THE DY.CIT, CENTRAL CIRCLE-1(1), AHMEDABAD V. PRIYABLUE SHIPPING PRIVATE LTD., MUMBAI

MA 102/AHD/2024

AI Insights

The case involves M/s. Priyablue Shipping Private Ltd., which was the subject of reassessment proceedings by the Deputy Commissioner of Income-tax, Central Circle -1(1), Ahmedabad, for the assessment years 2018-19 and 2019-20. The Revenue filed Miscellaneous Applications seeking rectification of the ITAT's earlier order, which had dismissed their appeal and quashed the reassessment orders due to lack of incriminating material found during the search. The Revenue argued that according to CBDT Instruction No. 1 of 2023, they were required to initiate reassessment proceedings under section 147 of the Act, which they claimed was necessary due to the downward adjustment of purchase value of Tugs and related depreciation disallowance. However, the Tribunal found no apparent mistake in their previous order and noted that the time limit for initiating such proceedings had lapsed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25551 (ITAT-AHMEDABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Other Referred Cases: PCIT Vs. Abhisar Buildwell Pvt. Ltd., DCIT vs. M/s. Amraworld Agrico Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVAN LIMBASIYA
• Assessee Lawyers: TUSHAR HEMANI; PARIMALSINH B. PARMAR
• Keywords: Reassessment proceedings; Depreciation
• Section: 147; 143(3); 254(2)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER MISCELLANEOUS APPLICATION Nos. 102 & 104/Ahd/2024 (In IT(SS)A Nos. 40 & 41/Ahd/2022) (Ǔनधा[रण वष[ / Assessment Years : 2018-19 & 2019-20) M/s. Priyablue Shipping Private Ltd. 501/502, 5th Floor Kesar Orion, Hindu Colony, Lane No.5, Dadar East, Mumbai - 400014 बनाम/ Vs. Dy. Commissioner of Income-tax Central Circle -1(1), Ahmedabad èथायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAFCP5056R (Respondent) .. (Applicant) Assessee by : Shri Tushar Hemani, Sr. Advocate & Shri Parimalsinh B. Parmar, A.R. Revenue by : Shri Kavan Limbasiya, Sr. DR Date of Hearing 24/01/2025 Date of Pronouncement 29/01/2025 O R D E R PER SHRI NARENDRA PRASAD SINHA, AM: These two Miscellaneous Applications are filed by the Revenue seeking rectification of the order passed by the ITAT in IT(SS)A Nos. 40 & 41/Ahd/2022, dated 02.01.2024. 2. The ground taken by the Revenue in the two Miscellaneous Applications is as under: MA Nos. 102 & 104/Ahd/2024 [DCIT vs. Priyablue Shipping Private Ltd.] A.Ys. 2018-19 & 2019-20 - 2 – M.A. No. 102/Ahd/2024 1. \"On the facts and in circumstances of the case and in law, the Hon'ble ITAT has erred in law and on facts in not appreciating the fact that as per direction contained in Instruction No. 1 of 2023 of the CBDT, time limit to reassess the income attributable to downward adjustment of Rs. 18,92,95,606/ by TPO on account of purchase value of the Tugs has already been lapsed in this case and suitable directions u/s 150 of the Income Tax Act are required to be delivered by Hon'ble ITAT to initiate reassessment proceedings u/s 147 of the Act to reassess the case of the assessee for AY 2018-19.\" M.A. No. 104/Ahd/2024 1. \"On the facts and in circumstances of the case and in law, the Hon'ble ITAT has erred in law and on facts in not appreciating the fact that as per direction contained in Instruction No. 1 of 2023 of the CBDT, time limit to reassess the income attributable to disallowance of depreciation of Rs. 4,42,06,564/ in consequences of downward adjustment of Rs. 18,92,95,606/ by TPO on account of purchase value of the Tugs during AY 2018-19 has already been lapsed in this case and suitable directions u/s 150 of the Income Tax Act are required to be delivered by Hon'ble ITAT to initiate reassessment proceedings u/s 147 of the Act to reassess the case of the assessee for AY 2019-20.\" 3. The Revenue vide the present Miscellaneous Applications has requested to issue suitable direction u/s. 150 of the Income Tax Act, 1961 (in short ‘the Act’) in the order passed, pertaining to initiation of re-assessment proceeding u/s.147 of the Act. The ITAT vide order dated 02.01.2024 had dismissed the department’s appeal. The assessment order framed by the AO u/s.153A r.w.s. 143(3) of the Act was quashed as void ab-initio as same was made without any incriminating material found in the course of search at the assessee’s premises. This was done following the decision of Hon’ble Apex Court in the case of PCIT Vs. Abhisar Buildwell Pvt. Ltd. reported in (2023) 149 taxmann.com 399 (SC). MA Nos. 102 & 104/Ahd/2024 [DCIT vs. Priyablue Shipping Private Ltd.] A.Ys. 2018-19 & 2019-20 - 3 – 4. The case was of the Revenue is that the Department was required to initiate proceeding u/s.147 of the Act in the case of the assessee, as per the direction contained in Instruction no.1 of 2023 of the CBDT. However, as the time limit for initiating re- assessment proceeding had already elapsed, the Department has now sought direction from the ITAT in this regard for initiation of re-assessment proceeding u/s.147 of the Act and, accordingly, the present miscellaneous Applications have been filed. 5. We have heard the rival contentions of both the parties and have gone through the order of the ITAT. The provision of Section 254(2) of the Act empowers the ITAT to rectify any mistake in the order which is apparent from the record. In the present case, no mistake apparent in the order of the ITAT has been pointed out by the Revenue. The non-delivery of directions in the order of the ITAT for initiating proceeding u/s.147 of the Act, cannot be considered as a mistake apparent from record. The Revenue now wants to obtain such direction in a case where the time limit for initiation of proceeding u/s.147 of the Act has already expired. In other words, the Revenue vide an order in the present Miscellaneous Applications, is seeking to extend the time for issue of notice u/s.147 of the Act, which cannot be allowed. 6. Since, the present applications do not seek to rectify any mistake apparent from the record in the order of the ITAT, the same is liable to be dismissed. Shri Tushar Hemani, Ld. Sr. Counsel has relied upon the order of the Co-ordinate Bench of this Tribunal in the case of DCIT vs. M/s. Amraworld Agrico Ltd. MA Nos. 102 & 104/Ahd/2024 [DCIT vs. Priyablue Shipping Private Ltd.] A.Ys. 2018-19 & 2019-20 - 4 – in M.A. No.6/Ahd/2024, dated 10.07.2024, wherein identical issue was involved and the miscellaneous application was dismissed. 7. Considering the fact that there is no mistake apparent from record in the order of the ITAT and the judicial precedence, both the Miscellaneous Applications filed by the Revenue are dismissed. 8. In the result, the Miscellaneous Applications filed by the Revenue are dismissed. This Order pronounced on 29/01/2025 Sd/- Sd/- (T.R. SENTHIL KUMAR) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 29/01/2025 S. K. SINHA True Copy आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंͬधत आयकर आयुÈत / Concerned CIT 4. आयकर आयुÈत(अपील) / The CIT(A)- 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलȣय अͬधकरण, अहमदाबाद / ITAT, Ahmedabad "