H.P. General Industries Corp. Ltd., Shimla V. CIT, Shimla

ITA 715/CHANDI/2010

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77143 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 24-12-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 31-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR AMA RVEER SINGH
• Keywords: Period of limitation
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A CHANDIGARH BEFORE SHRI T.R.SOOD ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.715/CHD/2010 ASSESSMENT YEAR : 2005-06 M/S H.P. GENERAL INDUSTRIES VS THE COMMISSIONER OF INCOME TAX, CORPORATION LTD., SHIMLA. NEW HIMRUS BUILDING, CIRCULAR ROAD, SHIMLA (HP). PAN : AAACH6125L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VISHAL MOHAN RESPONDENT BY : DR.AMARVEER SINGH DATE OF HEARING : 17.06.2014 DATE OF PRONOUNCEMENT : 26.06.2014 O R D E R PER SUSHMA CHOWLA, JM THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME TAX, SHIMLA DATED 30.03.2010 AGAINST THE ORDER PASSED UNDER SECTION 263 OF THE INCOME-TAX AC T, 1961 ( 'THE ACT' FOR SHORT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND OF APPEAL : THAT THE LD. COMMISSIONER OF INCOME TAX SHIMLA HAS ERRED ON LAW AND ON FACTS BY SETTING ASIDE THE ASSESSMENT ORDER DATE D 14.08.2007 AND DIRECTING THE ASSESSING OFFICER TO REFRAME THE ASSE SSMENT AGAIN ON THE GROUND THAT THE MAT IS APPLICABLE TO THE BOOK PROFI TS OF THE ASSESSEE BY IGNORING THE FACTS THAT THE SAME IS INVESTED UND ER SECTION 54EC OF THE INCOME TAX ACT. 3. THE PRESENT APPEAL IS FILED BY THE ASSESSEE AGAI NST THE ORDER PASSED UNDER SECTION 263 OF THE ACT AND THE ONLY IS SUE RAISED IN THE 2 PRESENT APPEAL IS AGAINST SETTING ASIDE OF THE ASSE SSMENT ORDER DATED 14.08.2007 AND DIRECTING THE ASSESSING OFFICE R TO REFRAME THE ASSESSMENT ON THE GROUND THAT MAT IS APPLICABLE TO THE BOOK PROFITS OF THE ASSESSEE WITHOUT CONSIDERING THE INV ESTMENT MADE UNDER SECTION 54EC OF THE ACT. 4. THE LD. AR FOR THE ASSESSEE AT THE OUTSET POINTE D OUT THAT THE TRIBUNAL IN ITA NOS. 861 AND 862/CHD/2012 RELATING TO ASSESSMENT YEARS 2005-06 AND 2007-08 AGAINST THE CONSEQUENTIAL ORDER PASSED UNDER SECTION 143(3) READ WITH SECTION 263 OF THE ACT HAD HELD THAT THE ASSESSMENT ORDER PASSED IN THE CASE WAS BE YOND THE PERIOD OF LIMITATION. IT WAS FURTHER POINTED OUT BY THE L D. AR FOR THE ASSESSEE THAT IN VIEW THEREOF, ORDER PASSED BY COMM ISSIONER OF INCOME TAX (APPEALS) UNDER SECTION 263 OF THE ACT B ECOMES INFRUCTUOUS. 5. THE LD. DR FOR THE REVENUE PLACED RELIANCE ON TH E ORDER OF THE COMMISSIONER OF INCOME TAX. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. IN THE PRESENT CASE THE COMMISSIONER OF INCOME TAX, SHIMLA HAD EXERCISED HIS REVISIONARY POWERS UNDER SECTION 263 OF THE ACT AND REMITTED THE ISSUE BACK TO THE FILE OF ASSESSING OF FICER. THE ASSESSING OFFICER PASSED THE CONSEQUENT ORDER UNDER SECTION 143(3) READ WITH SECTION 263 OF THE ACT. THE ASSES SEE RAISED PRELIMINARY ISSUE BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) AND THEREAFTER BEFORE THE TRIBUNAL. THE TRIBUNAL VIDE CONSOLIDATED ORDER DATED 21.01.2014 IN ITA NOS. 861 & 862/CHD/2012 HELD THAT THE ASSESSMENT ORDER PASSED IN THE CASE WAS BEYOND THE PERIOD OF LIMITATION AND THE SAME WA S SET ASIDE. IN 3 VIEW OF THE ABOVESAID CIRCUMSTANCES, WHERE THE ASSE SSMENT ORDER PASSED BY THE ASSESSING OFFICER CONSEQUENT TO THE O RDER PASSED BY THE COMMISSIONER OF INCOME TAX UNDER SECTION 263 OF THE ACT HAS BEEN HELD TO BE BEYOND THE PERIOD OF LIMITATION AND THE SAME BEING SET ASIDE, THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX UNDER SECTION 263 OF THE ACT BECOMES INFRUCTUOUS. CONSEQUENTLY, WE SET ASIDE THE ORDER OF COMMISSIONER OF INCOME TA X BEING INFRUCTUOUS AND ALLOW THE GROUND OF APPEAL RAISED B Y THE ASSESSEE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH JUNE, 2014. SD/- SD/- ( T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 26 TH , 2014 POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR. ASSISTANT REGISTRAR ITAT,CHD.