M/s Agrawal Tractors, SATNA V. Commissioner of Tncome Tax II, Jabalpur

MA 1/JAB/2015

• Counselvise Citation: [2015] 124 COUNSELVISE.COM (IT) 3033 (ITAT-JABALPUR)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-05-2015
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 09-02-2015
• Court: TRIBUNAL
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , JABALPUR BENCH, JABALPUR [BEFORE SHRI D.T GARASIA, JM & SHRI B.C.MEENA , AM ] MISCELLANEOUS APPLICATION NO . 01 / JAB /201 5 [ARISING OUT OF I TA NO S . 118 & 119 /JAB/ 2013 A.Y S. 2003 - 04 & 2005 - 06 ] M/S. AGARWAL TRACTORS VS. COMMISSIONER OF INCOME TAX - II PAN: AAEFA993J JABALPUR ( APPLICANT) ( RESPONDENT ) FOR THE APPLICANT: SHRI G.N PUROHIT, LD.AR FOR THE RESPONDENT : SHR I D.R. LATHORIYA, LD.DR DATE OF HEARING: 22 - 05 - 2015 DATE OF PRONOUNCEMENT: 22 - 05 - 2015 ORDER PER SHRI D.T GARASIA, JM THE ASSESSEE HAS FILED TH IS MISCELLANEOUS APPLICATION U/S. 254 (2) OF THE I.T ACT 1961 ON THE GROUND THAT ITA NOS.118 & 119/JAB/2013 FOR THE A.YS 2003 - 04 & 2005 - 06 WERE HEARD TOGETHER. THE APPEAL FOR A.Y 2003 - 04 WAS ALLOWED AND APPEAL FOR A.Y 2005 - 06 ON THE SAME GROUNDS I.E GROUND NOS. 1 - 3 WERE ALSO ALLOWED BY THE TRIBUNAL VIDE ORDER DATED 21 - 11 - 2014 IN PARA 16 B Y OBSERVING AS UNDER: - THE ISSUE OF ADVANCES FROM CUSTOMER IN LIEU OF PURCHASE OF TRACTORS IS SIMILAR IN THE ASSESSMENT YEAR 2003 - 04 AND HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE. SINCE THE FACTUAL MATRIX OF THE APPEAL AND CONTENTIONS AND SUBMISSIONS OF BOTH THE SIDES ARE ALSO SIMILAR IN ASSESSMENT YEAR 2005 - 06 HENCE WE ARE OF THE VIEW THAT OUR DECISION IN ASSESSMENT YEAR 2003 - 04 ON THE ISSUE OF ADVANCE FROM CUSTOMER IN LIEU OF PURCHASE OF TRACTORS IS SQUARELY APPLICABLE ONLY UPTO THIS EXTENT TO THIS IS SUE. 2. THE ASSESSEE HAS FILED THIS MISC. APPLICATION THAT THE ISSUE OF ADVANCES FROM CUSTOMER FOR A.Y 2005 - 06 IS ALSO ALLOWED AND THEREFORE, THE FINDINGS GIVEN IN PARA 21 OF THE SAID ITAT ORDER NEEDS TO BE MODIFIED TO THE EXTENT THAT GROUND NOS. 1 TO 3 IS ALLOWED AND GROUND NO.4 IS DISMISSED AND THE FINDINGS GIVEN IN PARA 22 OF THE ITAT ORDER NEEDS TO BE MODIFIED TO THE EXTENT THAT ITA NO.119/JAB/203 FOR A.Y 2005 - 06 IS PARTLY ALLOWED. 3. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND GONE T HROUGH THE RECORD CAREFULLY. WE FIND THAT THE GROUNDS OF APPEAL [ NOS. 1 TO 3 ] RAISED BY THE ASSESSEE IN ITA NO.119/JAB/2013 ARE REPRODUCED HERE UNDER: - 1. THAT THE LEARNED CIT HAS ERRED IN LAW AND ON THE FACTS OF THE CASE IN CANCELLING THE ASSESSMENT U/ S. 143(3) /147 OF THE INCOME TAX ACT, 1961 MISC. APPLICATION NO . 01/JAB/2015 M/S. AGARWAL TRACTO RS 2 WITHOUT ALLOWING PROPER OPPORTUNITY TO THE ASSESSEE TO REBUT THE ALLEGED LETTER OF THE A.O. THE ORDER U/S. 263 OF THE INCOME TAX ACT, 1961 SHOULD BE ANNULLED. 2. WITHOUT PREJUDICE TO THE ABOVE GROUND TO ONE REPLY BY THE CONSTITUENTS WHO GAVE ADVANCES FOR PURCHASES AFTER LONG LAPSE OF TIME CANNOT BE BASIS FOR DRAWING ADVERSE INFERENCES. THE ORDER U/S. 263 SHOULD BE CANCELLED. 3. NO ERROR WAS COMMITTED BY THE A.O. IN FRAMING THE ASSESSMENT AS HE WAS SATISFIED WITH TH E CORRECTNESS OF THE TRANSACTIONS AFTER VERIFICATIONS OF THE EVIDENCES PRODUCED. THE A.O. HAS ADOPTED LEGALLY AND PRACTICALLY POSSIBLE VIEW, THERE IS NO ERROR OR PREJUDICE TO THE DEPARTMENT WARRANTING ACTION UNDER SECTION 263. THE ORDER UNDER SECTION 263 SHOULD BE QUASHED. 4. ON PLAIN READING THE ABOVE GROUNDS , WE FIND THAT THE GROUND RELATES TO ADVANCE FOR PURCHASES ALREADY DISCUSSED IN PARA 2 IN ITA NO.118/JBP/2013 FOR THE ASSESSMENT YEAR 2003 - 04 VIDE ORDER DATED 21/11/2014. THEREFORE, THE ORDER FOR A. Y S. 2003 - 04 AND 2005 - 06 IN ITA NO S . 118 & 119/JAB/2013 IS TO BE READ AS PARTLY ALLOWED AND PARTLY DISMISSED. P ARA 22 OF THE SAID ORDER IS MODIFIED AS IN THE RESULT, THE APPEAL OF THE ASSESSEE IN ITA NO.118/JAB/2013 FOR ASSESSMENT YEAR 2003 - 04 IS PARTLY AL LOWED AND ITA NO.119/JAB/2013 FOR ASSESSMENT YEAR IS PARTLY DISMISSED. 5 . IN THE RESULT, THE MISC. APPLICATION FILED BY THE ASSESSEE IS DISPOSED OF AS STATED ABOVE. ORDER IS PRONOUNCED IN THE OPEN COURT ON 22 - 05 - 2015 SD/ - SD/ - ( B.C. MEENA ) ( D.T GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 22 - 05 - 2015 **PRADIP (SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . A PPELLANT 2 RES PONDENT 3 . THE CIT(A) CONCERNED 4. 5. THE CIT CONCERNED THE D . R 6. GUARD FILE TRUE COPY, BY ORDER, ASSTT. REGISTRAR .