DCIT Circle 18 (1), V. Uttam Sugar mills Ltd,

ITA 921/DEL/2008

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9925 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2009
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 08-09-2009
• Assessment Year: 2005-2006
• Appeal Filed On: 10-03-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N K CHAND
• Keywords: Retrospective amendment
• Section: 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `H : NEW DELHI) BEFORE SHRI A.D. JAIN, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.921/DEL./2008 (ASSESSMENT YEAR : 2005-06) DCIT, CIRCLE 18(1), VS. M/S UTTAM SUGAR MILLS LT D., NEW DELHI. 7-C, FIRST FLOOR, J-BLOCK, SHOPPING CENTRE, SAKET, NEW DELHI. (PAN/GIR NO.AAACU2186Q) (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI N.K. CHAND, SR.DR ORDER PER A.K. GARODIA: AM THIS IS A REVENUES APPEAL DIRECTED AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME-TAX (APPEALS),-XXI, NEW DELHI, DATED 14.12. 2007 FOR ASSESSMENT YEAR 2005-06. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF SERVICE OF NOTICE. NOTICE HAS BEEN SENT AT THE ADDRESS AVAILABLE ON RECORD AND TH E SAME HAS NOT COME BACK UNSERVED AND, HENCE SERVICE OF NOTICE IS PRESUMED. IN SPITE OF THIS, NONE APPEARED ON BEHALF OF THE ASSESSEE ON THIS DATE OF HEARING. ON AN EARLIER DA TE ALSO I.E. 23.06.09, NONE APPEARED ON BEHALF OF THE ASSESSEE AND, HENCE WE DECIDE THIS AP PEAL OF THE REVENUE EX-PARTE QUA-THE- ASSESSEE, BECAUSE WE FIND THAT THE ISSUE INVOLVED I N THIS APPEAL IS COVERED AGAINST THE ASSESSEE BY RETROSPECTIVE AMENDMENT IN THE INCOME-T AX ACT, 1961. 3. THE ONLY GROUND RAISED BY THE REVENUE IN THIS AP PEAL READS AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS ERRED IN DELETING THE ASSESSING OFFICER TO REDUCE THE BOOK P ROFIT U/S 115JB OF THE I.T. ACT, 1961 BY THE SUM OF RS.3,49,73,188. 4. IT IS SUBMITTED BY THE LD.DR OF THE REVENUE THAT EXPLANATION (H) HAS BEEN INSERTED IN SECTION 115JB BY THE FINANCE ACT, 2008 WITH RETR OSPECTIVE EFFECT FROM 1.4.2001. IT IS I.T.A. NO.921/DEL./2008 (A.Y. : 2005-06) 2 SUBMITTED THAT IN THE PRESENT CASE, THE ASSESSMENT YEAR INVOLVED IS 2005-06 AND, HENCE AS PER THIS RETROSPECTIVE AMENDMENT, THIS ISSUE IS TO BE DECIDED AGAINST THE ASSESSEE. 5. WE HAVE CONSIDERED THE SUBMISSION BY THE LD.DR O F THE REVENUE. WE FIND THAT COMMISSIONER OF INCOME-TAX (APPEALS) HAS DECIDED TH IS ISSUE IN FAVOUR OF THE ASSESSEE ON THE BASIS OF PRE-AMENDED PROVISIONS OF SECTION 1 15JB BY FOLLOWING THE TRIBUNALS DECISION RENDERED IN THE CASE OF ACIT VS. BALRAMPUR CHINNI MILLS LTD., AS REPORTED IN 111 TTJ(KOL.) 230. AS PER RETROSPECTIVE AMENDMENT BY FINANCE ACT, 2008, CLAUSE (H) OF EXPLANATION TO SECTION 115JB HAS BEEN INSERTED WITH RETROSPECTIVE EFFECT FROM 1.04.2001 AS PER WHICH ADDITION HAS TO BE MADE ON ACCOUNT OF DEBIT IN P&L A/C FOR DEFERRED TAX AND THE PROVISION THEREOF. IN THE PRESENT CASE, THE AS SESSING OFFICER HAS DONE PRECISELY THE SAME AND HENCE, WE REVERSE THE ORDER OF THE COMMISS IONER OF INCOME-TAX (APPEALS) ON THIS ISSUE AND RESTORE THAT OF THE ASSESSING OFFICE R. THIS GROUND OF THE REVENUE IS ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED. 7. ORDER PRONOUNCED IN OPEN COURT ON 8.9.2009 AT TH E CONCLUSION OF THE HEARING OF THE APPEAL. (A.D. JAIN) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: SEPT. 08, 2009. *SKB* COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A)-XXI, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. AR/ITAT I.T.A. NO.921/DEL./2008 (A.Y. : 2005-06) 3