THAT THE NOTICE INVOKING PROVISIONS OF SECTION 263 OF THE ACT WAS I SSUED ON 18.2.2016 AND THE IMPUGNED ORDER WAS PASSED ON 14.3.2016. IT IS SUBMITTED THAT NO PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD WA S GRANTED TO THE ASSESSEE. IT IS FURTHER STATED THAT THE ORDER HAS BEEN PASSED ON THE BASIS OF THE WRITTEN SUBMISSION. AFTER CONSIDERING THE T OTALITY OF THE FACTS AND CONSIDERING THE FACT THAT AS PER PROVISIONS OF SECT ION 263 OF THE ACT, [ITA NO.475/IND/2016] [M/S. RAJDHANI LAND & HOUSING CORPORATION, BHOPAL] 11 ORDER OF THE A.O. CAN BE REVISED BY THE LD. PRINCIP AL CIT, BUT THE SAME PROVISION MANDATES THAT SUCH ORDER CANNOT BE PASSED WITHOUT PROVIDING OPPORTUNITY TO THE ASSESSEE. IN THE PRESENT CASE, WE ARE OF THE VIEW THAT SUFFICIENT OPPORTUNITY IS NOT GRANTED TO THE ASSESS EE FOR REPRESENTING AND EXPLAINING THE FACTS OF THE CASE. WE THEREFORE, SE T ASIDE THE IMPUGNED ORDER AND RESTORE THE ISSUE TO THE FILE OF THE PRIN CIPAL CIT TO DECIDE THE CASE AFRESH AFTER PROVIDING SUFFICIENT OPPORTUNITY TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 26 . 10.2018. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER JUDICIALMEMBER INDORE; DATED : 26/10/2018 VG/SPS COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUAR D FILE. BY ORDER SR. PRIVATE SECRETARY, INDORE