M/S DHANALAKSHMI MILLS LTD, TIRIPUR V. DCIT,CIRCLE-1, TIRUPUR

MA 16/CHNY/2023

AI Insights

The case involves M/s. Dhanalakshmi Mills Ltd., the petitioner, who filed a Miscellaneous Application under section 254(2) of the Income Tax Act, 1961, challenging an earlier Tribunal order dated 13.07.2022. The dispute centered on the legality and jurisdiction of a revisionary order passed by the Principal Commissioner of Income Tax (PCIT) under section 263 of the Act, which the petitioner argued was beyond the permissible time limit and thus without jurisdiction. The Tribunal dismissed the application, stating that the issues raised were new and not part of the original appeal, and thus could not be considered for rectification under section 254(2).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130029 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 23-02-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 15-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Revision of order
• Section: 263

Judgement Text

Miscellaneous Application No.16/Chny/2023 (in ITA No.153/Chny/2021) िनधा रण वष /Assessment Year: 2015-16 M/s.Dhanalakshmi Mills Ltd., 130, B.S.Sundaram Road, Tirupur-641 601. v. The Dy. Commissioner- of Income Tax, Circle-1, Tirupur. [PAN: AABCD 9708 J] (अपीलाथ / Petitioner) ( यथ /Respondent) अपीलाथ की ओर से/ Petitioner by : Mr.T.S.Lakshmi- Venkataraman, CA यथ क ओर से /Respondent by : Mr. AR.V.Sreenivasan, Addl.CIT सुनवाई क तारीख/Date of Hearing : 24.02.2023 घोषणा क तारीख /Date of Pronouncement : 24.02.2023 आदेश / O R D E R PER MANJUNATHA. G, ACCOUNTANT MEMBER: The Petitioner has filed present Miscellaneous Application u/s.254(2) of the Income Tax Act, 1961 (in short “the Act") against the order of the Tribunal in ITA No.153/Chny/2021 dated 13.07.2022 and relevant assessment year 2015-16. 2. The Petitioner has narrated the facts of its case and mistakes stated to be apparent on record from the order of the Tribunal dated 13.07.2022 आयकर अपीलीय अिधकरण, ’सी’ यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI ी महावीर िसंह, माननीय उपा एवं ी मंजूनाथा.जी, माननीय लेखा सद के सम BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT AND SHRI MANJUNATHA.G, HON’BLE ACCOUNTANT MEMBER MA No.16/Chny/2023 (in ITA No.153/Chny/2021) :: 2 :: and relevant contents of Miscellaneous Application filed by the Petitioner for the AY 2015-16 in ITA No.153/Chny/2021, are re-produced as under: 1) The appeal filed by the petitioner for the A.Y.2015-16 against the order passed u/s.263 of the Income Tax Act, 1961 has been dismissed by ITAT by order dated 13.07.2022. The order dated 25.03.2021 passed by Principal Commissioner of Income Tax, Coimbatore - 1, dated 25.03.2021 was challenged before ITAT which has been dismissed by the order dated 13.07.2022. The above appellate order was received by the petitioner on 21.07.2022. 2) The Assessment order sought to be revised by PCIT was passed on 29.12.2017 by Deputy Commissioner of Income Tax, Tirupur and in terms of sec.263 of the Act, the PCIT should have passed order u/s.263 on or before 31.03.2020. But the factual position is that the order was passed by PCIT on 25.03.2021 and such order is without jurisdiction and is bad in law. 3) Against the assessment order dated 29.12.2017 an appeal was filed with the first appellate authority and it has been numbered CIT(AJ, Coimbatore - 3/10424/2018-19. The above appeal was pending when the PCIT invoked his jurisdiction u/s.263 of the Act. The issue pending before the first appellate authority is very much covered in the proceedings initiated u/s.263 of the Act. It has been judicially settled that on an issue which is pending before the first appellate authority, on the same issue PCIT cannot invoke his jurisdiction u/s.263 of the Act. 4) The above two issues goes to the root of the Order passed u/s 263 as to legal validity of such order, the above miscellaneous petition u/s.254(2) of the Income Tax Act, is being filed requesting for recall of the order dated 13.07.2022 in ITA No.153/Chny/2021 and for re-adjudication of the case taking into account the above submissions made in para 2 and 3. 5) In the course of appeal before ITAT Written submissions dated 08.05.2022 was filed in the Bench on 09.05.2022. The facts pointed in Paras 3 to 5 has not been considered by the Honourable Bench in the order dated 13. 07.2022. On this fact also the petitioner prays for re-adjudication of the case taking into account the above written submissions. 3. The Ld.Counsel for the assessee referring to petition filed by the Petitioner u/s.254(2) of the Act, submitted that order of the PCIT u/s.263 of the Act, is barred by limitation, because, as per section 263(2) of the Act, the revisionary order has to be passed within two years from the end of the Financial Year, in which, the assessment order has been passed. In this case, the AO has passed order u/s.143(3) of the Act, on 29.12.2017 and thus, order u/s.263 of the Act, ought to have been passed on or before MA No.16/Chny/2023 (in ITA No.153/Chny/2021) :: 3 :: 31.03.2020. Since, the order of the PCIT u/s.263 of the Act, dated 25.03.2021 is beyond limitation provided u/s.263(2) of the Act, the same needs to be held barred by limitation. Although, the assessee did not take this ground while disposing off appeal, but as per settled position of law, any mistakes in the order, can be rectified and thus, requested to recall the order passed by the Tribunal in ITA No.153/Chny/2021. 4. The Ld.DR, on the other hand, submitted that the ground raised by the Petitioner in petition filed u/s.254(2) of the Act, is altogether a new argument which was not emanating from grounds of appeal filed before the Tribunal and thus, it cannot be said that there is a mistake in the order of the Tribunal, which can be rectified u/s.254(2) of the Act. 5. We have heard both the sides and considered relevant contents of MA filed by the Petitioner and we find that the Tribunal has disposed off appeal filed by the assessee in ITA No.153/Chny/2021, on the basis of grounds raised in Form No.36. Further, when we go through the petition filed by the Petitioner u/s.254(2) of the Act, and contents therein, we find that the plea taken by the assessee in rectification application is altogether a new ground which was not taken in appeal filed before the Tribunal. Therefore, we are of the considered view that there is no merit in the petition filed by the Petitioner u/s.254(2) of the Act, and thus, we dismiss the MA filed by the Petitioner. MA No.16/Chny/2023 (in ITA No.153/Chny/2021) :: 4 :: 6. In the result, the Miscellaneous Application filed by the Petitioner is dismissed. Order pronounced on the 24 th day of February, 2023, in Chennai. Sd/- (महावीर िसंह) (MAHAVIR SINGH) उपा / VICE PRESIDENT Sd/- (मंजूनाथा.जी) (MANJUNATHA.G) लेखा सद य/ACCOUNTANT MEMBER चे ई/Chennai, दनांक/Dated: 24 th February, 2023. TLN आदेश क ितिलिप अ ेिषत/Copy to: 1. अपीलाथ /Appellant 4. आयकर आयु /CIT 2. यथ /Respondent 5. िवभागीय ितिनिध/DR 3. आयकर आयु (अपील)/CIT(A) 6. गाड! फाईल/GF