Sicilia Hotels P.Ltd, Thodupuzha V. ACIt, Ernakulam

ITSSA 133/COCH/2004

• Counselvise Citation: [2012] 121 COUNSELVISE.COM (IT) 8579 (ITAT-COCHIN)
• Duration Of Justice: 7 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 07-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 10-12-2004
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Agreed addition

Judgement Text

1 IT(SS)A NO. 133/COCH/2004 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKA RAN(AM) I.T(SS)A NO. 133/COCH/2004 (BLOCK PERIOD 1990-91 TO 1999-2000) SICILIA HOTELS P LTD VS A.C.I.T., CIR.1 IDUKKI ROAD, THODUPUZHA ERNAKULAM PAN : AADCS3231M (APPELLANT) (RESPONDENT) I.T(SS)A NO. 156/COCH/2004 (BLOCK PERIOD 1990-91 TO 1999-2000) A.C.I.T, CIR.1(2) VS SICILIA HOTELS P LTD ERNAKULAM IDUKKI ROAD, THODUPUZHA (APPELLANT) (RESPONDENT) TAXPAYER BY : NONE (WRITTEN SUBMISSION FILED) REVENUE BY : SHRI ANIL KUMAR DATE OF HEARING : 19-11-2012 DATE OF PRONOUNCEMENT : 07-12-2012 O R D E R PER N.R.S. GANESAN (JM) THESE CROSS APPEALS OF THE TAXPAYER AND THE REVENU E WERE DISPOSED OF BY THIS TRIBUNAL BY AN ORDER DATED 31/01/2008. HOWEVER, ON APPEAL BY 2 IT(SS)A NO. 133/COCH/2004 THE REVENUE, THE HIGH COURT REMANDED THE MATTER BAC K TO THE FILE OF THE TRIBUNAL. ACCORDINGLY, THESE APPEALS WERE FIXED FO R HEARING ON 19 TH NOVEMBER, 2012 FOR FINAL DISPOSAL. WHEN THE APPEAL S WERE TAKEN UP FOR HEARING NO ONE APPEARED FOR THE TAXPAYER. HOWEVER, THE TAXPAYER HAS FILED A WRITTEN SUBMISSION SAYING THAT AS DIRECTED BY THE HIGH COURT, THE TAXPAYER HAD APPROACHED THE DEPARTMENT FOR SETTLEMENT OF THE MATTER AND BOTH THE DEPARTMENT AND THE TAXPAYER AGREED FOR ADDITION OF RS.14,19,261. IN VIEW OF THE SETTLEMENT REACHED BY THE TAXPAYER AND THE D EPARTMENT, THE TAXPAYER PRAYED FOR APPROPRIATE ORDER FROM THE TRIB UNAL. 3. WE HEARD, SHRI ANIL KUMAR, THE LD.DR ALSO. THE LD.DR SUBMITTED THAT AS PER THE DIRECTION OF THE HIGH COURT, THE TAXPAYE R APPROACHED THE DEPARTMENT FOR SETTLEMENT OF THE DISPUTE AND THE AS SESSING OFFICER ACCEPTED THE PROPOSAL SUBMITTED BY THE TAXPAYER DET ERMINING THE INCOME FOR THE BLOCK PERIOD AT RS.14,19,261. THE PROPOSAL WAS ALSO APPROVED BY THE COMMISSIONER OF INCOME-TAX. IN VIEW OF THE SET TLEMENT REACHED BETWEEN THE DEPARTMENT AND THE REVENUE AS DIRECTED BY THE HIGH COURT, THE LD.DR SUBMITTED THAT APPROPRIATE ORDER MAY BE P ASSED. THE LD.DR HAS 3 IT(SS)A NO. 133/COCH/2004 PLACED ON RECORD COPY OF THE LETTER WRITTEN BY THE ASSESSING OFFICER TO THE COMMISSIONER OF INCOME-TAX FOR APPROVAL. 4. WE HAVE CONSIDERED THE SUBMISSIONS FROM BOTH SID ES AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. WHILE RE MANDING THE MATTER BACK TO THE FILE OF THIS TRIBUNAL, THE HIGH COURT H AS OBSERVED AS FOLLOWS AT PARAGRAPH 3 OF THE JUDGMENT: 3. EVEN THOUGH WE HAVE REMANDED THE MATTER TO THE TRIBUNAL, WE FEEL SINCE THE MATTER IS A VERY OLD ONE, IT IS F OR THE ASSESSEE TO APPROACH THE DEPARTMENT FOR ASSESSMENT ON AGREED ADDITIONS. IF THE ASSESSEE COMES FORWARD WITH ANY SETTLEMENT, WE FEEL THE DEPARTMENT SHOULD TAKE A REALISTIC APPR OACH AND OFFER REASONABLE SETTLEMENT. IN VIEW OF THIS OBSERVATION OF THE HIGH COURT, THE TAXPAYER APPROACHED THE ASSESSING OFFICER FOR SETTLEMENT. THE ASSESSING OF FICER, AFTER CONSIDERING THE PROPOSAL, AGREED FOR AN ADDITION OF RS.14,19,261 FO R THE BLOCK PERIOD. IN FACT, THE ASSESSING OFFICER HAS OBSERVED AS FOLLOWS : 4 IT(SS)A NO. 133/COCH/2004 12. THE PROPOSAL FOR ACCEPTING THE OFFER FROM THE ASSESSEE, AND TO DETERMINE THE INCOME OF BLOCK PERIOD AS RS.1 4,19,621 (SIC) HAS BEEN APPROVED BY THE COMMISSIONER OF INCOME TA X-I. THUS A SETTLEMENT AS DIRECTED BY THE HONBLE HIGH C OURT MAY BE OFFERED IF THE ASSESSEE CAN OFFER AN INCOME OF R S.14,19,261 FOR THE BLOCK PERIOD AND PAY THE TAX AND INTERESTS AS DUE. ASSESSEES CONDITION THAT NO INITIATION OF PENALTY CANT BE MET. PENALTY PROCEEDINGS AND RELEASE OF DOCUMENTS SHALL BE AS PER THE RULES AND PROCEDURES FOR THE SAME. THIS PROPOSAL WAS ALSO ACCEPTED BY THE COMMISSIONER OF INCOME-TAX. IN VIEW OF THE ABOVE, AS DIRECTED BY THE HIGH COURT TH E DEPARTMENT AND THE TAXPAYER HAVE AGREED FOR ADDITION OF RS.14,19,261. THEREFORE, NOTHING SURVIVES FOR ADJUDICATION IN THESE APPEALS. IN VIEW OF THE AGREEMENT REACHED BY THE DEPARTMENT AND THE REVENUE AS DIRECT ED BY THE HIGH COURT, THE ASSESSING OFFICER SHALL MAKE ADDITION OF RS.14, 19,261. ACCORDINGLY, THE ORDERS OF THE LOWER AUTHORITIES ARE MODIFIED IN ORD ER TO GIVE EFFECT TO THE SETTLEMENT REACHED BETWEEN THE PARTIES AS PER THE D IRECTION OF THE HIGH COURT. 5 IT(SS)A NO. 133/COCH/2004 5. WITH THE ABOVE OBSERVATIONS, THE APPEALS OF THE REVENUE AS WELL AS THE TAXPAYER ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 07 TH DECEMBER, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 07 TH DECEMBER, 2012 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH