ACIT, Cent. Cir.-2(2), Pune V. Vintage Cards & Creation Ltd., Pune

MA 46/PUN/2009

• Counselvise Citation: [2015] 124 COUNSELVISE.COM (IT) 2895 (ITAT-PUNE)
• Duration Of Justice: 6 year(s) 1 month(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-03-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 13-03-2015
• Assessment Year: misc
• Appeal Filed On: 03-02-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Block assessment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE MS SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER M.A. NO.46/PN/2009 ARISING OUT OF ITA NO.356/PN/2003 BLOCK ASSESSMENT PERIOD: 01.04.1989 TO 24.02.2000 THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE 2 (2) APPLICANT VS. VINTAGE CARDS & CREATION LTD., VINTAGE HOUSE, 33, NAGAR ROAD, PUNE 411014 RESPONDENT APPLICANT BY : SHRI RAJESH DAMOR RESPONDENT BY : NONE DATE OF HEARING : 13.03.2015 DATE OF PRONOUNCEMENT : 25.03.2015 ORDER PER SUSHMA CHOWLA, JM : THE CAPTIONED MISCELLANEOUS APPLICATION HAS BEEN M OVED BY THE REVENUE AGAINST ORDER OF THE TRIBUNAL IN ITA NO.356/PN/2003 DATED 07.11.2007 RELATING TO BLOCK ASSESSMENT PERIOD FROM 01.04.1989 TO 24.02.2000. 2. SEVERAL NOTICES WERE SENT TO THE ADDRESS OF THE RESPONDENT ASSESSEE, BUT NONE APPEARED ON BEHALF OF THE ASSESSEE ON VARIOUS DATES OF HEARING. THEREAFTER, THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE WAS ASKED TO SERVE THE NOTICE TO THE PARTIES AND THE EVIDENCE OF SUCH SERVICE OF NOT ICE BY AFFIXTURE IS PLACED ON RECORD. HOWEVER, THE RESPONDENT ASSESSEE FAILED TO APPEAR O N THE APPOINTED DATE OF HEARING NOR ANY APPLICATION WAS MOVED FOR ADJOURNMENT. WE PROCEED TO DECIDE THE PRESENT MISCELLANEOUS APPLICATION AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE. 2 MA NO.46/PN/2009 ARISING OUT OF ITA NO.356/PN/2003 3. THE ONLY ISSUE RAISED IN THE PRESENT MISCELLANEO US APPLICATION IS AGAINST THE GROUND OF APPEAL NO.3 RAISED BY THE ASSESSEE IN RES PECT OF THE LEVY OF SURCHARGE ON THE TAX DETERMINED TO BE PAYABLE ON THE UNDISCLOSED INC OME ASSESSED IN THE BLOCK ASSESSMENT UNDER SECTION 158BC(C) OF THE ACT. 4. THE SAID ISSUE WAS DECIDED IN FAVOUR OF THE ASSE SSEE BY RELYING ON THE RATIO LAID DOWN BY THE SPECIAL BENCH OF HYDERABAD TRIBUNAL IN MERIT ENTERPRISES VS. CIT 288 ITR AT 226 (HYD) (SB). HOWEVER, VIDE THE MISCELLANEOUS APPLICATION, IT WAS POINTED OUT THAT THE HONBLE SUPREME COURT IN CIT VS. SURESH N. GUPTA (2008) 297 ITR 322 (SC) HAD HELD THAT THE PROVISO TO SECTION 113 OF THE ACT IS CLARIFICATORY IN NATURE AND IS APPLICABLE TO ALL PENDING BLOCK ASSESSMENTS. 5. IN VIEW OF THE RATIO LAID DOWN BY THE HONBLE SU PREME COURT IN CIT VS. SURESH. N. GUPTA (SUPRA), THE LEARNED DEPARTMENTAL REPRESEN TATIVE FOR THE REVENUE POINTED OUT THAT A MISTAKE HAS CREPT IN THE ORDER OF TRIBUNAL I N GRANTING RELIEF TO THE ASSESSEE VIDE GROUND OF APPEAL NO.3. A PRAYER WAS MADE BEFORE US TO RECALL THE ORDER OF TRIBUNAL VIS- -VIS GROUND OF APPEAL NO.3 AND DECIDE THE SAME IN LINE WITH THE RATIO LAID DOWN BY THE HONBLE SUPREME COURT IN CIT VS. SURESH N. GUPTA (S UPRA). 6. ON THE PERUSAL OF RECORD AND MISCELLANEOUS APPLI CATION, WE FIND THAT THE TRIBUNAL VIDE ORDER DATED 07.11.2007 HAD, WHILE DECIDING THE GROUND OF APPEAL NO.3 DIRECTED THAT NO SURCHARGE IS TO BE LEVIED ON THE TAX DETERMINED TO BE PAYABLE ON THE UNDISCLOSED INCOME ASSESSED IN THE BLOCK ASSESSMENT UNDER SECTI ON 158BC(C) OF THE ACT, IN TURN RELIANCE WAS PLACED ON THE RATIO LAID DOWN BY THE S PECIAL BENCH OF HYDERABAD TRIBUNAL IN MERIT ENTERPRISES VS. CIT (SUPRA). HOWEVER, THE HONBLE SUPREME COURT IN CIT VS. SURESH N. GUPTA (SUPRA), HAS HELD THAT THE PROVISO TO SECTION 113 OF THE ACT IS CLARIFICATORY IN NATURE AND CONSEQUENTLY, SURCHARGE IS LEVIABLE TO ALL PENDING BLOCK ASSESSMENTS. IN VIEW OF THE SAID RATIO LAID DOWN B Y THE HONBLE SUPREME COURT IN CIT VS. SURESH N. GUPTA (SUPRA), WE FIND A MISTAKE HAS CREPT INTO THE ORDER OF TRIBUNAL AND WE PROCEED TO CORRECT THE SAME. ACCORDINGLY, WE RE VERSE THE ORDER OF THE TRIBUNAL 3 MA NO.46/PN/2009 ARISING OUT OF ITA NO.356/PN/2003 VIS--VIS GROUND OF APPEAL NO.3 TO THE EXTENT AND P ROCEED TO DECIDE THE SAME IN LINE WITH THE RATIO LAID DOWN BY THE HONBLE SUPREME COU RT IN CIT VS. SURESH N. GUPTA (SUPRA). ACCORDINGLY, WE HOLD THAT SURCHARGE IS LE VIABLE ON THE TAX DETERMINED ON THE UNDISCLOSED INCOME ASSESSED UNDER SECTION 158BC(C) OF THE ACT AND THE GROUND OF APPEAL NO.3 RAISED BY THE ASSESSEE IS THUS, DISMISS ED. IN VIEW THEREOF, THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS A LLOWED. 7. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY THE REVENUE IS ALLOWED. ORDER PRONOUNCED ON THIS THE 25 TH DAY OF MARCH, 2015. SD/- SD/- (R.K. PANDA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER GCVSR PUNE, DATED THE 25 TH MARCH, 2015 COPY TO: 1. DEPARTMENT ; 2. THE ASSESSEE; 3. THE CIT(A)-I, PUNE 4. THE CIT-I, PUNE 5. THE DR A BENCH, ITAT, PUNE. 6. GUARD FILE. BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, PUNE.