ACIT, Ludhiana V. M/s Arora Fabrics Pvt. Ltd., Ludhiana

ITSSA 13/CHANDI/2009

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 3577 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 22-01-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 25-05-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Assessment record

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & DR. B.R.R. KUMAR, ACCOUNTANT MEMBER IT(SS)A NO. 13/CHD/2009 U/S 158 BD (BLOCK PERIOD 1.4.1996 TO 5.2.2003) THE ACIT, CIRCLE-III, VS. M/S ARORA FABRICS PVT. L TD., LUDHIANA LUDHIANA PAN NO. AABCA5335J (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. CHANDERKANTA, DR RESPONDENT BY : SH. SUDHIR SEHGAL DATE OF HEARING : 22.01.2018 DATE OF PRONOUNCEMENT : 22.01.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN REMANDED BACK BY THE HO N'BLE PUNJAB & HARYANA PUNJAB & HARYANA HIGH COURT VIDE THEIR ORDE R DATED 10.4.2015. 2. THE QUESTION BEFORE THE HON'BLE HIGH COURT WAS R EGARDING THE SATISFACTION RECODED BY THE ASSESSING OFFICER OF TH E SEARCHED PERSON U/S 158BD OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE AC T'). THE PLEA OF THE ASSESSEE WAS THAT THE ALLEGED SATISFACTION RECORDED BY THE ASSESSING OFFICER WAS AFTER THE COMPLETION OF THE ASSESSMENT PROCEEDI NGS OF THE SEARCHED PERSON. ANOTHER PLEA RAISED WAS THAT EVEN THE ALLE GED SATISFACTION WAS NOT GENUINE AS NO SUCH SATISFACTION DATED 15.7.2005 WAS EVER RECORDED BY THE 2 ASSESSING OFFICER. SO FAR AS THE EFFECT OF RECORDI NG OF SATISFACTION AFTER THE COMPLETION OF THE ASSESSMENT OF THE SEARCHED PERSON IS CONCERNED, THE HON'BLE HIGH COURT DECIDED THE ISSUE IN FAVOUR OF T HE REVENUE. HOWEVER, SO FAR AS THE QUESTION AS TO THE GENUINENESS OF THE SATISFACTION AS TO WHETHER THE SAME IS FABRICATED OR FALSE AS CONTENDE D BY THE ASSESSEE, THE SAME HAS BEEN REMANDED TO THE TRIBUNAL. 3. TODAY, ORIGINAL SATISFACTION NOTE HAS NOT BEEN P RODUCED BEFORE US. HOWEVER, THE LD. DR HAS CONTENDED THAT SINCE THE IS SUE RAISED IS A FACTUAL ISSUE AND HAS BEEN RAISED FIRST TIME BEFORE THE TRI BUNAL AND THAT FURTHER VERIFICATION OF THE CASE RECORDS ARE NECESSARY IN T HIS CASE, HENCE, IT WILL BE APPROPRIATE TO REMAND THE MATTER TO THE FILE OF THE CIT(A) WHO WILL EXAMINE THE RECORDS AND DECIDE THE ISSUE AFTER CON SIDERING THE CONTENTION OF THE ASSESSEE. SHE IN THIS RESPECT HAS RELIED UPO N THE DECISION OF THE HON'BLE MADHYA PRADESH HIGH COURT IN THE CASE OF CI T VS. TOLLARAM HASSOMAL [2008] 298 ITR 22 (M.P.) WHEREIN THE HON'B LE HIGH COURT HAS HELD THAT IF THE ADDITIONAL FACTUAL PLEAS ARE RAISE D BEFORE THE TRIBUNAL AND SAME ARE ADMITTED THESE SHOULD NOT BE STRAIGHT AWAY DECIDED BY THE TRIBUNAL RATHER IT WOULD BE APPROPRIATE TO SEND THE SAME FOR DECISION AFRESH TO THE FILE OF THE CIT(A). THE LD. COUNSEL F OR THE ASSESSEE HAS ALSO SUBMITTED THAT IN THE FACTS AND CIRCUMSTANCES OF TH E CASE, THE ISSUE MAY BE RESTORED TO THE FILE OF THE CIT(A) FOR THE LIMITED ASPECT OF EXAMINING THE ABOVE CONTENTION OF THE ASSESSEE DISPUTING GENUINEN ESS OF THE SATISFACTION RECORDED. 4. THE HON'BLE JURISDICTIONAL HIGH COURT HAS REMAND ED THE MATTER IN QUESTION TO THE FILE OF THIS TRIBUNAL AND, IN OUR V IEW, THERE IS NO BAR ON THE TRIBUNAL IN THE FACTS AND CIRCUMSTANCES OF THE CASE , TO DECIDE THE ISSUE 3 ITSELF OR REMAND THE SAME TO THE FILE OF THE CIT(A) . HOWEVER, AS SUBMITTED BY BOTH THE LD. REPRESENTATIVES OF THE PARTIES THAT IN THE PECULIAR FACTS AND CIRCUMSTANCES OF THE CASE, THE FACTUAL ISSUE RAISED BY THE ASSESSEE IS REQUIRED TO BE EXAMINED AT THE HANDS OF THE CIT(A) AFTER EXAMINATION AND VERIFICATION OF THE ASSESSMENT RECORDS OF THIS CASE AS WELL AS RECORDS OF THE SEARCHED PERSON CONTAINING THE SATISFACTION NOTE. H ENCE, CONSIDERING THE OVERALL FACTS AND CIRCUMSTANCES OF THE CASE, THE MA TTER IS RESTORED TO THE FILE OF THE CIT(A) ON THE LIMITED ISSUE OF EXAMININ G THE CONTENTION OF THE ASSESSEE REGARDING THE GENUINENESS OF THE SATISFACT ION NOTE RECORDED BY THE ASSESSING OFFICER OF THE SEARCHED PERSON PURSUANT T O WHICH PROCEEDINGS U/S 158BD WERE INITIATED AGAINST THE ASSESSEE. NEED LESS TO SAY THAT CIT(A) WILL GIVE PROPER OPPORTUNITY TO THE ASSESSEE TO PRE SENT ITS CASE. THE APPEAL IS DISPOSED OF ACCORDINGLY. ORDER PRONOUNCED IN THE OPEN COURT SD/- SD/- (DR. B.R.R. KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 22.01.2018 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR