Sidharth Construction and Trading (P) Limited, Cuttack V. Pr.CIT, Bhubaneswar

ITA 56/CTK/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 7977 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 03-05-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

आयकर अपीऱीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री अरुण खोड़पऩया ऱेखा सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.56/CTK/2021 (नििाारण वषा / Asses s m ent Year :2016-2017) Sidharth Const ruct i on and T rading Pri vate Lim i ted, Rajaba gi cha, T elen ga Ba za r, Cuttack-753009 P AN No. AAE CS 57 83 P ... ......... ..... A ssessee Versus Prin cipa l Com m is si oner of Incom e T ax, Bhubanes war-1 ... ......... ...... R evenue Shri Nihar Ranjan Biswal, AR for the assessee Shri M.K.Gautam, CIT-DR for the Revenue Date of Hearing : 13/06/2022 Date of Pronouncement : 13/06/2022 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. Pr.CIT, Bhubaneswar-1, dated 16.03.2021 in DIN & Order No.21/1031511839(1), for the assessment year 2016-2017 in respect of the order passed u/s.263 of the Act. 2. It was submitted by the ld. AR that the original assessment in the case of the assessee came to be completed u/s.144 of the Act on ITA No.56/CTK/2021 2 27.12.2018, wherein the AO had made an assessment by estimating the income of the assessee at 8% of the turnover of the assessee. It was the submission that the assessment order was subject to revision u/s.263 of the Act by the ld. Pr.CIT, Bhubaneswar-1, vide order dated 16.03.2021, wherein the ld. Pr.CIT has directed the AO in para 9 of his order to verify the claim of the assessee in respect of the “trade payables” and “other current liabilities” and draw appropriate conclusion, in accordance with law after granting the assessee sufficient opportunity. It was also the submission that the ld Pr.CIT has not set aside the order dated 27.12.2018. It was also the submission that consequently as the assessment order has not been set aside, there is no purpose in directing the AO to verify the “trade payables” and “other current liabilities”. Accordingly, it was submitted that the order of the ld. Pr.CIT passed u/s.263 of the Act deserves to be quashed. 3. In reply, ld. CIT-DR submitted that there is a typographical error in the order of the Pr.CIT in not setting aside the assessment order dated 27.12.2018 and it was the duty of the appellate authority to rectify such order. Further the ld. CIT-DR vehemently supported the order of the ld. Pr.CIT. 4. We have considered rival submissions. 5. Admittedly, the ld. Pr.CIT has not set aside the assessment order dated 27.12.2018 while passing the order u/s.263 of the Act against the assessee. No purpose would be served by setting aside the impugned order passed u/s.263 of the Act to the file of Pr.CIT for readjudicating the ITA No.56/CTK/2021 3 issue, insofar as, that would amount to extension of the limitation provided u/s.263 of the Act. In these circumstances, as the ld. Pr.CIT has not set aside the assessment order passed u/s.144 of the Act, dated 27.12.2018 against the assessee, the order passed u/s.263 of the Act by the ld. Pr.CIT in the case of the impugned assessee, is unsustainable and consequently, the same is hereby quashed. 6. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 13/06/2022. Sd/- (अरुण खोड़पऩया) (ARUN KHODPIA) Sd/- (जाजज माथन) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 13/06/2022 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : आदेशाि ु सार/ BY ORDER, (Assistant Registrar) आयकर अपीऱीय अधिकरण, कटक/ITAT, Cuttack 1. अऩीऱाथी / The Appellant- Sid h a r t h C o n s t r u c t io n a n d T r adi n g Pr i v a t e L im it e d , R a j a b a g ic h a , T e l e n g a Ba za r , Cu t t a c k-7 5 3 0 0 9 2. प्रत्यथी / The Respondent- Pr in c i p a l Co m m i s s i o n e r o f I n c o m e T a x, Bh u b a n e s wa r-1 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), 4. आयकर आय ु क्त / CIT 5. पिभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ज पाईऱ / Guard file. सत्यापऩत प्रयत //True Copy//