M/s Balaji Enterprises, Pune V. ITO, Pune

ITA 880/PUN/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 56639 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-12-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 09-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K SINGH
• Assessee Lawyers: S K SHRINIVASAN
• Keywords: Validity of assessment; Set aside
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JM AND SHRI D.KARUNAKARA RAO, AM I.T.A. NO. 880/PN/2010 : A.Y. 2006-07 M/S. BALAJI ENTERPRISES 82/1/B-19 BASANT BAHAR SAHKARNAGAR, PUNE-9 PAN AABFB 2268 G .. APPELLANT VS. I.T.O. CENTRAL II, PUNE .. RESPO NDENT APPELLANT BY: SHRI S.K. SHRINIVASAN RESPONDENT BY: SHRI S.K. SINGH DATE OF HEARING: 26-12-11 DATE OF PRONOUNCEMENT: 30-12-2011 ORDER PER SHAILNDRA KUMAR YADAV, JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-IV PUNE DATED 25-1-2010 FOR A.Y. 2006-07 ON THE FOLLOWING GROUNDS: 1. THE LEARNED CIT(A) ERRED IN UPHOLDING THE VALIDITY OF THE ASSESSMENT ORDER PASSED U/S 153A READ WITH SEC. 143(3) OF THE ACT EVEN THOUGH THE NOTICE U/S 143(2) WAS NOT SERVED ON THE ASSESSEE AS PER LAW. 2. THE LEARNED CIT(A) ERRED IN INVOKING THE PROVISIONS OF RULE 46A OF THE I.T. RULES IN DECIDING THE ISSUE ABOUT VALIDITY OF ASSESSMENT WHEN NO FRESH EVIDENCE WAS BROUGHT FORTH BEFORE THE LEARNED CIT(A) BY THE ASSESSEE. 3. THE LEARNED CIT(A) ERRED IN SUSTAINING U/S 24, THE DISALLOWANCE OF RS. 53,653/- BEING INTEREST PAID ON LOAN TAKEN FOR THE ACQUISITION/RENOVATION OF THE HOUSE PROPERTY. ITA NO. 880//PN/2010 BALAJI ENTERPRISES AY. 2006-07 2 4. THE ASSESSMENT UNDER SECTION 153A BE HELD AS TIME BARRED, INVALID AND BE CANCELLED. 2. THE ASSESSEE HAS FILED ITS RETURN OF INCOME ON 3 1-7- 2006. THE LAST DATE FOR SERVING THE NOTICE U/S 142(1)/143(2) OF THE ACT WAS 31-7-2007 (I.E. 12 MON THS FROM THE END OF THE MONTH IN WHICH THE RETURN IS FI LED). NOTICE U/S 142(1)/143(2) OF THE ACT WAS SERVED ON T HE ASSESSEE ON 24-10-2007. ACCORDING TO THE ASSESSEE, ASSESSMENT ORDER PASSED ON 28-12-2007 U/S 143(3) OF THE ACT IS INVALID. ACCORDINGLY, THE SAME SHOULD B E SET ASIDE. THIS CONTENTION OF THE ASSESSEE IS FORTIFIE D BY THE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF AS STT. CIT VS. HOTEL BLUE MOON (2010) 321 ITR 362 (SC). S O IN VIEW OF THE JUDGMENT OF THE HONBLE SUPREME COURT I N THE CASE OF HOTEL BLUE MOON (SUPRA) THE NOTICE ISSU ED U/S 142(1)/143(2) IS BARRED BY LIMITATION. ACCORDI NGLY, THE ASSESSMENT BASED ON THE SAME IS SET ASIDE. SIN CE WE ARE SETTING ASIDE THE ORDER OF THE CIT(A) ON THE PRELIMINARY ISSUE, SO WE ARE REFRAINED TO COMMENT O N MERITS OF THE ISSUE AT HAND. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH DECEMBER 2011. SD/- SD/- ( D. KARUNAKARA RAO ) ACCOUNTANT MEMBER ( SHAILENDRA KUMAR YADAV) JUDICIAL MEMBER PUNE: DATED: 30 TH DECEMBER 2011 ANKAM ITA NO. 880//PN/2010 BALAJI ENTERPRISES AY. 2006-07 3 COPY OF THE ORDER IS FORWARDED TO : 1. ASSESSEE 2. DEPARTMENT 3. THE CIT(A) IV PUNE 4. THE CIT, - CENTRAL, PUNE 5. THE D.R, B BENCH, PUNE TRUE COPY BY ORDER SR. PRIVATE SECRETARY ITAT, PUNE BENCHES, PUNE +