DCIT, CHENNAI V. M/s. Chemplast Sanmar Ltd., CHENNAI

ITA 89/CHNY/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5184 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 19-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SRINIVAS
• Assessee Lawyers: R VIJAYARAGHAVAN
• Section: 143(3); 115JB; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH C : CHENNAI [BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER] I.T.A NO. 89/MDS/2011 ASSESSMENT YEAR : 2004-05 THE DY. CIT LARGE TAXPAYER UNIT CHENNAI VS M/S CHEMPLAST SANMAR LTD NO.9, CATHEDRAL ROAD CHENNAI 600 086 [PAN AAACC3000F ] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B. SRINIVAS RESPONDENT BY : SHRI R.VIJAYARAGHAVAN O R D E R PER HARI OM MARATHA, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE, FOR ASSESSMENT YEAR 2004-05, IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A), LARGE TAXPAYER UNIT, DATED 7.10.2010. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE- COMPANY IS ENGAGED IN THE MANUFACTURE AND SALE OF P VC RESINS, CAUSTIC SODA, CHLOROMETHANE AND REFRIGERANT GASES. FOR ASSESSMENT YEAR 2004-05, THE ASSESSEE FILED ITS RETURN OF IN COME ON 29.10.2004 DECLARING NIL INCOME UNDER NORMAL METHOD AND ` 1,46,12,151/- UNDER SECTION 115JB OF THE ACT. THE ASSESSMENT WAS COMP LETED U/S 143(3) ITA 89/11 :- 2 -: ON 20.12.2006. SUBSEQUENTLY, THE LD. CIT REVISED T HE ASSESSMENT ORDER U/S 263 DIRECTING THE ASSESSING OFFICER TO DI SALLOW THE LONG TERM CAPITAL LOSS ON SALE OF UTI BONDS OF ` 43,07,692/-, THE PROVISION MADE FOR GRATUITY; AND VERIFY THE PROVISION MADE FOR CO NTINGENCIES. THE ASSESSING OFFICER PASSED THE ORDER U/S 143(3) R.W.S 263 OF THE ACT ON 25.11.2009 ADDING BACK THESE EXPENSES. BEING AGGRI EVED, THE ASSESSEE PREFERRED FIRST APPEAL AND THE LD. CIT(A) HAS ALLOWED THE APPEAL BY DELETING THE ADDITIONS MADE IN THE ORDER OF ASSESSMENT PASSED PURSUANT TO THE DIRECTIONS GIVEN U/S 263 BY THE LD. CIT. THE LD. CIT(A) HAS HELD THAT THE PRESENT ASSESSMENT ORDER W OULD NOT SURVIVE BECAUSE THE TRIBUNAL HAS ALREADY STRUCK DOWN THE RE VISIONAL PROCEEDINGS IN I.T.A.NO. 611/MDS/2009 VIDE ORDER DA TED 7.5.2010. NOW, THE REVENUE IS IN APPEAL STATING THAT THE REVE NUE IS FURTHER IN APPEAL AGAINST THE TRIBUNALS ORDER DATED 7.5.2010 AND THEREFORE, THE MATTER SHOULD BE KEPT OPEN BY REVIVING THE ORDER DA TED 25.11.2009 PASSED U/S 263 R.W.S 143(3)OF THE ACT. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE C AREFULLY GONE THROUGH THE RECORDS. ADMITTEDLY, THE TRIBUNAL HAS STRUCK DOWN THE REVISIONAL PROCEEDINGS CARRIED OUT U/S 263, VID E ITS ORDER DATED 7.5.2010. WHEN THE ORDER PASSED U/S 263 ITSELF DOE S NOT SURVIVE, ANY COMPLIANCE MADE THEREOF WOULD NOT SURVIVE EITHER. THEREFORE, THE ASSESSMENT ORDER PASSED SUBSEQUENT TO THE REVISIONA L ORDER, WOULD ITA 89/11 :- 3 -: BECOME INFRUCTUOUS IN VIEW OF THE FINDING OF THE TR IBUNAL. CONSEQUENTLY, THE APPEAL OF THE REVENUE CANNOT BE A LLOWED AND STANDS DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29.4.2011 SD/- SD/- (DR. O.K. NARAYANAN) VICE-PRESIDENT (HARI OM MARATHA) JUDICIAL MEMBER DATED: 29 TH APRIL, 2011 RD COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR