ACIT, New Delhi V. M/s. Godavari Shilpkala Ltd., New Delhi

MA 764/DEL/2018

AI Insights

The case involves a dispute between the DCIT, Central Circle-13, New Delhi (Appellant) and M/s. Godavari Shilpkala Ltd. (Respondent) regarding the issuance of notices under different sections of the Income Tax Act. The Revenue contended that the notice under Section 148 dated 08.12.2009 was valid as the regular assessment proceedings were not ongoing. However, the respondent argued that notices under Section 143(2) and 142(1) were issued and served, indicating that regular assessment proceedings were indeed ongoing at the time the notice under Section 148 was issued. The tribunal upheld the respondent's position, leading to the dismissal of the Revenue's application.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 121593 (ITAT-DELHI)
• Duration Of Justice: 18 year(s) 3 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-12-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 22-09-2022
• Assessment Year: misc
• Appeal Filed On: 12-09-2004
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148; 142(1); 143(2); 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI YOGESH KUMAR US, JUDICIAL MEMBER MA No.764/DEL/2018 (Arising from ITA No.4636/Del/2013) Assessment Year 2007-08 DCIT, Central Circle-13, New Delhi. vs. M/s. Godavari Shilpkala Ltd., 12- Aurangzeb Road, New Delhi. TAN/PAN: AAACG1037G (Appellant) (Respondent) Appellant by: Shri Om Prakash, Sr.DR. Respondent by: Shri Gaurav Jain, Adv. Shri Sudarshan Roy, Adv. Date of hearing: 16 12 2022 Date of pronouncement: 16 12 2022 O R D E R PER PRADIP KUMAR KEDIA - A.M.: In the present Misc. Application, the Revenue seeks to object the order of the ITAT on the ground that proceedings initiated for regular assessment by issuance of notice under Section 143(2) was dropped and therefore no regular assessment proceedings were pending. Consequently, the notice issued under Section 148 dated 08.12.2009 survives and the assessment was rightly framed by the Assessing Officer in consequence of notice so made under Section 148 of the Act. 2. The ld. counsel for the assessee, on the other hand, strongly objects to the averments made by the Revenue in its Misc. Application under Section 254(2) of the Act dated 12.12.2018. The ld. counsel submits that a notice under Section 143(2) dated 12.08.2008 was issued. Subsequently notice under Section 142(1) MA No.764/Del/2018 2 was also issued 22.04.2009 and served upon the assessee. Consequently, the regular assessment proceedings were pending at the time of issuance of notice under Section 148 dated 24.10.2010. The Revenue has not been able to furnish any record to counter the basis on which the ITAT has adjudicated the issue in favour of the assessee. 3. We have carefully considered the rival submissions. It is the case of the assessee that a notice under Section 143(2) and 142(1) were issued and served upon the assessee and therefore the regular assessment proceedings were in play for which no formal order has been passed to drop the regular proceedings. During the pendency of the regular proceedings, the power conferred under Section 147 were exercised by the Assessing Officer by issuance of notice under Section 148 dated 24.10.2010. Such course adopted by the Assessing Officer is not permissible in law. During the pendency of the regular proceedings, the power under Section 147 could not have been invoked by the Assessing Officer as held by the Tribunal. The Revenue has not been able to show that the regular assessment proceedings under Section 143(2) initiated earlier were dropped despite multiple opportunities given to the Revenue. 4. The Misc. Application filed by the Revenue is thus not supportable on facts. Consequently, the Miscellaneous Application filed by the Revenue stands dismissed. 5. In the result, the present Miscellaneous Application by the Revenue is dismissed. Order was pronounced in the open Court on 16 th December, 2022. Sd/- Sd/- [YOGESH KUMAR US] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: November, 2022