M/s Tupperware India Pvt. Ltd.,, New Delhi v. ACIT, New Delhi

ITA 2681/DEL/2013 | 2004-2005
Pronouncement Date: 17-04-2014 | Result: Allowed

Appeal Details

RSA Number 268120114 RSA 2013
Assessee PAN AAACT3770D
Bench Delhi
Appeal Number ITA 2681/DEL/2013
Duration Of Justice 11 month(s) 14 day(s)
Appellant M/s Tupperware India Pvt. Ltd.,, New Delhi
Respondent ACIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 17-04-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted H
Tribunal Order Date 17-04-2014
Date Of Final Hearing 13-03-2014
Next Hearing Date 13-03-2014
Assessment Year 2004-2005
Appeal Filed On 03-05-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH H HH H : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO. .. .2681/DEL/2013 2681/DEL/2013 2681/DEL/2013 2681/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2004 2004 2004 2004- -- -05 0505 05 M/S TUPPERWARE INDIA PRIVATE M/S TUPPERWARE INDIA PRIVATE M/S TUPPERWARE INDIA PRIVATE M/S TUPPERWARE INDIA PRIVATE LIMITED LIMITED LIMITED LIMITED 204 204 204 204- -- -206 TOLST 206 TOLST 206 TOLST 206 TOLSTOY HOUSE OY HOUSE OY HOUSE OY HOUSE 15 TOLSTOY MARG 15 TOLSTOY MARG 15 TOLSTOY MARG 15 TOLSTOY MARG NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. PAN : AAACT3770D. PAN : AAACT3770D. PAN : AAACT3770D. PAN : AAACT3770D. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX INCOME TAX INCOME TAX CIRCLE CIRCLE CIRCLE CIRCLE- -- -16(1) 16(1) 16(1) 16(1) NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : DR. RAKESH GUPTA SHRI ASHWANI TANEJA ADVOCATES AND SHRI SOMIL AGARWAL CA. RESPONDENT BY : SHRI SAMEER SHARMA SR.DR. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL D.AGRAWAL D.AGRAWAL D.AGRAWAL VP VPVP VP : : : : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LEARNED CIT(A)-19 NEW DELHI DATED 3 RD DECEMBER 2012 FOR THE AY 2004-05. 2. GROUND NO.1 OF THE ASSESSEES APPEAL READS AS UN DER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD.CIT(A) ERRED IN UPHOLDING THE ACTION OF THE LD.AO REOPENING OF ASSESSMENT UNDER SECTION 148 OF THE AC T IN COMPLETE DISREGARD OF THE SUBMISSIONS OF THE APPELL ANT AND VARIOUS JUDICIAL PRONOUNCEMENTS RELIED UPON ON THE COURSE OF APPELLATE PROCEEDINGS. WHILE DOING SO THE LD.C IT(A) ERRED:- 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED RELEVANT MATERIAL PLACED BEFORE US. THE ASSESSMENT YEAR UNDER ITA-2681/D/2013 2 CONSIDERATION IS 2004-05. REOPENING HAS BEEN DONE VIDE ISSUE OF NOTICE DATED 24 TH AUGUST 2011. THUS ADMITTEDLY THE NOTICE WAS ISSUED AFTER MORE THAN FOUR YEARS FROM THE END OF T HE RELEVANT ASSESSMENT YEAR. ORIGINAL ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE INCOME-TAX ACT 1961 VIDE ORDER DATED 28 TH DECEMBER 2006. 4. AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDE S AND THE FACTS OF THE CASE IN OUR OPINION REOPENING OF ASSESSMEN T WAS NOT VALID IN VIEW OF THE PROVISO TO SECTION 147 OF THE ACT WHICH READS AS UNDER:- PROVIDED THAT WHERE AN ASSESSMENT UNDER SUB-SECTIO N (3) OF SECTION 143 OR THIS SECTION HAS BEEN MADE FOR TH E RELEVANT ASSESSMENT YEAR NO ACTION SHALL BE TAKEN UNDER THIS SECTION AFTER THE EXPIRY OF FOUR YEARS FROM TH E END OF THE RELEVANT ASSESSMENT YEAR UNLESS ANY INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT FOR SUCH ASSESSMENT YEAR BY REASON OF THE FAILURE ON THE PAR T OF THE ASSESSEE TO MAKE A RETURN UNDER SECTION 139 OR IN RESPONSE TO A NOTICE ISSUED UNDER SUB-SECTION (1) O F SECTION 142 OR SECTION 148 OR TO DISCLOSE FULLY AND TRULY A LL MATERIAL FACTS NECESSARY FOR HIS ASSESSMENT FOR THAT ASSESS MENT YEAR: 5. THUS AS PER PROVISO IF THE ORIGINAL ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) NO ACTION CAN BE TAKEN UNDER SECTION 147 AFTER THE EXPIRY OF FOUR YEARS FROM THE END OF THE RELEVA NT ASSESSMENT YEAR UNLESS ANY INCOME CHARGEABLE TO TAX HAS ESCAPED ASS ESSMENT BY REASON OF THE FAILURE ON THE PART OF THE ASSESSEE T O (I) TO MAKE A RETURN UNDER SECTION 139 OR (II) DISCLOSE FULLY AND TRULY ALL MATERIAL FACTS NECESSARY FOR HIS ASSESSMENT. ADMITTEDLY IN THIS CASE ORIGINAL ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) AND R EOPENING OF ASSESSMENT IS MADE AFTER FOUR YEARS FROM THE END OF THE RELEVANT ASSESSMENT YEAR. ADMITTEDLY THERE IS NO FAILURE O N THE PART OF THE ASSESSEE TO FURNISH THE RETURN OF INCOME. THEREFOR E THE ONLY QUESTION ITA-2681/D/2013 3 WHICH REMAINS IS WHETHER THERE WAS ANY FAILURE ON T HE PART OF THE ASSESSEE TO DISCLOSE FULLY AND TRULY ALL MATERIAL F ACTS NECESSARY FOR HIS ASSESSMENT. THE ASSESSING OFFICER HAS REPRODUCED T HE REASONS RECORDED FOR REOPENING OF ASSESSMENT IN THE ASSESSM ENT ORDER AND FOR READY REFERENCE THE SAME IS REPRODUCED BELOW:- IN THIS CASE THE ASSESSMENT FOR ASSESSMENT YEAR 20 04-05 WAS COMPLETED AFTER SCRUTINY IN OCTOBER 2006 DETERM INING TAXABLE INCOME OF RS.6 65 58 280/- UNDER NORMAL PROVISIONS. LATER IT CAME TO THE NOTICE THAT ASSES SEE HAD BROUGHT FORWARD LOSSES OF PREVIOUS YEARS AND ACCORD INGLY THE INCOME OF ASSESSEE WAS REASSESSED UNDER SECTION 154 AT RS.6 26 57 011/- UNDER NORMAL PROVISIONS OF INCO ME TAX ACT 1961. THE ASSESSEE COMPANY HAD DEBITED RS.34 02 529/- TO P&L ACCOUNT AS PROVISION FOR DOUBTFUL DEBTS AND ADVANCE S WHICH WAS ADDED BACK IN COMPUTATION OF INCOME UNDER NORMAL PROVISION. BUT WHILE CALCULATING THE BOOK P ROFIT UNDER SECTION 115JB THE SAME PROVISION WAS NOT ADD ED BACK. THIS HAS RESULTED IN UNDER ASSESSMENT OF RS.34 02 529/-. THUS THE ASSESSEE HAD NOT DISCLOS ED TRULY AND FULLY ALL MATERIAL FACTS NECESSARY FOR ASSESSME NT UNDER THE INCOME TAX ACT 1961. THEREFORE I HAVE REASON TO BELIEVE THAT THE INCOME OF RS.34 02 529/- HAS BEEN ESCAPED ASSESSMENT ON ACCOU NT OF THE ASSESSEE NOT DISCLOSING FULLY AND TRULY ALL MATERIAL FACTS NECESSARY FOR THE ASSESSMENT PROCEEDINGS UNDE R SECTION 143(3). APPROVAL OF COMMISSIONER OF INCOME TAX NEW DELHI IS SOLICITED HEREBY U/S 151(2) OF THE I.T . ACT. 6. FROM PARAGRAPH 2 OF THE ASSESSMENT ORDER IT IS EVIDENT THAT THE FACT REGARDING THE PROVISION FOR DOUBTFUL DEBTS AND ADVANCES AMOUNTING TO ` 34 02 529/- WAS DULY DISCLOSED BY THE ASSESSEE IN T HE PROFIT & LOSS ACCOUNT WHICH WAS FILED ALONGWITH THE RETURN. THE ASSESSEE HAS ALSO ADDED BACK THE PROVISION IN THE C OMPUTATION OF INCOME UNDER THE NORMAL PROVISION BUT THE SAME WAS NOT INCLUDED IN COMPUTING THE BOOK PROFIT UNDER SECTION 115JB. THU S THE FACT REGARDING THE PROVISION OF ` 34 02 529/- IN RESPECT OF DOUBTFUL DEBTS ITA-2681/D/2013 4 WAS DULY DISCLOSED BY THE ASSESSEE. NOW IN PARAGR APH 3 OF THE REASONS RECORDED THE ASSESSING OFFICER HAS MENTION ED THAT THE INCOME OF ` 34 02 529/- HAS ESCAPED ASSESSMENT ON ACCOUNT OF TH E ASSESSEE NOT DISCLOSING FULLY AND TRULY ALL MATERIAL FACTS N ECESSARY FOR ASSESSMENT PROCEEDINGS. HOWEVER WE FIND THAT THIS FINDING OF THE ASSESSING OFFICER IS CONTRARY TO HIS OWN FINDING IN PARAGRAPH 2 WHEREIN THE ASSESSING OFFICER HIMSELF HAS MENTIONED THAT TH E ASSESSEE COMPANY HAS DEBITED ` 34 02 529/- TO THE PROFIT & LOSS ACCOUNT AS PROVISION FOR DOUBTFUL DEBTS AND ADVANCES AND WHICH WAS WRITTEN BACK IN THE COMPUTATION OF INCOME UNDER THE NORMAL PROVI SION. THUS IT IS EVIDENT THAT THE ASSESSEE HAS DISCLOSED ALL FACTS R ELATING TO THE PROVISION FOR DOUBTFUL DEBTS AND ADVANCES AND THER EFORE REOPENING OF THE ASSESSMENT BEYOND FOUR YEARS WHEREIN THE ORIGIN AL ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) WAS NOT PERMISSI BLE. IN VIEW OF THE ABOVE WE QUASH THE ISSUE OF NOTICE UNDER SECTI ON 148 AND CONSEQUENTLY THE ASSESSMENT ORDER FRAMED IN PURSUA NCE TO NOTICE UNDER SECTION 148 IS ALSO QUASHED RESTORING THE ORI GINAL ASSESSMENT ORDER DATED 28 TH DECEMBER 2006. 7. SINCE WE HAVE ALREADY QUASHED THE ASSESSMENT ORD ER THE OTHER GROUNDS OF APPEAL RAISED BY THE ASSESSEE DO NOT SUR VIVE FOR ADJUDICATION. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 17 TH APRIL 2014. SD/- SD/- ( (( (CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 17.04.2014 VK. ITA-2681/D/2013 5 COPY FORWARDED TO: - 1. APPELLANT : M/S TUPPERWARE INDIA PRIVATE LIM ITED M/S TUPPERWARE INDIA PRIVATE LIMITED M/S TUPPERWARE INDIA PRIVATE LIMITED M/S TUPPERWARE INDIA PRIVATE LIMITED 204 204 204 204- -- -206 TOLSTOY HOUSE 206 TOLSTOY HOUSE 206 TOLSTOY HOUSE 206 TOLSTOY HOUSE 15 TOLSTOY MARG N 15 TOLSTOY MARG N 15 TOLSTOY MARG N 15 TOLSTOY MARG NEW DELHI EW DELHI EW DELHI EW DELHI 110 001. 110 001. 110 001. 110 001. 2. RESPONDENT : ASSISTANT COMMISSIONER OF INCOME TA X ASSISTANT COMMISSIONER OF INCOME TAX ASSISTANT COMMISSIONER OF INCOME TAX ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE CIRCLE CIRCLE CIRCLE- -- -16(1) NEW DELHI. 16(1) NEW DELHI. 16(1) NEW DELHI. 16(1) NEW DELHI. 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR