M/s. Coromandel Cables Pvt. Ltd., CHENNAI V. ACIT, CHENNAI

MA 267/CHNY/2016

• Counselvise Citation: [2017] 124 COUNSELVISE.COM (IT) 5192 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 03-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYA PAL
• Assessee Lawyers: S SRIDHAR; MAYARAM GOPINATH S

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER M.A. NO. 264 TO 268/MDS/2016 [IN I.T.A. NO. 1780 TO 1784/MDS/2013 ] / ASSESSMENT YEARS : 2007-08 TO 2011-12 M/S. COROMANDEL CABLES P LTD. A7, 6 TH CROSS STREET, INDIA NAGAR, ADYAR, CHENNAI 600 020. PAN : AAACC7190E V. THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE I(3), CHENNAI. (APPLICANT) ( /RESPONDENT) APPLICANT BY : SHRI S. SRIDHAR & SHRI MAYARAM GOPINATH, ADVOCATES RESPONDENT BY : SHRI SUPRIYA PAL, JCIT /DATE OF HEARING : 06.01.2017 /DATE OF PRONOUNCEMENT : 20.01.2017 / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER : BY THESE FIVE MISCELLANEOUS PETITIONS, THE ASSESS EE SEEKS RECTIFICATION OF THE ORDER OF THIS TRIBUNAL IN ITA NOS. 1779 TO 1784/MDS/2013 DATED 20.05.2016. 2 M.A. NO. 264 TO 268/MDS/2016 2. THE LD. AR SUBMITTED THAT THE TRIBUNAL IN PARA 2 3 OF PAGE NO.75 OF ITS ORDER HELD AS UNDER: SINCE, WE HAVE VACATED THE FINDING OF THE CIT (APPE ALS) FOR THE ASST. YEAR 2006-07 BY OBSERVING THAT THERE IS NO TR ANSFER U/S.2(47(V) OF THE ACT, THE ASSESSMENT FOR THE ASST . YEAR 2008-09 IS TO BE TREATED AS SUBSTANTIVE AS DISCUSSED IN EARLIE R PARAGRAPH FOR THE ASST. YEAR 2007-08 AND THE INCOME HAS TO BE COM PUTED ON LONG TERM CAPITAL GAINS AND SHORT TERM CAPITAL GAINS AFT ER GIVING AN OPPORTUNITY OF HEARING TO THE ASSESSEE AND THE AO S HALL WORK OUT THE CAPITAL GAINS AFRESH. ACCORDINGLY, THE LEVY OF INTEREST U/S.234A FOR THE ASST. YEAR 2008-09 IS TO BE COMPUTED, WHICH IS MANDATORY IN NATURE. ACCORDING TO THE LD. AR, THE TRIBUNAL AFTER OBSERVI NG THAT THERE WAS NO TRANSFER, IN THE ASSESSMENT YEAR 2006-07 AND THE REBY VACATED THE ORDER OF THE LOWER AUTHORITIES IN BRINGING THE CAPITAL GAIN INTO TAX ON SUBSTANTIVE BASIS FOR THE ASSESSMENT YEAR 2006-0 7, THEREAFTER MADE THE PROTECTIVE ASSESSMENT ORDERS FOR THE ASSES SMENT YEARS 2007-08 TO 2010-11 AS A SUBSTANTIVE ASSESSMENT. AS SUCH THE ASSESSMENT ORDER FOR THESE ASSESSMENT YEARS CAME IN TO EXISTENCE AS SUBSTANTIVE ASSESSMENT. ONCE IT WAS CONSIDERED AS SUBSTANTIVE ASSESSMENT ALL THE FINDINGS OF THE ASSESSING OFFICE R IN THESE EARLIER PROTECTIVE ASSESSMENT ORDERS HOLDS GOOD AND ASSESSE E TO BE TAXED ACCORDINGLY. IN RESPECT OF THIS, THE TRIBUNAL GAVE A FINDING THAT 3 M.A. NO. 264 TO 268/MDS/2016 INCOME HAS TO BE DETERMINED ON LONG TERM CAPITAL GA IN AND SHORT TERM CAPITAL GAINS WHICH IS UNWARRANTED FINDINGS BY THE TRIBUNAL. 3. ON THE OTHER HAND, THE LD. DR SUBMITTED THAT THE RE IS NO INFIRMITY IN THE ORDER OF THE TRIBUNAL WHICH DOES N OT WANT ANY INTERFERENCE. 4. WE HEARD BOTH THE PARTIES AND PERUSED THE MATERI AL ON RECORD. WE FIND FORCE IN THE ARGUMENT OF THE LD. A R. ADMITTEDLY, THIS TRIBUNAL VACATED THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2006-07 HOLDING THAT THERE ARE NO TRANSFER SO AS TO ATTRACT TAX ON CAPITAL GAINS, THEREAFTER OBSERVED THAT ASSESSMENT ORDERS FROM THE ASSESSMENT YEARS 2007-08 TO 2011-12 TO BE CONSIDERE D AS SUBSTANTIVE ASSESSMENTS. BEING SO, THERE IS NO NEC ESSITY OF GIVING FURTHER FINDING BY THE TRIBUNAL WITH REGARD TO COMP UTATION OF LONG TERM CAPITAL GAIN AND SHORT TERM CAPITAL GAIN IN TH ESE ASSESSMENT YEARS. 4.1 ACCORDINGLY, PARA 23 OF THISTRIBUNAL ORDER CIT ED SUPRA READS AS FOLLOWS: 4 M.A. NO. 264 TO 268/MDS/2016 23. SINCE, WE HAVE VACATED THE FINDING OF THE CI T (APPEALS) FOR THE ASST. YEAR 2006-07 BY OBSERVING THAT THERE IS N O TRANSFER U/S.2(47)(V) OF THE ACT, THE ASSESSMENT FOR THE ASS T. YEAR 2008-09 IS TO BE TREATED AS SUBSTANTIVE AS DISCUSSED IN EARLIE R PARAGRAPH FOR THE ASST. YEAR 2007-08 AND THE INCOME HAS TO BE COM PUTED AFTER GIVING AN OPPORTUNITY OF HEARING TO THE ASSESSEE AN D THE AO SHALL WORK OUT THE CAPITAL GAINS AFRESH. ACCORDINGLY, TH E LEVY OF INTEREST U/S.234A FOR THE ASST. YEAR 2008-09 IS TO BE COMPUT ED, WHICH IS MANDATORY IN NATURE. 4.2 IN OTHER WORDS, THE ASSESSMENT ORDERS WHICH WER E ALREADY PASSED FOR THE ASSESSMENT YEARS 2007-08 TO 2011-12 TO BE CONSIDERED AS SUBSTANTIVE ASSESSMENTS AND IT IS TO BE ENFORCED SUBJECT TO OUR FINDINGS WITH REFERENCE TO OTHER GRO UNDS RAISED BY THE ASSESSEE IN ITS APPEALS FOR THESE ASSESSMENT YEARS. THERE ARE NO OTHER CHANGES IN THE ORDER OF THE TRIBUNAL CITED SU PRA, OTHER THAN FINDINGS IN OUR ORDER IN M.A. NO.41&42/MDS/2016 DAT ED 20.05.2016. 5 M.A. NO. 264 TO 268/MDS/2016 5. WITH THESE OBSERVATIONS, WE ALLOW THE MISCELLANE OUS APPLICATIONS FILED BY THE ASSESSEE. ORDER PRONOUNCED ON 20 TH JANUARY, 2017 AT CHENNAI. SD/- SD/- ( . ) ( ) (G. PAVAN KUMAR) (CHANDRA POOJARI) /JUDICIAL MEMBER / ACCOUNTANT MEMBER /CHENNAI, /DATED, THE 20 TH JANUARY, 2017. JR. !' #$! /COPY TO: 1. APPLICANT 2. /RESPONDENT 3. %&' ( )/CIT(A) 4. %&' /CIT 5. ! /DR 6. () /GF.