The DCIT, Circle-5, Ahmedabad V. Nirma Management Services Pvt.Ltd., Ahmedabad

ITSSA 136/AHD/2007

• Counselvise Citation: [2010] 124 COUNSELVISE.COM (IT) 9348 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 14 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 07-05-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 04-05-2010
• Assessment Year: misc
• Appeal Filed On: 24-08-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJEEV AGRAWAL
• Assessee Lawyers: HIMANSHU SHAH ARS; S N SOPARKAR
• Section: 263; 63

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A AHMEDABAD BEFORE S/SHRI MAHAVIR SINGH, JM AND D.C.AGRAWAL, AM DY CIT, CIRCLE-5, AHMEDABAD. V/S . NIRMA MANAGEMENT SERVICES (P) LTD., NIRMA HOUSE, ASHRAM ROAD, AHMEDABAD. (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI RAJEEV AGRAWAL, CIT, DR RESPONDENT BY:- SHRI S.N. SOPARKAR & SHRI HIMANSHU SHAH, ARS O R D E R PER D.C. AGRAWAL, ACCOUNTANT MEMBER. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A) DATED 25.06.2007 RAISING THE FOLLOWING GROUNDS:- 1. THE LD. CIT(A)-XI, AHMEDABAD HAS ERRED IN LAW AND O N FACTS IN HOLDING THAT THE ORDER PASSED BY THE AO UNDER SECTI ON 158BC READ WITH SECTION 263 OF THE INCOME-TAX ACT, 1961 C ANNOT BE SUSTAINED AND THEREBY DELETING THE ADDITION MADE OF RS.26.74 LACS ON ACCOUNT OF UNDISCLOSED INCOME FOR THE BLOCK PERIOD BEING THE ASSESSEES SHARE OF INVESTMENT IN IGOOR C OFFEE ESTATE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A)-XI, AHMEDABAD OUGHT TO HAVE UPHELD THE ORDER OF THE AO. IT(SS)A NO.136/AHD/2007 BLOCK PERIOD 1.4.1995 TO 27.9.2001 2 2. THE FACTS OF THE CASE ARE THAT IN THIS CASE BLOC K ASSESSMENT WAS MADE BY THE AO VIDE HIS ORDER DATED 27.11.2006 UNDE R SECTION 158BC FOR THE BLOCK PERIOD FROM 1.4.1995 TO 27.9.2001. UNDISC LOSED INCOME WAS DETERMINED AT NIL. THEREAFTER PROCEEDINGS U/263 OF THE IT ACT WERE INITIATED FOR THE REASONS THAT ASSESSEES SHARE IN THE UNDISCLOSED INVESTMENT TO THE EXTENT OF RS.26.74 LACS IN IGOOR COFFEE ESTATE AS REFLECTED IN THE SEIZED DOCUMENT AT PAGES 17,20 & 2 1 OF THE ANNEXURE-A- 10 WAS NOT INCLUDED IN THE UNDISCLOSED INCOME. THIS ORDER U/S 263 WAS PASSED BY LD. CIT ON 24.2.2006. IN CONSEQUENCE THER EOF LD. AO PASSED A FRESH ORDER UNDER SECTION 158BC READ WITH SECTION 2 63 OF THE ACT ON 27.12.2006 DETERMINING UNDISCLOSED INCOME AT RS.26. 74 LACS BEING THE ALLEGED SHARE OF THE ASSESSEE IN THE UNDISCLOSED IN VESTMENT IN IGOOR COFFEE ESTATE. THE MATTER TRAVELED TO CIT(A) WHO DE LETED THE ADDITION OF RS.26.74 LACS ON THE GROUND THAT ORDER OF LD. CIT P ASSED UNDER SECTION 263 ON 24.2.2006 WAS QUASHED BY THE TRIBUNAL IN IT( SS)A NO.96/AHD/2006 VIDE ITS ORDER DATED 11.12.2006. 3. WE HAVE HEARD THE PARTIES. SINCE THE ORDER OF LD . CIT UNDER SECTION 263 PASSED ON 24.2.2006 DID NOT SURVIVE, AS A RESUL T OF ORDER OF THE TRIBUNAL DATED 11.12.2006, THE ORDER OF THE AO DATE D 27.12.2006 WOULD ALSO NOT SURVIVE. ACCORDINGLY, APPEAL OF THE REVENU E AGAINST IMPUGNED ORDER OF LD. CIT(A) WOULD ALSO NOT SURVIVE. THE SAM E IS ACCORDINGLY DISMISSED. 3 4. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. SD/- SD/- (MAHAVIR SINGH) (D.C.AGRAWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD, DATED : 7/5/2010 MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD ORDER PRONOUNCED IN OPEN COURT ON 7/5/2010