ACIT, Ludhiana V. M/s Laj Exports, Ludhiana

MA 1/CHANDI/2014

• Counselvise Citation: [2015] 124 COUNSELVISE.COM (IT) 3397 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 11 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-09-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 15-05-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 29-09-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS. RANO JAIN, ACCOUNTANT MEMBER MA NO.1/CHD/2014 IN ITA NO. 883/CHD/2012 ( ASSESSMENT YEAR 2006-07) M/S LAJ EXPORTS, VS THE DCIT, E-597-98, PHASE-VII, CIRCLE I, FOCAL POINT, LUDHIANA. LUDHIANA. PAN : AAAFL3811A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.K. MITTAL RESPONDENT BY : SHRI SUDHIR SEHGAL DATE OF HEARING : 18.09.2015 DATE OF PRONOUNCEMENT : 18.09.2015 O R D E R PER BHAVNESH SAINI,JM THIS MISCELLANEOUS APPLICATION IS FILED BY ACIT, CIRCLE-I LUDHIANA FOR RECALLING OF THE ORDER OF THE TRIBUNAL IN ITA 883/2012 DATED 22.05.2013. 2. AFTER HEARING THE SUBMISSIONS OF BOTH THE PARTIE S, WE FIND THAT THE ORDER OF THE TRIBUNAL DATED 22.05.201 3 IS LIABLE TO BE RECALLED. IN THIS CASE, THE ASSESSING OFFICER PASSED THE ASSESSMENT ORDER UNDER SECTION 143(3) OF THE INCOME TAX ACT DATED 30.12.2008. THE SAME REMAINED IN 2 CHALLENGE BEFORE LD. CIT(APPEALS) AND THE LD. CIT(A PPEALS) DECIDED THE APPEAL VIDE ORDER DATED 26.06.2012. TH E ASSESSEE IN THE APPEAL HAS CHALLENGED THE DISALLOWA NCE OF CAR EXPENSES AND TELEPHONE EXPENSES ETC. THE TRIBU NAL, WHILE PASSING THE ORDER DATED 22.05.2013 NOTED THAT THIS APPEAL IS FILED AGAINST THE ORDER PASSED UNDER SECT ION 143(3) READ WITH SECTION 263 OF THE ACT. THE TRIBU NAL FURTHER NOTED THAT IN ITA 558/2011, THE ORDER OF TH E CIT UNDER SECTION 263 HAS BEEN CANCELLED. THE TRIBUNAL , THEREFORE, HELD THAT ONCE THE JURISDICTION UNDER SE CTION 263 OF THE ACT HAS BEEN CANCELLED, THERE IS NO MERI T IN THE ORDER PASSED UNDER SECTION 143(3) READ WITH SECTION 263 OF THE ACT. THE APPEAL OF THE ASSESSEE WAS THUS, A LLOWED. 3. THE LD. DR CONTENDED THAT LATER ON IT WAS NOTICE D BY THE ASSESSING OFFICER THAT ASSESSEE HAD INCURRED INSURANCE CHARGES OF RS. 30 LACS ON THE LIVES OF TH E PARTNERS OF THE FIRM AS KEYMAN INSURANCE POLICY WHI CH WAS REQUIRED TO BE DISALLOWED. CONSEQUENTLY, THE O RDER UNDER SECTION 263 OF THE ACT WAS PASSED BY THE CIT- I LUDHIANA. THE SAME REMAINED IN APPEAL BEFORE ITAT. IN THE MEANTIME, IN COMPLIANCE TO THE DIRECTIONS ISSUE D IN ORDER UNDER SECTION 263, THE ASSESSING OFFICER COMP LETED THE ASSESSMENT UNDER SECTION 143(3) VIDE ORDER DATE D 09.11.2011 VIDE WHICH ADDITION OF RS. 30 LACS WAS M ADE ON ACCOUNT OF INSURANCE PREMIUM PAID BY THE ASSESSE E AT RS. 30 LACS. THE ORDER PASSED UNDER SECTION 263 OF THE ACT WAS LATER ON CANCELLED BY THE TRIBUNAL. THE LD . 3 CIT(APPEALS) DECIDED THE APPEAL OF THE ASSESSEE AGA INST THE ORDER PASSED BY ASSESSING OFFICER ON 09.11.2011 BY WHICH ADDITION UNDER SECTION 263 WAS MADE. 4. THE LD. DR, THEREFORE, SUBMITTED THAT TRIBUNAL W AS NOT CORRECT IN ALLOWING THE APPEAL WITHOUT DECIDED THE GROUND OF APPEAL OF THE ASSESSEE ON MERITS BECAUSE THE ASSESSMENT ORDER IN QUESTION UNDER SECTION 143(3) D ATED 30.12.2008 WAS NOT HAVING THE ISSUE OF INSURANCE PREMIUM WHICH REMAINED SUBJECT MATTER IN PROCEEDING S UNDER SECTION 263. THEREFORE, ORDER OF THE TRIBUNAL MAY BE RECALLED AND APPEAL OF THE ASSESSEE MAY BE DECID ED ON MERITS. THE LD. AR CONCEDED THE SUBMISSIONS MADE B Y LD. DR AND SUBMITTED THAT THE ISSUE INVOLVED IN THE PRE SENT APPEAL WAS NOT SUBJECT MATTER OF THE PROCEEDINGS UN DER SECTION 263 OF THE ACT AND AS SUCH HAS NO CONCERN W ITH THE ORDER PASSED BY THE ITAT EARLIER QUASHING THE O RDER UNDER SECTION 263 OF THE ACT. THE LD. COUNSEL FOR THE ASSESSEE HAS NO OBJECTION FOR RECALLING OF THE EARL IER ORDER DATED 22.05.2013. 5. CONSIDERING THE SUBMISSIONS OF THE PARTIES AND F ACTS OF THE CASE, WE FIND THAT THERE IS A MISTAKE APPARE NT ON THE RECORD OF THE TRIBUNAL. THE ORDER DATED 22.05.2 013 IS THEREFORE, RECALLED AND IT IS DIRECTED THAT APPEAL OF THE ASSESSEE BE RE-FIXED FOR HEARING ON MERITS. OFFICE IS DIRECTED TO FIX THE APPEAL OF ASSESSEE FOR HEARING ON MERITS 4 ON 17.11.2015. NOTICE BE ISSUED TO BOTH THE PARTIE S ACCORDINGLY. 6. IN THE RESULT, MISCELLANEOUS APPLICATION OF THE REVENUE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (RANO JAIN) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 18 TH SEPT.,2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD