DDIT (Exemptions) - II, Hyderabad v. Andhra Pradesh Forest Development Corporation, Hyderabad

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B' HYDERABAD BEFORE SHRI N.R.S. GANESAN JM AND SHRI CHANDRA POOJARI AM I.T.A. NO. 1439/HYD/2010 (ASSESSMENT YEAR 2000-01) I.T.A. NO. 1440/HYD/2010 (ASSESSMENT YEAR 2001-02) I.T.A. NO. 1441/HYD/2010 (ASSESSMENT YEAR 2002-03) THE DDIT (EXEMPTIONS)-II HYDERABAD VS. ANDHRA PRADESH FOREST DEVELOPMENT CORPORATION HYDERABAD PAN: AACCA0095Q APPELLANT RESPONDENT APPELLANT BY: SHRI M.S. CHANDRASEKHARAN RESPONDENT BY: SHRI Y. RATNAKAR O R D E R PER NRS GANESAN JM: ALL THE THREE APPEALS OF THE REVENUE ARE DIRECTED AGAINST THE COMMON ORDER PASSED BY THE CIT(A)-IV HYDERABAD DATED 30.8.2010 FOR THE ASSESSMENT YEARS 2000-01 2001-02 AND 2002-03. THEREFORE WE HEARD THESE APPEALS TOGETHER AND DISPOSING OF THE SAME BY THIS COMMON ORDER. 2. THE ASSESSEE CORPORATION IS FULLY OWNED BY THE GOVERNMENT OF ANDHRA PRADESH. THE ASSESSMENT WAS REOPENED U/S. 147 OF THE INCOME-TAX ACT 1961 ON TH E GROUND THAT INCOME ASSESSABLE TO TAX HAS ESCAPED I.T.A. NOS. 1439-1441/HYD/2010 ANDHRA PRADESH FOREST DEVELOPMENT CORPORATION ========================= 2 ASSESSMENT. THE ASSESSEE CHALLENGED THE REOPENING OF ASSESSMENT BY WAY OF APPEAL BEFORE THIS TRIBUNAL. THIS TRIBUNAL AFTER CONSIDERING THE FACTS OF THE CASE IN I.T.A. NOS. 1732 1733 AND 1734/HYD/2008 FOUND THAT THE INITIATION OF RE-ASSESSMENT U/S. 147 OF THE ACT WAS INVALID SINCE THE CONDITIONS STIPULATED FOR REOPENING OF AS SESSMENT WERE NOT SATISFIED. ACCORDINGLY THE ORDER OF THE ASSESSING OFFICER REOPENING THE ASSESSMENT WAS SET ASIDE. HO WEVER BEFORE PASSING THE ORDER OF THIS TRIBUNAL THE ASSES SING OFFICER HAS PASSED THE CONSEQUENTIAL ORDER AFTER RE OPENING THE ASSESSMENT. THE CIT(A) FOUND THAT SINCE THE RE OPENING OF THE ASSESSMENT WAS HELD BY THIS TRIBUNAL AS INVA LID THE CONSEQUENTIAL ORDER PASSED BY THE ASSESSING OFFICER HAS NO LEGS TO STAND. ACCORDINGLY WITHOUT GOING TO THE M ERIT OF THE APPEALS THE CIT(A) ANNULLED THE ORDER OF RE- ASSESSMENT. 3. WE HEARD SHRI M.S. CHANDRASEKHARAN THE LEARNED DR AND SHRI Y. RATNAKAR THE LEARNED COUNSEL FOR THE ASSESSEE. 4. ONCE THE REOPENING OF ASSESSMENT WAS HELD TO BE INVALID THE CONSEQUENTIAL ORDER PASSED BY THE ASSES SING OFFICER ON THE BASIS OF THE NOTICE ISSUED U/S. 147 OF THE ACT CANNOT STAND. IN OTHER WORDS THE CONSEQUENTIAL OR DER I.T.A. NOS. 1439-1441/HYD/2010 ANDHRA PRADESH FOREST DEVELOPMENT CORPORATION ========================= 3 PASSED BY THE ASSESSING OFFICER HAS NO INDEPENDENT LEGS TO STAND. THEREFORE IN OUR OPINION THE CIT(A) HAS R IGHTLY ANNULLED THE ORDER OF THE ASSESSING OFFICER. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY. ACCORDINGLY THE SAME IS CONFIRMED. 5. IN THE RESULT ALL THE THREE APPEALS OF THE REVE NUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE OF H EARING ITSELF I.E. ON 2ND FEBRUARY 2011. SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER SD/- (N.R.S. GANESAN) JUDICIAL MEMBER HYDERABAD DATED 2ND FEBRUARY 2011 TPRAO COPY FORWARDED TO: 1. DY. DIRECTOR OF INCOME-TAX (EXEMPTIONS)-II AAYA KAR BHAVAN BASHEERBAGH HYDERABAD-500 004 2. ANDHRA PRADESH FOREST DEVELOPMENT CORPORATION 3 RD FLOOR UNI BUILDING A.C. GUARDS HYDERABAD. 3. THE CIT(A)-IV HYDERABAD. 4 THE DIT (E) HYDERABAD 5. THE DR B BENCH ITAT HYDERABAD