DCIT, Coimbatore V. M/s. Paragon Steels Pvt. Ltd., Coimbatore

MA 214/CHNY/2016

• Counselvise Citation: [2017] 124 COUNSELVISE.COM (IT) 5386 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-03-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 03-03-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 20-07-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Keywords: Audit objection; Tax effect
• Section: 147

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI ... , . !'# ! ,% !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER '' / M.P. NO.214/MDS/2016 (IN I.T.A. NO.887/MDS/2015) ( )( / ASSESSMENT YEAR : 2008-09 THE DEPUTY COMMISSIONER OF INCOME TA X, CORPORATE CIRCLE 1, 63-A, RACE COURSE ROAD, COIMBATORE. V. M/S PARAGON STEELS PVT. LTD., 104, RACE COURSE ROAD, COIMBATORE 641 018. PAN : AABCP 3039 J (+,( /PETITIONER) (+-,./ RESPONDENT) +,( 0 1 /PETITIONER BY : SH.R. CLEMENT RAMESH KUMAR, ADDL.CIT +-,. 0 1 / RESPONDENT BY : NONE 2 0 3% / DATE OF HEARING : 03.03.2017 4') 0 3% / DATE OF PRONOUNCEMENT : 03.03.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THE REVENUE HAS FILED THE PRESENT MISCELLANEOUS P ETITION ON THE GROUND THAT THE CIRCULAR NO.21/2015 OF CBDT IS NOT APPLICABLE TO THE APPEAL OF THE REVENUE. 2. SHRI R. CLEMENT RAMESH KUMAR, THE LD. DEPARTMENT AL REPRESENTATIVE, SUBMITTED THAT THIS TRIBUNAL DISMIS SED THE APPEAL 2 M.P. NO.214/MDS/16 ON THE GROUND THAT TAX EFFECT INVOLVED IS LESS THAN ` 10 LAKHS. ADMITTEDLY, THE TAX EFFECT INVOLVED IN THIS APPEAL WAS ` 6,13,140/-. HOWEVER, THE ASSESSMENT ITSELF WAS REOPENED ON THE BASIS OF AUDIT OBJECTION. IN VIEW OF THE AUDIT OBJECTION, ACCORDI NG TO THE LD. D.R., THE ASSESSING OFFICER HAS DISALLOWED THE EXPENDITUR E OF ` 8,96,000/- SAID TO BE PAID TO COCHIN PORT TRUST, FOR NON-DEDUC TION OF TAX. THEREFORE, ACCORDING TO THE LD. D.R., THE CIRCULAR NO.21 OF 2015 IS NOT APPLICABLE TO THE PRESENT APPEAL. 3. NO ONE APPEARED FOR THE ASSESSEE INSPITE OF ISSU E OF NOTICE. 4. ON PERUSAL OF MATERIAL, IT APPEARS THE ASSESSING OFFICER REOPENED THE ASSESSMENT UNDER SECTION 147 OF THE IN COME-TAX ACT, 1961 (IN SHORT 'THE ACT') ON THE BASIS OF AUDIT OBJ ECTION AND DISALLOWED AN EXPENDITURE OF ` 8,96,000/- BEING THE SUM PAID TO COCHIN PORT TRUST TOWARDS PORT CHARGES. ADMITTEDLY , THE APPEAL WAS NOT FILED ON THE BASIS OF AUDIT OBJECTION. THE ASS ESSMENT WAS REOPENED ON THE BASIS OF AUDIT OBJECTION. ON PERUS AL OF THE APPROVAL GRANTED BY THE PRINCIPAL COMMISSIONER OF I NCOME TAX UNDER RULE 15 OF APPELLATE TRIBUNAL RULES, 1963, IT APPEARS THAT THE APPEAL WAS FILED IN THE REGULAR COURSE AND NOT ON T HE BASIS OF AUDIT OBJECTION. THEREFORE, IT IS OBVIOUS THAT PARA 8 OF CIRCULAR NO.21 OF 3 M.P. NO.214/MDS/16 2015 ISSUED BY CBDT IS NOT APPLICABLE. HENCE, THE MISCELLANEOUS PETITION FILED BY THE REVENUE HAS NO MERIT AT ALL. 5. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED COURT ON 3 RD MARCH, 2017 AT CHENNAI. SD/- SD/- (. !'# ! ) ( ... ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 3 RD MARCH, 2017. KRI. 0 +37' 8')3 /COPY TO: 1. +,( / PETITIONER 2. +-,. /RESPONDENT 3. 2 93 () /CIT(A) 4. 2 93 /CIT 5. ': +3 /DR 6. ( ; /GF.