The DCIT, Circle1, Ahmedabad V. M/s. Ambuja Intermediates Ltd., Ahmedabad

ITA 586/AHD/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8372 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 09-08-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 26-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR BANWARI LAL; SAURABH SINGH SR DR
• Assessee Lawyers: BHAVESH SHAH

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD , , BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER 1. ./ I.T.A. NO.1502/AHD/2013 A.Y. 2008-09 2. ./ I.T.A. NO. 586/AHD/2014 A.Y. 2009-10 1.AMBUJA INTERMEDIATES PVT. LTD. 901-A,NARNARAYAN COMPLEX SWASTIK CHAR RASTA OFF. C.G. ROAD NAVRANGPURA,AHMEDABAD 2. THE DCIT CIRCLE-1, AHMEDABAD / VS. 1. THE CIT, AHMEDABAD-I AHMEDABAD 2. AMBUJA INTERMEDIATES P.LTD. AHMEDABAD # ./ ./ PAN/GIR NO. : AACCA 1236 B ( #& / APPELLANTS ) .. ( '#& / RESPONDENTS ) A SSESSEE BY : SHRI BHAVESH SHAH, AR REVENUE BY : DR. BANWARILAL, CIT-DR & SHRI SAURABH SINGH, SR.DR () *+ / DATE OF HEARING 19/04/2018 ,-./ *+ / DATE OF PRONOUNCEMENT 01/ 05 /2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEALS HAVE BEEN FILED BY THE ASSE SSEE AND REVENUE FOR ASSESSMENT YEARS (AYS) 2008-09 AND 2009 -10 RESPECTIVELY. ITA NOS.1502/AHD/2013 (BY ASSESSEE ) & ITA NO.586/AHD/2014 (BY REVENUE) AMBUJA INTERMEDIATES PVT.LTD. VS. CIT ASST.YEARS 2008-09 & 2009-10 - 2 - ASSESSEES APPEAL IN ITA NO.1502/AHD/2013 FOR AY 2 008-09 2. THE CAPTIONED APPEAL HAS BEEN FILED BY THE ASS ESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX, AHMEDABAD-1, AHM EDABAD [CIT IN SHORT] PASSED UNDER S.263 OF THE INCOME TAX ACT, 19 61 (HEREINAFTER REFERRED TO AS 'THE ACT') DATED 19/03/2013 CONCERNING ASSESSMENT YEAR (AY) 2008-09. 3. WHEN THE MATTER WAS CALLED FOR HEARING, THE LD.D R SUBMITTED THAT THE SOLITARY REASON FOR SETTING ASIDE THE ASSESSMEN T ORDER PASSED UNDER S.143(3) OF THE ACT DATED 31/11/2010 BY HOLDING THE SAME TO BE ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE WAS ON ACCOUNT OF ALLEGED FAILURE OF THE ASSESSING OFFICER (AO) TO EXAMINE TH E TAXABILITY OF EXCISE CREDITS FOR THE PURPOSE OF VALUATION OF CLOSING STO CK HAVING REGARD TO S.145A OF THE ACT. THE LD.AR IN THIS CONTEXT THAT THE ISSUE WAS EARLIER EXAMINED BY THE AO AT THE TIME OF ASSESSMENT WHERE THE EXCLUSIVE METHOD FOLLOWED BY THE ASSESSEE WAS FOUND TO BE TA X NEUTRAL. THE LD.AR THEREAFTER SUBMITTED THAT PURSUANT TO ORDER U NDER S.263 OF THE ACT, THE ASSESSMENT WAS REFRAMED MAKING CERTAIN ADDITION S UNDER S.145A WHICH WAS DELETED BY THE CIT(A) IN HE FIRST APPEAL. THE REVENUE, IN TURN, APPEALED AGAINST THE ORDER OF THE CIT BEFORE COORDI NATE BENCH OF ITAT IN QUANTUM PROCEEDINGS. THE COORDINATE BENCH IN IT A NO.599/AHD/2015 ODER DATED 12/02/2018HAS NOT FOUND ANY MERIT IN THE ITA NOS.1502/AHD/2013 (BY ASSESSEE ) & ITA NO.586/AHD/2014 (BY REVENUE) AMBUJA INTERMEDIATES PVT.LTD. VS. CIT ASST.YEARS 2008-09 & 2009-10 - 3 - ADDITIONS MADE BY THE AO ON THIS SCORE AND THUS DIS MISSED THE APPEAL OF THE REVENUE. 4. THE LD.AR ACCORDINGLY SUBMITTED THAT CONTROVERS Y INVOLVED IN PRESENT APPEAL HAS SETTLED IN THE QUANTUM PROCEEDIN GS PURSUANT TO THE AFORESAID 263 ORDER AND THE ASSESSEE IS NO LONGER E VENTUALLY PREJUDICED BY THE ORDER OF THE CIT PASSED UNDER S.263 OF THE A CT. 5. THE LD.DR RELIED UPON THE ORDER OF THE CIT. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS. THE CHALLE NGE TO THE VALIDITY OF ORDER PASSED UNDER S.263 OF THE ACT BY THE DESIG NATED AUTHORITY (THE CIT) IN THE INSTANT CASE IS RENDERED INFRUCTUOUS IN VIEW OF THE FACT THAT THE ASSESSEE IS NOT AGGRIEVED ANY MORE OWING TO REL IEF GRANTED BY THE APPELLATE AUTHORITIES ON THE ISSUES RAISED BY THE A O IN ASSESSMENT FRAMED IN PURSUANCE OF THE REVISIONAL ORDER. THUS, THE CA PTIONED APPEAL OF THE ASSESSEE IS, IN EFFECT, HAS FADED INTO REDUNDANCY. THEREFORE, WE DO NOT CONSIDER IT NECESSARY TO EXAMINE THE CORRECTNESS O F ACTION OF CIT IN THE PRESENT APPEAL. HOWEVER, IT SHALL BE OPEN TO THE A SSESSEE TO SEEK RESTORATION OF THE PRESENT APPEAL IN ACCORDANCE WIT H LAW IF CIRCUMSTANCES WARRANT FOR DOING SO, IN THE EVENT OF ANY PREJUDICE PERCEIVED BY THE ASSESSEE. ITA NOS.1502/AHD/2013 (BY ASSESSEE ) & ITA NO.586/AHD/2014 (BY REVENUE) AMBUJA INTERMEDIATES PVT.LTD. VS. CIT ASST.YEARS 2008-09 & 2009-10 - 4 - 7. IN THE RESULT, APPEAL OF THE ASSESSEE IN ITA NO. 1502/AHD/2013 FOR AY 2008-09 IS DISMISSED. REVENUES APPEAL IN ITA NO.586/AHD/2014 FOR AY 2009 -10 8. THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTA NCE OF THE REVENUE AGAINST THE ORDER OF THE CIT(A)-6, AHMEDABAD DATED 02/12/2013 ARISING IN THE ASSESSMENT ORDER PASSED UNDER S.143(3) OF TH E ACT DATED 30/11/2011 RELEVANT TO AY 2009-10. 9. THE LD.AR FOR THE ASSESSEE IN THE CAPTIONED REVE NUES APPEAL SUBMITTED AT THE OUTSET THAT THE IDENTICAL ISSUE NA MELY CORRECTNESS OF UNUTILIZED CENVAT CREDITS UNDER S.145A OF THE ACT I S INVOLVED IN THE PRESENT APPEAL ALSO. IN THIS REGARD, THE LD.AR SUB MITTED THAT THE QUANTUM APPEAL OF THE REVENUE IS REQUIRED TO BE DIS MISSED IN VIEW OF THE DECISION OF THE COORDINATE BENCH IN ASSESSEES OWN CASE IN ITA NO.599/AHD/2015 ORDER DATED 12/02/2018 CONCERNING A Y 2008-09. 10. WE DO NOT FIND MERIT IN THE APPEAL OF THE REV ENUE OWING TO THE FACT THAT ISSUE TOWARDS CORRECTNESS OF ADDITIONS ON ACCO UNT OF UNUTILIZED MODVAT CREDITS UNDER S.145A OF THE ACT IS ALREADY C OVERED IN FAVOUR OF ASSESSEE ASSESSEES OWN CASE RELEVANT TO AY 2008 -09. ITA NOS.1502/AHD/2013 (BY ASSESSEE ) & ITA NO.586/AHD/2014 (BY REVENUE) AMBUJA INTERMEDIATES PVT.LTD. VS. CIT ASST.YEARS 2008-09 & 2009-10 - 5 - 11. ACCORDINGLY, APPEAL OF THE REVENUE IN ITA NO.5 86/AHD/2014 FOR AY 2009-10 IS DISMISSED. 12. IN THE COMBINED RESULT, APPEAL OF THE ASSESS EE IN ITA NO.1502/AHD/2013 AND APPEAL OF THE REVENUE IN ITA N O.586/AHD/2014 ARE DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 01/ 05 /2018 SD/- SD/- ( ) ( ) ( MAHAVIR PRASAD ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 01/ 05 /2018 3..(,.(../ T.C. NAIR, SR. PS !'!# / COPY OF THE ORDER FORWARDED TO : 1. #& / THE APPELLANT 2. '#& / THE RESPONDENT. 3. 456+ 7+ / CONCERNED CIT 4. 7+ ( ) / THE CIT(A)-6, AHMEDABAD 5. 89:+(56 , 56 / , 4 / DR, ITAT, AHMEDABAD 6. :;) / GUARD FILE. / BY ORDER, '8++ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD