ACIT, Tuticorin v. M/s. K.S.P.S.Natarajan & Co., Tuticorin

ITA 1123/CHNY/2011 | 2000-2001
Pronouncement Date: 18-11-2011 | Result: Dismissed

Appeal Details

RSA Number 112321714 RSA 2011
Assessee PAN AAAFK9908R
Bench Chennai
Appeal Number ITA 1123/CHNY/2011
Duration Of Justice 5 month(s) 1 day(s)
Appellant ACIT, Tuticorin
Respondent M/s. K.S.P.S.Natarajan & Co., Tuticorin
Appeal Type Income Tax Appeal
Pronouncement Date 18-11-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 18-11-2011
Date Of Final Hearing 14-11-2011
Next Hearing Date 14-11-2011
Assessment Year 2000-2001
Appeal Filed On 16-06-2011
Judgment Text
IN THE INCOME-TAX APPELLATE TRIBUNAL CHENNAI D BENCH CHENNAI. BEFORE SHRI N.S. SAINI ACCOUNTANT MEMBER & SHRI GEORGE MATHAN JUDICIAL MEMBER I.T.A. NO. 1123/MDS/2011 ASSESSMENT YEAR: 2000-01 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE I TUTICORIN. VS. M/S. K.S.P.S. NATARAJAN & CO. 13A/1 MEENAKSHIPURAM WEST TUTICORIN 628 002. [PAN: AAAFK9908R] (APPELLANT) (RESPONDENT) REVENUE BY : SHRI K.E.B. RENGARAJAN JR. STANDING COUNSEL ASSESSEE BY : NONE DATE OF HEARING : 1 4 . 1 1 .2011 DATE OF PRONOUNCEMENT 18.11.2011 ORDER PER N.S. SAINI ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A) I MADURAI DATED 01.03.2011 BY TAKING THE FO LLOWING GROUNDS OF APPEAL: 1. THE LEARNED CIT(A) OUGHT TO HAVE NOTED THAT AS PER SECTION 80IA(5) THE DEDUCTION SHOULD BE ALLOWED ON THE BAS IS THAT THE ELIGIBLE BUSINESS IS THE ONLY SOURCE OF INCOME. IF IT IS SO THERE WILL BE LOSSES IN THE WIND MILL UNIT IN THE EARLIER YEARS AND IT SHOU LD BE SET OFF AGAINST THIS YEARS PROFIT. THEN THERE WILL BE NO POSITIVE INCOME AFTER SETTING OFF THE EARLIER YEARS LOSSES. 2. THE DECISION OF HONBLE MADRAS HIGH COURT IN TH E CASE OF VELAYUTHASAMY SPINNING MILLS LTD. RELIED ON BY THE ITAT IN ASSESSEES OWN CASE WHICH WAS FOLLOWED BY THE CIT(A) HAS NOT R EACHED THE I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1 11 1123 123123 123/ // /MDS/ MDS/ MDS/ MDS/11 1111 11 2 FINALITY. 3. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE AD DUCED AT THE TIME OF HEARING IT IS PRAYED THAT THE ORDER OF THE CIT(A) MAY BE REVERSED AND THAT OF THE ASSESSING OFFICER RESTORED . 2. NOTICE OF HEARING WAS SENT TO THE RESPONDENT AS SESSEE BY RPAD ON 07.09.2011 AND WAS RECEIVED BY THE ASSESSEE ON 10.0 9.2011 AS PER THE AD CARD OF THE POSTAL AUTHORITY PLACED ON RECORD. NONE WAS PRESENT ON BEHALF OF THE RESPONDENT ASSESSEE WHEN THE CASE WAS CALLED FO R HEARING NOR ANY ADJOURNMENT APPLICATION WAS FILED. HENCE THE APPEA L WAS HEARD EX-PARTE QUA THE ASSESSEE AND IS BEING DECIDED ON THE BASIS OF THE ARGUMENTS OF THE LD. DR AND THE MATERIAL AVAILABLE ON RECORD. 3. WE HAVE HEARD THE LD. DR PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND MATERIAL AVAILABLE ON RECORD. IN THE INSTANCE C ASE THE IMPUGNED ASSESSMENT WAS MADE UNDER SECTION 147 R.W.S. 143(3) OF THE ACT. THE ASSESSEE BEFORE THE LD. CIT(A) AND AMONGST OTHER A LSO CHALLENGED THE VALIDITY OF INITIATION OF REASSESSMENT PROCEEDINGS IN THE INSTANT CASE. THE ABOVE JURISDICTIONAL GROUND RAISED BY THE ASSESSEE WAS DECIDED IN FAVOUR OF THE ASSESSEE BY THE LD. CIT(A) BY OBSERVING AS UNDE R: 5. RELEVANT ITMR WAS CALLED FOR AND PERUSED. IT I S NOTED THAT AUDIT OPINION FORMED THE BASIS FOR THE ASSESSING OF FICERS REASON TO BELIEVE ESCAPEMENT OF INCOME. HENCE IN MY VIEW REOPENING OF ASSESSMENT IS NOT PROPER. THE CASE IS DECIDED ON MERITS ALSO. 4. FROM THE GROUNDS OF APPEAL RAISED BEFORE US BY THE REVENUE IT IS OBSERVED THAT THE REVENUE HAS CHALLENGED THE ORDER OF THE LD. CIT(A) ON THE I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1 11 1123 123123 123/ // /MDS/ MDS/ MDS/ MDS/11 1111 11 3 MERIT OF THE ISSUE INVOLVED AND HAS NOT CHALLENGED THE FINDING OF THE LD. CIT(A) THAT INITIATION OF REASSESSMENT PROCEEDINGS IN THE INSTANT CASE WAS BAD IN LAW. AS THE JURISDICTIONAL ISSUE STANDS DECI DED IN FAVOUR OF THE ASSESSEE THE INSTANT APPEAL OF THE REVENUE IS ONLY ACADEMIC IN NATURE AND REQUIRES NO ADJUDICATION BY US. IN THE ABOVE CIRCUM STANCES WE DISMISS THE APPEAL OF THE REVENUE AS INFRUCTUOUS. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18.11.2011. SD/- SD/- (GEORGE MATHAN) JUDICIAL MEMBER (N.S.SAINI) ACCOUNTANT MEMBER CHENNAI DATED THE 18.11.2011 VM/- TO: THE ASSESSEE//A.O./CIT(A)/CIT/D.R.