Sunbright Designers Private Limited, CHENNAI V. ACIT Corporate Circle 6(2), CHENNAI

ITA 504/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1218 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2003-2004
• Appeal Filed On: 28-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K HARI GOVIND
• Keywords: Reopening of assessment; Reasonable cause; Set aside
• Section: 143(3); 147

Judgement Text

, / , IN THE INCOME TAX APPELLATE TRIBUNAL C SMC BENCH, CHENNAI ... , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER ./ ITA NO.504/CHNY/2019 ' #$' / ASSESSMENT YEAR : 2003-04 M/S SUNBRIGHT DESIGNERS PVT. LTD., MODULE NO.6, SIDCO READYMADE GARMENT COMPLEX, CHENNAI - 600 032. PAN : AADCS 6265 P V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 6(2), CHENNAI - 600 034. (&'/ APPELLANT) (()&'/ RESPONDENT) &' * + / APPELLANT BY : NONE ()&' * + / RESPONDENT BY : SHRI K. HARI GOVIND, JCIT , # * -. / DATE OF HEARING : 10.07.2019 /0$ * -. / DATE OF PRONOUNCEMENT : 04.09.2019 / O R D E R THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -15, CHENN AI, DATED 31.10.2018 AND PERTAINS TO ASSESSMENT YEAR 2003-04. 2. THE APPEAL WAS ORIGINALLY POSTED ON 24.06.2019. AT THE REQUEST OF THE LD. REPRESENTATIVE FOR THE ASSESSEE, THE APPEAL WAS ADJOURNED TO 10.07.2019. THE LD. REPRESENTATIVE HA D ALSO TAKEN 2 I.T.A. NO.504/CHNY/19 NOTE OF THE DATE OF ADJOURNMENT BY SIGNING ON THE A PPEAL FOLDER. WHEN THE APPEAL WAS TAKEN UP FOR HEARING ON 10.07.2 019, NO ONE APPEARED FOR THE ASSESSEE. THEREFORE, I HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PROCEEDED TO DISPOS E THE APPEAL ON MERIT. 3. THERE WAS A DELAY OF 35 DAYS IN FILING THE APPEA L BY THE ASSESSEE BEFORE THIS TRIBUNAL. AN APPLICATION WAS FILED FOR CONDONATION OF DELAY. AS PER THE APPLICATION, THE IMPUGNED OF THE CIT(APPEALS) WAS SAID TO BE HANDED OVER TO ONE SHRI R. SHANMUGAKUMAR, THE ACCOUNTANT, FOR FORWARDING THE S AME TO TAX CONSULTANT FOR PREPARING THE APPEAL PAPERS. HOWEVE R, THE ACCOUNTANT SAID TO HAVE MISPLACED THE IMPUGNED ORDE R OF THE CIT(APPEALS), THEREFORE, THERE WAS A DELAY. 4. AFTER HEARING THE LD. D.R., THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT MISPLACEMENT OF ORIGINAL ORDER PASSED BY THE CIT(APPEALS) AMOUNTS TO A REASONABLE CAUSE IN NOT F ILING THE APPEAL BEFORE THIS TRIBUNAL. THEREFORE, THE DELAY OF 35 D AYS IN FILING THE APPEAL BEFORE THIS TRIBUNAL IS HEREBY CONDONED AND THE APPEAL OF THE ASSESSEE IS ADMITTED. 3 I.T.A. NO.504/CHNY/19 5. NOW COMING TO THE MERIT OF THE APPEAL, THE FIRST ISSUE ARISES FOR CONSIDERATION IS REOPENING OF ASSESSMENT BEYOND THE PERIOD OF FOUR YEARS. THE ASSESSEE HAS ALSO RAISED AN ISSUE ON MERIT WITH REGARD TO DEDUCTION UNDER SECTION 80-IB OF THE INCO ME-TAX ACT, 1961 (IN SHORT 'THE ACT'). 6. AFTER HEARING SHRI K. HARI GOVIND, THE LD. D.R., THIS TRIBUNAL FINDS THAT THE ASSESSEE HAS RAISED THE ISSUE OF REO PENING SPECIFICALLY BEFORE THE CIT(APPEALS). IT IS NOT IN DISPUTE THAT THE ASSESSMENT WAS REOPENED BEYOND THE PERIOD OF FOUR Y EARS. THE ORIGINAL ASSESSMENT ORDER WAS PASSED UNDER SECTION 143(3) OF THE ACT. THEREFORE, IT IS FOR THE ASSESSING OFFICER TO EXPLAIN HOW THE ASSESSEE FAILED TO DISCLOSE THE MATERIAL FACTS REQU IRED FOR COMPLETING THE ASSESSMENT. IN THIS CASE, THERE IS NO WHISPER ABOUT THE FAILURE OF THE ASSESSEE EITHER IN THE ASSESSMEN T ORDER OR IN THE CIT(APPEALS)S ORDER. THE CIT(APPEALS), AFTER REPR ODUCING THE JUDGMENT OF BOMBAY HIGH COURT IN SIEMENS INFORMATIO N SYSTEMS LTD. V. ACIT (343 ITR 188) AND THE JUDGMENT OF RAJA STHAN HIGH COURT IN PUSHTIKAR LAGHU VYPARIK PRATISHTHAN BACHAT EVAM SAKH SAHKARI SAMITI LTD. V. UNION OF INDIA (17 TAXMANN.C OM 131), HAS SIMPLY OBSERVED THAT THE REOPENING IS HELD TO BE VA LID. THE CIT(APPEALS) HAS NOT TAKEN PAIN OF DISCUSSING HOW T HE ASSESSEE 4 I.T.A. NO.504/CHNY/19 FAILED TO FURNISH THE REQUIRED DETAILS FOR COMPLETI NG THE ASSESSMENT AS PROVIDED IN PROVISO TO SECTION 147 OF THE ACT. SINCE, ADMITTEDLY, THE ASSESSMENT WAS REOPENED AFTER EXPIRY OF FOUR YE ARS, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT IT IS NE CESSARY TO BRING ON RECORD THE FAILURE OF THE ASSESSEE IN FURNISHING TH E DETAILS REQUIRED FOR COMPLETING THE ASSESSMENT. THE REOPENING OF AS SESSMENT WOULD GO TO ROOT OF THE MATTER. THEREFORE, THE CIT (APPEALS) HAS TO EXAMINE THE SAME AFRESH ON THE BASIS OF THE MATERIA L AVAILABLE ON RECORD. ACCORDINGLY, THE ORDER OF THE CIT(APPEALS) IS SET ASIDE AND THE ISSUE OF REOPENING IS REMITTED BACK TO THE FILE OF THE CIT(APPEALS). THE CIT(APPEALS) SHALL RE-EXAMINE TH E MATTER AND BRING ON RECORD THE FACTUAL ASPECTS SUCH AS FAILURE OF THE ASSESSEE IN PROVIDING REQUIRED MATERIAL FOR COMPLETING THE A SSESSMENT AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WI TH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 7. NOW COMING TO THE MERIT OF THE APPEAL WITH REGAR D TO DEDUCTION UNDER SECTION 80-IB OF THE ACT AND FILING OF FORM 10CCB, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE CIT(APPEALS) HAS TO RE-EXAMINE THE SAME AFTER CONSIDERING THE ISSUE OF REOPENING OF ASSESSMENT. ACCORDINGLY, THE ISSUE ON MERIT IS ALS O REMITTED BACK TO THE FILE OF THE CIT(APPEALS). THE CIT(APPEALS) SHALL RE-EXAMINE 5 I.T.A. NO.504/CHNY/19 THE MATTER IN THE LIGHT OF THE MATERIAL THAT MAY BE FILED BY THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE A SSESSEE. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 4 TH SEPTEMBER, 2019 AT CHENNAI. SD/- ( ... ) (N.R.S. GANESAN) /JUDICIAL MEMBER /CHENNAI, 2 /DATED, THE 4 TH SEPTEMBER, 2019 KRI. * (-34 54$- /COPY TO: 1. &' /APPELLANT 2. ()&' /RESPONDENT 3. , 6- () /CIT(A)-15, CHENNAI-34 4. PRINCIPAL CIT-6, CHENNAI 5. 4#7 (- /DR 6. 8' 9 /GF.