M/S SOURYA PROJECT PVT LTD,INDORE V. ACIT CIRCLE-2(1), GWALIOR

CO 9/AGR/2017

AI Insights

The case involves M/s Sourya Projects Pvt. Ltd., the appellant, and ACIT, Circle-2, Gwalior, the respondent, concerning an assessment under section 153C for the Assessment Year 2010-11. The primary legal contention raised by the appellant in the cross-objection (CO) was that the assessment was ultra-vires and bad-in-law, thus liable to be quashed. The Income Tax Appellate Tribunal (ITAT) had previously remanded the case back to the CIT(A) for fresh adjudication on merits and legal grounds, including the satisfaction note, which was inadvertently not considered during the initial hearings. The Tribunal's decision to allow the CO for statistical purposes indicates a recognition of the need to address the legal and procedural concerns raised by the appellant in a comprehensive manner during the re-assessment by the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126505 (ITAT-AGRA)
• Appeal Type: Cross Objection
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Other Referred Cases: ITA No.16/Agr/2017
• Laws Referred To: Income Tax (Appellate Tribunal) Rules, 1963
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SHRIVASTAVA LD.
• Assessee Lawyers: SANJAY KUMAR LD
• Keywords: Set aside; Question of law; Satisfaction; Dismissed; Commissioner; Statistical purposes; Restored; 153C; Adjudication on merits; Directions; Department; Setting aside the order; AY 2010-11
• Section: 22; 153C

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. C.O. No.09/Agr/2017 (in ITA No. 16/Agr/2017) (िनधा\u0005रणवष\u0005 / Assessment Year: 2010-11) & 2. MA No.16/Agr/2020 (in ITA No.16/Agr/2017) (िनधा\u0005रणवष\u0005 / Assessment Year: 2010-11) M/s Sourya Projects Pvt. Ltd. 301, Silver Arc Plaza, 20/1 New Palasia, Indore. बनाम/ Vs. ACIT, Circle-2, Gwalior. \u0002थायीलेखासं./जीआइआरसं./PAN/GIR No. AAKCS-3701-R (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Sh. Sanjay Kumar (CA) - Ld. AR थ कीओरसे/Respondent by : Sh. Shailendra Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 18-02-2025 घोषणाकीतारीख /Date of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. The assessee’s CO. No.9/Agr/2017 came up for hearing on 11-02- 2025. The same was adjourned and posted for hearing on 17-02-2025 along with MA No.16/Agr/2020. The CO and MA was again adjourned and finally heard on 18-02-2025. 2. The Ld. AR, Shri Sanjay Kumar (CA), at the outset, drew attention to assessee’s MA No.16/Agr/2020 and stated that an assessment u/s 153C was framed against the assessee for Assessment Year (AY) 2010- 11. The first appellate authority (FAA) decided issue on merits in 2 assessee’s favor against which the department preferred further appeal which stood disposed-off in ITA No.16/Agr/2017 & ors. common order dated 20-12-2019. However, the assessee had also filed cross-objection vide CO No.16/Agr/2017 against department’s appeal wherein the assessee raised legal ground of satisfaction note which was decided by Ld. CIT(A) in department’s favor. In the CO, the assessee contended that the assessment was ultra-vires and bad-in-law and therefore, the impugned assessment was liable to be quashed. Both sides converged on the point that assessee’s CO was inadvertently not brought to the notice of the bench during hearing of department’s appeal. In the above background, the CO and MA stand disposed-off as under. 3. In the Tribunal common order dated 20-12-2019, it could be seen that the revenue preferred appeal for AY 2010-11 against present assessee vide ITA No. 16/Agr/2017. The common directions of the bench as contained in Paras 21 & 22 were as follows: - 21. In the above view, we deem it appropriate to remand back all these appeals to the file of learned CIT Appeal for a fresh adjudication on merits as well as on legal grounds as raised by the assessee. The learned CIT appeal is directed to decide the above said appeals in the light of the principles reproduced hereinabove and also in the light of the documents prepared by the assessing officer of the searched person and also of the other person (assessee). 22. We have only reproduced the facts of the lead case in ITA No.220/Agr/2017, for Assessment Year 2007-08. The facts of the issues in ITA No.220/Agr/2017 are similar in peri material in all the cases of the bunch of appeals involving common question of law and facts. Therefore, our observation and findings in ITA No.220/Agr/2017, are applicable in all the other 15 cases of the bunch of appeals in Mutatis mutandis. Accordingly, we are setting aside the order passed by the Commissioner (Appeals) in all these appeals with the direction to decide afresh on merits as well as on legal grounds in accordance with law. It could be seen that the impugned order has been set aside and the revenue’s appeal on merits as well as on legal grounds has been set aside for fresh adjudication by Ld. CIT(A). It has been brought to our 3 notice that consequential orders have not been passed yet. This is opposed the contention of the assessee in para-7 of the MA that the aforesaid appeals have been decided by the Hon’ble Bench on legal issue and not on merits. 4. We find that in the present CO, the assessee has raised the issue of satisfaction note. Since the revenue’s appeal has already been restored back to Ld. CIT(A) to decide afresh on merits as well as on legal grounds, we make it clear that all the issues are kept open. The assessee is free to plead and prove any legal arguments, as deemed fit. 5. In nutshell, MA No. 16/Agr/2020 stand dismissed. CO No.16/Agr/2017 stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) -ा ियक सद1 /JUDICIAL MEMBER लेखा सद1 / ACCOUNTANT MEMBER Dated: 22.04.2025 आदेशकी5ितिलिपअ9ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु3/CIT 4. िवभागीय ितिनिध/DR 5. गाड9फाईल/GF ASSISTANT REGISTRAR ITAT AGRA "