The Deputy Commissioner of Income Tax, Circle -1(1), Guntur V. Mannava Bapaiah, , Guntur

ITA 536/VIZ/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9393 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 12-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MINI CHANDRAN
• Assessee Lawyers: P BALA SRINIVAS
• Keywords: Audit objection; Tax effect; Set aside
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER ITA NO. 536 / VIZ /201 8 (ASST. YEAR : 2009 - 10 ) DCIT, CIRCLE - 1 (1), GUNTUR . V S . MANNAVA BAPAIAH, D.NO. 26 - 34 - 53/1, A.T. AGRAHARAM, GUNTUR. PAN NO. ACVPM 9432 B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P. BALA SRINIVAS C A. DEPARTMENT BY : SMT. MINI CHANDRAN SR. DR DATE OF HEARING : 19 / 12 /201 9 . DATE OF PRONOUNCEMENT : 08 / 0 1 /20 20 . O R D E R TH IS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , GUNTUR , DATED 0 2 /0 8 /201 7 FOR THE ASSESSMENT YEAR 2009 - 10 . 2. WHEN THIS APPEAL IS TAKEN UP FOR HEARING, LD. AR HAS SUBMITTED THAT TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW RS. 50.00 LAKHS AND AS PER CBDT CIRCULAR NO. NO.17/2019, DATED 08/08/2019, THIS APPEAL IS NOT MAINTAINABLE. 3 . ON THE OTHER HAND, LD.DR HAS SUBMITTED THAT THOUGH TAX EFFECT INVOLVED IN THIS APPEAL IS BELOW RS. 50.00 LAKHS, THE DEPARTMENT IS ACCEPTED THE AUDIT OBJECTION AND THEREFORE THE 2 ITA NO. 536/VIZ/2018 ( MANNAVA BAPAIAH ) ASSESSEES CASE IS COVERED UNDER THE PURVIEW OF EXCEPTION 10(C) OF CBDT CIRCULAR NO. 03/2018, DATED 11/07/2018 . 4 . WE HAVE HEARD BOTH THE SIDES. IN THIS CASE, AUDIT OBJECTION HAS BEEN ACCEPTED BY THE DEPARTMENT DATED 19/07/2011 . SUBSEQUENTLY, LD.COMMISSIONER BY CONSIDERING THE AUDIT OBJECTION AND ALSO BY EXERCISING HIS POWERS CONFERRED IN HIM U/SEC. 263 SET ASIDE THE ORDER PASSED BY THE ASSESSING OFFICER DATED 15/03/2013 AND DIRECTED HIM TO REDO THE ASSESSMENT . IN PURSUAN CE TO THE ORDER PASSED BY THE LD. CIT, THE ASSESSING OFFICER HAS PASSED THE ORDER U/SEC. 143(3) R.W.S. 263 DATED 29/03/2014 . IN MY OPINION, THE ORDER PASSED BY THE ASSESSING OFFICER IS IN PURSUANCE TO THE DIRECTIONS GIVEN BY THE LD. COMMISSIONER ON ACCOUNT OF HIS EARLIER ORDER IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENU E, THEREFORE THE ORDER PASSED BY THE LD.COMMISSIONER U/SEC. 263 IN PURSUANCE TO THE AUDIT OBJECTION THERE ENDS ITSELF. THE ORDER PASSED BY THE ASSESSING OFFICER SUBSEQUENTLY CANNOT BE CONSIDERED AS AUDIT OBJECTION AND THEREFORE THE GROUND RAISED BY THE DEPARTMENT IS NOT ACCEPTABLE AND THE SAME IS REJECTED. IN MY OPINION, THE CBDT CIRCULAR NO.17/2019, DATED 08/08/2019 SHALL SQUARELY APPLIES TO THE ASSESSEES CASE , WHICH WAS FOLLOWED BY NOTIFICATION NO.279/MISC/M - 93/2018 - ITJ , DATED 20 / 08 / 2019 WHEREIN CLAR IFIED THAT THE REVISED MONETARY LIMITS MENTIONED IN 3 ITA NO. 536/VIZ/2018 ( MANNAVA BAPAIAH ) CIRCULAR NO.17/2019 ARE APPLICABLE TO ALL PENDING APPEALS ALSO , THEREFORE THIS APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE AND IS DISMISSED ACCORDINGLY. 6 . IN THE RESULT, APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 0 8 T H DAY OF JAN. , 20 20 . S D / - ( V. DURGA RAO ) JUDICIAL MEMBER DATED : 0 8 T H JANUARY , 20 20 . VR/ - COPY TO: 1. THE ASSESSEE MANNAVA BAPAIAH, D.NO. 26 - 34 - 53/1, A.T. AGRAHARAM, GUNTUR. 2. THE REVENUE DCIT, CIRCLE - 1 (1), GUNTUR . 3. THE PR. CIT, GUNTUR . 4. THE CIT(A) - 1 , GUNTUR . 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.