M/S GOODWILL TIMBER SUPPLY, KOTA V. INCOME TAX OFFICER, KOTA

SA 12/JPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3651 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 1 month(s) 10 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 19-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA
• Assessee Lawyers: PRAKUL KHURANA
• Keywords: Application of stay; Reasonable cause
• Section: 148; 2

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ S.A NO. 12/JP/2018 (ARISING OUT OF ITA NO. 372/JP/2018) FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2006-07 M/S GOODWILL TIMBER SUPPLY 663-B, PRATAP NAGAR, CHAMBAL GARDEN ROAD, DADABARI, KOTA. CUKE VS. THE ITO, WARD-1(1), KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AQGPS 4582 H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI PRAKUL KHURANA (ADV.) JKTLO DH VKSJ LS @ REVENUE BY : SHRI VARINDER MEHTA (CIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 23/03/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 23/03/2018 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. BY WAY OF THIS APPLICATION THE ASSESSEE IS SEEKING STAY AGAINST THE DEMAND OF RS. 1.15 CRORES COMPRISING OF TAX RS. 49 .68 LACS AND INTEREST OF RS. 65.58 LACS ARISING FROM THE REASSESSMENT ORD ER FOR THE ASSESSMENT YEAR 2006-07. 2. THE LD. AR OF THE ASSESSEE HAS SUBMITTED THAT THE IMPUGNED REASSESSMENT ORDER PASSED BY THE AO IS BARRED BY LI MITATION AS PER THE S.A. NO. 12JP/2018 M/S GOODWILL TIMBER SUPPLY VS. ITO 2 PROVISIONS OF SECTION 150(2) OF THE ACT. HE HAS POI NTED THAT INITIAL ASSESSMENT WAS MADE IN THE HAND OF WRONG PERSONS BY THE AO VIDE ORDER DATED 27.02.2014 AND ON APPEAL, THE LD. CIT(A ) DIRECTED THE AO TO ASSESS THE INCOME IN THE CORRECT HANDS AND ACCOR DINGLY, THE AO ISSUED A NOTICE U/S 148 OF THE ACT ON 03.03.2015. T HE LD. AR HAS SUBMITTED THAT THE ASSESSMENT IS BARRED BY LIMITATI ON AND THEREFORE, BAD IN LAW. IN SUPPORT OF HIS CONTENTION, HE HAS RE LIED UPON THE DECISION OF HONBLE MADRAS HIGH COURT IN CASE OF KALAPET PR IMARY AGRICULTURE CO-OP. CREDIT SOCIETY LTD. VS. ITO 378 ITR 658 AS WELL AS DECISION OF THE COORDINATE BENECH OF THIS TRIBUNAL IN CASE OF R AMESH CHAND SONI HUF VS. ITO 191 TTJ 137. THUS, THE LD. AR HAS SUBMI TTED THAT WHEN THE REASSESSMENT ORDER PASSED BY THE AO IS BARRED BY LI MITATION THEN, THERE IS NO LIABILITY ON THE ASSESSEE TO PAY THE IMPUGNED DEMAND AND MAJOR PART IS ON ACCOUNT OF INTEREST. HENCE, HE HAS PRAYE D THAT THE DEMAND IN QUESTION MAY BE STAYED TILL THE DISPOSAL OF APPEAL OF THE ASSESSEE. 3. ON THE OTHER HAND, THE LD. DR HAS VEHEMENTLY OPP OSED TO THE STAY OF DEMAND AND SUBMITTED THAT THE ASSESSEE MAY BE DIRECTED TO PAY AT LEAST 50% OF THE DEMAND IF THIS TRIBUNAL GRANTS THE STAY. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS RELEVANT MATERIAL ON RECORD. THERE IS NO DISPUTE THAT THE AS SESSMENT WAS S.A. NO. 12JP/2018 M/S GOODWILL TIMBER SUPPLY VS. ITO 3 REOPENED BY THE NOTICE ISSUED U/S 148 ON 03.03.2015 AS PER ORDER OF THE LD. CIT(A) IN CASE OF MS BRIJENDRA SETHI AND SH RI BHUVNESH SETHI. THE REASSESSMENT IN THE CASES OF THESE TWO PERSONS WERE PASSED BY THE AO ON 27.02.2014. THEREFORE, EVEN IF THE LIMITA TION AS PROVIDED U/S 150(2) IS TAKEN INTO CONSIDERATION PRIMA FACIE IT A PPEARS THAT ON THE DATE OF THE ORDER DATED 27.02.2014 WHEN THE ASSESSM ENT WAS FRAMED IN THE WRONG HANDS THE AO COULD NOT HAVE OPENED THE AS SESSMENT OF THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION. HOWEVER, THE ISSUE HAS TO BE DEALT IN DETAIL WITH WHILE DEALING WITH THE APPEAL OF THE ASSESSEE WHICH IS FIXED FOR HEARING ON 22.05.2018. HENCE, IN THE F ACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS IN VIEW OF THE DECISIONS AS RELIED UPON THE ASSESSEE, WE GRANT STAY AGAINST THE DEMAND SUBJECT TO PAYMENT OF RS. 10 LACS BY THE ASSESSEE ON OR BEFORE ON 31.03.2018. SUBJECT TO THE PAYMENT OF RS. 10 LACS AS DIRECTED B Y US THE BALANCE DEMAND IS STAYED FOR A PERIOD OF 180 DAYS OR TILL DISPOSAL OF THE APPEAL OF THE ASSESSEE. THE HEARING OF THE APPEAL OF THE A SSESSEE IS PROPOSED FROM 22.05.2018 TO 25.04.2018. THE VIEW EXPRESSED IN THIS ORDER SHALL HAVE NO BEARING ON THE MERITS OF THE APPEAL. WE MAK E IT CLEAR THAT THE DATE OF HEARING OF THE ASSESSEES APPEAL IS PRONOUN CED IN THE COURT AND HAS BEEN NOTED DOWN BY BOTH PARTIES, THEREFORE, NO SEPARATE NOTICE OF S.A. NO. 12JP/2018 M/S GOODWILL TIMBER SUPPLY VS. ITO 4 HEARING SHALL BE ISSUED. FURTHER IN CASE THE ASSESS EE SEEKS ADJOURNMENT OF HEARING WITHOUT ANY REASONABLE CAUSE THE STAY GR ANTED BY US SHALL STAND VACATED. IN THE RESULT, THE STAY APPLICATION IS ALLOWED IN A BOVE TERMS. IN ORDER PRONOUNCED IN THE OPEN COURT ON 23/03/2018 SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 23/03/2018. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S GOODWILL TIMBER SUPPLY, KOTA. 2. IZR;FKHZ@ THE RESPONDENT- THE ITO,WARD-1(1), KOTA. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {S.A. NO. 12/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR