ACIT, Chandigarh V. M/s Punjab State Warehousing Corporation Ltd., Chandigarh

ITA 772/CHANDI/2006

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9937 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-05-2016
• Assessment Year: 2000-2001
• Appeal Filed On: 02-11-2006
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: NEHA KANSAL
• Keywords: Opportunity of being heard
• Section: 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI H.L.KARWA, VICE PRESIDENT AND MS. RANO JAIN, ACCOUNTANT MEMBER ITA NO.772/CHD/2006 (ASSESSMENT YEAR : 2000-01) THE A.C.I.T., VS. M/S PUNJAB STATE WARE- CIRCLE 2(1), HOUSING CORPN. LTD., CHANDIGARH. SCO 74-75, SECTOR 17-B, CHANDIGARH. PAN: AABCP7825J APPELLANT BY : SHRI MANOJ MISHRA, CIT DR RESPONDENT BY : MS.NEHA KANSAL DATE OF HEARING : 25.05.2016 DATE OF PRONOUNCEMENT : 06.06.2016 O R D E R PER RANO JAIN, A.M . : THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEAL), CHANDIGARH DATED 21.8.2006 FOR ASSESSMENT YEAR 2000-01. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE RELEVAN T ASSESSMENT YEAR AS ON 30.11.2000. THE RETURN WAS PROCESSED UNDER SECTION 143(1)(A) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) AS ON 28.3.2002. THEREAF TER 2 NOTICE UNDER SECTION 148 WAS ISSUED TO THE ASSESSEE AS ON 7.4.2005. IN THE PROCEEDINGS UNDER SECTION 148 R.W .S.147, THE ASSESSING OFFICER ASSESSED THE INCOME OF THE AS SESSEE AT RS.1409.39 LACS. THE ASSESSEE CARRIED THE MATTE R BEFORE THE CIT (APPEALS) AND RAISED THE GROUNDS BOT H ON LEGAL AS WELL AS ON MERIT OF THE CASE. THE CIT (AP PEALS) VIDE HIS ORDER DATED 1.12.2005 ALLOWED THE APPEAL O F THE ASSESSEE CANCELLING THE ORDER OF THE ASSESSING OFFI CER MADE UNDER SECTION 143(3) R.W.S. 147 OF THE ACT HOL DING THE RE-OPENING UNDER SECTION 147 AS BAD IN LAW. TH E DEPARTMENT CARRIED THE MATTER BEFORE THE I.T.A.T., CHANDIGARH BENCH, WHEREBY VIDE ORDER IN ITA NO.772/CHD/2006 DATED 10.1.2008, THE ISSUE WAS DECI DED AGAINST THE REVENUE. THE REVENUE FURTHER CARRIED T HE MATTER BEFORE THE HON'BLE PUNJAB & HARYANA HIGH COU RT. THE HIGH COURT IN ITA NO.826 OF 2008 DATED 10.9.201 4 ALLOWED THE APPEAL OF THE REVENUE HOLDING THAT REOP ENING UNDER SECTION 148 OF THE ACT WAS AS PER LAW. IN TH E CONSEQUENCE, THE ORDER PASSED BY THE TRIBUNAL WAS S ET ASIDE AND THE MATTER WAS REMANDED TO THE I.T.A.T. T O DECIDE THE SAME AFRESH IN ACCORDANCE WITH LAW AFTER HEARING THE PARTIES. 3. IN THIS WAY, THE PRESENT APPEAL HAS COME BEFORE US. THE APPEAL HAS BEEN FILED BY THE DEPARTMENT, W HEREBY FOLLOWING THREE GROUNDS HAVE BEEN RAISED : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LEARNED C.I.T. (APPEAL) IN APPEAL NO.226/P/05-06, THROUGH ORDER DATED 21.08.2006, HAS ERRED IN CANCELI NG 3 THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) RE AD WITH SECTION 147 OF THE INCOME-TAX ACT, 1961 2. IT IS PRAYED THAT THE ORDER OF THE LA. CIT(A) BE CANCELLED AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. 3. THE APPELLANT CRAVES TO ADD OR AMEND ANY GROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD OR DISPOSED OFF. 4. WE OBSERVE FROM THE GROUNDS OF APPEAL THAT THE DEPARTMENT HAS NOT RAISED ANY GROUND ON THE MERIT O F THE CASE. HOWEVER, THE LEARNED COUNSEL FOR THE ASSESSE E DREW OUR ATTENTION TO THE FACT THAT THE CIT (APPEALS) SI NCE QUASHED THE ORDER OF THE ASSESSING OFFICER HOLDING THE REOPENING UNDER SECTION 147 AS BEING NOT AS PER LAW , HE PREFERRED NOT TO ADJUDICATE THE ISSUES RAISED BY TH E ASSESSEE ON THE MERIT OF THE CASE. SINCE NOW, THE LEGALITY OF THE ORDER PASSED UNDER SECTION 147 R.W.S. 143(3) OF THE ACT, HAS BEEN UPHELD BY THE HON'BLE HIGH COURT, THE ADDITIONS AND DISALLOWANCES MADE BY THE ASSESSING O FFICER STAND AS SUCH. THEREFORE, THE LEARNED COUNSEL FOR THE ASSESSEE PRAYED THAT THE ISSUES MAY BE DECIDED ON M ERIT. WE OBSERVE THAT SINCE THE CIT (APPEALS) HAS NOT ADJUDICATED THE ISSUES ON MERIT, IN THE INTEREST OF JUSTICE, THE ISSUES ON MERIT BE SENT BACK TO THE FILE OF THE CIT (APPEALS) FOR FRESH ADJUDICATION. THE LEARNED D.R . DID NOT HAVE ANY OBJECTION TO THE SAME. 5. IN VIEW OF THE ABOVE, WE SEND THE MATER BACK T O THE FILE OF THE CIT (APPEALS) TO DECIDE THE ISSUES ON MERIT 4 AS PER LAW AFTER PROVIDING A PROPER AND ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 6 TH DAY OF MAY, 2016. SD/- SD/- (H.L.KARWA) (RANO JAIN) VICE PRESIDENT ACCOUNTANT MEMBER DATED : 6 TH MAY, 2016 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/THE CIT/THE D R. ASSISTANT REGISTRAR, ITAT, CHANDIGARH