Shri Ratnesh metal Industries (P) Ltd., Ahmedabad V. The CIT-III, Ahmedabad

ITA 530/AHD/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0526 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 31-01-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 01-03-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: BHUVESH SHAH
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE SHRI, A.K.GARODIA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.529-530/AHD/2012 ASSESSMENT YEARS :2007-08 & 2008-09 RATNESH METAL INDUSTRIES PVT. LTD., 327/A, AKSHAR ARCADE, OPP. MEMNAGAR FIRE STATION, NAVRANGPURA, AHMEDABAD 380 014 [ PAN NO. AAACR 9219H ] V/S . COMMISSIONER OF INCOME-TAX, III, AHMEDABAD / APPELLANT .. / RESPONDENT) /BY ASSESSEE SHRI BHUVESH SHAH, AR /BY RESPONDENT SHRI SUBHAS BAINS, CIT-DR /DATE OF HEARING 31-01-2013 ! /DATE OF PRONOUNCEMENT 15-03-2013 ' ' ' ' / // / O R D E R PER KUL BHARAT, JUDICIAL MEMBER:- BOTH APPEALS FILED BY THE ASSESSEE ARE DIRECTED AG AINST TWO SEPARATE ORDERS OF COMMISSIONER OF INCOME-TAX, AHMEDABAD-III (CIT FOR SHORT) BOTH DATED 17-01-2012 PASSED BY HIM U/S. 263 OF THE INCO ME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) PERTAINING T O ASSESSMENT YEAR (AY) 2007- 08 AND 2008-09 RESPECTIVELY. 2. ALTHOUGH THE ASSESSEE HAS RAISED VARIOUS GROUNDS IN BOTH THE YEARS BUT THE MAIN GRIEVANCE OF THE ASSESSEE IS THIS MUCH THA T ORDER PASSED BY LD. CIT U/S. 263 OF THE ACT SHOULD BE QUASHED. ITA NO.529-30/AHD/2012 A.YS. 07-08 & 08-09 RATNESH METAL INDS. PVT. LTD. V. CIT-III ABD PAGE 2 3. IT WAS SUBMITTED BY LD. AR OF THE ASSESSEE THAT ASSESSMENT ORDER PASSED BY ASSESSING OFFICER IN BOTH YEARS IS NEITHE R ERRONEOUS NOR PREJUDICIAL TO THE INTEREST OF REVENUE AND HENCE LD. CIT DID NO T HAVE ANY JURISDICTION FOR REVISION OF THESE ASSESSMENT ORDERS U/S. 263 OF THE ACT. HE ALSO PLACED RELIANCE ON THE TRIBUNALS ORDER RENDERED IN THE CA SE OF RAJRATNA METAL INDUSTRIES LTD. V. CIT IN ITA NO.3297/AHD/2011 DATED 13-07-2012 AND HE SUBMITTED A COPY OF THE TRIBUNALS ORDER. AS AGAINS T THIS, LD. CIT-DR OF THE REVENUE SUPPORTED THE ORDERS PASSED BY LD. CIT U/S. 263 OF THE ACT. HE ALSO SUBMITTED THAT SINCE NO INQUIRY WAS MADE BY THE ASS ESSING OFFICER IN COURSE OF ASSESSMENT PROCEEDINGS, THE ORDER OF LD. CIT IS JUSTIFIED. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERUSE D THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. WE FIND THAT A CLEAR FINDING IS GIVEN BY LD. CIT IN HIS ORD ER OF BOTH THE YEARS THAT THE ASSESSING OFFICER FAILED TO APPLY HIS MIND TO ALL A SPECT OF THE CASE AND HE HAS ALSO GIVEN A FINDING THAT AO PASSED STEREO TYPE ORD ER ACCEPTING THE CLAIM OF THE ASSESSEE WITHOUT MAKING ANY INQUIRY. HE HAS PLA CED RELIANCE ON THE JUDGMENT OF HONBLE APEX COURT RENDERED IN THE CASE OF MALABAR INDUSTRIAL CO. LTD. V. CIT (2000) 243 ITR 83 (SC) IN SUPPORT OF ITS CONTENTIO N THAT FAILURE OF THE ASSESSING OFFICER TO PASS THE ORDER WITHOUT PRO PER APPLICATION OF MIND WILL RESULT IN AN ORDER BEING ERRONEOUS. REGARDING THE F ACTS OF THE PRESENT CASE, THIS IS NOTED BY LD. CIT THAT AO SIMPLY PASSED A CR YPTIC ORDER WITHOUT EXAMINING THE ISSUE AS INDICATED IN THE SHOW-CAUSE NOTICE ISSUED BY HIM ON 06-05-2011. LD AR OF THE ASSESSEE COULD NOT POINT OUT ANY DEFECT IN THIS FINDING OF LD. CIT AND HE COULD NOT ESTABLISH THAT ASSESSMENT ORDER PASSED BY AO WAS AFTER MAKING SUFFICIENT AND REASONABLE INQUI RY AND AFTER DUE APPLICATION OF HIS MIND. LD. CIT HAS SIMPLY DIRECTE D THE AO TO PASS A FRESH ASSESSMENT ORDER AFTER CALLING FOR ALL THE NECESSAR Y DETAILS ALONG WITH DETAILED EXPLANATION OF THE ASSESSEE AND AFTER MAKING THE RE QUISITE INQUIRY BRINGING ALL RELEVANT FACTS ON RECORD AND AFTER HAVING APPLIED H IS MIND TO ALL ASPECT OF THE CASE. IN THE FACTS OF THE PRESENT CASE, WE BY RESPE CTFULLY FOLLOWING THE ITA NO.529-30/AHD/2012 A.YS. 07-08 & 08-09 RATNESH METAL INDS. PVT. LTD. V. CIT-III ABD PAGE 3 JUDGMENT OF HONBLE APEX COURT RENDERED IN THE CASE OF MALABAR INDUSTRIAL CO. LTD. (SUPRA) AND OTHER VARIOUS JUDGMENTS QUOTED BY LD. CIT, WE FIND THAT NO INTERFERENCE IS CALLED FOR IN BOTH ORDERS OF LD. CI T PASSED BY HIM U/S. 263 OF THE ACT. REGARDING THE TRIBUNALS DECISION CITED BY LD. AR OF THE ASSESSEE, WE FIND THAT THE ORDER IS NOT APPLICABLE IN THE PRESEN T CASE BECAUSE IT IS NOTED BY TRIBUNAL IN PARA-12 OF THIS TRIBUNALS ORDER THAT I N A SITUATION WHERE AN ASSESSMENT HAS BEEN FRAMED AFTER MAKING NECESSARY I NQUIRIES, SUCH ORDER CANNOT BE HELD TO ERRONEOUS SIMPLY BECAUSE IN THE O RDER, THE AO DID NOT MAKE ANY ELABORATE DISCUSSION. IN THE PRESENT CASE, FACT S ARE DIFFERENT AND A CLEAR FINDING IS GIVEN BY LD. CIT THAT NO INQUIRY WAS MAD E BY THE AO AND THIS FINDING OF LD. CIT COULD NOT BE CONTROVERTED BY LD. AR OF T HE ASSESSEE. THEREFORE, THIS TRIBUNALS DECISION IS OF NO HELP TO THE ASSES SEE IN THE PRESENT CASE. 5. IN THE RESULT, BOTH APPEALS OF ASSESSEE ARE DISMISS ED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE. SD/- SD/- (A.K.GARODIA) (KUL BHARAT) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, *DKP #$%- 15/03/2013 ,-. / ' ' ' ' 001 001 001 001 21 21 21 21 / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. $.$04 5 / CONCERNED CIT 4. 5- / CIT (A) 5. 1 78 0004, 04!, ,-. / DR, ITAT, AHMEDABAD 6. 8;< => / GUARD FILE. BY ORDER/ ' , /TRUE COPY/ ?/, $ 04!, ,-. / ITA NO.529-30/AHD/2012 A.YS. 07-08 & 08-09 RATNESH METAL INDS. PVT. LTD. V. CIT-III ABD PAGE 4 STRENGTHEN PREPARATION & DELIVERY O F ORDERS IN THE ITAT 1) DATE OF TAKING DICTATION 13/03 2) DIRECT DICTATION BY MEMBER STRAIGHT ON COMPUTER/LAPTOP/DRAGON DICTATE NO 3) DATE OF TYPING & DRAFT ORDER PLACE BEFORE MEMBER 13/03 4) DATE OF CORRECTION 14/03 5) DATE OF FURTHER CORRECTION - - 6) DATE OF INITIAL SIGN BY MEMBERS 14/03 7) ORDER UPLOADED ON - - 8) ORIGINAL DICTATION PAD-PART HAS BEEN ENCLOSED IN THE FILE YES 9) FINAL ORDER AND 2 ND COPY SEND TO BENCH CLERK ON 15/03