BRT Spinners P Ltd., Coimbatore V. JCIT, Tiruppur

ITA 705/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7855 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 23-03-2016
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: SENTHAMARAI KANNAN
• Keywords: Opportunity of being heard; Revised return

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI , ! ' ! # . $% & '( BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO.705/MDS/2016 / ASSESSMENT YEAR:2011-12 M/S.BRT SPINNERS P LTD ., S.F.NO.336, PULLAKKADU THOTTAM, KOMBAKKADUPUDUR, ICHIPATTI (PO), SOMANUR-641 668, COIMBATORE DISTRICT. VS. THE JT. COMMISSIONER OF INCOME TAX, TIRUPUR RANGE, TIRUPUR. [PAN:AAACB7320D] ( )* / APPELLANT) ( +,)* /RESPONDENT) / APPELLANT BY : MR. SENTHAMARAI KANNAN, ADVOCATE /RESPONDENT BY : MS. SHIVA SRINIVAS, JCIT / DATE OF HEARING : 15 .11.2016 / DATE OF PRONOUNCEMENT : 08 .12. 2016 - / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-1, CHENNA I, DATED ITA NO.705/MDS/2016 :- 2 -: 08.01.2016 IN ITA NO.80A/2014-15/CIT(A)-1/CBE PERTA INING TO ASSESSMENT YEAR 2011-12 PASSED U/S.154 R.W.S143(3) & 250 OF THE ACT. 2. IN THIS CASE, THE LD.CIT(A) PASSED THE APPELLAT E ORDER ON 16.06.2015, WHICH IS A SUBJECT MATTER OF APPEAL BEF ORE THIS TRIBUNAL IN ITA NOS.1982 & 1983/MDS./2015 VIDE ORDER DATED 04.0 3.2012 FOR ASSESSMENT YEARS 2011-12 & 2012-13 ON THE ISSUE OF NON DISPOSAL OF ADDITIONAL GROUNDS BY THE LD.CIT(A). IT WAS OBSERVE D BY THE TRIBUNAL THAT IT IS TO BE CONSIDERED IN ACCORDANCE WITH LAW AND ON MERIT AFTER GIVING SUFFICIENT OPPORTUNITY OF BEING HEARD. IN TH E MEANTIME, ASSESSEE FILED APPLICATION FOR RECTIFICATION U/S.154 OF THE ACT ON 19.10.2015 STATING THAT THE ADDITIONAL GROUNDS RAISED BY THE A SSESSEE FOR COMPUTING THE MARKET VALUE OF ELECTRICITY GENERATED BY THE WINDMILL OF THE ASSESSEE COMPANY FOR THE PURPOSE OF CLAIMING DE DUCTION U/S.80-IA OF THE ACT RELYING ON THE DECISION OF THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR ASSESSMENT YEAR 2010-11. HOWEVER, THE SAI D ADDITIONAL GROUND WAS NOT ADJUDICATED FOR ASSESSMENT YEAR 2011 -12, THOUGH IT WAS FAVOURABLY CONSIDERED FOR ASSESSMENT YEAR 2012- 13 BY THE LD.CIT(A). THE SAID PETITION U/S.154 OF THE ACT WAS REJECTED BY THE LD.CIT(A) VIDE HIS ORDER DATED 08.01.2016. AGAINST THIS, THE ASSESSEE ITA NO.705/MDS/2016 :- 3 -: IS IN APPEAL BEFORE US WHEREIN THE ASSESSEE RAISED THE FOLLOWING GROUNDS:- 1) THE LD.CIT(A) HAS ERRED IN NOT RECTIFYING THE MISTAKE APPARENT FROM HIS RECORDS. 2. THE LD.CIT(A) HAS ERRED IN NOT DISPOSING OF THE ADDITIONAL GROUND FILED BEFORE HIM, WHICH IS A MISTAKE APPAREN T FROM RECORD. 3. THE LD.CIT(A) HAS ERRED IN COMING TO THE CONCLU SION THAT THERE IS NO MISTAKE APPARENT FROM THE RECORDS OF TH E AO WHEN THE PRAYER BEFORE THE CIT(A) WAS THAT THERE WA S A MISTAKE APPARENT FROM THE RECORDS OF THE CIT(A). 4. THE LD.CIT(A) HAS ERRED IN CONCLUDING THAT THE A PPELLANT COMPANY SHOULD HAVE FILED A REVISED RETURN BEFORE T HE AO, CLAIMING MORE DEDUCTION U/S.80IA, WITHOUT REALIZING THE FACT THAT BY THE TIME THE ORDER OF THE ITAT DATED 10.09. 2014 FOR ASSESSMENT YEAR 2010-11 WAS RECEIVED BY THE APPELLA NT, THE ASSESSMENT FOR ASSESSMENT YEAR 2011-12 WAS OVER (ASSESSMENT ORDER IS DATED 20.03.2014) AND THEREFOR E THE APPELLANT COULD NOT HAVE FILED A REVISED RETURN BEF ORE THE AO. ITA NO.705/MDS/2016 :- 4 -: 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. ADMITTEDLY, IN THIS CASE, ASSESSEE CAME IN APPEAL AGAINST THE ORDER OF LD.CIT(A) DATED 16.06.2015 FOR THE SAME AS SESSMENT YEAR UNDER CONSIDERATION WHEREIN THE ASSESSEE RAISED SIM ILAR GROUNDS AND THE TRIBUNAL DISPOSED OFF THIS GROUND VIDE ORDER DA TED 04.03.2016 BY OBSERVING AS FOLLOWS:- 9. THE ASSESSEE HAS SUBMITTED IN ITS CROSS OBJE CTION THAT THE LD.CIT(A) DID NOT DISPOSE OF THE ADDITION AL GROUND WITH RESPECT TO DETERMINING THE MARKET VALUE OF ELECTRICITY GENERATED BY THE WINDMILL OF THE ASSESS EE COMPANY FOR THE PURPOSE OF CLAIMING DEDUCTION U/S.8 0IA OF THE ACT. ON PERUSING THE MATERIALS ON RECORD AND T HE PAPER BOOK FILED BEFORE US, WE DO NOT FIND ANY SUCH ADDITIONAL GROUND RAISED BY THE ASSESSEE BEFORE THE LD.CIT(A). HOWEVER, IN THE INTEREST OF JUSTICE, WE REMIT THE MATTER BACK TO THE FILE OF LD.CIT(A) TO CONSIDER TH ESE GROUNDS RAISED BY THE ASSESSEE AND DECIDE THE ISSUE IN ACCORDANCE WITH LAW AND MERIT AFTER AFFORDING SUFFI CIENT OPPORTUNITY OF BEING HEARD. ITA NO.705/MDS/2016 :- 5 -: SINCE THE ABOVE FINDINGS OF THE TRIBUNAL IS BINDING ON THE LOWER AUTHORITIES, WE DIRECT THE LD.CIT(A) TO PASS FRESH ORDER ON THE ADDITIONAL GROUNDS RAISED BEFORE HIM IN ACCORDANCE WITH THE ABOVE DIRECTION OF THE TRIBUNAL. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH DECEMBER, 2016, AT CHENNAI. SD/ - SD/ - ! ' # . $ %& ' ( DUVVURU RL REDDY ) ) & / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER () / CHENNAI *+ / DATED: 08 TH DECEMBER, 2016 K S SUNDARAM +,-- ./-0/ / COPY TO: - 1 . / APPELLANT 3. - 1-!' / CIT(A) 5. /23- 4 / DR 2. / RESPONDENT 4. - 1 / CIT 6. 3&-5 / GF