ACIT, CIRCLE-1(1)(1), SURAT, INCOME TAX OFFICE V. MAHOTSAV CREATION PRIVATE LIMITED, Surat

ITA 902/SRT/2023

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 3458 (ITAT-SURAT)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 28-02-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 26-12-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VINOD KUMAR
• Assessee Lawyers: HARDIK VORA
• Keywords: Set aside; Unexplained cash credit
• Section: 143(3)

Judgement Text

आयकर अपीलीय अिधकरण, सुरत Ɋायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND Dr ARJUN LAL SAINI, ACCOUNTANT MEMBER आ.अ.सं./ITA No.902/SRT/2023 (AY 2011-12) & आ.अ.सं./ITA No.904/SRT/2023 (AY 2010-11) (Hybrid Hearing) Asstt. Commissioner of Income- tax, Circle-1(1)(1), Surat, Room No. 108, 1 st Floor, Aaykar Bhavan, Majura Gate, Surat- 395001 Vs Mahotsav Creation Pvt. Ltd. 101-102, 1 st Floor, Sadaar Textile Market, Fudina Wadi, Ring Road, Surat-395002 PAN No. AAECM 2394 Q अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Hardik Vora Advocate राजˢ की ओर से /Revenue by Shri Vinod Kumar, Sr-DR सुनवाई की तारीख/Date of hearing 29.02.2024 उद्घोषणा की तारीख/Date of pronouncement 29.02.2024 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. These two appeals by Revenue are directed against the separate orders of National Faceless Appeal Centre, Delhi [for short to as “NFAC/Ld. CIT(A)”] both dated 30.10.2023 for the assessment years 2011-12 & 2010-11, which in turn arise out of separate assessment orders passed by Asstt. Commissioner of Income-tax, Circle-1(1)(1) Surat / Assessing Officer under section 143(3) r.w.s. 263 of Income Tax Act, 1961 (hereinafter referred to as ‘the Act’ for the sake of brevity) both dated 30.03.2022. In both the appeals, Revenue has raised certain common grounds except variation of addition of share application and share premium and unexplained cash credits. Therefore, with the consent of ITA Nos.902 & 904/SRT/2023 (A.Ys 11-12 & 10-11) Mahotsav Creation Pvt. Ltd. 2 both the parties, both appeals were clubbed, heard together and are decided by common order to avoid conflicting decision. 2. At the outset of hearing, the Ld. Authorized Representative (Ld.AR) for the assessee submits that assessment for assessment year 2010-11 passed under section 143(3) r.w.s. 147 dated 21.12.2017 was revised by Ld. Principal Commissioner of Income-tax-1, Surat by exercising his jurisdictional under section 263 of the Act. The order of Ld. PCIT-1 passed under section 263 was challenged before the Tribunal in ITA No.49/SRT/2021, wherein order passed under section 263 dated 31.03.2021 was quashed / set aside. Similarly, assessment for assessment year 2011-12 was also revised by Ld. PCIT-1 in exercising his jurisdiction under section 263 of the Act dated 31.03.2021. Similar order was challenged before the Tribunal in ITA No.50/SRT/2021. Both the order of Ld. PCIT-1 were set aside / quashed by the Tribunal in ITA No.50/SRT/2021. In the meantime, the Assessing Officer passed the order effect to the direction of Ld.PCIT-1 by making addition. However, on appeal before Ld.CIT(A), the Ld.CIT(A) in the impugned order accepted the appeal of assessee by holding that once the order of Ld.PCIT-1 passed under section 263 are quashed the consequential assessment order passed under section 263 r.w.s. 143(3) become infructuous. Thus, grounds of appeal raised by Revenue are covered in favour of assessee. Subsequently, the assessment was revised by Ld. Principal Commissioner of Income Tax-1, Surat (Ld. PCIT) by exercising his jurisdiction under section 263 vide order dated 21.12.2017. ITA Nos.902 & 904/SRT/2023 (A.Ys 11-12 & 10-11) Mahotsav Creation Pvt. Ltd. 3 3. On the other hand, Ld. Commissioner of Income Tax-Departmental Representative (Ld.CIT-DR) for the Revenue submits that Revenue has challenged the order of Tribunal in ITA No.49-50/SRT/2021 before the Hon’ble jurisdictional High Court and the Assessing Officer/ Department wants to keep the issue alive till the decision of Hon’ble jurisdictional High Court. 4. We have considered the rival submissions of both the parties and have gone through the order of lower authorities carefully. We have also gone through the order of this co-ordinate Bench of this Tribunal in ITA No.49-50/SRT/2021. We find that there is no dispute that assessment order passed under section 143(3) r.w.s. 147 dated 21.11.2017 was revised by Ld. PCIT-1 Surat by exercising his jurisdiction under section 263. It is an admitted fact that order passed under section 263 for both the assessment years have already been quashed / set aside by this Tribunal in order dated 22.08.2022 in ITA No. 49&50/Srt/2021. Thus, the additions made in consequential assessment orders will not survive. Thus, the grounds of both the appeals raised by Revenue are dismissed. 5. In the result, both the appeals of the Revenue are dismissed. Order pronounced in the open court on Thursday, 29 th February, 2024 at the time of hearing. Sd/- Sd/- (Dr ARJUN LAL SAINI) (PAWAN SINGH) [लेखा सद˟/ACCOUNTANT MEMBER] [Ɋाियक सद˟ JUDICIAL MEMBER] Surat, Dated: 29/02/2024 Dkp. Out Sourcing Sr.P.S ITA Nos.902 & 904/SRT/2023 (A.Ys 11-12 & 10-11) Mahotsav Creation Pvt. Ltd. 4 Copy to: 1. Appellant- 2. Respondent- 3. CIT 4. DR 5. Guard File True copy/ // True Copy // Sr. Private Secretary /Private Secretary /Assistant Registrar, ITAT, Surat