Pravin Ratilal Share & Stock Brokers Ltd.,, Ahmedabad v. The Dy.CIT., Cent.Circle-2(2),, Ahmedabad

CO 231/AHD/2008 | 2006-2007
Pronouncement Date: 29-02-2012 | Result: Allowed

Appeal Details

RSA Number 23120523 RSA 2008
Assessee PAN AAACP9124H
Bench Ahmedabad
Appeal Number CO 231/AHD/2008
Duration Of Justice 3 year(s) 5 month(s) 2 day(s)
Appellant Pravin Ratilal Share & Stock Brokers Ltd.,, Ahmedabad
Respondent The Dy.CIT., Cent.Circle-2(2),, Ahmedabad
Appeal Type Cross Objection
Pronouncement Date 29-02-2012
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 29-02-2012
Date Of Final Hearing 09-02-2012
Next Hearing Date 09-02-2012
Assessment Year 2006-2007
Appeal Filed On 26-09-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD BEFORE SHRI MUKUL KUMAR SHRAWAT JUDICIAL MEMBER AND SHRI A. K. GARODIA ACCOUNTANT MEMBER I.T.A. NO.2846 / AHD/2008 (ASSESSMENT YEAR 2006-07) DCIT CENTRAL CIRCLE 2(2) AHMEDABAD VS. PRAVEEN RATILAL SHARE & STOCK BROKERS LTD. 501 SAKAR I NEAR GANDHIGARAM RLY STATION ASHRAM ROAD AHMEDABAD C.O. NO.231/AHD/2008 ( ASSESSMENT YEAR 2006-07) PRAVEEN RATILAL SHARE & STOCK BROKERS LTD. VS. DC IT CC-2(2) 501 SAKAR I NEAR GANDHIGARAM RLY. STATION AHMED ABAD ASHRAM ROAD AHMEDABAD PAN/GIR NO. : AAACP9124H (APPELLANT) .. (RESPONDENT) APPELLANT BY: SHRI KARTAR SINGH CIT DR RESPONDENT BY: NONE DATE OF HEARING: 09.02.2012 DATE OF PRONOUNCEMENT: 29.02.2012 O R D E R PER SHRI MUKUL KUMAR SHRAWAT JM:- THIS IS THE APPEAL A THE BEHEST OF THE REVENUE WHI CH HAS EMANATED FORM THE ORDER OF LD. CIT(A) III AHMEDABAD DATED 3 0.05.2008. 2. AT THE OUTSET IT IS WORTH TO MENTION THAT THE R EGISTRY HAS NOTED IN THE APPEAL RECORDS THAT NO POWER OF ATTORNEY OF ANY AUTHORIZED REPRESENTATIVE HAS BEEN FURNISHED IN THIS CASE. H OWEVER ON THE DATE OF HEARING I.E. ON 08.02.2012 AN ADJOURNMENT APPLICAT ION WAS MOVED BY LD. I.T.A.NO. 2846 /AHD/2008 C.O. NO.231/AHD/2008 2 C.A. SHRI DEEPAK SONI. AN OFFICE CLERK FROM HIS O FFICE WAS PRESENT IN THE COURT WITH THIS ADJOURNMENT APPLICATION. THE R ELEVANT CONTENTS ARE REPRODUCED BELOW: RE: REQUEST FOR ADJOURNMENT M/S PRAVIN RATILAL SHARE & STOCK BROK. LTD - ASST. YEAR 2006-07 ITA NO. 2846/A/2008-CROSS OBJECTION NO. 231/AHD/08 - HEARING DATED 08-02-2012 -BEFORE A BEN CH ------------------------------------------------- ------------------------ 1.0 THE ABOVE STATED APPEAL PREFERRED BY OUR ABOVE NAMED CLIENT HAS FIXED FOR HEARING BEFORE A BENCH OF THE HON'BLE INCOME TAX APPELLATE TRIBUNAL ON 08-02-2012. 