KOLET RESORT CLUB PRIVATE LIMITED,AHMEDABAD V. INCOME TAX OFFICER, WARD-2(1)(1), AHMEDABAD

ITA 812/AHD/2024

AI Insights

The case involves Kolet Resort Club Pvt. Ltd., the appellant, contesting an order from the Commissioner of Income-tax (Appeals) regarding the assessment year 2015-16. The primary contention was against the validity of the revision order passed under Section 263, which led to subsequent assessments under Section 144. The appellant argued that these orders were invalid ab initio and barred by limitation. The Tribunal found merit in the appellant's arguments, particularly noting that the revision order under Section 263 had been quashed in a prior decision, which directly impacted the validity of the subsequent orders.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 25143 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 19-11-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 22-04-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. NANDAKUMAR
• Assessee Lawyers: P.MURALI MOHANA RAO
• Keywords: Revision of order
• Section: 143(3); 250

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No. 812/Ahd/2024 (Assessment Year: 2015-16) Kolet Resort Club Pvt. Ltd., C/o. P. Murali & Co., Chartered Accountants, 6-3-655/2/3, Somajiguda, Telangana-500082 PAN : AAACK 8607 J Vs. Income Tax Officer, Ward 2(1)(1), Ahmedabad (Appellant) .. (Respondent) Appellant by : Shri P. Murali Mohana Rao, AR Respondent by: Shri V. Nandakumar, CIT-DR Date of Hearing 19.11.2024 Date of Pronouncement 22.11.2024 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT : This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi (hereinafter referred to as \"CIT(A)\" for short), dated 06.03.2024 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as \"the Act\" for short], for Assessment Year (AY) 2015-16. 2. The Assessee has taken following grounds of appeal:- “1. On the facts and in the circumstances of the case the order passed by the CIT(A) is erroneous both on facts and in law to the extent the order is prejudicial to the interest of the appellant. 2. The Ld. CIT(A) erred in dismissing the appeal. ITA No. 812/Ahd/2024 Kolet Resort Club Pvt Ltd Vs. ITO Asst. Year :– 2015-16 - 2– 3. The Ld. CIT(A) ought to have appreciated that the assessment order passed u/s 144 r.w.s 263 of the Act dated 30-03-2022 as well as the revision order passed u/s 263 of the Act dated 08.03.2021 is invalid ab initio. 4. The Ld. CIT (A) ought to have appreciated that the revision order passed by the PCIT, Ahmedabad-1 dated 08-03-2021 itself is invalid ab initio. 5. The Ld. CIT(A) ought to have appreciated that the revision order passed by the PCIT Ahmedabad-1 dated 08-03-2021 is barred by limitation as per the provisions of sub section (2) of section 263 of the I.T Act, 1961 since the original order u/s 143(3) of the Act has been passed on 27-12-2017. 6. The Ld. CIT(A) erred in appreciating that the order passed u/s 144 r.w.s 263 of the Act dated 30-03-2022 has no legs to stand. 7. The Ld.CIT(A) grossly erred in not adjudicating ground nos.6, 6.1 and 6.2 taken before him. 8. The Ld.CIT(A) ought to have annulled the order passed u/s 144 r.w.s. 263 of the Act dated 30-03-2022. 9. The Ld.CIT(A) erred in confirming the addition made of Rs.19,75,39,092/- u/s 56(2)(viib) of the Act. 10. The Ld. CIT (A) ought to have appreciated that the assessee company has issued shares at face value of Rs. 10/- per share and not at any premium rate and that therefore the provisions of section 56(2)(viib) of the Act are not attracted. 11. The Ld. CIT(A) ought to have appreciated that shares were not issued by the appellant at premium but issued only at face value of Rs. 10/- during the year under consideration, and that the question of applicability of provisions u/s 56(2)(viib) of the Act and rule 11UA does not arise. 12. The Ld. CIT(A) ought to have appreciated that the provisions of Section 56(2)(viib) of the Act are inapplicable for transactions between a holding company and its subsidiary company. 13. The appellant may add or alter or amend or modify or substitute or delete and/or rescind all or any of the grounds of appeal at any time before or at the time of hearing of the appeal. General ground Appellant.” ITA No. 812/Ahd/2024 Kolet Resort Club Pvt Ltd Vs. ITO Asst. Year :– 2015-16 - 3– 3. At the outset itself, both the parties fairly submitted that the order passed by the ld. PCIT u/s 263 stands quashed by the Tribunal vide order dated 01.10.2024. Since the 263 order itself has been quashed, the consequent proceedings are invalid. Thus, the impugned order passed by the ld. CIT(A) is hereby annulled. 4. In the result, the appeal of the Assessee is allowed for statistical purposes. The order is pronounced in the open Court on 22.11.2024 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 22/11/2024 btk आदेश की \u0007ितिलिप अ\rेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b\tथ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड\u001f फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation …19.11.2024….. 2. Date on which the typed draft is placed before the Dictating Member …20.11.2024 3. Other Member…20.11.2024……………… 4. Date on which the approved draft comes to the Sr.P.S./P.S …21.11.2024…………. 5. Date on which the fair order is placed before the Dictating Member for pronouncement 22.11.24. 6. Date on which the fair order comes back to the Sr.P.S./P.S …22.11.2024……………. 7. Date on which the file goes to the Bench Clerk ……22.11.2024….…. 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order…………………………………… "