Appeal details
Counselvise Citation
[2019] 116 COUNSELVISE.COM (IT) 2430 (ITAT-JAIPUR)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 month(s) 18 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
03-09-2019
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
B
Assessment Year
2007-2008
Appeal Filed On
15-05-2019
Judgement Text
VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH B, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,O A JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 704/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEARS : 2007-08. THE INCOME TAX OFFICER, WARD 5(2), JAIPUR. CUKE VS. M/S. KRISHNA VILLA APARTMENTS, THROUGH PARTNER SHRI ARUN BANSAL, G-2, PARK VIEW SCHEME, 8-GANDHI PATH, QUEENS ROAD, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. AAIFK 3348 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI B.K. GUPTA (CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 02.09.2019 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 03/09/2019 VKNS'K@ ORDER PER VIJAY PAL RAO, J.M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 30 TH MARCH, 2019 OF LD. CIT (APPEALS)-4, JAIPUR ARISING FROM TH E ASSESSMENT ORDER PASSED IN PURSUANT TO THE REVISION ORDER UNDER SECTION 263 OF THE I.T. ACT FOR THE ASSESSMENT YEAR 2007-08. THE REVENUE HAS RAISED THE SOLITARY GROUND AS UNDER :- (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (A) IS JUSTIFIED IN CANCELLING THE ASSESSMENT ORDER PASSED BY THE AO U/S 263/143(3) DATED 27.03.2 014 RELYING UPON THE HONBLE RAJASTHAN HIGH COURT ORDER DATED 09.10.2017 IN THE CASE OF THE ASSESSEE WHEREIN THE HONBLE COURT HAS NEITHER CONSIDERED NOR ADJUDICATED ON THE BASIS OF VALIDITY OF THE ORDER PASSED U/S 263 BY THE CIT AND UPHELD BY THE ITAT AND HAS DECIDED ISSUES ON MERIT. AGAINST T HE ORDER OF 2 ITA NO. 704/JP/2019 M/S. KRISHNA VILLA APARTMENTS, THROUGH PARTNER SHRI ARUN BANSAL, JAIPUR. THE HONBLE RAJASTHAN HIGH COURTS ORDER DATED 09.1 0.2017, DEPARTMENT HAS FILED SLP (C) NO. 24743/2018. (II) THE APPELLANT CRAVES ITS RIGHTS TO ADD, AMEND OR ALTER ANY OF THE GROUNDS ON OR BEFORE THE HEARING. 2. THE AO WHILE PASSING THE ASSESSMENT ORDER IN PUR SUANT TO THE REVISION ORDER PASSED UNDER SECTION 263 OF THE IT ACT, MADE CERTAI N ADDITIONS AND DISALLOWANCES WHICH WERE CHALLENGED BY THE ASSESSEE BEFORE THE LD . CIT (A). THE LD. CIT (APPEALS) QUASHED THE ASSESSMENT ORDER PASSED UNDER SECTION 1 43(3) READ WITH SECTION 263 OF THE IT ACT IN VIEW OF THE DECISION OF HONBLE JURIS DICTIONAL HIGH COURT IN THE APPEAL CHALLENGING THE REVISION ORDER UNDER SECTION 263 OF THE ACT. 3. WE HAVE HEARD THE LD. CIT DR AS WELL AS THE LD. A/R OF THE ASSESSEE AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. THE PRE SENT APPEAL EMANATES FROM THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) IN PUR SUANT TO THE REVISION ORDER UNDER SECTION 263 DATED 30 TH MARCH, 2013. AT THE OUTSET, WE NOTE THAT THE REVI SION ORDER PASSED UNDER SECTION 263 WAS CHALLENGED BY TH E ASSESSEE AND THE MATTER WAS CARRIED TO THE HONBLE JURISDICTIONAL HIGH COURT. THE HONBLE JURISDICTIONAL HIGH COURT IN JUDGMENT DATED 9 TH OCTOBER, 2017 HAS REPRODUCED THE SUBSTANTIAL QUEST ION OF LAW IN PARA 2 AS UNDER :- WHETHER THE ORDER PASSED BY THE LD. RESPONDENT UN DER SECTION 263 OF THE ACT OF 1961 SETTING ASIDE THE ORDER PASSED B Y THE LD. ASSESSING OFFICER U/S 153C/143(3)/144 FOR MAKING DE-NOVO ASSE SSMENT IS NOT ILLEGAL AND BAD IN LAW ? 3 ITA NO. 704/JP/2019 M/S. KRISHNA VILLA APARTMENTS, THROUGH PARTNER SHRI ARUN BANSAL, JAIPUR. THE SAID QUESTION WAS DECIDED IN FAVOUR OF THE ASSE SSEE IN PARA 6.2 AND 7 AS UNDER :- 6.2. HE CONTENDED THAT ASSETS WERE TRANSFERRED IN THAT CASE BUT IN THE PRESENT CASE ASSETS WERE NOT TRANSFERRED. 7. IN VIEW OF THE ABOVE, THE APPEAL STANDS ALLOWED AND THE ISSUE IS ANSWERED IN FAVOUR OF THE ASSESSEE. HOWEVER, IT IS MADE CLEAR THAT AS AND WHEN VALUATION OF THE LAND WILL BE CONS IDERED, THE ACQUISITION OF PRICE OF RS. 2 CRORES WILL NOT BE CO NSIDERED, ONLY THE DIFFERENCE OF RS. 9 CRORES WILL BE CONSIDERED F OR ANY OTHER PURPOSE OR FOR GIVING HIM BENEFIT UNDER THE INCOME TAX ACT. IN VIEW OF THE FACT THAT THE REVISION ORDER PASSED UNDER SECTION 263 STANDS QUASHED AS BAD IN LAW BY THE HONBLE JURISDICTIONAL HIGH CO URT, THE CONSEQUENTIAL ORDER PASSED BY THE AO UNDER SECTION 143(3) R.W. SECTION 263 WHICH IS SUBJECT MATTER OF APPEAL WOULD NOT SURVIVE. ACCORDINGLY, WE DO NOT FI ND ANY MERIT OR SUBSTANCE IN THE PRESENT APPEAL OF THE REVENUE. HOWEVER, IF THE REV ENUE SUCCEEDS IN THE SLP FILED AGAINST THE ORDER OF THE HONBLE JURISDICTIONAL HIG H COURT THEN THE DEPARTMENT MAY TAKE APPROPRIATE STEPS. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 03/09/2019. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKWO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 03/09/2019. DAS/ 4 ITA NO. 704/JP/2019 M/S. KRISHNA VILLA APARTMENTS, THROUGH PARTNER SHRI ARUN BANSAL, JAIPUR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT-THE ITO WARD 5(2), JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT-M/S. KRISHNA VILLA APARTMENTS, THROU GH PARTNER SHRI ARUN BANSAL, JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 704/JP/2019} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR
