Sri. B. Ravi Kalyan Reddy, Bellary V. DCIT, Bangalore

ITA 587/BANG/2015

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0812 (ITAT-BANGALORE)
• Duration Of Justice: 4 year(s) 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 03-06-2019
• Assessment Year: 2007-2008
• Appeal Filed On: 07-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURESH BATTINI
• Keywords: Set aside
• Section: 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI N.V VASUDEVAN, VICE PRESIDNET AND SHRI B.R BASKARAN, ACCOUNTANT MEMBER ITA NO.587 TO 590/BANG/2015 ASSESSMENT YEAR : 2007-08 TO 2010-11 SHRI B RAVI KALYAN REDDY, DIRECTOR IN M/S R.K MINING PVT. LTD., [AS AN AGGRIEVED PERSON, IN R/O TO THE ASST. MADE ON M/S ASSOCAITED MING CO.] OPP. KOLLAPUR MAHALAKSHMI TEMPLE, VIDYANAGAR, BELLARY. PAN AAHFA 3896 P. VS. THE DY. COMMISSIONER OF INCOME-TAX , CENTRAL CIRCLE-1(3), BENGALURU. APPELLANT RESPONDENT ASSESSEE BY : SHRI NARENDRA SHARMA, ADVOCATE REVENUE BY : SHRI SURESH BATTINI, CIT (DR) DATE OF HEARING : 03.06.2019 DATE OF PRONOUNCEMENT : .06.2019 O R D E R PER B.R BASKARAN, ACCOUNTANT MEMBER ALL THESE APPEALS FILED BY THE ASSESSEE ARE DIRECT ED AGAINST THE ORDERS PASSED BY LD CIT(A)-11 AND THEY PERTAIN TO A SST. YEARS 2007- 08 TO 2010-11. AS THE UNDERLYING FACTS ARE IDENTIC AL IN THESE APPEALS, THEY WERE HEARD TOGETHER AND ARE BEING DIS POSED OF BY THIS COMMON ORDER, FOR THE SAKE OF CONVENIENCE. ITA NO.587 TO 590/BANG/2015 PAGE 2 OF 6 2. THE ASSESSEE HEREIN IS A DIRECTOR IN M/S R.K MIN ING PVT. LTD., AND IS ALSO A PARTNER IN A PARTNERSHIP FIRM NAMED M /S ASSOCIATED MINING COMPANY. THE REVENUE CARRIED OUT A SEARCH A ND SEIZURE OPERATIONS U/S 132 OF THE ACT IN THE CASE OF SHRI K .M VISHWANATH GROUP ON 10/12/2010, WHICH INCLUDED M/S ASSOCIATED MINING COMPANY, REFERRED ABOVE. 3. IT IS PERTINENT TO NOTE THAT COMPOSITION OF PART NERS OF M/S ASSOCIATED MINING COMPANY HAS UNDERGONE CHANGE DURI NG THE DIFFERENT PERIODS. THE ASSESSEE HEREIN AND M/S R.K MINING PVT. LTD., BECAME PARTNERS OF THE ABOVE SAID FIRM ONLY W .E.F 1/4/2011 ONWARDS. ACCORDINGLY, IT IS THE SUBMISSION OF THE ASSESSEE THAT HE WAS A PARTNER OF M/S ASSOCIATED MINING COMPANY AT THE TIME OF SEARCH AS WELL AS DURING THE YEARS UNDER CONSIDERAT ION. 4. THE AO PASSED THE ASSESSMENT ORDERS IN THE HANDS OF M/S ASSOCIATED MINING COMPANY FOR ASSESSMENT YEARS 2005 -06 TO 2010- 11. ACCORDING TO LD AR, THE ASSESSING OFFICER HAS SEND THE DEMAND NOTICES TO THE ASSESSEE HEREIN IN RESPECT OF ASSESS MENT ORDERS PASSED FOR AY 2007-08 TO 2010-11 IN THE HANDS OF M/ S ASSOCIATED MINING COMPANY. ACCORDINGLY, THE ASSESSEE FILED AP PEALS BEFORE LD CIT(A) CHALLENGING THE ASST. ORDERS PASSED FOR ASS T. YEAR 2007-08 TO 2010-11 (I.E THE PERIOD PRIOR TO DATE IN WHICH THE ASSESSEE HEREIN BECAME PARTNER) IN THE HANDS OF M/S ASSOCIATED MINI NG COMPANY, IN HIS CAPACITY AS AGGRIEVED PERSON. IT IS PERT INENT TO NOTE THAT M/S ASSOCIATED MINING COMPANY HAD ALSO FILED APPEAL S CHALLENGING THE ASSESSMENT ORDERS PASSED IN ITS HANDS FOR THE A BOVE SAID YEARS. ITA NO.587 TO 590/BANG/2015 PAGE 3 OF 6 5. THE LD CIT(A) NOTICED THE FACT THAT THE FIRM, M/S ASSOCIATED MINING COMPANY HAS ALSO FILED APPEALS BEFORE LD CIT (A)_6, BENGALURU AND THE SAID APPEALS HAVE BEEN DISMISSED VIDE ORDER DATED 25/8/2014. ACCORDINGLY, THE LD CIT(A) TOOK THE VIEW THAT NO FURTHER ADJUDICATION IS NECESSARY ON THE APPEALS FI LED BY THE ASSESSEE HEREIN FOR THE SAME ASST. YEARS IN THE CAP ACITY OF AGGRIEVED PERSON, SINCE THE SAID ASST. ORDERS HAV E SINCE BEEN UPHELD BY CIT(A)-6. ACCORDINGLY HE DISMISSED THE A PPEALS FILED BY THE ASSESSEE. 6. NOT SATISFIED WITH THE ORDERS PASSED BY THE L D CIT(A), THE ASSESSEE HAS FILED THIS APPEALS BEFORE US. 7. AT THE TIME OF HEARING, THE LD AR FURNISHED A C OPY OF ORDER DATED 18/10/2016 PASSED BY THE COORDINATE BENCH IN THE HANDS OF M/S ASSOCIATED MINING COMPANY FOR THE ASST. YEARS 2 005-06 TO 2010-11 IN ITA NO.1355 TO 1360/BANG/2014. HE SUBMI TTED THAT THE CO-ORDINATE BENCH HAS HELD THAT THE ASST. ORDER S PASSED FOR THE ABOVE SAID ASST. YEARS ARE NULL AND VOID. ACCORDIN GLY HE SUBMITTED THAT THE PRESENT APPEALS FILED BY THE ASSESSEE IN T HE CAPACITY OF AGGRIEVED PERSON WOULD BE COVERED BY THE ORDERS P ASSED BY THE CO- ORDINATE BENCH (REFERRED SUPRA) AND ACCORDINGLY PRA YED THAT THE APPEALS OF THE ASSESSEE BE ALLOWED. 8. WE HEARD LD DR AND PERUSED THE RECORD. WE NOTIC ED THAT THE COORDINATE BENCH, VIDE ITS ORDER REFERRED SUPRA, HA S HELD THAT THE ASST. ORDERS PASSED FOR ASST. YEAR 2005-06 TO 2010- 11 IN THE HANDS OF M/S ASSOCIATED MINING COMPANY AS NULL AND VOID. WE HAVE ITA NO.587 TO 590/BANG/2015 PAGE 4 OF 6 EARLIER NOTICED THAT THE ASSESSEE HEREIN HAS PREFER RED PRESENT APPEALS AGAINST THE VERY SAME ASSESSMENT ORDERS PAS SED FOR AY 2007-08 TO 2010-11 IN THE CAPACITY OF AGGRIEVED PE RSON. SINCE THE ASST. YEARS PASSED FOR ABOVE SAID YEARS HAVE BEEN H ELD TO BE NULL AND VOID BY THE CO-ORDINATE BENCH, THE ORDERS PASSE D BY LD CIT(A)-6 IN THE HANDS OF M/S ASSOCIATED MINING COMPANY NO LO NGER EXISTS. ACCORDINGLY, THE ORDERS PASSED BY LD CIT(A)-11 IN T HE HANDS OF THE ASSESSEE NEEDS TO BE SET ASIDE, SINCE HE HAD DISMIS SED THE APPEALS FILED BY THE ASSESSEE ONLY FOR THE REASON THAT THE ASSESSMENT ORDERS PASSED IN THE HANDS OF M/S ASSOCIATED MINING COMPAN Y HAVE BEEN UPHELD BY LD CIT(A)-6. ACCORDINGLY WE REVERSE THE ORDERS PASSED BY LD CIT(A). AS THE IMPUGNED ASSESSMENT ORDERS HAVE BEEN HELD TO BE NULL AND VOID BY THE CO-ORDINATE BENCH, THE GROU NDS URGED BY THE ASSESSEE SHALL BECOME INFRUCTUOUS. 9. IN THE RESULT, ALL THE APPEALS FILED BY THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON JUNE, 2019. SD/- SD/- (N.V VASUDEVAN) VICE PRESIDENT (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, JUNE, 2019. / VMS / ITA NO.587 TO 590/BANG/2015 PAGE 5 OF 6 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3 . THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER A SST. REGISTRAR, ITAT, BANGALORE. ITA NO.587 TO 590/BANG/2015 PAGE 6 OF 6 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. ..