DCIT, Coimbatore V. Lakshmi Technology and Engineering Industries Ltd., Coimbatore

ITA 826/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96150 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 27-08-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 13-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Keywords: Tax effect; Reassessment proceedings
• Section: 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C B ENCH, CHENNAI . , ! # $ , % & BEFORE SHRI A.MOHAN ALANKAMONY ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./I.T.A.NO .826/MDS/2015 ( / ASSESSMENT YEAR: 2007-08) THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-1, 63-A, RACE COURSE ROAD, COIMBATORE. VS M/S. LAKSHMI TECHNOLOGY AND ENGINEERING INDUSTRIES LTD., 34-A, KAMARAJ ROAD, COIMBATORE-641 018. PAN:AAACL5245P ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. A.V.SREEKANTH, JCIT /RESPONDENT BY : NONE /DATE OF HEARING : 27 TH AUGUST, 2015 /DATE OF PRONOUNCEMENT : 23 RD SEPTEMBER, 2015 / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I, COIMBAT ORE DATED 23.01.20125 FOR THE ASSESSMENT YEAR 2007-08. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN ITS APPEAL:- THE COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN HOLDING THAT REASSESSMENT IS VOID AB INITIO WHEN THE ORIGINAL ASSESSMENT WAS COMPLETED ON A SIMILAR SET OF FACTS. IN THE ORIGINAL ASSESSMENT DETAILS REGARDING EXEMPTED INCOME AND EXPENDITURE RELATABLE THERETO WERE NOT CALLED FOR AND DISCUSSED IN THE ORIGINAL ASSESSMENT. HENCE, COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN HOLDING THAT THE ORIGINAL ASSESS MENT WAS COMPLETED ON A SIMILAR SET OF FACTS. 2 ITA NO.826/MDS/2015 2. COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN HOLDING THAT REASSESSMENT AS INVALID WHEN DURING TH E COURSE OF REASSESSMENT THE ASSESSEE HAS NEVER OBJECTED TO REOPENING OF THE ASSESSMENT. MOREOVER, THE ASSESSEE A.R. FILED A LETTER DATED 16.07.2012 AGREE ING FOR PROPOSED DISALLOWANCE U/S.14A OF THE ACT. IN VI EW OF THIS THE REASSESSMENT NEEDS TO BE VALIDATED. 3. FOR THESE REASONS THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) MAY BE CALLED AND THAT OF ASSESSING OFFICER BE RESTORED. 3. NONE APPEARED ON BEHALF OF THE RESPONDENT/ ASSESSEE. HOWEVER, WRITTEN SUBMISSIONS OF THE AUTHO RIZED REPRESENTATIVE DATED 26.08.2015 WAS FILED WHEREIN I T IS CONTENDED THAT TAX EFFECT IN THIS APPEAL IS LESS T HAN FOUR LAKHS. IT IS SUBMITTED THAT DISPUTE ON THE QUESTION OF INCOME ESCAPING ASSESSMENT IS WITH REFERENCE TO ` 3,42,918/- HAVING TAX EFFECT OF LESS THAN ` 4,00,000/- CONSEQUENT TO THE DISALLOWANCE MADE IN THE REASSESSMENT PROCEEDINGS, WHICH WAS QUASHED BY THE COMMISSIONER OF INCOME TAX (APPE ALS). THEREFORE, IT IS SUBMITTED THAT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. 4. AFTER HEARING THE DEPARTMENTAL REPRESENTATIVE AN D ON GOING THROUGH THE ORDERS OF THE LOWER AUTHORITIES A ND WRITTEN SUBMISSIONS FILED BY THE ASSESSEE, WE FIND THAT ASS ESSMENT WAS REOPENED IN THIS CASE FOR DISALLOWING 14A TO TH E EXTENT OF 3 ITA NO.826/MDS/2015 ` 3,42,918/- AND THE TAX EFFECT IS ONLY ` 2,77,666/- WHICH IS LESS THAN ` 4,00,000/-. THE REVENUE IS PRECLUDED FROM FILING O F APPEAL WHEN THE TAX EFFECT IS LESS THAN ` 4,00,000/-. AS HELD BY THE KOLKATA BENCH OF THIS TRIBUNAL IN THE CASE O F ITO VS. SRI SUJIT PANDEY IN ITA NO.1914/KOL/2012 DATED 10.0 9.2014, CBDT INSTRUCTION NO.5 OF 2014 DATED 10.7.2014 IS AP PLICABLE TO PENDING APPEALS ALSO. THEREFORE, THIS APPEAL OF THE REVENUE DESERVES TO BE DISMISSED AS NOT MAINTAINABL E. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D ACCORDINGLY. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD SEPTEMBER, 2015. SD/- SD/- ( . ) ( ( *+ ) ( A.MOHAN ALANKAMONY ) ( CHALLA NAGENDRA PRASAD ) - / ACCOUNTANT MEMBER * - / JUDICIAL MEMBER * /CHENNAI, / /DATED 23 RD SEPTEMBER, 2015 SOMU 12 32 /COPY TO: 1. APPELLANT 2. RESPONDENT 3. 4 () /CIT(A) 4. 4 /CIT 5. 2 7 /DR 6. /GF .