Manisha Agri Biotech Private Limited, Hyderabad, Hyderabad V. DCIT, Circle-16(2), Hyderabad, Hyderabad

ITA 492/HYD/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2574 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 15-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P V SUBBA RAJU
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Application of stay
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ITA NO. 492/HYD/2017 ASSESSMENT YEAR: 2009-10 & S.A. NO. 09/HYD/2018 IN ITA NO. 492/HYD/2017 A.Y: 2009-10 M/S MANISHA AGRI BIOTECH PVT. LTD., HYDERABAD. PAN AACCM7108C VS. THE DY. CIT, CIRCLE-16(2), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P. MURALI MOHAN RAO REVENUE BY : SHRI P.V. SUBBARAJU DATE OF HEARING : 29-01-2018 DATE OF PRONOUNCEMENT : 29-01-2018 ORDER PER D.S. SUNDER SINGH, A.M: ALL THE GROUNDS IN THIS APPEAL ARE RELATED TO THE ADDITION MADE BY THE A.O CONSEQUENT TO THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (CIT) U/S 263 OF THE IT ACT. IN THIS CASE ORIGINAL ASSESSMENT WAS COMPLETED U/S 143(3) OF THE IT ACT ON TOTAL INCOME OF RS. 1,04,55,359/- BY ORDER U/S 143(3) DATED 30.12.2011. SUBSEQUENTLY THE. LD. CIT HAS TAKEN UP THE CASE FOR REVISION U/S 263 OF THE IT ACT AND SET ASIDE THE ORDER PASSED BY THE ASSESSING OFFICER (A.O) U/S 143(3) DATED 30.12.2011 AND DIRECTED THE A.O TO RE-DO THE ASSESSMENT AS PER THE DIRECTION GIVEN IN ORDER PASSED U/S 263 OF THE IT ACT DATED 22.01.2014. 2 ITA NO. 492/HYD/2017 MANISHA AGRI BIOTECH PVT LTD., HYDERABAD 2. THE A.O COMPLETED THE ASSESSMENT U/S 143(3) R.W.S 263 OF THE IT ACT ON TOTAL INCOME OF RS. 3,03,70,683/-. BY AN ORDER DATED 23.06.2014. AGGRIEVED BY THE ORDER OF THE A.O THE ASSESSEE WENT AN APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE, AGAINST WHICH THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL. 3. IN THIS CASE THE ASSESSEE HAS GONE AN APPEAL BEFORE THE HONBLE ITAT HYDERABAD AGAINST THE ORDER U/S 263 OF THE ACT AND THE HONBLE ITAT HAS ALLOWED THE APPEAL OF THE ASSESSEE OBSERVING THAT TWO VIEWS ARE POSSIBLE ON THE ISSUE RAISED BY THE CIT U/S 263 AND THE A.O HAS TAKEN ONE OF THE POSSIBLE VIEW, HENCE, NO CASE FOR REVISION U/S 263 OF THE IT ACT, AND ACCORDINGLY ALLOWED THE APPEAL OF THE ASSESSEE VIDE ORDER NO. ITA NO. 223/HYD/2014 DATED 13.10.2014, FOR READY REFERENCE WE EXTRACT THE RELEVANT PARAGRAPH OF THE ORDER CITED WHICH READ AS UNDER: 23. WHETHER THERE WAS APPLICATION OF MIND BEFORE ALLOWING THE EXPENDITURE IN QUESTION HAS TO BE SEEN; THAT IF THERE WAS AN INQUIRY, EVEN INADEQUATE THAT WOULD NOT BY ITSELF GIVE OCCASION TO THE COMMISSIONER TO PASS ORDERS U/S 263 MERELY BECAUSE HE HAS A DIFFERENT OPINION IN THE MATTER; THAT IT IS ONLY IN CASES OF LACK OF INQUIRY THAT SUCH A COURSE OF ACTION WOULD BE OPEN; THAT AN ASSESSMENT ORDER MADE BY THE ITO CANNOT BE BRANDED AS ERRONEOUS BY THE COMMISSIONER SIMPLY BECAUSE, ACCORDING TO HIM, THE ORDER SHOULD HAVE BEEN WRITTEN MORE ELABORATELY. WE ARE, THEREFORE, OF THE OPINION THAT THE ASSESSEES APPEAL IS TO BE ALLOWED. 4. WE HAVE HEARD THE BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD, THE IMPUGNED ORDER U/S 143(3) OF THE IT ACT IS PASSED CONSEQUENT TO THE REVISION ORDER U/S 263 DATED 22.01.2014 AND THE SAID ORDER U/S 263 OF THE IT ACT WAS SET ASIDE BY THE ITAT AND ALLOWED THE APPEAL OF THE ASSESSEE. HENCE, THE ORDER PASSED U/S 143(3) R.W.S 263 OF 3 ITA NO. 492/HYD/2017 MANISHA AGRI BIOTECH PVT LTD., HYDERABAD THE IT ACT REQUIRED TO BE SET ASIDE AND ALLOW THE APPEAL OF THE ASSESSEE. ACCORDINGLY WE SET ASIDE THE ORDERS PASSED BY THE LOWER AUTHORITIES AND ALLOW THE APPEAL OF THE ASSESSEE. 5. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. 6. WITH REGARD TO STAY APPLICATION FILED BY THE ASSESSEE, SINCE WE HAVE DECIDED THE CORRESPONDING APPEAL, THE STAY APPLICATION BECOMES INFRUCTUOUS. HENCE DISMISSED THE S.A FILED BY THE ASSESSEE. PRONOUNCED IN THE OPEN COURT ON 29 TH JANUARY, 2018. SD/- SD/- (D. MANMOHAN) (D.S. SUNDER SINGH) VICE PRESIDENT ACCOUNTANT MEMBER HYDERABAD, DATED: 29 TH JANUARY, 2017. KRK 1 M/S MANISHA AGRI BIOTECH PVT LTD. C/O P. MURALI & CO., CAS, 6-3- 655/2/3, IST FLOOR, SOMAJIGUDA, HYDERABAD-82 2 DCIT, CIRCLE-16(2), HYDERABAD 3 CIT(A)-4, HYDERABAD. 4 THE PR. CIT-4, HYDERABAD. 5 THE DR, ITAT HYDERABAD 6 GUARD FILE