DCIT CORPORATE CIRCLE 2(4), CHENNAI V. KESARIA MARKETING PVT LTD, CHENNAI

MA 113/CHNY/2022

AI Insights

The case involves the Income Tax Officer, Corporate Ward 4(3), Chennai as the appellant and M/s. Kesaria Marketing (P) Ltd as the respondent. The dispute arose from an assessment order for the Assessment Year 2007-08, which was initially based on a settlement application filed by the director of the assessee company, Shri Umed C. Mehta. The revenue contended that the Tribunal's earlier decision incorrectly relied on this application, as the assessee had not filed a settlement application themselves. The Tribunal acknowledged the revenue's concerns and modified the order to remand the case back to the Ld. CIT(A) for a new assessment, considering the outcome of the mentioned settlement application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133974 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-05-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-05-2023
• Assessment Year: 2007-2008
• Appeal Filed On: 12-10-2022
• Other Referred Cases: Shri Vishal Umed Mehta in MA No.111/Chny/2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

आयकर अपीलीय अिधकरण ‘बी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कु मार अ7वाल ,लेखा सद: के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM M.A No.113/Chny/2022 ( Arising out of ITA No.1611/Chn y/2019) ( िनधाDरण वषD / Asse ssment Year: 2007-08) Income Tax Officer Corporate Ward 4(3) Chennai – 600 007. बनाम/ Vs . M/s.Kesaria Marketing (P) Ltd No.31, Kent Appartments, 26, Ritherdon Road, Vepary, Chennai-600 007. थायी लेखा सं. /जीआइ आर सं. /P AN / G I R No . AA AC K - 14 47- N (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri D.Anand (Advocate) – Ld. AR थ की ओरसे/Respondent by : Shri AR.V. Sreenivasan (Addl. CIT) –Ld.DR सुनवाई की तारीख/Date of Hearing : 12-05-2023 घोषणा की तारीख /Date of Pronouncement : 12-05-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of this Miscellaneous application for Assessment Year (AY) 2007-08, the revenue seeks interference in Tribunal order passed in ITA No.1611/Chny/2019 vide order dated 04-04-2022. 2. It has been submitted that the order is based on the application filed before Settlement commission by the assessee company’s director Shri Umed C. Mehta. The finding that the assessment has to be reframed on the outcome of settlement application filed by MA No.113/Chny/2022 - 2 - assessee’s director is incorrect since the assessee has not filed settlement application. This being the case, the set-aside assessment proceedings could not be kept in abeyance till the disposal of settlement application in case of other assessee. The time limit prescribed u/s 153(3) and 153(5) do not provide for any extension of time to conclude the set-aside assessment in such a case. Secondly, there is no clear finding that the issue in assessee’s case would be connected with the issue of Shri Umed C. Mehta. The revenue also relies on similar MA allowed by the bench in the case of Shri Vishal Umed Mehta in MA No.111/Chny/2022 dated 25.11.2022, a copy of which has been placed on record. The Ld. AR opposed any interference u/s 254(2). 3. Considering the application of revenue, we modify the order to the extent as done by the bench in MA No.111/Chny/2022 dated 25.11.2022. Accordingly, para-6 of the order stand modified as under: - 6. Thus, the outcome of settlement application of Shri Umed C. Mehta would have material bearing on the additions made in the case of the assessee since the same may be subject matter of settlement application filed by Shri Umed C. Mehta. Therefore, accepting the submissions of the assessee, we set aside the impugned order and remand the appeal back to the file of Ld. CIT(A) for do novo adjudication in the light of outcome of settlement application filed by the assessee group. All the issues are kept open. No other interference is required in the order since the matter has already been remitted back to the file of Ld. CIT(A) for fresh adjudication, keeping all the issues open. MA No.113/Chny/2022 - 3 - 4. The application stand allowed to the extent indicated in the order. Order pronounced on 12 th May, 2023 Sd/- (MAHAVIR SINGH) उपा12 /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखासद: /ACCOUNTANT MEMBER चे,ई / Chennai; िदनांक / Dated : 12-05-2023 DS आदेश की Wितिलिप अ7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आय ु त/CIT 4. वभागीय त न ध/DR 5. गाड फाईल/GF