ACIT, CHENNAI v. M/s. Chennai Port Trust, CHENNAI

ITA 173/CHNY/2009 | 2005-2006
Pronouncement Date: 23-09-2011 | Result: Dismissed

Appeal Details

RSA Number 17321714 RSA 2009
Assessee PAN AAALC0025B
Bench Chennai
Appeal Number ITA 173/CHNY/2009
Duration Of Justice 2 year(s) 7 month(s) 10 day(s)
Appellant ACIT, CHENNAI
Respondent M/s. Chennai Port Trust, CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 23-09-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 23-09-2011
Date Of Final Hearing 15-09-2011
Next Hearing Date 15-09-2011
Assessment Year 2005-2006
Appeal Filed On 13-02-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH B CHENNAI BEFORE SHRI N.S. SAINI AM AND SHRI GEORGE MATHAN J.M I.T.A. NO. 173/MDS/2009 ASSESSMENT YEAR 2005-06 THE ASST. C.I.T BUSINESS CIRCLE VIII CHENNAI 600 034. VS. M/S CHENNAI PORT TRUST RAJAJI SALAI CHENNAI 600 001. (PAN NO. AAALC 0025 B) CO NO. 54/MDS/2009 A/O I.T.A. NO. 173/MDS/2009 ASSESSMENT YEAR 2005-06 M/S CHENNAI PORT TRUST VS. THE ASST. C.I.T RAJAJI SALAI BUSINESS CIRCLE VIII CHENNAI 600 001. CHENNAI 600 034. (PAN NO. AAALC 0025 B) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI K. MEENAKSHISUNDARAM C.A DEPARTMENT BY : SHRI E. SANKAR CIT DR DATE OF HEARING : 15.09.2011 DATE OF PRONOUNCEMENT : 23.09.2011 PAGE 2 OF 6 I.T.A. NO 173/MDS/2009 CO NO. 54/MDS/2009 O R D E R PER N.S. SAINI A.M.:- THIS APPEAL BY THE REVENUE AND CROSS OBJECTION BY T HE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE LD. CIT(A) - IX CHENNAI DATED 18.08.2008 PERTAINING TO ASSESSMENT Y EARS 2005-06. 2. THE SOLE GROUND TAKEN BY THE REVENUE IS THAT THE LD. CIT(A) HAS ERRED IN DIRECTING THE ASSESSING OFFICER TO PAS S A FRESH ASSESSMENT ORDER AFTER SETTING ASIDE THE ORDER OF T HE ASSESSING OFFICER WHEN THE POWER OF SETTING ASIDE OF ASSESSM ENT ORDER HAS BEEN REMOVED FROM THE STATUTE W.E.F 1.6.2001. 3. BRIEFLY STATED THE FACTS ARE THAT IN THE ASSESS MENT U/S 143(3) OF THE INCOME-TAX ACT 1961 [IN SHORT THE ACT] TH E ASSESSING OFFICER DISALLOWED THE FOLLOWING EXPENSES : 1. DEPRECIATION [NET DISALLOWANCE] RS. 40 85 3 8 300/- 2. PRIOR PERIOD EXPENDITURE RS. 2 66 47 125/- 3. DISPUTED CLAIMS RS. 17 63 25 000/- 4. SEPARATION AMOUNT RS. 14 47 333/- 5. TSUNAMI RELIEF EXPENDITURE RS. 9 81 385/- PAGE 3 OF 6 I.T.A. NO 173/MDS/2009 CO NO. 54/MDS/2009 4. ON APPEAL BEFORE THE LD. CIT(A) THE LD. A.R. OF THE ASSESSEE PLEADED THAT THE ASSESSEE HAS BEEN GRANTED REGISTRA TION U/S 12AA OF THE ACT WITH RETROSPECTIVE EFFECT FROM 1.4.2002 [AS SESSMENT YEAR 2003-04] VIDE ORDER NO. DIT(E) NO. 1 [1135]/05-06 D ATED 16.06.2008 AND PLEADED THAT THE CASE MAY BE REMANDED TO THE AS SESSING OFFICER SO THAT THE ASSESSEE MAY MAKE COMPLIANCE TO ALL THE REQUIREMENTS OF SECTION 11 OF THE ACT. 5. THE LD. CIT(A) AFTER HEARING THE LD. A.R. OF TH E ASSESSEE OBSERVED THAT THE DIT [EXEMPTIONS] HAS GRANTED REGI STRATION TO THE ASSESSEE U/S 12AA OF THE ACT WITH RETROSPECTIVE EFF ECT FROM 1.4.2002. THE ASSUMPTIONS MADE BY THE ASSESSING OFF ICER REQUIRE FURTHER ADJUDICATION. IN VIEW OF THIS THE MATTER WAS REMANDED TO THE FILE OF THE ASSESSING OFFICER TO CONSIDER THE R EGISTRATION GRANTED BY THE DIT [EXEMPTIONS] AND PASS A FRESH ORDER. 