M/s Indsons Exports International, Ludhiana V. ACIT, Ludhiana

ITSSA 5/CHANDI/2011

• Counselvise Citation: [2012] 121 COUNSELVISE.COM (IT) 8117 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 8 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 23-07-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-07-2012
• Assessment Year: misc
• Appeal Filed On: 15-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAI SHREE SHARMA
• Assessee Lawyers: MONICA KAUSHAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER IT(SS)A NO.5 /CHD/2011 (BLOCK PERIOD 01.04.1998 TO 05.02.2003) INDSONS EXPORTS INTERNATIONAL, VS. THE A.C.I.T., OPP.PUNJAB AGRO INDUSTRIES, CIRCLE 1, NEAR DANA MANDI, LUDHIANA. LUDHIANA. PAN: AAAFI3287M (APPELLANT) (RESPONDENT) APPELLANT BY : MS.MONICA KAUSHAL RESPONDENT BY : SMT. JAISHREE SHARMA, DR DATE OF HEARING : 12.07.2012 DATE OF PRONOUNCEMENT : 23.07.2012 O R D E R PER SUSHMA CHOWLA, J.M. : THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-II, LUDHIANA D ATED 03.11.2011 RELATING TO BLOCK PERIOD 1.4.1998 TO 5.2.2003 AGAIN ST THE ORDER PASSED U/S 158BC/158BD OF INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. THE LEARNED A.R. FOR THE ASSESSEE AT THE OUTSET POINTED OUT THAT THE ISSUE IN THE PRESENT APPEAL IS COVERED BY THE ORDER OF THE CHANDIGARH BENCH OF THE TRIBUNAL IN THE CASE OF DCIT VS. M.J.O SWAL HOSIERY, LUDHIANA IN IT(SS)A NO.2/CHD/2003 & DCIT VS. HINDOK EXPORTS, LUDHIANA IN IT(SS)A NO.4/CHD/2003. THE LEARNED A.R . FOR THE ASSESSEE ALSO POINTED OUT THAT THE SATISFACTION FOR INITIATI NG THE PROCEEDINGS UNDER SECTION 158BD OF THE ACT WAS RECORDED BY THE ASSESS ING OFFICER OF THE PERSONS SEARCHED ON 15.2.2006 I.E. AFTER THE ASSESS MENT MADE UNDER SECTION 158BC IN THE CASE OF THE PERSONS SEARCHED. THE LEARNED A.R. FOR THE ASSESSEE PLACED RELIANCE ON THE DECISION OF HON 'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS. MRIDULA P ROP. DHRUV FABRICS 2 [335 ITR 266 (P&H)] AND IN THE CASE OF CIT VS. RAME SH KUMAR [338 ITR 126(P&H)]. 3. THE LEARNED D.R. FOR THE REVENUE PLACED RELIANCE ON THE ORDERS OF THE ASSESSING OFFICER AND THE CIT (APPEALS). 4. WE FIND THAT THE PRESENT PROCEEDINGS UNDER SECTI ON 158BD OF THE ACT WERE INITIATED IN THE CASE OF THE ASSESSEE CONS EQUENT TO THE DOCUMENTS FOUND DURING THE SEARCH AT THE RESIDENCE OF ONE SHRI S.K.BHATIA ON 5.2.2003. THE ASSESSMENT IN THE CAS E OF SHRI S.K.BHATIA WAS COMPLETED ON 31.3.2005 UNDER SECTION 158 BC OF THE ACT. THE SATISFACTION NOTE WAS RECORDED BY THE ACIT INCHARGE OF THE PERSONS SEARCHED ON 15.2.2006. NOTICE UNDER SECTION 158BD OF THE ACT WAS ISSUED ON 25.10.2005. THE COPY OF THE SAID DOCUMEN TS ARE PLACED AT PAGES 19 TO 23 OF THE PAPER BOOK. 5. WE FIND THAT SIMILAR ISSUE OF RECORDING OF SATIS FACTION UNDER SECTION 158BD OF THE ACT AND THE APPEAL AGAINST THE ORDER PASSED UNDER SECTION 158BD R.W.S.158BC OF THE ACT AROSE BEFORE C HANDIGARH BENCH OF THE TRIBUNAL IN DCIT VS. M.J.OSWAL HOSIERY, LUDHIAN A IN IT(SS)A NO.2/CHD/2003 & DCIT VS. HINDOK EXPORTS, LUDHIANA I N IT(SS)A NO.4/CHD/2003 (SUPRA) WHEREIN ALSO PROCEEDINGS WERE INITIATED IN VIEW OF THE SEARCH OPERATION OF SHRI S.K.BHATIA GROUP. THE TRIBUNAL VIDE ORDER DATED 30.11.2011 FOLLOWING THE RATIO LAID DOW N BY HON'BLE PUNJAB & HARYANA HIGH COURT IN CIT VS. MRIDULA PROP. DHRUV FABRICS (SUPRA) AND LATER DECISION IN CIT VS. RAMESH KUMAR (SUPRA)H ELD THAT THE PROCEEDINGS INITIATED UNDER SECTION 158BD OF THE AC T WERE BAD IN LAW. THE ISSUE ARISING BEFORE US IS IDENTICAL TO THE ISS UE BEFORE THE CHANDIGARH BENCH OF THE TRIBUNAL (SUPRA) AND FOLLOW ING THE SAID RATIO WE HOLD THAT THE PROCEEDINGS INITIATED IN THE PRESE NT CASE UNDER SECTION 158BD OF THE ACT WERE BAD IN LAW. ACCORDINGLY, GRO UNDS OF APPEAL RAISED BY THE ASSESSEE ARE ALLOWED. 3 6. THE REGISTRY IS DIRECT TO ANNEX COPY OF THE DECI SION IN THE CASE OF DCIT VS. M.J.OSWAL HOSIERY, LUDHIANA IN IT(SS)A NO. 2/CHD/2003 & DCIT VS. HINDOK EXPORTS, LUDHIANA IN IT(SS)A NO.4/C HD/2003. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 2 3 RD JULY, 2012. SD/- SD/- (MEHAR SINGH) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 23 RD JULY, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH