Income-tax Officer, Ward - 1 , Jalna V. Ganadhiraj Mazoor Sahakari Sanstha Limited, Jalna

MA 26/PUN/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 2861 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 9 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-09-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-09-2022
• Assessment Year: 2015-2016
• Appeal Filed On: 24-11-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 142(1); 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE SINGLE MEMBER CASE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER Misc. Application No. 26/PUN/2022 Arising out of ITA No. 10/PUN/2019 : Assessment Year : 2015-16 The I.T.O. Ward 1, Jalna :Applicant Vs. Ganadhiraj Mazoor Sah. Sanstha Ltd. Nehru Nagar, Jalna-431 203 PAN: AABTG G 1196J : Respondent Misc. Application No. 30/PUN/2022 Arising out of ITA No. 1589/PUN/2018 : Assessment Year : 2015-16 The I.T.O. Ward 1, Jalna :Applicant Vs. Shashi Bhushan Mazoor Sah. Sanstha Ltd. Nehru Road, Jalna-431 203 PAN: AACAS0766J : Respondent Appellants by : Shri K. Shrinivasan (through virtual) Respondent by : Shri Piyushkumar Singh Yadav (through physical) Date of Hearing : 02-09-2022 Date of Pronouncement : 09-09-2022 ORDER PER SHRI PARTHA SARATHI CHAUDHURY, JM : These Misc. Applications preferred by the Revenue emanates from separate orders of the I.T.A.T. (SMC Bench) Pune, in I.T.A. No. 10/PUN/2019 for A.Y. 2015-16 dated 24-06-2019 and I.T.A. No. 1589/PUN/2018 for A.Y. 2015- 16 dated 04-04-2019. 2. At the very outset, the ld. D.R submitted that the facts and issues involved in both these Misc. applications are absolutely identical and similar to which the assessees also agree. Having heard the parties both these Misc. applications were heard together and disposed of by this consolidated order. The ld. D.R 2 M.A. No. 26 and 30/PUN/2022 Ganadhiraj and Shashibhushan submitted that M.A. No. 26/PUN/2022 arising out of ITA No. 10/PUN/2019 for A.Y. 2015-16 can be taken as a lead case. 3. The basic submission of the ld. D.R is that so far as the assessments completed in these cases, it was under complete scrutiny. This is evident from the notice u/s 143(2) dated 18-08-2016 and also from para 2 of the assessment order. However, the Tribunal in ITA No. 10/PUN/2019 in its impugned order as per paras 5, 6 and 7 inadvertently considered the case as if it was for limited scrutiny. The ld. D.R therefore, submitted that apparent mistake has crept in the order of the Tribunal in both these cases and therefore, it needs to be recalled. 4. We find that in the notice u/s 143(2) the very first line at the heading states that the case has been selected for complete scrutiny. The notice is made part of this order. SEAL GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME-TAX DEPARTMENT OFFICE OF THE INCOME-TAX OFFICER WARD 1, JALNA. To Ganadhiraj Majoor Sah. Sanstha Nehru Road, Nehru Road, Jalna-431 203 (Maharashtra. PAN AACAS07766J A.Y. 2015-16 Notice No. ITBA/ASTS/S143(2)/2016- 17/100030313458(1) Dated 18-08-2016 Notice u//s 143(2) of the Income-tax Act 1961 Complete scrutiny Sir/Madam This is for your kind information that the return of income for A.Y. 2015-16 filed vide ack. No. 820171791260915 on 26-09-2015 has been selected for complete scrutiny. 2. In view of the above, we would like to give you an opportunity to produce or cause to be produced, any evidence which you feel is necessary in support of the said return of income on 30-08-2016 at 10.05 at a.mn. in the office of the undersigned. 3 M.A. No. 26 and 30/PUN/2022 Ganadhiraj and Shashibhushan 3. Sending a communication to the undersigned in this regard shall also be treated as sufficient compliance in case no evidence is sought to be produced as required in para 2 above. 4. Specific questionnaire/show cause notice shall be sent giving you another opportunity in case any adverse view2 is contemplated. 5. (#) The assessment proceedings in your case is proposed to be conducted through email based communication. The email provided in the said return of income shall be used for communication for this purpose. In case you wish to communicate through any other alternate email, the same may kindly be informed. A brief note regarding benefits of this facility and procedure is enclosed overleaf. In case you do not wish to participate in this taxpayer friendly initiate, you may convey your refusal to the undersigned by the above mentioned date. In case, you wish to opt out from this scheme of any subsequent stage due to any technical difficulties by you, the same can be done with prior initiation to the undersigned. (#) applicable only in case of tax payers whose income-tax jurisdiction falls in the cities of Ahmedabad, Bangalure, Chennai, Delhi, Hyderabad, Kolkata or Mumbai. Yours faithfully Sd/- RAVINDER HEERALAL CHAVAN WARD 1, JALNA. 5. Further in the assessment order as per para 2 it reads as follows: “This case was selected for compulsory scrutiny through the CASS under the category complete scrutiny “for the reasons” low profit before interest and tax (FBT) shown. Accordingly, notices u/s 143(2) and 142(1) of the I.T. Act, 1961 were issued from time to time. In response to the same Shri Mukesh Oswal, ITP and AR of the assessee, attends from time to time furnished wri9tten submissions and explained the return of income filed.” 6. Therefore, undoubtedly, this case had been selected for complete scrutiny. However, the Tribunal in the impugned order dated 24-06-2019 in ITA No. 10/PUN/2019 inadvertently observed vide paras 5, 6 and 7 in the said order that the case was not for complete scrutiny but the case was for limited scrutiny. The Tribunal had relied on the decision in the case of Shashi Bhushan Majoor Sahakari Sanstha Ltd. Vs. ITO in ITA No. 1589/PUN/2018 for A.Y. 2015-16 against which Misc. application No. 30/PUN/2022 filed by the Revenue is before us and relying on this order of the Tribunal, the Tribunal had provided relief to the assessee on the assumption that the case was selected for limited scrutiny and without prior approval of the concerned authority, the A.O could not have extended the scope of such limited scrutiny proceedings to complete scrutiny. However, having gone through the notice u/s 143(2) and the assessment order, there is no doubt that the case was actually selected under CASS for complete 4 M.A. No. 26 and 30/PUN/2022 Ganadhiraj and Shashibhushan scrutiny and therefore, mistake apparent from record has crept in the order of the Tribunal. We hereby recall the order in ITA No. 10/PUN/2019 for A.Y. 2015- 16. It is also admitted position that in this order the relief was granted relying on the earlier order of the Tribunal in the case of Shashibhushan Majoor Sahakari Sanstha Ltd. in ITA No. 1589/PUN/2018 for A.Y. 2015-16. Here also the case was selected for complete scrutiny. However, the Tribunal inadvertently observed it was for a limited scrutiny. In the facts and circumstances, since a mistake has crept in both the orders of the Tribunal, they are re-called. The Registry is directed to fix these cases for hearing and issue notices to the parties. 6. In the result, MA No. 26/PUN/2022 arising out of ITA No. 10/PUN/2019 for A.Y. 2015-16 and M.A. No. 30/PUN/2022 arising out of ITA No. 1589/PUN/2018 for A.Y. 2015-16 are allowed. Order pronounced in the open Court on this 09 th September 2022. Sd/- sd/- (INTURI RAMA RAO) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune; Dated, this 09 th day of September 2022 Ankam Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The Pr. CIT- 1, Aurangabad 4. The CIT(A)-1 Aurangabad 5. The D.R. SMC Bench Pune. 6. Guard File BY ORDER, Sr. Private Secretary ITAT, Pune 5 M.A. No. 26 and 30/PUN/2022 Ganadhiraj and Shashibhushan Date 1 Draft dictated on 02-09-2022 Sr.PS 2 Draft placed before author 05-09-2022 Sr.PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on 09-09-2022 Sr.PS/PS 7 Date of uploading of order 09-09-2022 Sr.PS/PS 8 File sent to Bench Clerk 09-09-2022 Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order