ACIT, Jaipur v. SHRI BIMAL ROY SONI, Jaipur

ITA 104/JPR/2012 | 2005-2006
Pronouncement Date: 14-11-2014 | Result: Dismissed

Appeal Details

RSA Number 10423114 RSA 2012
Assessee PAN AFPPS1588H
Bench Jaipur
Appeal Number ITA 104/JPR/2012
Duration Of Justice 2 year(s) 9 month(s) 14 day(s)
Appellant ACIT, Jaipur
Respondent SHRI BIMAL ROY SONI, Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 14-11-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 14-11-2014
Date Of Final Hearing 16-07-2012
Next Hearing Date 16-07-2012
Assessment Year 2005-2006
Appeal Filed On 31-01-2012
Judgment Text
IN THE INCOMETAX APPELLATE TRIBUNAL JAIPUR BENCH: JAIPUR (BEFORE SHRI R.P. TOLANI AND SHRI T.R. MEENA) I.T.A. NO. 104/JP/2012 ASSTT. YEAR- 2005-06 PAN NO. AFPPS 1588 H THE A.C.I.T. SHRI BIMAL ROY SONI CIRCLE-1 JAIPUR. VRS. 38 KANOTA BAGH JLN MARG JAIPUR. (APPELLANT) (RESPONDENT) DEPARTMENT BY :- SHRI D.C. SHARMA. ASSESSEE BY :- SHRI MANISH AGARWAL. DATE OF HEARING : 15/09/2014 DATE OF PRONOUNCEMENT : 14/11/2014 O R D E R PER: T.R. MEENA A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 04/11/2011 OF THE LEARNED C.I.T.(A)-I JAIPUR FOR TH E A.Y. 2005-06. THE GROUND OF APPEAL IS AS UNDER:- WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND IN LAW THE LEARNED CIT(A) IS JUSTIFIED IN HOLDING THE D ECISION OF THE HONBLE ITAT BY WHICH CANCELLED THE ORDER U/S 263 P ASSED BY THE CIT(A)_1 WHICH CLEARLY ESTABLISHED THAT THE ASSESSE E HAS INVESTED INTEREST BEARING FUNDS TO EARN TAX FREE INCOME. MOR EOVER THE ITA 104/JP/2012 ACIT VS. BIMAL ROY SONI 2 DEPARTMENT HAS GONE INTO APPEAL AGAINST THE ORDERS OF THE HONBLE ITAT. 2. THE LEARNED ASSESSING OFFICER OBSERVED THAT THE A SSESSEE DERIVED INCOME FROM SALARY AND BUSINESS. IN THIS CASE ORIG INAL ASSESSMENT WAS PASSED U/S 143(3) OF THE INCOME TAX ACT 1961 (HEREI NAFTER REFERRED AS THE ACT) ON 20/12/2007 AT TOTAL INCOME OF RS. 9 60 250/- WHICH WAS DELETED BY THE LEARNED CIT(A) TO THE RETURNED INCOM E. THE ORDER PASSED U/S 143(3) OF THE ACT WAS SET ASIDE BY THE LEARNED C IT ON 26/3/2010 ON THE ISSUE OF ALLOWABILITY OF DEDUCTION ON ACCOUNT OF INTEREST IN VIEW OF THE APPLICABILITY OF SECTION 14A OF THE ACT AND ALTERNA TIVELY OF JUDGMENT OF HONBLE GUJARAT HIGH COURT IN THE CASE OF M/S SARAB HAI SONS (P) LTD. VS. CIT (1993) 201 ITR 464. THE LEARNED ASSESSING OFFICER MADE COMPLIANCE OF 263 ORDER AND DISALLOWANCES MADE U/S 14A OF THE A CT AT RS. 31 38 598/- VIDE ORDER DATED 13/12/2010. 