2.0 WE HAVE IN THIS CONNECTION TO STATE THAT OUR SH RI DEEPAK B. SONI WHO IS TO REPRESENT THE MATTER IS NOT ABLE TO ATTEND THE HEARING DUE TO HIS BAD HEALTH. HE IS SUFFERING FROM HERPES AND THE DOCTORS ADVISED HIM TO TAKE REST OF TWO MONTHS. IT IS SUBMI TTED THAT UNDER THE CIRCUMSTANCES THE HEARING FIXED ON 8TH FEBRUARY 2012 BE KINDLY ADJOURNED. 2.1 IT IS FURTHER REQUESTED THAT THE IDENTICAL ISSU ES WERE INVOLVED IN CASE OF THE ABOVE STATED ASSESSEE IN APPEALS FOR TH E EARLIER YEARS. HOWEVER ON A TECHNICAL GROUND I.E. IN THE MATTER O F VALIDITY OF THE ASSESSMENT WHERE NOTICE U/S 143(2) WAS ISSUED BEYON D THE STATUTORY PERIOD OF TWELVE MONTHS THE MATTER HAS BEEN REMITTE D BACK TO THE CIT(A). THE SAID ISSUE IS AWAITING THE DISPOSAL BY THE CIT(A). IT IS SUBMITTED THAT UNDER THE CIRCUMSTANCES THE HEARING OF THE APPEAL BE BLOCKED FOR A PERIOD OF SIX MONTHS. 3. ON RECEIVING THIS PETITION IN THE COURT WE HAVE NOTED THAT IN THE ASSESSEES OWN CASE IN THE PAST SOME ORDER HAS BEE N PRONOUNCED BY THIS TRIBUNAL. WE HAVE MADE AN INQUIRY AND ASKED THE RE GISTRY AS WELL AS THE LD. D.R. MR. KARTAR SINGH TO PLACE ON RECORD THE S AID ORDER OF THE TRIBUNAL. THE CASE WAS ADJOURNED FOR THE NEXT DATE I.E. 09.02.2012. CONSEQUENT UPON AN ORDER OF THE TRIBUNAL A BENCH AHMEDABAD BEARING I.T.A. NOS. 2840 TO 2845/AHD/2008 ASSESSMEN T YEARS 2000-01 TO 2005-06 TITLED AS :- I.T.A.NO. 2846 /AHD/2008 C.O. NO.231/AHD/2008 3 DEPUTY COMMISSIONER OF INCOME TAX. VS. PRAVIN RATIL AL SHARE & STOCK BROKERS LTD. CENTRAL CIRCLE 2(2) AHMEDABAD AHMEDABAD (PAN; AA ACP9124H) (APPELLANT) (RESPONDENT) AND C.O. NO.225 TO 230/HD/2008 (ARISING OUT OF I.T.A.NOS. 2840 TO 2845/AHD/2008) ASSESSMENT YEARS 2000-01 TO 2005-06 PRAVIN RATILAL SHARE & STOCK BROKERS LTD. VS. DEPUTY COMMISSIONER OF INCOME TAX AHMEDABAD CENTRAL CIRCLE 2(2) AHMEDABAD (CROSS OBJECTOR) (RESPONDENT) DATED 18.08.2010 IS PLACED BEFORE US. VIDE PARA 15 THE MATTER WAS RESTORED BACK TO THE FILE OF LD. CIT(A) WITH THE FO LLOWING OBSERVATIONS: FROM THE PERUSAL OF THE DECISION OF LEARNED COMMIS SIONER OF INCOME TAX (APPEALS) (SUPRA) IT CAN HE SEEN THAT T HOUGH THE LEARNED COMMISSIONER OF INCOME TAX( APPEALS) HAS DE ALT WITH THE OTHER CONTENTIONS OF THE ASSESSEE BUT THE CONTENTION OF THE ASSESSEE CHALLENGING THE VALIDITY OF ASSESSMENT ON ACCOUNT OF NON-ISSUANCE OF NOTICE UND ER SECTION 14.3(2) OF THE ACT WITHIN PRESCRIBED TIME WAS NOT A DJUDICATED. THUS THE ORDER OF LEARNED COMMISSIONER OF INCOME TA X (APPEALS) IN THIS REGARD IS CRYPTIC. AS PER PROVISIONS CONTAI NED IN SUB-SECTION 6 OF SECTION 250 THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) SHALL BE IN WRITING AND SHALL STATE T HE POINT OF DETERMINATION DECISION THEREON AND REASONS FOR THE DECISIONS. SINCE THE LEARNED COMMISSIONER OF INCOME TAX (APPEA LS) HAS NOT ADJUDICATED THE GROUND NO. 2 THE IMPUGNED ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS SET ASIDE A ND HE IS DIRECTED TO FIRST ADJUDICATE THE GROUND NO. 2 WHERE BY THE ASSESSEE CONTENDED THAT ON ACCOUNT OF NON-ISSUANCE OF NOTICE UNDER SECTION 143(2) WITHIN THE PRESCRIBED TIME THE ASSESSMENT F RAMED BE QUASHED. THEREAFTER IF NECESSARY THE LEARNED COM MISSIONER OF INCOME TAX(APPEALS) WILL DECIDE THE REMAINING GROUN DS OF APPEALS AFRESH IN ACCORDANCE WITH LAW AFTER GIVING OPPORTUN ITY OF BEING HEARD TO BOTH THE SIDES. 4. IN THE LIGHT OF THE ABOVE ORDER OF THE TRIBUNAL WE HAVE ENQUIRED WHETHER THE QUESTION OF JURISDICTION IN RESPECT OF THE ISSUANCE OF NOTICE U/S 143(2) WAS ALSO INVOLVED IN THE PRESENT APPEAL. IN THIS REGARD LD. I.T.A.NO. 2846 /AHD/2008 C.O. NO.231/AHD/2008 4 D.R. MR. KARTAR SINGH HAS INFORMED THAT FIRSTLY TH ERE WAS NO SUCH LEGAL ISSUE RAISED BY THIS APPELLANT EITHER BEFORE THE A. O. OR BEFORE LD. CIT(A). HE HAS MENTIONED THAT A GENERAL GROUND IN RESPECT O F INSUFFICIENT OPPORTUNITY OF HEARING WAS RAISED AND THAT TOO WAS DISPOSED OFF BY LD. CIT(A) BY REJECTING THE SAME. HE HAS EMPHASIZED T HAT HERE WAS NO SUCH GROUND CHALLENGING THE VALIDITY OF THE IMPUGNED ORD ER PASSED U/S 143(3) DATED 28.12.2007 FOR BELATED QUESTION OF NOTICE U/S 143(2) OF THE INCOME TAX ACT 1961. RATHER LD. D.R. MR. KARTAR SINGH HA S DRAWN OUR ATTENTION ON THE FIRST PART OF THE ASSESSMENT ORDER WHEREIN THE A.O. HAS CATEGORICALLY STATED THAT FOR THE ASSESSMENT YEAR 2 006-07 NOTICE U/S 143(2) AND 142(1) WERE ISSUED ON 14.11.2007 AND SER VED UPON THE ASSESSEE ON 16.11.2007. IN VIEW OF THIS WE HEREBY HOLD THAT THERE WAS WRONG MENTION OF THE ISSUE IN THE SAID ADJOURNMENT APPLICATION HENCE THE SAME IS REJECTED. THIS APPLICATION ALSO STAND REJE CTED DUE TO NON AVAILABILITY OF REQUISITE LETTER OF AUTHORITY. 5. AS WE HAVE REPRODUCED THE DECISION OF THE TRIBUN AL HEREINABOVE THROUGH WHICH WE HAVE GATHERED THAT THE RESPECTED C OORDINATE BENCH HAS DIRECTED THE LD. CIT(A) TO DECIDE THE REMAINING GRO UND OF APPEAL AFRESH IN ACCORDANCE WITH LAW. THE REMAINING GROUND FOR T HOSE ASSESSMENT YEARS I.E. 2000-01 TO 2005-06 HAVE BEEN REPRODUCED BY THE RESPECTED COORDINATE BENCH IN THE BODY OF APPELLATE ORDER. W E HAVE NOTED THAT THERE ARE FEW GROUNDS ON MERIT WHICH ARE DIRECTLY CONNECT ED WITH THE GROUNDS WHICH ARE RAISED BY THE REVENUE IN THE PRESENT APPE AL BEFORE US I.E. THE ADDITION OF COMMISSION/BROKERAGE AND INVESTMENT IN CIRCULATING PENNY STOCK WAS A COMMON GROUND FOR ALL THE YEARS STARTI NG FROM 2000-01 TO 2005-06 AS ALSO 2006-07 THE APPEAL BEFORE US. LIK EWISE THE DISALLOWANCE OF INTEREST EXPENSES U/S 14A WAS ALSO NOT INVOLVED IN THE PAST AS ALSO APPEARING IN THE GROUNDS RAISED IN THE PRESENT APPEAL. WE I.T.A.NO. 2846 /AHD/2008 C.O. NO.231/AHD/2008 5 HAVE ALSO NOTED THAT THE ADDITION ON ACCOUNT OF TRA NSACTION IN THE NAME OF SHRI PARESH CHAUHAN IS ALSO IDENTICAL AS FAR AS THE APPEAL IN THE PAST YEARS AS ALSO THE APPEAL FOR THE ASSESSMENT YEAR 2006-07 IS CONCERNED. IN SHORT IT IS JUSTIFIABLE AS ALSO REASONABLE TO RESTORE THE GROUND ON MERITS BACK TO THE STAGE OF LD. CIT(A) SO THAT FOR THE YEAR UNDER CONSIDERATION I.E. ASSESSMENT YEAR 2006-07 CAN ALSO BE SIMULTANEOUSLY DECIDED ALONG WITH THE APPEAL FOR THE ASSESSMENT YEAR 2000-01 TO 2005- 06 RESTORED BACK BY THE RESPECTED TRIBUNAL VIDE THE ORDER REFERRED SUPR A DATED 18.08.2010. WE ORDER ACCORDINGLY. 6. AS FAR AS THE CROSS OBJECTION OF THE ASSESSEE IS CONCERNED GROUND NO.1 OF THE CROSS OBJECTOR IS GENERAL IN NATURE AND HENCE DISMISSED. REGARDING THE GROUNDS NO.2-6 ARE TO BE DECIDED ALO NG WITH THE MAIN APPEAL. WE HAVE TAKEN THE STAND THAT DUE TO FUNDAM ENTAL REASONS THAT AN APPEAL CANNOT BE DECIDED IN PART AND THE CONNECTED GROUNDS SHOULD REMAIN CLUBBED FOR A CONSOLIDATED AND JUSTIFIABLE D ECISION. THEREFORE THE GROUNDS AS MENTIONED IN THE CROSS OBJECTION ARE ALS O RESTORED BACK FOR DE NOVO ADJUDICATION BY LD. CIT(A). 7. RESULTANTLY APPEAL OF THE REVENUE AS ALSO THE C ROSS OBJECTION OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 8. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE M ENTIONED HEREINABOVE. SD./- SD./- (A. K. GARODIA) (MUKUL KUMAR SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER SP I.T.A.NO. 2846 /AHD/2008 C.O. NO.231/AHD/2008 6 COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR AHMEDABAD BY ORDER 6. THE GUARD FILE AR ITAT AHMEDABAD 1. DATE OF DICTATION 15/2 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 16/2.OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P .S./P.S. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 29/2 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.29/2 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 29/2/2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 9. DATE OF DESPATCH OF THE ORDER. .