I.T.O.-3(2), Mathura V. M/s Spring merchandisers Pvt. Ltd., Mathura

ITA 553/AGR/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0401 (ITAT-AGRA)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 26-02-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 14-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M M AGARWAL
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 553/AGRA/2012 ASSTT. YEAR : 2005-06 INCOME-TAX OFFICER, VS. M/S. SPRING MERCHANDIS ERS (P) LTD., 3(2), MATHURA. 64/71, DAMPIER NAGAR, MATHURA. (PAN : AAACS 5240 D) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI WASEEM ARSHAD, SR. D.R. RESPONDENT BY : SHRI M.M. AGARWAL, C.A. DATE OF HEARING : 26.02.2013 DATE OF PRONOUNCEMENT OF ORDER : 26.02.2013 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-I, AGRA DATED 20.07.2012 FOR THE ASSESSMENT YEAR 2005- 06. 2. IN THIS CASE, THE AO PASSED THE ORDER U/S. 143(3 ) READ WITH SECTION 263 VIDE ORDER DATED 20.12.2010 AND MADE THE ADDITION ON ACC OUNT OF INTEREST ON ADVANCES TO SISTER CONCERN IN A SUM OF RS.6,52,038/-. INITIA LLY THE ASSESSMENT ORDER WAS COMPLETED IN THE CASE OF ASSESSEE U/S. 143(3) AT AN INCOME OF RS.56,28,690/- VIDE ORDER DATED 17.12.2007 AGAINST RETURNED INCOME OF R S.54,39,226/-. SUBSEQUENTLY, THE PROCEEDINGS U/S. 263 WERE INITIATED BY CIT-I, A GRA AND ORIGINAL ASSESSMENT ORDER WAS SET ASIDE VIDE ORDER PASSED U/S. 263 DATE D 30.03.2010 FOR EXAMINING THE ISSUE OF DISALLOWANCE OF INTEREST PAID BY THE ASSES SEE. THE AO IN PURSUANCE OF 263 ITA NO. 553/AGRA/2012 2 ORDER MADE THE ADDITION OF RS.6,52,038/- AS NOTED A BOVE. IT WAS SUBMITTED BEFORE THE LD. CIT(A) THAT THE ORDER U/S. 263 DATED 30.03. 2010 PASSED BY THE LD. CIT(A)-I, AGRA WAS CHALLENGED BEFORE THE TRIBUNAL WHO VIDE OR DER DATED 30.06.2011 IN ITA NO. 121 OF 2010 HAS CANCELLED THE ORDER U/S. 263 OF THE IT ACT. SINCE THE BASIS OF THE PRESENT ASSESSMENT ORDER U/S. 143(3)/263 HAS DI SAPPEARED ON QUASHING 263 ORDER, THEREFORE, THE ADDITION IN QUESTION WAS DELE TED AND THE APPEAL OF THE ASSESSEE HAS BEEN ALLOWED. 3. THE LD. DR SUBMITTED THAT THE PRESENT APPEAL HAS BEEN FILED BECAUSE THE MATTER IS PENDING BEFORE THE HIGH COURT REGARDING Q UASHING OF THE ORDER PASSED U/S. 263 OF THE IT ACT. IN VIEW OF THE ABOVE FACTS , WE ARE OF THE VIEW THAT THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. THE AO M ADE THE ADDITION OF RS.6,52,038/- ON ACCOUNT OF DISALLOWANCE OF INTERES T U/S. 143(3)/263 OF THE IT ACT IN VIEW OF THE DIRECTIONS ISSUED BY THE LD. CIT-I, AGRA U/S. 263 OF THE IT ACT. SINCE THE ORDER U/S. 263 HAS ALREADY BEEN CANCELLED BY TH E TRIBUNAL, THEREFORE, THERE IS NO INFIRMITY IN THE ORDER OF THE LD. CIT(A). SINCE THE BASIS OF MAKING ADDITION ITSELF DISAPPEARED, THEREFORE, THE DEPARTMENTAL APPEAL IS NOT MAINTAINABLE AND IS ACCORDINGLY DISMISSED. 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- ITA NO. 553/AGRA/2012 3 COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY