M/s Maxport India Pvt. Ltd., Chandigarh V. ACIT, Central Circle -1, Chandigarh

ITA 54/CHANDI/2022

• Counselvise Citation: [2022] 107 COUNSELVISE.COM (IT) 1604 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 03-02-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 154; 143(3); 153A; 234B

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “बी” , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH ी एन.के .सैनी, उपा य! एवं ी स ु धांश ु ीवा&तव, या(यक सद&य BEFORE: SHRI. N.K.SAINI, VP & SHRI. SUDHANSHU SRIVASTAVA, JM ITA NO. 39 to 45/Chd/2022 Assessment Year : 2012-13 to 2018-19 M/s Scott Edil Advance Research Lab & Education Ltd. Plot No. 28/6 Industrial Area, Phase- II, Chandigarh The ACIT Central Circle-1 Chandigarh PAN NO: AANCS1120M Appellant Respondent ! " Assessee by : Shri Parikshit Aggarwal, CA # ! " Revenue by : Dr. Ranjeet Kaur, Sr. DR ITA NO. 46 to 49/Chd/2022 Assessment Year : 2012-13 to 2015-16 M/s Scott Edil Pharmacia Ltd. Plot No. 28/6 Industrial Area, Phase-I Chandigarh The ACIT Central Circle-1 Chandigarh PAN NO: AAHCS1643K Appellant Respondent ! " Assessee by : Shri Parikshit Aggarwal, CA # ! " Revenue by : Dr. Ranjeet Kaur, Sr. DR ITA NO. 50 & 51/Chd/2022 Assessment Year : 2016-17 & 2017-18 M/s Scott Edil Pharmacia Ltd. Plot No. 28/6 Industrial Area, Phase-I Chandigarh The ACIT Central Circle-1 Chandigarh PAN NO: AAHCS1643K Appellant Respondent ! " Assessee by : Shri Parikshit Aggarwal, CA # ! " Revenue by : Shri Sarabjeet Singh, CIT DR ITA NO. 52/Chd/2022 Assessment Year : 2018-19 M/s Scott Edil Pharmacia Ltd. Plot No. 28/6 Industrial Area, Phase-I Chandigarh The ACIT Central Circle-1 Chandigarh 2 PAN NO: AAHCS1643K Appellant Respondent ! " Assessee by : Shri Parikshit Aggarwal, CA # ! " Revenue by : Dr. Ranjeet Kaur, Sr. DR ITA NO. 53 to 57/Chd/2022 Assessment Year : 2014-15 to 2018-19 M/s Maxport India Pvt. Ltd. Plot No. 28/6 Industrial Area, Phase-I Chandigarh The ACIT Central Circle-1 Chandigarh PAN NO: AAICM9120E Appellant Respondent ! " Assessee by : Shri Parikshit Aggarwal, CA # ! " Revenue by : Dr. Ranjeet Kaur, Sr. DR ITA NO. 65 to 70/Chd/2022 Assessment Year : 2012-13 to 2017-18 Shri Sanjeev Kumar Aggarwal Plot No. 1057, Industrial Area Phase-II Chandigarh The ACIT Central Circle-1 Chandigarh PAN NO: ABCPK9428K Appellant Respondent ! " Assessee by : Shri Parikshit Aggarwal, CA # ! " Revenue by : Dr. Ranjeet Kaur, Sr. DR $ % ! & Date of Hearing : 01/06/2022 '()* ! & Date of Pronouncement : 01/06/2022 आदेश/Order PER BENCH: These appeals by the assessees for the different assessment years are directed against the separate common orders of the Ld. CIT(A)-3, Gurgaon each dt. 28/12/2021 for the A.Y’s 2012-13 to 2018-19. 3 2. Since the issues involved are common in these appeals which were heard together, so these are being disposed off by this consolidated order for the sake of convenience and brevity. 3. At the first instance we will deal with the appeal in ITA No. 39/Chd/2022 for the A.Y. 2012-13, wherein assessee has raised the following grounds: 1. That on the facts, circumstances and legal position of the case, the Worthy CIT(A)-3, Gurgaon in Appeal No. 10191/CIT(A)-3/GGN/2020-21 has erred in passing the order in contravention of the provisions of S. 250(6) of the Income Tax Act, 1961. 2. That on law, facts and circumstances of the case, the Worthy CIT(A) has erred in not quashing the impugned order passed u/s 154 by the Ld. AO even when the said order was passed without approval u/s 153D. 3. That on law, facts and circumstances of the case, the Worthy CITlAj has erred in confirming the action of Ld. AO of carrying out rectification u/s 154 to impose interest u/s 234A & 234C and enhance interest u/s 234B even when the issue involved was highly debatable and was hence, outside the scope of s. 154. 4. That on law, facts and circumstances of the case, the Worthy CIT(A) has erred in confirming the action of Ld. AO of rectifying the demand notice u/s 156 even when the Ld AO doesn't have the powers to amend the calculations carried out in demand notice u/s 156 as held in CIT vs Suresh Gokuldas (229 ITR 721) (Madras HC). 5. That on law, facts and circumstances of the case, the Worthy CIT(A) has erred in confirming the action of Ld. AO of carrying out rectification u/s 154 to impose interest u/s 234A & 234C and increased the interest charged u/s 234B even when these interests were not chargeable. 6. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same. 4. The main grievance of the assessee in this appeal is regarding the action of the AO in revising/rectifying/enhancing the interest levied u/s 234A, 234B and 234C of the Income Tax Act, 1961 (hereinafter referred to as ‘Act’)by way of a rectification order passed u/s 154 of the Income Tax Act. 4 5. Facts of the case in brief are that the assessment in this case was framed by the AO under section 153A r.w.s 143(3) of the Act on 31/12/2019 at the total income of Rs. 4,59,27,117/- against the returned income of Rs. 1,03,551/-, thereafter, the assessee vide letter dt. 10/02/2020 filed rectification application stating therein that calculations made in the order under section 153A were not correct. The AO noticed that there was delay of two months, in filing the return in response to the notice under section 153A of the Act and while computing the tax calculations, interest under section 234A and 234C of the Act was not charged, and that interest under section 234B was not charged correctly. He also noticed that the tax was calculated on book profit of Rs. 1,00,58,075/- instead of assessed income of Rs. 4,59,27,117/-. He therefore issued notice under section 154(3) of the Act to the assessee. In response the assessee submitted as under: i) The sized documents were not supplied in time. Hence, the delay in late filing of return is not attributable to the assessee. ii) The assessee had filed exactly the same income in ITR filing in response to notice u/s 153A that it had declared in ITR u/s 139. Thus, filing of return is a statistical exercise and only a response to the notice u/s 153A. iii) Charging of interest is a debtable issue and rectification u/s 154 cannot be done in respect of a debatable issue. The assessee has placed reliance on decision of Hon’ble Supreme Court in the case of M/s Mepco Industries Ltd. Vs. CIT Vs. Anr. (319 ITR 209)(SC). However the AO did not find merit in the submissions of the assessee and rectified the order under section 154 of the Act. 6. Being aggrieved the assessee carried the matter to the Ld. CIT(A) in first appeal and has raised the issue that the AO did not take revised permission u/s 153D of the Act while revising the order u/s 154 of the Act. Further that the AO did not have jurisdiction u/s 154 of the Act to revise the order relating to revision/enhancement of interest u/s 234A, 234B and 234C of the Act. Further 5 the order has been assailed on the ground that the assessee was prevented from sufficient cause for filing return beyond the stipulated time and one month granted by the AO. That the AO had failed to provide the seized material in time to the assessee. Therefore, the levy of interest was not justified u/s 154 of the Act. However, the Ld. CIT(A), did not find merit in the submissions of the assessee and confirmed the action of the AO. 7. Now the assessee is in appeal. 8. The Ld. Counsel for the Assessee at the very outset submitted that the assessee had also contested the levy/revision/enhancement of income as well as interest in quantum appeals against the assessment orders passed under section 153A of the Act by the AO and the appeals are still pending for adjudication before the Ld. CIT(A). The Ld. Counsel for the Assessee submitted that since the issue involved in the present appeal is consequent to the appeal pending before the Ld. CIT(A) against order passed under section 153A of the Act by the AO, therefore, these appeals may be restored to the file of the Ld. CIT(A) to be adjudicated alongwith the main appeal against the orders passed by the AO under section 153A of the Act. The Ld. Counsel for the Assessee also requested that all the grounds related to the validity of the order passed under section 154 of the Act as raised in the appeals may be kept open to be agitated before the Ld. CIT(A). The reliance was placed on the decision of the ITAT ‘A’ Bench Chandigarh in ITA Nos. 58 to 64/Chd/2022 in the case of Shri Balram Krishan Aggarwal Vs. ACIT vide order dt. 19/04/2022. 9. In their rival submissions the Ld. CIT DR and Ld. Sr. DR although strongly supported the impugned order passed by the Ld. CIT(A) and reiterated the observations made therein, however, could not controvert the factual position narrated by the Ld. Counsel for the assessee. 10. After considering the submissions of both the parties and material available on the record. It is noticed that an identical issue having similar fact 6 has already been adjudicated vide order dt. 19/04/2022 in ITA Nos. 58 to 64/Chd/2022 in the case of Shri Balram Krishan Aggarwal Vs. ACIT (supra) wherein the relevant observations / findings have been given in para 6 to 9 which read as under: 6. At the ourtset, the ld. Counsel for the assessee has submitted that the asessee has also contested the levy/revision/enhancement of interest in quantum appeals against the orders of the AO u/s 153A of the Income Tax Act which appeals are pending for adjudication before the ld. CIT(A), the detail of the same is as under: ITA Nos. before CIT(A) (143(3) r.w.s 153A) 1. CIT(A), Gurgaon-3/10618/2019-20 2. CIT(A), Gurgaon-3/10623/2019-20 3. CIT(A), Gurgaon-3/10629/2019-20 4. CIT(A), Gurgaon-3/10631/2019-20 5. CIT(A), Gurgaon-3/10638/2019-20 6. CIT(A), Gurgaon-3/10639/2019-20 7. CIT(A), Gurgaon-3/10645/2019-20 7. The ld. Counsel has submitted that since the issue involved in the present appeals, which are appeals relating to the order passed u/s 154 of the Act consequent to the main order passed u/s 153A of the Act, are inter-linked with the issues raised in the appeals against the main orders passed u/s 153A of the Act, therefore, these appeals may be restored to the file of the CIT(A) to be adjudicated alongwith the main appeals against the orders u/s 153A of the Act. The Ld. Counsel for the assessee has also submitted that all grounds relating to the validity of the order passed u/s 154 of the Act as raised in these appeals, may be kept open to be agitated before the CIT(A). 8. The Ld. DR has not objected to the same. “9. In view of this, all the captioned appeals are restored back to the file of the CIT(A) with the direction that the same may be decided alongwith the main appeals of the assessee against the main order passed u/s 153A of the Act. The assessee will be at liberty to raise all the grounds available to him in respect of these appeals which the ld. CIT(A) will adjudicate in accordance with law by way of a speaking order.” So respectfully following the aforesaid referred to order dt. 19/04/2022 the issues raised in this appeal are set aside to the file of the Ld. CIT(A) to be adjudicated afresh in accordance with law and as per the directions given in the aforesaid referred to order dt. 19/04/2022. 7 11. In other appeals also the facts are similar as were involved in ITA No. 39/Chd/2022 for the A.Y. 2012-13, even the rival contentions were the same, therefore, our findings given in the former part of this order shall apply mutatis mutandis for other appeals also. 12. In the result, appeals of the assessee’s are allowed for statistical purposes. (Order pronounced in the open Court on 01/06/2022 ) Sd/- Sd/- स ु धांश ु ीवा&तव एन.के .सैनी, (SUDHANSHU SRIVASTAVA) ( N.K. SAINI) या(यक सद&य/ JUDICIAL MEMBER उपा य! / VICE PRESIDENT AG Date: 01/06/2022 ( + ! , - . - Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. $ / CIT 4. $ / 0 1 The CIT(A) 5. - 2 ग 4 5 & 4 5 678 ग9 DR, ITAT, CHANDIGARH 6. ग 8 : % Guard File