ACIT, Circle-5(2), Ahmedabad V. M/s. K R Medical Clinic Pharmacy, Ahmedabad

ITA 702/AHD/2019

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A)-5, Ahmedabad, which had quashed the order passed under Section 143(3) r.w.s. 263 of the Income Tax Act concerning M/s. K. R. Medical Clinic Pharmacy for the Assessment Year 2012-13. The primary contention was regarding the commission expenses during the assessment proceedings. The Tribunal had previously quashed the Section 263 order, leading to the CIT(A)'s decision to allow the assessee's appeal, which the Revenue challenged. The Tribunal found no grounds to interfere with the CIT(A)'s decision, leading to the dismissal of the Revenue's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124693 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 10-04-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 21-04-2019
• Other Referred Cases: ITA No. 903/Ahd/2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3); 143(1); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER& SHRI WASEEM AHMED, ACCOUNTANT MEMBER I .T .A . No .7 02 /A h d / 20 19 ( A s se ss m e nt Y e a r : 20 12- 13 ) AC I T C ir c l e- 5 ( 2 ), Ah me da bad Vs .M/ s . K . R . Me d i ca l C lin i c Ph a r ma c y V e da n t H o s p it a l , O pp. P u nj a b N at io n a l B a nk , N a v r an gp u r a , A h me da ba d [ P AN N o. A A HF G 4 9 2 4 G ] (Appellant) .. (Respondent) Appellant by : Ms. Bhavnasingh Gupta, Sr. D.R. Respondent by : Ms. Urvashi Sodhan, A.R. D a t e of H ea r i ng 11.04.2023 D a t e of P r o no u n ce me nt 19.04.2023 O R D E R PER SUCHITRA KAMBLE - JM: The appeal filed by the Revenue is against the order passed by the Ld. CIT(A)-5, Ahmedabad on 25.02.2019 for Assessment Year 2012-13. 2. The grounds of appeal raised by the Revenue read as under: “1. That the Ld. CIT(A) has erred in law and on facts in quashing the order passed u/s 143(3) r.w.s. 263 of the Act although the AO has failed to conduct proper enquiries regarding commission expenses during the assessment proceedings for A.Y. 2012-13. 2. On the facts and circumstances, the Ld. CIT(A) ought to have upheld the order of the AO. 3. It is therefore prayed that the order of the Ld. CIT(A) may be set aside and that of the order of the Assessing Officer be restored to the above extent. 4. This appeal is filed as tax effect in the case is Rs. 21,15,517/- which is above the monetary limits specified in the Board’s Circular no. 3/2018 dated 11.07.2018. Also, the case falls under exception condition 10(c) of CBDT’s Circular No. 3/2018 dt. 11.07.2017.” ITA No. 702/Ahd/2019 ACIT vs. M/s. K. R. Medical Clinic Pharmacy Asst.Year–2012-13 - 2 - 3. Return of income was filed on 27.07.2012 declaring total income at Rs. 36,45,685/-. The business activity of the assessee firm is of trading and wholesale dealing in medical drugs and mainly dealing in cancer drugs and HIV drugs. The return was processed under Section 143(1) of the Act or under Section 143(3) of the Act was passed on 30.06.2014 thereby determining total income at Rs. 37,14,295/- after making an addition of Rs. 68,610/- on account of Personal Expenses and subsequently the Pr. Commissioner of Income-tax-5, Ahmedabad issued notices under Section 263 of the Act on 07.03.2017. The order under Section 263 of the Act was passed on 23.03.2017. In the meanwhile the assessee challenged the order passed under Section 263 which was quashed and set-aside by the Tribunal being ITA No. 903/Ahd/2017 order dated 26.09.2018. The consequential order 263 r.w.s. 143(3) was passed on 12.12.2017. 4. Being aggrieved order dated 12.12.2017 passed by the Assessing Officer the assessee filed appeal before the CIT(A). The CIT(A) allowed the appeal of the assessee. 5. The Ld. D.R. relied upon the assessment order dated 12.12.2017. 6. The Ld. A.R. submitted that since the Tribunal has quashed the order under Section 263 of the Act nothing survive and CIT(A) has rightly allowed the appeal of the assessee. 7. We have heard both the parties and perused all the relevant material available on record. The CIT(A) has rightly held that the ITA No. 702/Ahd/2019 ACIT vs. M/s. K. R. Medical Clinic Pharmacy Asst.Year–2012-13 - 3 - Tribunal in its order quash the order under Section 263 and decided the appeal in favour of the assessee on technical term and therefore, the consequential order under Section 143(3) r.w.s. 263 dated 12.12.2017 does not survive and the same become infructuous. There is no need to interfere with the findings of the CIT(A). 8. In result, the appeal of the Revenue is dismissed. This Order pronounced in Open Court on 19/04/2023 Sd/- Sd/- (WASEEM AHMED) ACCOUNTANT MEMBER (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 19/04/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 11 .04.2023 2. Date on which the typed draft is placed before the Dictating Member 12.04.2023 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S .04.2023 5. Date on which the fair order is placed before the Dictating Member for pronouncement .04.2023 6. Date on which the fair order comes back to the Sr.P.S./P.S 19.04.2023 7. Date on which the file goes to the Bench Clerk 19.04.2023 8. Date on which the file goes to the Head Clerk.......................................... 9. The date on which the file goes to the Assistant Registrar for signature on the order.......................... 10. Date of Despatch of the Order..........................................