N.K. Proteins Ltd., Ahmedabad V. The Pr.CIT-III, Ahmedabad

MA 8/AHD/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9158 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 07-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALIT P JAIN
• Keywords: Set aside
• Section: 263

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, C BENCH, AHMEDABAD BEFORE SHRI MAHAVIR PRASAD , JUDICIAL MEMBER AND SHRI WASEEM AHMED , ACCOUNTANT MEMBER M.A NO.8/AHD/2020 IN ./ ITA NO. 699 / AHD/ 2015 / ASSTT. YEAR: 2010 - 2011 N.K. PROTEINS LTD. , 7 TH FLOOR, POPULAR HOUSE , ASHRAM ROAD , TOWER ROAD , AHMEDABAD - 380009 . PAN NO.AAACN9377N VS THE PR. C.I.T - III , AHMEDABAD . (APPLICANT) (RESPONENT) ASSESSEE BY : SHRI S.N. SOPARKAR , WITH SHRI PARIN SHAH, A.R S . REVENUE BY : SHRI LALIT P. JAIN , SR.DR / DATE OF HEARING : 06 / 03/2020 / DATE OF PRONOUNCEMENT: 10 / 08 /2020 / O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER : THE ASSESSEE BY WAY OF THIS MISCELLANEOUS APPLICATION IS SEEKING RECTIFICATION IN THE ORDER OF THE ITAT ON THE GROUND THAT THERE IS A MISTAKE APPARENT FROM THE RECORD. 2. IN THE PRESENT CASE , THE P RINCIPLE CIT UNDER SECTION 263 OF THE ACT HAS HELD THE OR DER PASSED BY THE AO AS ERRONEOUS INSOFAR PREJUDICIAL TO THE INTEREST OF REVENUE ON 7 COUNTS. HOWEVER THE LEARNED PRINCIPLE CIT IN HIS ORDER UNDER SECTION 263 OF THE ACT HAS DIRECTED THE AO TO FRAME THE ENTIRE ASSESSMENT AFRESH. M.A NO.8/AHD/2020 IN ITA NO.699/AHD/2015 A.Y.20 10 - 1 1 . 2 3. THE LEARNED AR AT THE T IME OF HEARING BEFORE US CONTENDED THAT THE LEARNED P RINCIPLE C . I . T ERRED IN SETTING ASIDE THE ORDER TO THE AO TO MAKE THE ENTIRE ASSESSMENT AFRESH. AS SUCH THE LD. PCIT IS EMPOWERED TO SET ASIDE THE ISSUES RAISED BY HIM FOR FRESH ADJUDICATION IN THE LIGHT OF THE DIRECTION PROVIDED BY HIM. THE LEARNED AR IN SUPPORT OF HIS CONTENTION RELIED ON THE JUDG MENT OF HON BLE GUJARAT HIGH COURT IN THE CASE OF BUDHI LAL HIRALAL RANA REPORTED IN 125 TAXMAN 455. HOWEVER THE ITAT IN ITS ORDER HAS NOT GIVEN ANY DIRECTION AG AINST THE ORDER OF THE LEARNED P RINCIPLE C . I . T . TO SET ASIDE THE ORDER OF THE AO TO THE EXTENT OF THE DEFECTS/MISTAKE OBSERVED BY HIM. THUS, IN THE ABSENCE OF SUCH DIRECTION, A MISTAKE IN THE ORDER OF ITAT HAS CREPT IN DESPITE THE FACT SUCH POINT WAS BR OUGHT TO THE NOTICE OF THE ITAT AT THE TIME OF HEARING. ACCORDINGLY THE LEARNED AR BEFORE US SUBMITTED THAT THERE IS A MISTAKE IN THE ORDER OF THE ITAT WHICH NEEDS TO BE RECTIFIED UNDE R THE PROVISIONS OF SECTION 254( 2 ) OF THE ACT. 4. ON THE OTHER HAND THE LEARNED DR VEHEMENTLY SUPPORTED THE ORDER OF THE ITAT. 5. HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIALS AVAILABLE ON R ECORD. ADMITTEDLY, THE LEARNED P RINCIPLE C . I . T HAS NO POWER TO SET ASIDE THE ENTIRE AS SESSMENT TO THE AO FOR MAKING THE SAME AFRESH. AS SUCH, THE ORDER OF THE AO CAN BE SET ASIDE TO THE EXTENT OF THE MISTAKES I DENTIFIED BY THE LEARNED P RINCIPLE C . I . T. THE T RIBUNAL AT THE TIME OF HEARING THE APPEAL HAS TAKEN THE COGNIZANCE OF THIS FACT IN IT S ORDER. HOWEVER THE ITAT WHILE CONCLUDING ITS FINDING IN ITS ORDER HAS NOT GIVEN ANY DIRECTION TO HOLD THE ORDER OF THE AO AS ERRONEOUS INSOFAR PREJUDICIAL TO THE INTEREST OF REVENUE TO THE EXTENT OF THE MIS TAKE IDENTIFIED BY THE LEARNED P RINCIPLE C . I . T . WHICH WERE ALSO UPHELD BY IT (ITAT). THUS TO THIS EXTENT, WE FIND MERIT IN THE ARGUMENT OF THE LEARNED AR FOR THE ASSESSEE. ACCORDINGLY, WE DIRECT THE AO TO RESTRICT HIS FINDING ON THE MIST AKES IDENTIFIED BY THE LEARNED P RINCIPLE C . I . T IN HIS ORDER WHICH W ERE ALSO UPHELD BY THE ITAT IN ITS ORDER DATED 12 DECEMBER 2019. HENCE THE MA FILED BY THE ASSESSEE IS ALLOWED. M.A NO.8/AHD/2020 IN ITA NO.699/AHD/2015 A.Y.20 10 - 1 1 . 3 6. IN THE RESULT, THE MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 10 / 08 / 2020 AT AHMEDABAD. - SD - ( MAHAVIR PRASAD ) JUDICIAL MEMBER - SD - ( WASEEM AHMED ) ACCOUNTANT MEMBER (TRUE COPY) AHMEDABAD; DATED 10 / 08 / 2020 MANISH