DCIT, Jaipur V. EMGEE CABLES & COMMUNICATIONS LTD., Jaipur

ITA 487/JPR/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99504 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 26-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUROSHOTTAM KASHYAP
• Assessee Lawyers: G G MUNDRA
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA- @ ITA NO. 487/JP/2014 FU/KZKJ.K O'K Z @ ASSESSMENT YEARS : 2007-08 DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3, JAIPUR. CUKE VS. M/S EMGEE CABLES & COMMUNICATIONS LTD., T-16, 3 RD FLOOR, ALANKAR PLAZA, CENTRAL SPINE, VIDHYADHAR NAGAR, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAACE 3633 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI PUROSHOTTAM KASHYAP (ADDL. CIT) FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI G.G. MUNDRA (CA) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 09/11/2015 MN?KKS'K .KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 10/11/2015 VKNS'K@ ORDER PER: R.P. TOLANI, J.M.: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 04/4/2014 PASSED BY THE LD CIT(A), CENTRAL, JAIPUR F OR A.Y. 2007-08. THE RESPECTIVE GROUNDS OF APPEAL ARE REPRODUCED AS UNDE R:- ITA 487/JP/2014_ DCIT VS. M/S EMGEE CABLES & COMMUNICATIONS 2 A. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, THE LD CIT(A), CENTRAL, JAIPUR HAS ERRED IN ANNULLING THE ASSESSMENT ORDER PASSED BY THE A.O. U/S 143(3) R.W.S. 263 OF THE IT ACT, 1961 WITHOUT DISCUSSING THE ISSUES ON MERITS ON WHICH ADDITIONS WERE MADE BY THE ASSESSING OFFICER. B. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD CIT(A) CENTRAL, JAIPUR HAS ERRED IN NOT HOLDING THAT THE FOLLOWING INCOME OF RS. 97,15,587/- DERIVED BY THE APPELLANT DURING THE COURSE OF ITS BUSINESS IS ASSESSABLE UNDER THE HEAD INCOME FROM OTHER SOURCES INSTEAD OF UNDER THE HEAD INCOME FROM BUSINESS AS DECLARED BY THE ASSESSEE COMPANY: I) INCOME FROM INTEREST RS. 24,64,156/- II) PROFIT ON SALE OF ASSETS RS. 3,91,308/- III) COMMISSION RS. 67,60,123/- TOTAL RS. 97,15,587/- 2. THE LD COUNSEL FOR THE ASSESSEE CONTENDS THAT 263 ACTION WAS CHALLENGED BY THE ASSESSEE BEFORE THE HONBLE ITAT, WHICH VIDE ORDER DATED 31/1/2014 QUASHED THE 263 PROCEEDINGS. SINCE THE ORIGINAL PROCEEDINGS WAS QUASHED THE CONSEQUENT ASSESSMENT AS DIRECTED BY LD. CIT U/S 263 WAS RIGHTLY QUASHED BY THE LD CIT(A) BY FO LLOWING OBSERVATIONS:- I HAVE CAREFULLY PERUSED THE ORDER OF THE A.O. AND SUBMISSIONS OF THE AR ALONGWITH THE ORDER OF HONBLE ITAT, ITA 487/JP/2014_ DCIT VS. M/S EMGEE CABLES & COMMUNICATIONS 3 ITA NO. 366/JP/2012 IN THE CASE OF M/S EMGEE CABLE & COMMUNICATION LTD. VS. CIT (CENTRAL), JAIPUR. THE APP ELLANT CHALLENGED INVOKING OF PROVISIONS OF SECTION 263 OF THE IT ACT BY LD CIT. THE HONBLE ITAT HAS MADE THE FOLLOWING OBSERVATIONS WHILE ADJUDICATING IN FAVOUR OF THE ASS ESSEE: CONSIDERING THE TOTALITY OF THE FACTS AS DISCUSSED HEREINABOVE AND KEEPING IN VIEW THE RATIO LAID DOWN BY THE HON'BLE SUPREME COURT IN THE AFORESAID REFERRED TO CASE, WE ARE OF THE VIEW THAT THE LD CIT WAS NOT JUSTIFIED I N SETTING ASIDE THE ASSESSMENT ORDER DATED 30/11/2009 BY INVO KING THE PROVISIONS OF SECTION 263 OF THE ACT. ACCORDING LY, THE IMPUGNED ORDER IS SET ASIDE AND THE ASSESSMENT ORDE R PASSED BY THE A.O. IS RESTORED. SINCE THE HONBLE ITAT HAS QUASHED THE ORDER PASSED BY THE CIT U/S 263 OF IT ACT AND HAS RESTORED THE ORIGIN AL ASSESSMENT ORDER PASSED BY THE A.O., THE ORDER PASS ED BY THE A.O. ON 19/3/2013 U/S 143(3) R.W.S. 263 OF IT AC T STANDS ANNULLED. THEREFORE, BOTH THE GROUNDS OF APPE AL ARE ALLOWED. 3. THE LD DR IS HEARD. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. SINCE THE ORIGINAL ACTION U/S 263 ITSELF HAS BEEN QUASHED BY THE ITAT, AS A N ATURAL CONSEQUENCE ITA 487/JP/2014_ DCIT VS. M/S EMGEE CABLES & COMMUNICATIONS 4 THE SUBSEQUENT PROCEEDINGS ALSO GET QUASHED. IN VIE W THEREOF, NO INFIRMITY CAN BE ATTRIBUTED TO THE LD CIT(A), WHICH I S UPHELD. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10/11/2015. SD/- SD/- FOE FLAG ;KNO VKJ-IH-RKSYKUH (VIKRAM SINGH YADAV) (R.P.TOLANI) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 10 TH NOVEMBER, 2015 * RANJAN VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE DCIT, CENTRAL CIRCLE-3, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- M/S EMGEE CABLES & COMMUNICATIONS LTD., JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 487/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR