AGRAWAL RIDERS PVT LTD, GANDHIDHAM V. THE DCIT,CEN.CIR.-1, RAJKOT

ITSSA 42/RJT/2004

• Counselvise Citation: [2011] 124 COUNSELVISE.COM (IT) 8352 (ITAT-RAJKOT)
• Duration Of Justice: 6 year(s) 10 month(s) 11 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 13-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 29-03-2011
• Assessment Year: misc
• Appeal Filed On: 02-07-2004
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L MEENA
• Keywords: Block assessment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI A.L. GEHLOT (AM) AND SHRI N.R.S. GANESA N (JM) I.T.(SS)A. NO.42/RJT/2004 (BLOCK PERIOD AY 1996-97 TO 06-02-2002) AGRAWAL RIDERS PVT LTD VS THE DY.CIT, CENT.CIR.1 GOKUL PARK PLOT NO.356 RAJKOT WARD-12B, GANDHIDHAM PAN : AABCA8083F (APPELLANT) (RESPONDENT) APPELLANT BY : WRITTEN SUBMISSION RESPONDENT BY: SHRI SL MEENA O R D E R PER N.R.S. GANESAN, JM THIS APPEAL OF THE ASSESSEE WAS DISPOSED OFF BY TH IS TRIBUNAL BY AN ORDER DATED 06-03-2009. HOWEVER, THE REVENUE HAS FILED M ISCELLANEOUS APPLICATION ON THE GROUND THAT THERE IS AN ERROR IN THE ORDER OF T HIS TRIBUNAL DATED 06-03-2009. WHILE DISPOSING OFF THIS MISCELLANEOUS APPLICATION, THIS TRIBUNAL FOUND THAT THE ASSESSEE HAS RAISED A GROUND WITH REGARD TO LEVY OF INTEREST U/S 158BFA(1) OF THE INCOME-TAX ACT. THIS GROUND WAS NOT DISPOSED OFF. THEREFORE, THE APPEAL WAS REFIXED FOR HEARING ONLY FOR DISPOSAL OF THE GROUND RAISED BY THE ASSESSEE WITH REGARD TO LEVY OF INTEREST U/S 158BFA(1) OF THE ACT . 2. NONE APPEARED FOR THE ASSESSEE INSPITE OF SERVIC E OF NOTICE. HOWEVER, THE ASSESSEE FILED A WRITTEN SUBMISSION AND REQUEST ED THE TRIBUNAL TO DISPOSE OFF THE APPEAL ON THE BASIS OF THIS WRITTEN SUBMISSION. 3. WE HAVE HEARD SHRI SL MEENA, THE LD.DR AND HAVE ALSO CAREFULLY GONE THROUGH THE WRITTEN SUBMISSION FILED BY THE ASSESSE E. AS PER THE WRITTEN SUBMISSION FILED BY THE ASSESSEE SINCE THERE WAS NO SEARCH THE TRIBUNAL FOUND THAT THERE CANNOT BE ANY ASSESSMENT U/S 158BC OF TH E ACT, THEREFORE, NO INTEREST IT(SS)A NO.42/RJT/2004 2 COULD BE LEVIED U/S 158BFA(1) OF THE ACT. HOWEVER, THE LD.DR SUBMITTED THAT INTEREST U/S 158BFA(1) IS MANDATORY, THEREFORE, IT IS LEVIABLE. 4. WE HAVE ALSO CAREFULLY GONE THROUGH THE PROVISIO NS OF SECTION 158BFA(1) OF THE ACT. AS RIGHTLY SUBMITTED BY THE ASSESSEE IN THE WRITTEN SUBMISSION, SECTION 158BFA(1) PROVIDES FOR LEVY OF INTEREST IN CASE THE ASSESSEE HAS FURNISHED THE RETURN OF INCOME U/S 158BC AFTER THE EXPIRY OF THE PERIOD SPECIFIED IN THE NOTICE OR HAS NOT FURNISHED THE RETURN U/S 158BC IN RESPONSE TO THE NOTICE. IN THIS CASE, THE TRIBUNAL FOUND THAT THERE WAS NO SEARCH BUT ONL Y A SURVEY AND THEREFORE, THE TRIBUNAL FOUND THAT THE ASSESSING OFFICER HAS NO JU RISDICTION TO MAKE BLOCK ASSESSMENT. THEREFORE, THE QUESTION OF LEVY OF INT EREST U/S 158BFA(1) DOES NOT ARISE. IN VIEW OF THE ABOVE, IN OUR OPINION, THE L EVY OF INTEREST U/S 158BFA(1) IS NOT JUSTIFIED. 5. WE MAKE IT CLEAR THAT THE OTHER PARTS OF THE ORD ER OF THIS TRIBUNAL DATED 06- 03-2009 REMAIN AS SUCH. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13-05-2011. SD/- SD/- (A.L. GEHLOT) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER RAJKOT, DT : 13 TH MAY, 2011 PK/- COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A)-IV, AHMEDABAD 4. THE CIT, AHMEDABAD 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT IT(SS)A NO.42/RJT/2004 3