6. THE LD. A.R. SUBMITTED BEFORE US THAT THE ASSESS ING OFFICER AFTER THE SET ASIDE OF THE ORDER OF THE ASSESSING O FFICER BY THE LD. CIT(A) TO REDO THE ASSESSMENT AFTER CONSIDERING THE REGISTRATION GRANTED U/S 12AA OF THE ACT THE ASSESSING OFFICER HAS PASSED FRESH PAGE 4 OF 6 I.T.A. NO 173/MDS/2009 CO NO. 54/MDS/2009 ASSESSMENT ORDERS AND AGAINST THOSE ASSESSMENT ORDE RS ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A) AND THE LD. CIT( A) GRANTED RELIEF TO THE ASSESSEE. THOSE APPEALS TRAVELED BEFORE THE TRIBUNAL AND THE TRIBUNAL VIDE ITS CONSOLIDATED ORDER DATED 7.9 .2011 IN ITA NO. 1152 TO 1154/MDS/2011 AND CO NOS. 121 TO 123/MDS/20 11 HAS DISMISSED THE APPEAL FILED BY THE REVENUE. HENCE I T WAS HIS SUBMISSION THAT THE PRESENT APPEAL FILED BY THE REV ENUE HAS BECOME INFRUCTUOUS. 7. THE LD. D.R. SUPPORTED THE ORDER OF THE ASSESSIN G OFFICER. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND THE MATERIAL AVAILABLE ON RECORD. IN THE INSTANT CASE THE ONLY GRIEVANCE OF THE REVENUE IS THAT THE LD. CIT(A) HAD NO POWER TO SET ASIDE THE ASSESSMENT TO THE FILE OF THE ASSESSING OFFICER AND THEREFORE ORDER OF THE LD. CIT(A) IS WITHOUT JURISDICTION. WE FIND THAT IN THE INSTANT CASE TH E LD. CIT(A) HAS NOT SIMPLY SET ASIDE THE ISSUE TO THE FILE OF THE ASSES SING OFFICER FOR ADJUDICATION AFRESH. WE FIND THAT THE ISSUE BEFORE THE LD. CIT(A) WAS WHETHER THE DEDUCTIONS U/SS 11 AND 12 OF THE AC T WERE PAGE 5 OF 6 I.T.A. NO 173/MDS/2009 CO NO. 54/MDS/2009 ALLOWABLE TO THE ASSESSEE OR NOT. THE LD. CIT(A) H AS ADJUDICATED THE ISSUE IN THE LIGHT OF REGISTRATION GRANTED BY T HE LD. CIT(A) U/S 12AA OF THE ACT TO THE ASSESSEE WITH RETROSPECTIVE EFFECT INCLUDING FOR THE YEAR UNDER CONSIDERATION. THUS THE LD. CIT (A) HAS HELD THAT THE ASSESSEE IS ELIGIBLE FOR DEDUCTIONS U/S 11 AND 12 OF THE ACT AND ACCORDINGLY DIRECTED THE ASSESSING OFFICER TO ALLOW DEDUCTION AS PER LAW AFTER COMPUTING DEDUCTION ALLOWABLE AS PER LAW BECAUSE IN THE ORIGINAL ORDER THE ASSESSING OFFICER HAD NOT COMPUT ED THE AMOUNT ALLOWABLE U/SS 11 AND 12 OF THE ACT IN VIEW OF THE NON-GRANT OF REGISTRATION AT THE DATE OF THE ORIGINAL ASSESSMENT BY THE LD. CIT U/S 12AA OF THE ACT. WE THUS DO NOT FIND ANY ERROR IN THE ORDER OF THE LD. CIT(A) AND THEREFORE CONFIRM THE SAME AND DISM ISS THE GROUND OF APPEAL OF THE REVENUE. 9. THE CROSS OBJECTION FILED BY THE ASSESSEE BEING IN SUPPORT OF THE ORDER OF THE LD. CIT(A) AND THERE BEING NO GRIE VANCE PROJECTED AGAINST THE ORDER OF THE LD. CIT(A) THE SAME IS AL SO DISMISSED AS HAVING BECOME INFRUCTUOUS. PAGE 6 OF 6 I.T.A. NO 173/MDS/2009 CO NO. 54/MDS/2009 10. IN THE RESULT THE APPEAL OF THE REVENUE AS WEL L AS THE CROSS OBJECTION OF THE ASSESSEE BOTH ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 23 RD SEPTEMBER 2011. SD/- SD/- (GEORGE MATHAN ) (N.S. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI DATED THE 23 RD SEPTEMBER 2011. VL COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE