Dy. Commissioner of Income Tax , Circle-3(2), Hyderabad V. Sumtotal Systems India Private Limited , Hyderabad

ITA 487/Hyd/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6717 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2005-2006
• Appeal Filed On: 04-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Section: 143(3); 201; 263

Judgement Text

IN T HE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 487 /HYD/201 9 ASSESSMENT YEAR: 20 05 - 06 D Y. COMMISSIONER OF INCOME - TAX, CIRCLE 3(2), HYDERABAD. VS. SUM TOTAL SYSTEMS INDIA PVT. LTD., HYDERABAD. PAN AABCC 9379C ( APPELLANT ) (RESPONDENT) REVENUE BY : SHRI Y.V.S.T. SAI ASSESSEE BY : S HRI RAVI BHARADWAJ DATE OF HEARING : 30 / 0 7 /201 9 DATE OF PRONOUNCEMENT : 31 / 0 7 / 201 9 O R D E R PER S . RIFAUR RAHMAN , A .M. : T H IS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A) 3 , HYDERABAD , DATED 16 / 01 /201 9 FOR AY 20 05 - 06 WHEREIN THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE LD. CIT (A) ERRED BOTH IN LAW AND ON FACTS OF THE CASE. 2. THE LD. CIT(A) ERRED IN HOLDING THAT THE ORDER PASSED BY AO GIVING EFFECT TO THE ORDER OF HON'BLE ITAT IS BARRED BY LIMITATION WITHOUT APPRECIATING THE FACT THAT THE PROVISIONS OF SEC.153(3)(II) CLE ARLY SPEAKS OTHERWISE. 3. THE LD.CIT(A) ERRED IN DELETING THE ADDITION WITHOUT ADJUDICATING THE ISSUE ON MERITS, WHICH, EVEN IN THE 2ND ROUND OF LITIGATION, ARE IN FAVOR OF THE DEPARTMENT. 4. ANY OTHER GROUND(S) THAT MAY BE URGED AT THE TIME OF HEARING . 2. BRIEF FACTS OF THE CASE ARE, THE AO PASSED THE CONSEQUENTIAL ORDER U/S 143(3) RWS 92CA(3) RWS 254 OF THE INCOME - TAX ACT, 1961 ( IN SHORT THE ACT) TO THE ORDER OF THE ITAT IN ITA NO. 473/HYD/2011, DATED 26/09/2012, AFTER A LAPSE OF 21 MONTHS , WHICH SHOULD HAVE 2 ITA NO. 487 /HYD/1 9 SUM TOTAL SYSTEMS INDIA PVT. LTD., HYD. BEEN PASSED ON 31 ST DECEMBER, 2014, BUT, THE AO PASSED THE SAID ORDER ON 14 TH FEBRUARY, 2018. 3. AGAINST THE SAID ORDER, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) CONTESTING THAT THE ORDER PASSED BY THE AO WAS TIME BARRED AS PER SECTION 153 OF THE ACT. 4. THE CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, HELD THAT THE CONSEQUENTIAL ORDER PASSED BY THE AO WAS BEYOND THE TIME LIMIT STIPULATED UNDER L AW AND HENCE THE ORDER IS VOID AB - INITIO AND HENCE, ALLOWED THE APPEAL OF THE ASSESSEE. 5. AGGRIEVED BY THE ORDER OF CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 6. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. AS PER THE PROVISIO NS OF SECTION 153 (3) , THE TIME LIMIT FOR COMPLETION OF ASSESSMENT, REASSESSMENT AND RE - COMPUTATION IN PURSUANCE OF AN ORDER UNDER SECTION 254 OR SECTION 263 OR SECTION 264, SETTING ASIDE OR CANCELLING AN ASSESSMENT, MAY BE MADE AT ANY TIME BEFORE THE EXPIRY OF NINE MONTHS FRO M THE END OF THE FY IN WHICH THE ORDER U/S 254 IS RECEIVED BY THE RESPECTIVE JURISDICTIONAL COMMISSIONER . IN THE CASE UNDER CONSIDERATION, THE AO PASSED THE CONSEQUENTIAL ORDER AFTER A PERIOD OF 21 MONTHS, WHICH IS TIME BARRED. THEREFORE, WE DO NOT FIND AN Y INFIRMITY IN THE ORDER OF CIT(A) IN ALLOWING THE APPEAL OF THE ASSESSEE BY HOLDING THAT THE CONSEQUENTIAL ORDER PASSED BY THE AO IS VOID AB - INITIO AND ACCORDINGLY, GROUNDS RAISED BY THE REVENUE IN THIS REGARD ARE DISMISSED. 3 ITA NO. 487 /HYD/1 9 SUM TOTAL SYSTEMS INDIA PVT. LTD., HYD. 7. IN THE RESULT, APPE AL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 31 ST JULY , 201 9 . SD/ - SD/ - ( P. MADHAVI DEVI ) (S . RIFAUR RAHMAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 31 ST JULY , 201 9 KV C OPY TO: - 1) DCIT , CIRCLE 3(2), 7 TH FLOOR, SIGNATURE TOWERS, WHITE FIELDS, KONDAPUR, OPP. BOTANICAL GARDENS, HYDERABAD . 2) M/S SUM TOTAL SYSTEMS INDIA PVT. LTD., 7 TH FLOOR, BUILDING NO. 2B, MAXIMUS TOWERS, K. RAHEJA IT PARK, HYDERABAD 3) CIT(A) 3 HYDERABAD. 4) PR. CIT - 3 , HYD. 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE