M/s. Broach Textile Mills Ltd., Bharuch v. The ACIT., Bharuch Circle,, Bharuch

ITA 1874/AHD/2006 | 2002-2003
Pronouncement Date: 06-01-2011 | Result: Dismissed

Appeal Details

RSA Number 187420514 RSA 2006
Assessee PAN AAACB6244J
Bench Ahmedabad
Appeal Number ITA 1874/AHD/2006
Duration Of Justice 4 year(s) 4 month(s) 14 day(s)
Appellant M/s. Broach Textile Mills Ltd., Bharuch
Respondent The ACIT., Bharuch Circle,, Bharuch
Appeal Type Income Tax Appeal
Pronouncement Date 06-01-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 06-01-2011
Date Of Final Hearing 06-01-2011
Next Hearing Date 06-01-2011
Assessment Year 2002-2003
Appeal Filed On 23-08-2006
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH D AHMEDABAD BEFORE SHRI MAHAVIR SINGH JUDICIAL MEMBER AND SHRI D. C. AGRAWAL ACCOUNTANT MEMBER ITA NO.1874/AHD/2006 ASSESSMENT YEAR :2002-03 DATE OF HEARING:6.1.11 DRAFTED:10.1.11 M/S. BROACH TEXTILE MILLS LTD. MAHATMA GANDHI ROAD BHARUCH 392 001 PAN NO.AAACB6244J V/S . ACIT BHARUCH CIRCLE BHARUCH (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI RAJESH C SHAH AR RESPONDENT BY:- SMT. SUMIT KAUR DR O R D E R PER MAHAVIR SINGH JUDICIAL MEMBER:- THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-VI BARODA IN APPEAL NO.CAB /VI-48/05-06 DATED 29- 06-2006. THE ASSESSMENT WAS FRAMED BY ACIT BHARUCH CIRCLE U/S143(3) OF THE INCOME-TAX ACT 1961 (HEREINAFTER REFERRED TO A S THE ACT) VIDE HIS ORDER DATED 24-03-2005 FOR ASSESSMENT YEAR 2002-03. 2. THE ONLY ISSUE RAISED BY ASSESSEE IS THAT PARTIC ULAR DIRECTION CONTAINED IN THE ORDER OF CIT(A) IS NOT AS PER LAW OTHERWISE THE APPEAL OF ASSESSEE WAS ALLOWED BY CIT(A). FOR THIS ASSESSEE HAS RAISED TH E FOLLOWING GROUND NO.1 :- 1. THAT THE C.I.T.(APPEALS) ERRED IN DIRECTING THE ASSESSING OFFICER TO INITIATE APPROPRIATE PROCEEDINGS UNDER THE INCOME-T AX ACT FOR THE ASST. YR. 1998-99 BY INVOKING THE PROVISIONS OF SECTION15 0(1) AND 150(2) FOR THE PURPOSE OF TAXING THE SO CALLED CAPITAL GAIN AR ISING OUT OF AWARD ANNOUNCED BY THE CITY CIVIL COURT IN THE A.Y 1998-9 9 THOUGH THE APPELLANT HAD NOT EFFECTED ANY TRANSFER BY WAY OF E XTINGUISHMENT ITA NO.1874/AHD/2006 A.Y.2002-0 3 M/S. ROACH TEXTILE MILLS LTD. V. ACIT BHARUCH CI RCLE PAGE 2 /RELINQUISHMENT OF THE RIGHTS IN THE ASST. YR. 1998 -99 AND THE AWARD AMOUNT WAS NOT RECEIVED BY THE APPELLANT UNTIL THE ASST. YR. 2004-05 & ONWARDS (IN SPITE OF THE DECREE OBTAINED FROM COURT IN THE YEAR 2001)& TAXED IN THOSE YEARS ON RECEIPT BASIS U/S 45(5) IN SCRUTINY ASSESSMENTS. THAT THE C.I.T.(A) FURTHER ERRED IN DIRECTING SO THOUGH THERE WAS NO REAL CONSIDERATION PASSING TO THE APPELLANT IN THE A.Y 1998-99 AND THEREFORE ALSO NO CAPITAL GAINS CAN BE TAXED IN TH E A.Y. 1998-99. 3. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SHR I RAJESH C SHAH TAKEN US TO RELEVANT FINDINGS OF APPELLATE ORDER OF CIT(A ) AT PAGE-5 IN PARA-4.6 WHICH ARE ADVERSE TO IT AND RELEVANT IS BEING REPRO DUCED AS UNDER:- 4.6 THE ASSESSING OFFICER MAY INITIATE APPROPRIATE PROCEEDINGS UNDER THE INCOME-TAX ACT BY INVOKING PROVISIONS OF SECTIO N 150(1) & 150(2). THE ASSESSMENT ORDER IN THIS CASE WAS PASSED ON 24. 3.2005 I.E. WITHIN 6 YEARS FROM A.Y 1998-99 WHEN THE SAID CAPITAL GAIN SHOULD HAVE BEEN TAXED. ON BEING POINTED OUT BY THE BENCH LD. COUNSEL FOR THE ASSESSEE FAIRLY STATED IN CASE HE IS NOT STOPPED FROM BEING CHALLENGED THI S ISSUE IN ASSESSMENT YEAR 1998-99 HE HAS NO OBJECTION IN DISMISSAL OF THE AP PEAL. 4. WE FIND THAT THIS DIRECTION IN ANY WAY WILL NO T EFFECT THE ISSUE IN THE ASSESSMENT YEAR UNDER CONSIDERATION I.E. 2002-2003 AND ASSESSEE CAN CHALLENGE THE SAME IN ASSESSMENT YEAR 1998-99. ACCO RDINGLY THIS APPEAL OF ASSESSEE IS DISMISSED. 5. IN THE RESULT ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 06 /01/2011 SD/- SD/- (D.C.AGRAWAL) (MAHAVIR SIN GH) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD DATED : 06/01/2011 *DKP COPY OF THE ORDER FORWARDED TO :- ITA NO.1874/AHD/2006 A.Y.2002-0 3 M/S. ROACH TEXTILE MILLS LTD. V. ACIT BHARUCH CI RCLE PAGE 3 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)-VI BARODA 4. THE CIT CONCERNS. 5. THE DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER /TRUE COPY/ DEPUTY / ASSTT.REGISTRAR ITAT AHMEDABAD