3. BEING AGGRIEVED BY THE ORDER OF THE LEARNED ASSE SSING OFFICER THE ASSESSEE CARRIED THE MATTER TO THE LEARNED CIT(A) W HO HAD ALLOWED THE APPEAL ON THE BASIS OF HONBLE ITATS ORDER AGAINST 263 ORDER OF LEARNED CIT WHEREIN HONBLE ITAT HAD QUASHED 263 PROCEEDING. THE LEARNED CIT(A) CONCLUDED AS UNDER:- I HAVE CAREFULLY PERUSED THE ORDER OF THE A.O. AND THE SUBMISSIONS OF THE A.R.. IT IS SEEN THAT THE HONBLE ITAT JAIPUR BENCH B JAIPUR VIDE THEIR ORDER ITA NO. 580/JP/2010 DATED 14/10/20 11 FOR A.Y. ITA 104/JP/2012 ACIT VS. BIMAL ROY SONI 3 2005-06 HAVE OBSERVED ON PAGE 13 OF THEIR ORDER THA T THE CIT WAS NOT JUSTIFIED IN INVOKING THE PROVISIONS OF SECTIO N 263 ON THE GROUND THAT A.O. HAS NOT INVOKED PROVISIONS OF SECT ION 14A WHILE THERE IS NO MENTION OF SECTION 14A IN SHOW CAUSE NOT ICE- WE HOLD THAT THE CIT(A) WAS NOT JUSTIFIED IN PASSING THE ORDE R U/S 263 AND OTHER IS CANCELLED AND APPEAL OF ASSESSEE IS ALLOWED . SINCE THE ORDER U/S 143(3) WAS PASSED PURSUANT TO THE ORDER U /S 163 FOR DISALLOWING OF INTEREST OF RS. 31 38 598/- AND THE O RDER U/S 263 WAS CANCELLED BY THE ORDER OF THE HONBLE ITAT THE P URSUANT ORDER U/S 143(3) HAS NOW BECOME NONEST. THEREFORE THE GROU ND OF APPEAL HAS BECOME INFRUCTUOUS AS THE ORIGINAL ORDER MADE U/S 143(3) EXISTS. 4. NOW THE REVENUE IS IN APPEAL BEFORE US. 5. THE LEARNED D.R. VEHEMENTLY SUPPORTED THE ORDER O F THE LEARNED ASSESSING OFFICER. AT THE OUTSET THE LEARNED A.R. FOR THE ASSESSEE FILED A COPY OF ORDER OF ITAT B BENCH JAIPUR DATED 14/10/ 2011 IN ITA NO. 580/JP/2010 A.Y. 2005-06 AND ITA NO. 816/JP/2009 FO R A.Y. 2006-07 AND ARGUED THAT HONBLE ITAT HAS CANCELLED THE ORDER PAS SED BY THE LEARNED CIT. WHEN 263 ORDER ITSELF HAS BEEN CANCELLED BY TH E HONBLE ITAT ORDER OF THE ASSESSING OFFICER IN GIVING EFFECT OF 263 OR DER DOES NOT SURVIVE. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. THE COORDINATE B BENCH OF ITAT JAIPUR IN ASSESSEES OWN CASE HAD CANCELLED 263 ORDER VIDE OR DER DATED 14/10/2011 IN ITA NO. 580/JP/2010 A.Y. 2005-06. THE ASSESSING ITA 104/JP/2012 ACIT VS. BIMAL ROY SONI 4 OFFICERS ORDER IN PURSUANT TO ORDER OF 263 DOES NO T SURVIVE ACCORDINGLY WE CONFIRM THE ORDER OF THE LEARNED CIT(A). 7. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 14/11/2014. SD/- SD/- (R.P. TOLANI) (T.R. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED : 14 TH NOVEMBER 2014 * RANJAN COPY FORWARDED TO :- 1. THE ACIT CIRCLE-1 JAIPUR. 2. SHRI BIMAL ROY SONI JAIPUR. 3. THE CIT (A) 4. THE CIT 5. THE D/R GUARD FILE (I.T.A. NO. 104/JP/2012) BY ORDER AR ITAT JAIPUR.