The ACIT, Circle-2(1), Vijayawada V. Sri Paladugu Ramakrishna, Vijayawada

ITA 490/VIZ/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 2626 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2004-2005
• Appeal Filed On: 26-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K SINGH
• Section: 143(3)

Judgement Text

ITA NO.490 OF 2010 PALADUGU RAMA KRISHNA VIJAYAWADA PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.490/VIZAG/2010 ASSESSMENT YEAR: 2004 - 05 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2(1) VIJAYAWADA VS. SHRI PALADUGU RAMA KRISHNA, VIJAYAWADA (APPELLANT) (RESPONDENT) PAN NO:ACGPP 0953 P APPELLANT BY: SHRI R.K. SINGH, DR RESPONDENT BY: SHRI G.V.N. HARI, CA ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 20.7.2010 PASSED BY LEARNED CIT(A), VIJAYAWADA AND IT RELATES TO THE ASSESSMENT YEAR 2004-05. 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER: I) THE ORDER OF THE LEARNED CIT (A), VJA IN APPEAL NO.249/VJA/ CIT(A)/VJA/08-09 DT.27-07-2010 IS ERRONEOUS IN LAW OR FACTS OR BOTH. II) THE LEARNED CIT (A) VJA HAS ERRED IN NOT DEALING WI TH THE CONTENTS OF THE RENTAL AGREEMENT WHEREIN THE APPELL ANT HIMSELF BIFURCATED THE INCOME RECEIVED FROM THE SAI D PROPERTY INTO TWO PARTS I.E. I) RENTAL INCOME AND II) INCOME FROM AMENITIES. III) ANY OTHER GROUNDS AS MAY BE RAISED AT THE TIM E OF HEARING. ITA NO.490 OF 2010 PALADUGU RAMA KRISHNA VIJAYAWADA PAGE 2 OF 3 3. THE ASSESSING OFFICER PASSED THE IMPUGNED ASSES SMENT ORDER UNDER SECTION 143 (3) R.W.S. 263 OF THE INCOME-TAX ACT. T HE ASSESSEE CHALLENGED THE REVISION ORDER PASSED UNDER SECTION 263 BEFORE THE ITAT AND THE TRIBUNAL SET ASIDE THE SAID ORDER OF THE LEARNED CI T. IN THE MEAN TIME THE ASSESSING OFFICER COMPLETED THE ASSESSMENT AS PER T HE DIRECTIONS GIVEN BY THE LEARNED CIT UNDER SECTION 263 OF THE ACT. THE ASSESSEE CHALLENGED THE SAID ASSESSMENT ORDER PASSED UNDER SECTION 143 (3) R.W.S. 263 BEFORE THE LEARNED CIT (A) AND THE FIRST APPELLATE AUTHORITY A LLOWED THE APPEAL OF THE ASSESSEE ON THE LEGAL GROUND THAT THE IMPUGNED ASSE SSMENT ORDER HAS NO LEGAL SANCTION IN VIEW OF THE ORDER OF THE TRIBUNAL QUASHING THE REVISION ORDER PASSED UNDER SECTION 263. THE RELEVANT OBSERV ATIONS OF LEARNED CIT (A) ARE EXTRACTED BELOW: 6. THOUGH THE APPELLANT HAS FILED DETAILED SUBMISS IONS SUPPLEMENTING THE GROUNDS OF APPEAL, IT WOULD BE IN FRUCTUOUS TO GO INTO THEIR MERITS IN THE LIGHT OF THE ORDER O F THE HON'BLE ITAT SETTING ASIDE THE CITS ORDER PASSED U/S263 OF THE ACT. AS THE PRESENT ORDER APPEALED AGAINST HAS BEEN PASS ED PURSUANT TO THE ORDER UNDER SECTION 263 WHICH HAS B EEN SET ASIDE BY THE HON'BLE ITAT, I ACCOUNTANT MEMBER I AGRE EMENT WITH THE CONTENTION OF THE LEARNED AUTHORISED REPRE SENTATIVE THAT THE ORDER HAS NO LEGAL SANCTION AS ON DATE. ON A SIMILAR ISSUE, THE HON'BLE MADHYA PRADESH HIGH COURT IN THE CASE OF CIT VS. BHANDARI CAPACITORS (P) LTD (1989) 178 ITR 275 HELD THAT ANY ORDER MADE PURSUANT TO A REVISIONAL ORDER WHICH WAS SET ASIDE SUBSEQUENTLY WAS ALSO LIABLE TO BE SET AS IDE. IN THE VIEW, THE ORDER OF THE ASSESSING OFFICER PASSED ON 31/12/2008 UNDER SECTION 143(3) R.W.S. 263 IS HELD TO HAVE NO LEGAL SANCTION, AND THEREFORE, IS ANNULLED. 4. THUS IT IS SEEN THAT THE LEARNED CIT (A) HAS NOT CONSIDERED THE GROUNDS RAISED ON MERITS AND INSTEAD HAS ANNULLED T HE ASSESSMENT ON THE LEGAL POINT. WE AGREE WITH THE LEARNED CIT(A) THAT THE IMPUGNED ASSESSMENT ORDER DOES NOT HAVE ITS OWN LEGS TO STAN D SINCE THE REVISION ITA NO.490 OF 2010 PALADUGU RAMA KRISHNA VIJAYAWADA PAGE 3 OF 3 ORDER PASSED UNDER SECTION 263, ON ACCOUNT OF WHICH THE ASSESSMENT ORDER WAS PASSED, HAS SINCE BEEN SET ASIDE BY THE TRIBUN AL. ACCORDINGLY THE GROUNDS RAISED BY THE REVENUE BEFORE US ARE DISMISS ED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMI SSED. PRONOUNCED IN THE OPEN COURT ON 1/12/2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE: 1-12- 2010 COPY TO 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2( 1) VIJAYAWADA 2 SHRI PALADUGU RAMAKRISHNA, C/O GOPALAKRISHNA TYRE S & MOTORS, 27-5- 106 PRAKASAM ROAD, GOVERNORPET, VIJAYAWADA 520002 3 4. THE CIT VIJAYAWADA THE CIT(A), VIJAYAWADA 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM