Asst. Commissioner of Income Tax, Central Circle-3(1)., Hyderabad V. Aashi Plywood Industries., Hyderabad

MA 5/Hyd/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0600 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 05-02-2021
• Assessment Year: 2007-2008
• Appeal Filed On: 20-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL KUMAR PANDEY
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Revision of order; Audit objection; Tax effect
• Section: 143(3); 254(2); 153C; 144

Judgement Text

MA NO 5 OF 2020 AASHI PLYWOOD INDUSTRIES HYDERABA D PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER M.A. NO 5/HYD/2020 (ARISING OUT OF ITA NO.1334/HYD/2017) ASSESSMENT YEAR: 2007-08 ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 3(1), HYDERABAD VS. AASHI PLYWOOD INDUSTRIES HYDERABAD PAN: AADFP9625M (APPELLANT) (RESPONDENT) REVENUE BY: SRI SUNIL KUMAR PANDEY, DR ASSESSEE BY : SRI P. MURALI MOHANA RAO DATE OF HEARING: 05/02/2021 DATE OF PRONOUNCEMENT: 16/02/2021 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS M.A. IS FILED BY THE REVENUE SEEKING RECALL OF THE ORDER OF THE TRIBUNAL DATED 26.08.2019 DISMISSING T HE REVENUES APPEAL ON ACCOUNT OF LOW TAX EFFECT. IN THIS APPLIC ATION, THE REVENUE HAS SUBMITTED AS UNDER: MISCELLANEOUS PETITION U/S 254(2) OF THE I.T. ACT IN THE CASE OF M/S. AASHI PLYWOOD INDUSTRIES (PAN:AADEF9625M) FOR THE A.Y 2007-08 ON THE ORDER OF HON'BLE ITAT HYDERABAD A BENCH IN ITA NO.1334/HYD/2017, DATED 26.08.2019. IN THE CASE OF M/S. AASHI PLYWOOD INDUSTRIES FOR TH E A.Y 2007- 08, THE HON'BLE ITAT HAS PASSED AN ORDER IN ITA NO.1334/HYD/2017 DATED 26.8.2019 DISMISSING THE APP EAL AS WITHDRAWN DUE TO LOW TAX EFFECT. IN THIS CASE, ASSESSING OFFICER PASSED AN ORDER U/S . 144 R.W.S 153C ON 25.12.2011 BY ACCEPTING THE RETURNED LOSS O F (-)RS.1,14,49,169/- OF THE ASSESSEE. SUBSEQUENTLY, AUDIT HAS POINTED OUT SOME DISCREPANCIES WHICH ARE ACCEPTED B Y THE REVENUE. AS A PART OF REMEDIAL ACTION, THE ORDER U/ S.263 WAS PASSED BY THE CIT(CENTRAL), HYD ON 28.03.2014. THE AO PASSED MA NO 5 OF 2020 AASHI PLYWOOD INDUSTRIES HYDERABA D PAGE 2 OF 3 THE ASSESSMENT U/S 143(3) R.W.S 263 ON 25.02.2015 DISALLOWING THE LOSS RETURNED BY ASSESSEE. HON'BLE ITAT QUASHED ORDER U/S 263 AND DEPARTMENT PREFERRED APPE AL BEFORE HON'BLE HIGH COURT AGAINST QUASHING, THE CIT(CENTRA L)'S ORDER U/S 263 OF THE LT ACT., WHICH IS STILL PENDING. MEA NWHILE, ASSESSEE FILED APPEAL AGAINST THE ORIGINAL ASSESSME NT ORDER U/S 144 R.W.S 153C, DT.25.12.2011 WHICH WAS ALLOWED BY CIT(A) STATING THAT NO SATISFACTION WAS RECORDED U/S 153C OF I.T ACT. THE DEPARTMENT PREFERRED AN APPEAL BEFORE HON'BLE I TAT, WHICH IS THE PRESENT ORDER OF APPEAL, QUESTIONING THE CON DONATION OF DELAY. THE HON'BLE ITAT DISMISSED THE APPEAL AS WIT HDRAWN DUE TO LOW TAX EFFECT. IT IS TO SUBMIT THAT, IN THIS CASE RAP RAISED AN OB JECTION VIDE PARA 01 OF LAR NO.PDA(C)/RADT/HQRS/U-1/6-210/13, DT.19.04.2013 AND THE RAP OBJECTION HAS BEEN ACCEPT ED BY THE DEPARTMENT. AS A RESULT, THE CASE FALLS UNDER EXCEP TION CLAUSE MENTIONED VIDE PARA 10 CLAUSE (C) IN CBDT CIRCULAR NO.3 I 20 18, DT.11.07 .2018. AS THIS IS A MISTAKE APPARENT FROM RECORD, IT IS PR AYED THAT THE SAME MAY BE RECTIFIED BY THE HON'BLE ITAT U/S 254(2 ) OF THE INCOME TAX ACT BY PASSING SUITABLE ORDERS. SD/- (B.NARASING RAO) ASSTT.COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-3(1) HYDERABAD 2. AT THE TIME OF HEARING, THOUGH THE LEARNED DR RE LIED UPON THE SUBMISSIONS MADE IN THE M.A, THE LEARNED C OUNSEL FOR THE ASSESSEE SUBMITTED THAT THE APPEAL BEFORE THE T RIBUNAL WAS AGAINST THE ORDER OF THE CIT (A) GRANTING RELIEF IN THE APPEAL FILED AGAINST THE ASSESSMENT ORDER U/S 143(3) R.W.S. 153C OF THE ACT WHEREAS AS PER THE SUBMISSIONS OF THE DEPARTMENT IN THE M.A, THE CIT HAD ALREADY PASSED AN ORDER U/S 263 AS PER THE AUDIT OBJECTION AND CONSEQUENTLY THE AO ALSO PASSED THE A SSESSMENT U/S 143(3) R.W.S. 263 OF THE ACT DATED 25.2.2015 DI SALLOWING THE LOSS RETURNED BY THE ASSESSEE. ITAT HAD QUASHED THE ORDER U/S 263 AND THE ASSESSEE HAD PREFERRED AN APPEAL BEFORE THE HON'BLE HIGH COURT AND THE SAME IS PENDING. THUS, IT CAN BE SEEN THAT THE AUDIT OBJECTION IS NOT WITH REGARD TO THE APPEAL FI LED BEFORE US. IN VIEW OF THE SAME, THE M.A FILED BY THE REVENUE IS D ISMISSED AS IT MA NO 5 OF 2020 AASHI PLYWOOD INDUSTRIES HYDERABA D PAGE 3 OF 3 DOES NOT FALL IN ANY OF THE EXCEPTIONS TO THE CBDT CIRCULAR NO.17 OF 2019 DATED 19 TH AUGUST, 2019. 3. IN THE RESULT, REVENUES M.A IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH FEBRUARY, 2021. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 16 TH FEBRUARY, 2021. VINODAN/SPS COPY TO: 1 ACIT CENTRAL CIRCLE 3(1) HYDERABAD 2 AASHI PLYWOOD INDUSTRIES, PLOT NO0.5,6,7,18,19 & 20 IDA PATANCHERU, HYDERABAD 3 CIT (A)-12 HYDERABAD 4 PR. CIT CENTRAL, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER