M/s Allied Engineers, Gharaunda V. Addl. CIT, Karnal

ITA 5319/DEL/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0527 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-02-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 29-11-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANUSHA KHURANA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI A.K. GARODIA ITA NO. 5319/DEL/10 ASSTT. YRS: 2006-07 M/S ALLIED ENGINEERS, VS. ADDL. CIT, KARNAL RAN GE, G.T. ROAD, GHARAUNDA, KARNAL. PAN/ GIR NO. AAIFA7930P ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI ASHWANI KUMAR CA RESPONDENT BY : MS. ANUSHA KHURANA SR. DR O R D E R PER R.P. TOLANI, J.M : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) DATED 28-9-2010 RELATING TO A.Y. 2005-06. 2. FOLLOWING EFFECTIVE GROUNDS ARE RAISED: THAT ORDER U/S 250(6) PASSED BY LD. COMMISSIONER O F INCOME TAX (APPEALS), KARNAL IS AGAINST LAW AND FACTS ON T HE FILE IN AS MUCH THE LD. CIT(A) WAS NOT JUSTIFIED TO UPHOLD THE ACTION OF THE LD. ASSESSING OFFICER IN REJECTING THE BOOKS OF ACCOUNTS. THAT THE LD. CIT(A) GRAVELY ERRED IN UPHOLDING THE ACTION OF THE LD. ASSESSING OFFICER IN COMPLETING THE ASSESSM ENT BY APPLYING A NET PROFIT RATE OF 12%. 3. LEARNED COUNSEL FOR THE ASSESSEE CONTENDS THAT T HE CIT RESTORED 263 ACTION, WHICH WAS CHALLENGED BY ASSESSEE BEFORE THE ITAT. IN THE MEANWHILE 2 AO PASSED CONSEQUENTIAL ORDER UPON 263 ACTION, WHIC H IS AGITATED IN THE PRESENT APPEAL. 4. IN THE MEANWHILE, ASSESSEES APPEAL AGAINST THE ORDER OF CIT, PASSED U/S 263 OF THE I.T. ACT, ALSO CAME UP FOR HEARING B EFORE THE ITAT AND THE ITAT DELHI BENCH A IN ITA NO. 2128/DEL/09, VIDE O RDER DATED 12-11- 2010, HAS SET ASIDE THE ORDER OF CIT BY ANNULLING P ROCEEDINGS U/S 263. LEARNED COUNSEL CONTENDS THAT SINCE 263 ORDER ITSEL F HAS BEEN QUASHED, NO CONSEQUENTIAL ORDER SURVIVES ARISING THERETO. 5. LEARNED DR IS HEARD. 6. WE HAVE HEARD RIVAL SUBMISSIONS AND HAVE GONE TH ROUGH THE ENTIRE MATERIAL AVAILABLE ON RECORD. PRESENT APPEAL ORIGIN ATES FROM THE CONSEQUENTIAL ORDER OF AO UPON 263 PROCEEDINGS. SI NCE ITAT HAS QUASHED 263 ORDER, THEREFORE, THE ORDER PASSED BY AO CONSEQ UENT TO 263 ORDER HAS BECOME INFRUCTUOUS. THUS, THE PRESENT APPEAL FILED BY THE ASSESSEE HAS ALSO BECOME INFRUCTUOUS AND STANDS DISMISSED ACCORDINGLY . ORDER PRONOUNCED IN OPEN COURT ON 01-02-2011. SD/- SD/- ( A.K. GARODIA ) ( R.P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 01-02-2011. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR 3