Spray Engineering Devices Limited, Chandigarh V. DCIT, Chandigarh

ITA 998/CHANDI/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57735 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-03-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 13-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARI
• Section: 143(3); 244A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO.998 /CHD/2011 (ASSESSMENT YEAR : 2005-06) SPRAY ENGINEERING DEVICES LIMITED, VS. THE D.C.I. T., CHANDIGARH. CIRCLE 1(1), CHANDIGARH. PAN: AAICS5252M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VINEET AGGARWAL RESPONDENT BY : SMT.JYOTI KUMARI, CIT DR DATE OF HEARING : 19.03.2012 DATE OF PRONOUNCEMENT : 26.03.2012 O R D E R PER SUSHMA CHOWLA, J.M, : THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME TAX (APPEALS), CHANDIGARH DA TED 18.07.2011 RELATING TO ASSESSMENT YEAR 2005-06 AGAINST THE ORD ER PASSED U/S 143(3) R.W.S. 263 OF THE INCOME TAX ACT, 1961(IN SHORT TH E ACT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: THAT THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS), CHANDIGARH AS ERRED IN LAW AND AS WE LL AS ON FACTS WHILE PASSING ON FOLLOWING GROUNDS: 1. THAT THE LEARNED CIT (APPEALS) HAS ERRED IN ADJUDICATING ON MERITS THAT IN THE EVENT OF CONVERSION OF PARTNERSHIP FIRM INTO A LIMITED COMPANY, BENEFIT OF DEDUCTION U/S 80-IB AMOUNTING TO RS.2,41,53,759/- AND DEDUCTION U/S 80-IC AMOUNTING TO RS.9,03,25,657/- ARE NOT AVAILABLE TO THE ASSESSEE COMPANY FOR THE UNEXPIRED PERIOD OF THE ELIGIBLE DEDUCTION AVAILABLE TO THE ERSTWHILE PARTNERSHIP FIRM, DESPITE THE CBDT CIRCULAR NO.F 15/5/63 DATED 13-12-1963. 2. THAT LEARNED CIT (APPEALS) HAS ERRED IN IGNORING THE SUBMISSION OF THE ASSESSEE, CASE LAWS, CBDT CIRCULAR AND FAVOURABLE ORDER OF LEARNED CIT 2 (APPEALS) ON SAME ISSUE FOR AY 2006-07 AND PASSED THE ORDERS ONLY ON THE CONJECTURE AND SURMISES. 3. THAT THE LD. ASSESSING OFFICER ERRED IN LEVYING INTEREST UNDER SECTION 234B/234D AND WITHDRAWING INTEREST U/S 244A OF THE ACT. 4. THAT THE LEARNED ASSESSING OFFICER ERRED IN INITIATING PENALTY PROCEEDINGS U/S 271(1)(C). 3. THE LEARNED A.R. FOR THE ASSESSEE AT THE OUTSET POINTED OUT THAT THE PRESENT APPEAL IS AGAINST THE ORDER OF THE ASSESSIN G OFFICER PASSED UNDER SECTION 143(3) R.W.S. 263 OF THE ACT. IT WAS FURTH ER POINTED OUT BY THE LEARNED A.R. FOR THE ASSESSEE THAT THE TRIBUNAL IN ASSESSEES OWN CASE HAD QUASHED THE ORDER OF THE COMMISSIONER OF INCOME TAX PASSED UNDER SECTION 263 OF THE ACT AND CONSEQUENTLY THE ASSESSM ENT ORDER PASSED BY THE ASSESSING OFFICER IS ALSO TO BE QUASHED. 4. THE LEARNED D.R. FOR THE REVENUE DID NOT CONTROV ERT THE FACTUAL FINDINGS. HOWEVER, THE LEARNED D.R. FOR THE REVENU E PLACED RELIANCE ON THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSMENT ORDER DATED 30.12.2010 WAS PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) OF THE ACT PURSUANT TO THE DIR ECTIONS OF THE COMMISSIONER OF INCOME TAX UNDER SECTION 263 OF THE ACT. THE ASSESSEE HAD CHALLENGED THE JURISDICTION OF COMMISSIONER OF INCOME TAX EXERCISED UNDER SECTION 263 OF THE ACT BY WAY OF AN APPEAL FILED BEFORE THE TRIBUNAL. THE TRIBUNAL IN ITA NO.514/CHD/2010 RELATING TO ASSESSMENT YEAR 2005-06 IN ASSESSEES OWN CASE VIDE ORDER DATED 22.9.2011 HAD QUASHED THE ORDER PASSED BY THE COMMI SSIONER OF INCOME TAX UNDER SECTION 263 OF THE ACT. PURSUANT TO THE QUASHING OF THE ORDER PASSED UNDER SECTION 263 OF THE ACT, THE ASSESSMENT COMPLETED IN THE PRESENT CASE DOES NOT STAND AND THE SAME IS ALSO QU ASHED. IN VIEW 3 THEREOF, WE ALLOW THE APPEAL FILED BY THE ASSESSEE ON THE PRELIMINARY ISSUE ITSELF AND DO NOT ENTERTAIN THE ISSUE RAISED ON THE MERITS OF ADDITION. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH DAY OF MARCH, 2012. SD/- SD/- (MEHAR SINGH) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 26 TH MARCH, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH