THE ACIT, CIRCLE - 1(1), Visakhapatnam V. M/s V.Dhana Reddy & Co, Visakhapatnam

ITA 654/VIZ/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2052 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 04-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 263

Judgement Text

ITA NOS.653&654/VIZAG/2013 & CO 14&15/VIZAG/2014 M/S. V. DHANA REDDY & CO., VISAKHAPATNAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NOS.653&654/VIZAG/2013 ( / ASSESSMENT YEARS: 2006-07 & 2007-08) ACIT CIRCLE - 1(1) VISAKHAPATNAM VS. M/S. V. DHANA REDDY & CO. VISAKHAPATNAM [PAN: AACFC 4288F ] ( % / APPELLANT) ( &'% / RESPONDENT) C.O. NOS.14&15/VIZAG/2014 (ARISING OUT OF I.T.A.NOS.653&654/VIZAG/2013) ( / ASSESSMENT YEARS: 2006-07 & 2007-08) M/S. V. DHANA REDDY & CO. VISAKHAPATNAM VS. ACIT CIRCLE - 1(1) VISAKHAPATNAM ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI M.N. MURTHY NAIK, DR / RESPONDENT BY : SHRI G.V.N. HARI, AR / DATE OF HEARING : 23. 0 2.2016 / DATE OF PRONOUNCEMENT : 25.02.2016 ITA NOS.653&654/VIZAG/2013 & CO 14&15/VIZAG/2014 M/S. V. DHANA REDDY & CO., VISAKHAPATNAM 2 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THESE APPEALS FILED BY THE REVENUE AND CROSS OBJEC TIONS FILED BY THE ASSESSEE, ARE DIRECTED AGAINST THE ORDER OF CIT (A), VISAKHAPATNAM DATED 11.9.2013 PERTAINING TO THE ASSESSMENT YEARS 2006-07 & 2007-08. SINCE, THE ISSUES INVOLVED IN THESE APPEALS AND CRO SS OBJECTIONS ARE COMMON, THEY ARE CLUBBED, HEARD TOGETHER AND DISPOS ED OF BY WAY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ASSESSEE IS A FIRM CARRYING BUSINESS OF STEV EDORING, CLEARING AND FORWARDING, SHORE HANDLING AND STEAMER AGENCY E TC., FILED ITS RETURN OF INCOME. THE RETURN FILED BY THE ASSESSEE WAS PR OCESSED U/S 143(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT'). SUBSEQUENTLY, ASSESSMENT WAS COMPLETED U/S 143(3) R .W.S. 147 OF THE ACT BY ESTIMATING PROFIT AT 10% OF THE GROSS RECEIP TS IN THE ABSENCE OF BOOKS OF ACCOUNTS AND VOUCHERS. THEREAFTER, THE CO MMISSIONER WHILE EXERCISING THE POWERS U/S 263 OF THE ACT, THE ASSES SMENT ORDER PASSED BY THE A.O. WAS SET ASIDE AND DIRECTED THE A.O. TO RE-DO THE ASSESSMENT DE-NOVO. THE A.O. HAS PASSED THE ASSESSMENT ORDER U/S 143 R.W.S. 263 OF THE ACT. SUBSEQUENTLY, THE ASSESSEE CHALLENGED THE ORDER OF THE COMMISSIONER DATED 21.11.20011 BEFORE THE HONBLE I TAT. THE HONBLE ITA NOS.653&654/VIZAG/2013 & CO 14&15/VIZAG/2014 M/S. V. DHANA REDDY & CO., VISAKHAPATNAM 3 ITAT BY ITA NOS.353&354 OF 2011 DATED 3.5.2013 QUAS HED THE ORDER PASSED BY THE COMMISSIONER U/S 263 OF THE ACT AND A PPEALS FILED BY THE ASSESSEE ARE ALLOWED. 3. THE LD. CIT(A) BY CONSIDERING THE ORDER PASSED B Y THE A.O. U/S 263 OF THE ACT CONSEQUENT TO THE ORDER PASSED BY TH E LD. COMMISSIONER, THE IMPUGNED ASSESSMENT WAS SET ASIDE. THE RELEVAN T ORDER OF THE CIT(A) IS AS UNDER: 3.1. DURING THE COURSE OF HEARING, THE AR SUBMITT ED THAT THE HONBLE ITAT VISAKHAPATNAM VIDE ORDER IN ITA NO.353&354/VIZ AG/2011 HAS SET ASIDE THE REVISION ORDER PASSED BY THE CIT U/S 263 IN THE ASS ESSEES CASE FOR ASSESSMENT YEAR 2006-07 AND 2007-08 AND, IN SUPPORT, HE HAS ALSO FI LED COPY OF THE ORDER OF THE HONBLE ITAT. IT WAS CONTENDED THAT AS THE ORDER PA SSED BY THE CIT U/S 263 HAS BEEN SET ASIDE BY THE HONBLE ITAT, THE ASSESSMENT ORDER PASSED U/S 263 WOULD NOT SUSTAIN IN THE EYES OF LAW. I HAVE CONSIDERED THE C ONTENTIONS RAISED AND FIND MERIT IN THE SAME. IT IS NOTED THAT THE HONBLE ITAT, VI SAKHAPATNAM FOR THE REASONS DISCUSSED IN ITS ORDER DATED 3.5.2013 IN ITA NO.353 &354/VIZAG/2011 HAS SET ASIDE THE ORDER PASSED BY THE CIT UNDER SECTION 263 FOR A .Y. 2006-07 AND 2007-08. IN VIEW OF THE SAME, THE IMPUGNED ASSESSMENT ORDER PAS SED BY THE AO CONSEQUENT TO THE ORDER PASSED BY THE CIT U/S 263 WOULD NOT HAVE ANY LEGAL VALIDITY AND ACCORDINGLY THE IMPUGNED ASSESSMENT ORDER IS SET AS IDE. 4. IN THE RESULT THE APPEAL OF THE APPELLANT FOR TH E ASSESSMENT YEAR 2006- 07 IS ALLOWED FOR STATISTICAL PURPOSES. 4. KEEPING IN VIEW OF THE ABOVE, WE FIND NO INFIRMI TY IN THE ORDER PASSED BY THE LD. CIT(A). THUS, APPEALS FILED BY T HE REVENUE ARE DISMISSED. 5. THE C.OS. FILED BY THE ASSESSEE ARE SUPPORTING T HE ORDER OF THE CIT(A). THEREFORE, FOR THE REASONS RECORDED IN THE PRECEDING ITA NOS.653&654/VIZAG/2013 & CO 14&15/VIZAG/2014 M/S. V. DHANA REDDY & CO., VISAKHAPATNAM 4 PARAGRAPHS, WE ARE OF THE OPINION THAT THE C.OS. FI LED BY THE ASSESSEE ARE INFRUCTUOUS AND HENCE, THE SAME ARE DISMISSED. 6. IN THE RESULT, THE APPEALS FILED BY THE REVENUE ARE DISMISSED AND CROSS OBJECTIONS FILED BY THE ASSESSEE ARE ALSO DIS MISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 25 TH FEB16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 25.02.2016 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ACIT, CIRCLE-1(1), VISAKHAPA TNAM 2. / THE RESPONDENT M/S. V. DHANA REDDY & CO., D.NO .23-23-2, BEACH ROAD, THOMSON STREET, VISAKHAPATNAM-530 001. 3. ) / THE CIT-1, VISAKHAPATNAM 4. ) ( ) / THE CIT(A), VISAKHAPATNAM 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM