DCIT, Central Circle-3(2), Hyd, Hyderabad V. Hastha Agro Tech Pvt.Ltd., Hyd, Hyderabad

ITA 84/HYD/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6402 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-06-2016
• Assessment Year: 2003-2004
• Appeal Filed On: 25-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J SIRI KUMAR
• Section: 143(3); 260A; 147; 263; 63; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B (SMC) : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT ITA.NO.84/HYD/2016 ASSESSMENT YEAR 2003-2004 THE DCIT, CENTRAL CIRCLE-3(2) (I/C), HYDERABAD. VS. M/S. HASTHA AGRO TECH PVT. LTD., HYDERABAD 500 032. PAN AABCH2674M (APPELLANT) (RESPONDENT) FOR REVENUE : MR. J. SIRI KUMAR FOR ASSESSEE : - NONE - DATE OF HEARING : 21.06.2016 DATE OF PRONOUNCEMENT : 21 .06.2016 ORDER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)-12, HYDERABAD AND IT PERTAINS TO THE A.Y. 2003-04. THE ONLY GROUND URGED BY THE APPELLANT/DCIT READS AS UNDER : WHETHER FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) WAS CORRECT IN SETTING ASIDE THE ORDER PASSE D BY THE A.O. UNDER SECTION 143(3) READ WITH SECTION 263 AND TREATING IT AS INFRUCTUOUS, WHEN REVENUE HA S PREFERRED AN APPEAL UNDER SECTION 260A BEFORE THE HONBLE HIGH COURT AGAINST THE ORDER OF HONBLE ITAT. 2. IT MAY BE NOTICED THAT THE ASSESSMENT WAS ORIGINALLY COMPLETED UNDER SECTION 143(3) READ WITH SECTION 147 OF THE ACT ON 08.12.2010 AND THEREAFTER , IT WAS SOUGHT TO BE REVISED BY THE COMMISSIONER BY EXERCISING THE POWERS VESTED IN HIM UNDER SECTION 2 63 OF THE ACT AND ACCORDINGLY, RECALLED THE ASSESSMENT OR DER 2 ITA.NO.84/HYD/2016 M/S. HASTHA AGRO TECH P. LTD., HYDERABAD. DATED 08.12.2010 PASSED BY THE A.O. ON 19.02.2013 W ITH A DIRECTION TO THE A.O. TO DECIDE THE MATTER AFRESH . 3. THE ASSESSEE PREFERRED AN APPEAL BEFORE THE ITAT AGAINST THE ORDER PASSED UNDER SECTION 263 OF THE ACT ON THE GROUND THAT THE ORDER PASSED UNDER SECTI ON 143(3) READ WITH SECTION 147 CANNOT BE TREATED AS ERRONEOUS AND PREJUDICIAL TO THE INTERESTS OF THE R EVENUE AND THEREFORE, THE ORDER PASSED UNDER SECTION 263 O F THE ACT DESERVES TO BE QUASHED. 4. BY THE TIME THE MATTER WAS LISTED BEFORE THE ITAT, THE A.O. HAS GIVEN EFFECT TO THE ORDER PASSED BY THE COMMISSIONER AND IN HIS ORDER DATED 28.02.2014, HE DETERMINED THE TOTAL INCOME OF RS.46,28,979, AGGRIE VED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) AGAINST THE ORDER PASSED BY THE A.O. UNDER SECTION 143(3) R EAD WITH SECTION 263 OF THE ACT. IN THE MEANTIME, I.E., ON 25.03.2015 (IN ITA.NO.512/HYD/2013), THE ITAT A BENCH, HYDERABAD QUASHED THE ORDER PASSED BY THE REVISIONAL AUTHORITY. HAVING REGARD TO THE BINDING NATURE OF THE DECISION OF THE ITAT, THE ASSESSEE CONTENDED BEFORE THE CIT(A) THAT THE ORDER PASSED BY THE REVISIONAL AUTHORITY HAVING BEEN QUASHED, THE ORIGINAL ORDER P ASSED BY THE A.O. UNDER SECTION 143(3) READ WITH SECTION 147 STANDS AND THE CONSEQUENTIAL ORDER PASSED BY THE A. O. BECOMES INFRUCTUOUS OR IT HAS NO LEGS TO STAND. THE LD. CIT(A) ACCEPTED THE CONTENTION OF THE ASSESSEE BY OBSERVING AS UNDER : 3 ITA.NO.84/HYD/2016 M/S. HASTHA AGRO TECH P. LTD., HYDERABAD. 6.1. CONSIDERING THE FACT THAT THE ORDER UNDER SECTION 263 WAS SET ASIDE, THE ORDER UNDER REFERENCE WHICH WAS RELIED ON THE ORDER OF CIT, ALS O BECOMES INFRUCTUOUS AND ACCORDINGLY THE ORDER OF THE A.O. PASSED UNDER SECTION 143(3) READ WITH SECTION 263, IS ORDERED TO BE SET ASIDE AND TREATED AS INFRUCTUOUS. ACCORDINGLY, THE APPEAL OF THE ASSESSEE TREATED AS ALLOWED. 5. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. THE PLEA OF THE REVENUE IS THAT THE ORDER PASSED BY THE ITAT WAS CHALLENGED BEFORE THE HONBLE HIGH COURT OF A.P. AND HENCE, THE LD. CIT(A) WAS NOT JUSTIFIED IN FOLLOWING THE ORDER OF THE ITAT. AT THE TIME OF HEA RING, LD. D.R. FAIRLY ADMITTED THAT TILL THE DATE OF ORDER OF THE ITAT IS STAYED OR SUSPENDED BY THE HONBLE HIGH COURT IT IS DEEMED TO BE IN OPERATION AND IT IS BINDING ON THE COMMISSIONER (APPEALS). IT IS NOT IN DISPUTE THAT T HE ITAT, HYDERABAD BENCH HAS ALREADY SET ASIDE THE ORDER PAS SED UNDER SECTION 263 OF THE ACT IN WHICH EVENT, THE OR DER PASSED BY THE A.O. UNDER SECTION 143(3) READ WITH S ECTION 263 OF THE ACT LEAVE NO LEGS TO STAND. SINCE THE CI T(A) FOLLOWED THE BINDING DECISION OF THE ITAT, I DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A) AND THEREF ORE, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21.06. 2016. SD/- (D. MANMOHAN) VICE PRESIDENT HYDERABAD DATED 21 ST JUNE, 2016 VBP/- 4 ITA.NO.84/HYD/2016 M/S. HASTHA AGRO TECH P. LTD., HYDERABAD. COPY TO 1. THE DCIT, CENTRAL CIRCLE - 3(2)(I/C), 3 RD FLOOR, POSNETT BHAVAN, TILAK ROAD, HYDERABAD. 3. M/S. HASTHA AGRO TECH PVT. LTD., NO.51, LUMBINI SLN SPRINGS, GACHIBOWLI, HYDERABAD 500 032. 4. CIT(A) - 12 , 6 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD 500 004. . 5. PR. CIT(CENTRAL), HYDERABAD. 5. D.R. ITAT B (SMC) BENCH, HYDERABAD. 6. GUARD FILE