M/S. PALLAVI HOLDINGS P. LTD, MUMBAI v. ACIT, CC 31, MUMBAI

ITA 2003/MUM/2009 | 2002-2003
Pronouncement Date: 14-05-2010 | Result: Partly Allowed

Appeal Details

RSA Number 200319914 RSA 2009
Assessee PAN AAACP8031H
Bench Mumbai
Appeal Number ITA 2003/MUM/2009
Duration Of Justice 1 year(s) 1 month(s) 13 day(s)
Appellant M/S. PALLAVI HOLDINGS P. LTD, MUMBAI
Respondent ACIT, CC 31, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 14-05-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted C
Tribunal Order Date 14-05-2010
Date Of Final Hearing 06-05-2010
Next Hearing Date 06-05-2010
Assessment Year 2002-2003
Appeal Filed On 31-03-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C : MUMBAI BEFORE SHRI D.K. AGARWAL (JM) AND SHRI T.R. SOOD (AM) ITA NO.2003/MUM/2009 ASSESSMENT YEAR : 2002-03 M/S. PALLAVI HOLDINGS PVT. LTD. 32 MADHULI 3 RD FLOOR DR. ANNIE BESANT ROAD NEHRU CENTRE WORLI MUMBAI-400 018. ..( APPELLANT ) P.A. NO. (AAACP 8031 H) VS. DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-31 MUMBAI. ..( RESPONDENT ) APPELLANT BY : SHRI DHARMESH SHAH RESPONDENT BY : DR. P. DANIEL O R D E R PER D.K. AGARWAL (JM). THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER DATED 19.1.2009 PASSED BY THE LD. CIT(A) FOR TH E ASSESSMENT YEAR 2002-03. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE ASSESSEE COM PANY IS ENGAGED IN THE BUSINESS OF TRADING AND INVESTMENT IN SE CURITIES. THE ASSESSEE IS A NOTIFIED PERSON UNDER THE SPECIAL COURT (TR IAL OF OFFENCES RELATING TO TRANSACTIONS IN SECURITIES) ACT 1992. IN TH E ABSENCE OF ITA NO.2003/M/09 A.Y:02-03 2 ANY COMPLIANCE THE ASSESSMENT WAS COMPLETED U/S.144 R.W.S. 147 OF INCOME TAX ACT 1961 (THE ACT) AT AN INCOME OF RS.67 36 000/- VIDE ORDER DATED 27.3.2006. BEFORE THE LD. CIT(A) THE ASSESSEE HAS CHALLENGED THE ORDER OF THE ASSESSING OFFICER AND SOUGHT T O FILE ADDITIONAL EVIDENCE INCLUDING THE BOOKS OF ACCOUNT TO SU BSTANTIATE ITS CASE. THE ASSESSEE INTERALIA SUBMITTED INSURMOUNTABLE DIFFICULTIES THAT IT FACED DURING THE RELEVANT PERIOD BECAUSE OF THE SECUR ITIES SCAM. THE LD. CIT(A) AFTER CONSIDERING THE REMAND REPORT OF TH E ASSESSING OFFICER AND THE ASSESSEE'S SUBMISSIONS HOWEVER DID NOT FIND THE P LEA OF THE ASSESSEE ACCEPTABLE AND HENCE REQUEST FOR ADDITIONAL EVID ENCE WAS REJECTED. THE LD. CIT(A) ALSO CONFIRMED THE ORDER OF THE ASSESSING OFFICER ON MERITS AND DISMISSED THE APPEAL. 3. BEING AGGRIEVED BY THE ORDER OF THE LD. CIT(A) T HE ASSESSEE IS IN APPEAL BEFORE US. 4. GROUND NO.1 TO 4 ARE AGAINST THE VALIDITY OF THE ORDER PASSED BY THE LD. CIT(A) AND IN UPHOLDING THE ACTION OF THE ASSE SSING OFFICER IN INITIATING AND COMPLETING THE ASSESSMENT U/S.144 R.W.S. 14 7 OF THE ACT. 5. AT THE TIME OF HEARING THE LD. COUNSEL FOR THE ASSE SSEE SUBMITS THAT HE DOES NOT WANT TO PRESS THE ABOVE GROUNDS THERE FORE THE SAME MAY BE TREATED AS WITHDRAWN WHICH WAS NOT OBJECTED TO B Y THE LD. DR. ITA NO.2003/M/09 A.Y:02-03 3 6. THAT BEING SO AND IN THE ABSENCE OF ANY SUPPORTING MATERIAL PLACED ON RECORD BY THE LD. COUNSEL FOR THE ASSESSEE THE ABOVE GROUNDS TAKEN BY THE ASSESSEE ARE THEREFORE REJECTED BEI NG NOT PRESSED. 7. GROUND NO.5 IS AGAINST THE DISREGARDING ADDITIONAL EVIDENCES PRODUCED BY THE ASSESSEE AND NOT ADMITTING THE SAME UNDE R RULE 46A OF THE INCOME TAX RULES. 8. AT THE TIME OF HEARING BOTH PARTIES HAVE AGREED T HAT THE ABOVE ISSUE IS FULLY COVERED BY THE ORDER OF THE TRIBUNAL IN ASSESSEE'S OWN CASE IN PALLAVI HOLDINGS PVT. LTD. VS. DCIT IN ITA NO.10 16/MUM/2009 FOR ASSESSMENT YEAR 2003-04 DATED 6.1.2010 WHEREIN THE TRIBUNAL HAS REMANDED THE MATTER TO THE LD. CIT(A) WITH A DIRECTI ON TO ADMIT THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND TO DISPOSE O F THE APPEAL OF THE ASSESSEE AFRESH ON MERITS. THE LD. COUNSEL FOR TH E ASSESSEE HAS ALSO PLACED ON RECORD THE COPY OF THE SAID ORDER OF T HE TRIBUNAL. 