Roca Bathroom Products Private Limited, CHENNAI V. ACIT, CHENNAI

MA 71/CHNY/2016

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4743 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 22-07-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 22-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: S RAGHUNAHAN SAMPATH

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.71/MDS/2016 (IN I.T.A. NO.610/MDS/2015) ' (' / ASSESSMENT YEAR : 2010-11 M/S ROCA BATHROOM PRODUCTS PRIVATE LIMITED, KGN TOWERS, 4 TH FLOOR, ETHIRAJ SALAI, EGMORE, CHENNAI - 600 105. PAN : AAACE 9982 E V. THE ASSISTANT COMMISSIONER OF INCOME TAX, LARGE TAXPAYER UNIT 1, CHENNAI. (*+' /PETITIONER) (*,+-/ RESPONDENT) *+' / 0 /PETITIONER BY : S. RAGHUNAHAN SAMPATH, ADVOC ATE *,+- / 0 / RESPONDENT BY : SHRI A.V. SREEKANTH, JCIT 1 / 2% / DATE OF HEARING : 22.07.2016 3'( / 2% / DATE OF PRONOUNCEMENT : 10.08.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THE ASSESSEE HAS FILED THE PRESENT MISCELLANEOUS PETITION ON THE GROUND THAT GROUND NOS.4 TO 7 WERE NOT ADJUD ICATED. ACCORDING TO THE LD. COUNSEL, NON-ADJUDICATION OF G ROUND SPECIFICALLY RAISED BY THE ASSESSEE IN THE GROUNDS OF APPEAL IS AN ERROR WITHIN 2 M.P. NO.71/MDS/16 THE MEANING OF SECTION 254(2) OF THE INCOME-TAX ACT , 1961 (IN SHORT 'THE ACT'). THEREFORE, IT NEEDS TO BE ADJUDICATED. 2. THE LD.COUNSEL FOR THE ASSESSEE FURTHER SUBMITTE D THAT THE ISSUE WITH REGARD TO FUNCTION OF THE ASSESSEE WAS R EMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THEREFORE, THE GROUND RAISED BY THE ASSESSEE IN GROUND NOS.4 TO 7 MAY ALSO BE REMIT TED BACK TO THE FILE OF THE ASSESSING OFFICER SO THAT THE MATTER CA N BE ADJUDICATED BY THE DISPUTE RESOLUTION PANEL. PLACING RELIANCE ON THE DECISION OF THIS BENCH IN FORD INDIA PVT. LTD. V. DCIT IN I.T.A . NO.2112(MDS)/2010 DATED 13.06.2012, THE LD.COUNSEL SUBMITTED THAT THIS TRIBUNAL FOUND THAT WHEN DIFFERENT ISSUES ARISE IN ONE APPEAL, THE SAME HAVE TO BE CONSIDERED BY THE SAME AUTHORITIES. THIS TRIBUNAL FOUND THAT IF THE ISSUES ARE SPLIT UP AND SENT TO VARIOUS AUTHORITIES, PRACTICALLY IT IS VERY DIFFICULT FOR T HE ASSESSING OFFICER TO PASS FINAL ORDER WHILE GIVING EFFECT TO THE DIRECTI ONS OF THE DRP. THEREFORE, FOR THE SAKE OF CONSISTENCY, THE LD.COUN SEL SUBMITTED THAT THIS ISSUE MAY ALSO BE REMITTED BACK TO THE FI LE OF THE ASSESSING OFFICER SO THAT THE ENTIRE MATTER CAN BE REFERRED T O DRP FOR RECONSIDERATION. 3. WE HAVE HEARD SHRI A.V. SREEKANTH, THE LD. DEPAR TMENTAL REPRESENTATIVE ALSO. THE LD. D.R. SUBMITTED THAT T HE SPECIFIC 3 M.P. NO.71/MDS/16 GROUNDS RAISED BY THE ASSESSEE IN GROUND NOS.4 TO 7 WERE NOT ADJUDICATED BY THIS TRIBUNAL. 4. WE HAVE CONSIDERED THE SUBMISSIONS ON EITHER SID E AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE ASSESSEE RAISED GROUND NOS.4 TO 7 IN THE APPEAL, WHICH WERE NOT ADMITTED DISPOSED OF. WITH REGARD TO ADVERTISEMENT, MARKETI NG AND PROMOTION EXPENSES, THE ASSESSEE CLAIMS THAT BRIGHT LINE TEST ADOPTED BY THE ASSESSING OFFICER IS NOT ONE OF THE METHODS PRESCRIBED UNDER SECTION 92C(1) OF THE ACT. THIS T RIBUNAL IS OF THE CONSIDERED OPINION THAT WHEN CERTAIN GROUNDS RAISED BY THE ASSESSEE ARE NOT DISPOSED OF ON MERIT, THERE IS AN ERROR WITHIN THE MEANING OF SECTION 254(2) OF THE ACT WHICH NEEDS TO BE ADJUDICATED. IN OTHER WORDS, THE SPECIFIC GROUNDS RAISED BY THE ASSESSEE IN GROUND NOS.4 TO 7 IN THE GROUNDS OF APP EAL HAS TO BE ADJUDICATED ON ITS MERIT. ACCORDINGLY, THE APPEAL IS REOPENED AND THE REGISTRY IS DIRECTED TO POST THE APPEAL FOR DIS POSAL OF GROUND NOS.4 TO 7 ALONE ON 18.08.2016. 5. IT IS MADE CLEAR THAT THE ORDER OF THIS TRIBUNAL DATED 18.12.2015 IN RESPECT OF OTHER ASPECTS SHALL REMAIN AS SUCH. THE APPEAL IS REOPENED AND POSTED FOR DISPOSAL OF GROUN D NOS.4 TO 7 ONLY. 4 M.P. NO.71/MDS/16 6. WITH THE ABOVE OBSERVATION, THE MISCELLANEOUS PE TITION FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 10 TH AUGUST, 2016 AT CHENNAI. SD/- SD/- (. !'# ! ) ( ... ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 10 TH AUGUST, 2016. KRI. / *267 87(2 /COPY TO: 1. *+' / PETITIONER 2. *,+- /RESPONDENT 3. 1 92 () /CIT(A) 4. 1 92 /CIT 5. 7: *2 /DR 6. ' ; /GF.