ACIT, CHENNAI V. V.D.Muralidharan, Coimbatore

ITSSA 14/CHNY/2013

• Counselvise Citation: [2013] 121 COUNSELVISE.COM (IT) 9593 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 19-11-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 31-03-2015
• Assessment Year: misc
• Appeal Filed On: 10-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VASANTHA KUMAR
• Assessee Lawyers: N MUTHUKUMARAN
• Keywords: Block assessment
• Section: 263; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER IT(SS)A NO. ASSESSMENT YEAR APPELLANT RESPONDENT 14/MDS/2012 1991-92 TO 2000-01 & 2001-02 (PART) MR. V.D.MURALIDHARAN, NO.9, SIVATHANGAM NAGAR, VILLANKURICHI ROA, VINAYAGAPURAM SARAVANAMPATTI, COIMBATORE-641 035 PAN:AHSPM2976Q THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-I(1) CHENNAI. 14/MDS/2013 1991-92 TO 2000-01 & 2001-02 (PART) THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-I(1) CHENNAI. MR. V.D.MURALIDHARAN, M/S. SREE GOKULAM CHITS & FINANCE CO. P. LTD., FAIR DEAL CORNER, 553, D.B.ROAD, R.S.PURAM COIMBATORE-641 002. PAN:AHSPM2976Q ASSESSEE BY : MR. N.MUTHUKUMARAN, A. R. REVENUE BY : MR. VASANTHA KUMAR, CIT DATE OF HEARING : 5 TH NOVEMBER, 2013 DATE OF PRONOUNCEMENT : 19 TH NOVEMBER, 2013 O R D E R PER CHALLA NAGENDRA PRASAD, JM : IT(SS)A NO.14/MDS/2013 : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME TAX (APPEALS) I, CHENNA I DATED 22.02.2013 FOR THE BLOCK PERIOD 1991-92 TO 2000-01 AND 2001-02(PART). THE ONLY GRIEVANCE OF THE REVENUE I N THIS APPEAL IS THAT THE COMMISSIONER OF INCOME TAX (APPE ALS) IT(SS)A NO. 14/MDS//2012 & 14/MDS/2013 2 ERRED IN HOLDING THAT THE BLOCK ASSESSMENT ORDER IS VOID AB INITIO . 2. AT THE TIME OF HEARING, THE COUNSEL FOR THE ASSE SSEE SUBMITS THAT THE ISSUE IN THE APPEAL IS SQUARELY CO VERED BY THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBU NAL IN THE CASE OF ACIT VS. V.P. ULLAS IN IT(SS) A NO.19/MDS/ 2012 DATED 21.3.2013. THE COUNSEL FOR THE ASSESSEE SUBMI TS THAT THE TRIBUNAL HELD THAT NOTICE ISSUED UNDER SECTION 158BD WAS BARRED BY LIMITATION AND THEREFORE, THE ASSESSMENT MADE IS VOID AB INITIO. 3. THE DEPARTMENTAL REPRESENTATIVE SUPPORTS THE OR DER OF THE ASSESSING OFFICER. 4. HEARD BOTH SIDES AND PERUSED THE ORDERS OF THE L OWER AUTHORITIES AND THE DECISION RELIED ON BY THE COUNS EL FOR THE ASSESSEE. THE CO-ORDINATE BENCH OF THIS TRIBUNAL T AKING NOTE OF THE DECISION OF SPECIAL BENCH OF THE DELHI BENC H OF THIS TRIBUNAL IN THE CASE OF MANOJ AGGARWAL (113 ITR 37 7) (SB), WHEREIN IT WAS HELD THAT TIME LIMIT PRESCRIBED UNDE R SECTION 158BE WOULD ALSO APPLY TO NOTICE UNDER SECTION 158B D OF THE IT(SS)A NO. 14/MDS//2012 & 14/MDS/2013 3 ACT AND ALSO THE DECISION OF COCHIN BENCH OF THIS TRIBUNAL IN THE CASE OF C.K.AMMUKUTTY AMMA VS. ACIT IN IT(SS)A NO.71/COCH/2004 DATED 6.1.2012 HELD THAT BLOCK ASSE SSMENT IS BARRED BY LIMITATION AS THE NOTICE UNDER SECTIO N 158BD WAS SERVED AFTER A LAPSE OF FOUR YEARS. 5. IN THE CASE OF THE ASSESSEE, IT IS OBSERVED THAT NOTICE UNDER SECTION 158BD WAS SERVED BEYOND THE TIME LIMI T SPECIFIED UNDER SECTION 158BE OF THE ACT. THEREFORE , THE ASSESSMENT IS VOID AB INITIO AND THIS VIEW IS SUPPORTED BY THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF S HRI V.P. ULLAS (SUPRA). RESPECTFULLY FOLLOWING THE DECISION OF THE CO- ORDINATE BENCH OF THIS TRIBUNAL, WE UPHOLD THE IMPU GNED ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) A ND REJECT THE GROUNDS RAISED BY THE REVENUE. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. IT(SS)A NO.14/MDS/2012 (ASSESSEES APPEAL): 7. AS WE HAVE CONFIRMED THE ORDER OF THE COMMISSION ER OF INCOME TAX (APPEALS) ANNULLING THE ORDER PASSED UND ER IT(SS)A NO. 14/MDS//2012 & 14/MDS/2013 4 SECTION 144 READ WITH SECTION 158BD OF THE ACT IN T HE APPEAL OF THE REVENUE, THE GRIEVANCE OF THE ASSESSEE IN TH E APPEAL FILED AGAINST THE ORDER DATED 30.03.2012 PASSED BY THE COMMISSIONER OF INCOME TAX UNDER SECTION 263 OF THE ACT AGAINST THE ORDER OF THE ASSESSING OFFICER PASSED U NDER SECTION 144 READ WITH SECTION 158BD OF THE ACT DATE D 29.5.2009 DOES NOT SURVIVE. THEREFORE, THE APPEAL F ILED BY THE ASSESSEE IS DISMISSED AS INFRUCTUOUS. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED AND THAT OF THE ASSESSEE IS DISMISSED AS INFRUCTUOU S. ORDER PRONOUNCED IN THE OPEN COURT ON TUESDAY, THE 19 TH DAY OF NOVEMBER, 2013 AT CHENNAI. SD/- SD/- (DR. O.K.NARAYANAN ) (CHALLA N AGENDRA PRASAD) VICE-PRESIDENT J UDICIAL MEMBER CHENNAI, DATED THE 19 TH NOVEMBER, 2013. SOMU COPY TO: (1) ASSESSEE (2) ASSESSING O FFICER (3) CIT (4) CIT(A) (5) D.R. (6) G.F.