9. HAVING CAREFULLY HEARD THE SUBMISSIONS OF THE RIVAL P ARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD WE FIND ME RIT THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF THE TRIBUNAL IN ASSESSEE'S OWN CASE SUPRA WHEREIN THE TRIBUNAL FOLLOWING THE EARLIER ORDER OF THE TRIBUNAL DATED 29.1.2008 IN THE CASE OF OTHER ITA NO.2003/M/09 A.Y:02-03 4 COMPANIES BELONGING TO THE SAME GROUP REMANDED THE MA TTER TO THE LD. CIT(A) WITH A DIRECTION TO ADMIT THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND TO DISPOSE OF THE APPEAL OF THE ASSESSEE AFRESH O N MERITS AFTER TAKING INTO CONSIDERATION THE SAID ADDITIONAL EV IDENCE. RESPECTFULLY FOLLOWING THE SAME AND KEEPING IN VIEW TH E RULE OF CONSISTENCY WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) ON THIS ACCOUNT AND SEND BACK THE MATTER TO HIS FILE WHO SHALL DE CIDE THE SAME AFRESH IN THE LIGHT OF THE DIRECTION GIVEN BY THE TRI BUNAL IN ASSESSEE'S OWN CASE SUPRA AND ACCORDING TO LAW AFTER PROVIDING REA SONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE . THE GROUN D TAKEN BY THE ASSESSEE IS THEREFORE PARTLY ALLOWED FOR STATISTICAL PUR POSES. 10. GROUND NO.6 TO 11 ARE AGAINST THE SUSTENANCE OF VAR IOUS ADDITIONS AND DISALLOWANCES MADE BY THE ASSESSING OFFICER. 11. AT THE TIME OF HEARING BOTH PARTIES HAVE AGREED THAT IN VIEW OF THE PLEA TAKEN IN GROUND NO.5 THE ABOVE GROUNDS MAY ALSO BE SET ASIDE TO THE FILE OF THE LD. CIT(A). 12. THAT BEING SO AND IN THE ABSENCE OF ANY OTHER CONTR ARY MATERIAL PLACED ON RECORD BY THE PARTIES AND KEEPING IN VIEW O F OUR FINDING RECORDED IN PARA -9 OF THIS ORDER THE GROUND NO. 6 T O 11 TAKEN BY THE ASSESSEE ARE ALSO RESTORED TO THE FILE OF THE LD. CIT(A) WHO SHALL ITA NO.2003/M/09 A.Y:02-03 5 DECIDE THE SAME AFRESH AND ACCORDING TO LAW AFTER PROVID ING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE . THE GROUNDS TAKEN BY THE ASSESSEE ARE THEREFORE PARTLY ALLOWED FO R STATISTICAL PURPOSES. 13. GROUND NO.12 IS AGAINST THE LEVY OF INTEREST U/S.23 4A 234B AND 234C. 14. AT THE TIME OF HEARING THE LD. COUNSEL FOR THE A SSESSEE SUBMITS THAT THE INTEREST CHARGED U/S.234A 234B AND 234C SHOU LD BE DELETED FOLLOWING THE ORDER OF THE TRIBUNAL IN THIS GROUP OF CASES. HE POINTED OUT THAT IT HAS BEEN HELD BY THE TRIBUNAL SINCE A NOT IFIED PERSON CANNOT PAY ADVANCE TAX IN VIEW OF THE PROVISIONS OF THE SPECIA L COURTS ACT WHICH TAKE PRECEDENCE OVER THE INCOME TAX ACT THE ASSESSEE CANNOT BE TREATED AS DEFAULTING PARTY AND INTEREST LEVIED ON THAT BASIS SHOULD BE DELETED. 15. ON THE OTHER HAND THE LD. SPECIAL COUNSEL FOR THE DEPARTMENT HOWEVER SUBMITS THAT SINCE THE ENTIRE APPEAL IS TO BE DISPOSED OF BY THE LD. CIT(A) AFRESH IT SHOULD BE LEFT OPEN TO THE LD. CIT(A) TO CONSIDER THE GROUND RELATING TO LEVY OF INTEREST. 16. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE R IVAL PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN VIEW OF OUR FINDING ITA NO.2003/M/09 A.Y:02-03 6 RECORDED IN PARA-9 OF THIS ORDER WE ARE INCLINED TO A GREE WITH THE LD. SPECIAL COUNSEL FOR THE DEPARTMENT THAT THE ISSUE SHOUL D BE LEFT TO THE LD. CIT(A) TO DECIDE THE SAME AFRESH. THEREFORE WE SET ASIDE THE ISSUE OF LEVY OF INTEREST TO THE FILE OF THE LD. CIT(A ) WHO SHALL DECIDE THE SAME AFRESH AND ACCORDING TO LAW AFTER PROVIDING R EASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND ACCORDINGL Y THE GROUND TAKEN BY THE ASSESSEE IS THEREFORE PARTLY ALLOWED FOR ST ATISTICAL PURPOSES. 17. IN THE RESULT THE ASSESSEE'S APPEAL STANDS PARTLY ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14.5.2010. SD/- SD/- (T.R. SOOD) ( D.K. AGARWAL ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI DATED: 14.5.2010. JV. COPY TO: THE APPELLANT THE RESPONDENT THE CIT CONCERNED MUMBAI THE CIT(A) CONCERNED MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR ITAT MUMBAI.