PSL CORROSION CONTROL SERVICE LTD, MUMBAI v. DCIT 7(1), MUMBAI

ITA 4745/MUM/2009 | 2003-2004
Pronouncement Date: 07-05-2010 | Result: Allowed

Appeal Details

RSA Number 474519914 RSA 2009
Assessee PAN AAACP7600C
Bench Mumbai
Appeal Number ITA 4745/MUM/2009
Duration Of Justice 8 month(s) 25 day(s)
Appellant PSL CORROSION CONTROL SERVICE LTD, MUMBAI
Respondent DCIT 7(1), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 07-05-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 07-05-2010
Date Of Final Hearing 28-04-2010
Next Hearing Date 28-04-2010
Assessment Year 2003-2004
Appeal Filed On 13-08-2009
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.4745/MUM/2009 ASSESSMENT YEAR : 2003-04 M/S.PSL CORROSION CONTROL SERVICE LTD. PSL TOWERS 615 MAKHWANA ROAD MAROL ANDHERI (E) MUMBAI-400 059. ..( APPELLANT ) P.A. NO. (AAACP 7600 C) VS. DY. COMMISSIONER OF INCOME TAX -7(1) ROOM NO.622 AAYAKAR BHAVAN M.K. ROAD MUMBAI-400 020. ..( RESPONDENT ) APPELLANT BY : SHRI M. SUBRAMANIAN RESPONDENT BY : SHRI AJ IT KUMAR SINHA O R D E R PER D.K. AGARWAL (JM). THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER DATED 5.6.2009 PASSED BY THE LD. CIT(A) FOR THE ASSESSMENT YEAR 2003-04. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE ASSESSEE COM PANY IS ENGAGED IN THE BUSINESS OF MANUFACTURE OF EPOXY POWDER PAINT AND APPLYING THE SAME ON STEEL BARS. IT FILED RETURN DECLA RING TOTAL INCOME AT RS.NIL AFTER CLAIMING DEDUCTIONS INCLUDING DEDUCTION U /S.80 M RS.1 13 75 000/-. THE ASSESSING OFFICER AFTER ALLOWING T HE SAME ITA NO.4745/M/09 A.Y:03-04 2 DETERMINED THE INCOME AT RS.21 02 664/- UNDER NORMAL PROVISIONS OF THE ACT AND U/S.115JB RS.28 18 088/- VIDE ORDER DATED 30.9.2005 PASSED U/S.143(3) OF THE INCOME TAX ACT 1961(THE ACT). HOWEVER THE LD. CIT IN EXERCISE OF HIS POWERS U/S.263 HELD THA T THE DEDUCTION OF RS.1 13 75 000/- ALLOWED U/S.80 M WAS NOT IN ACCORDANCE WITH LAW AND ACCORDINGLY HE SET ASIDE THE ORDER PASSED BY THE ASSESSIN G OFFICER ON THIS LIMITED ISSUE AND DIRECTED THE ASSESSING OFFICER TO PASS FRESH ASSESSMENT ORDER IN ACCORDANCE WITH HIS DIRECTION AFTER ALLO WING PROPER OPPORTUNITY TO THE ASSESSEE. ACCORDINGLY THE ASSESSING OFFICE R AFTER DISALLOWING THE DEDUCTION U/S.80 M HAS PASSED THE ORDER G IVING EFFECT TO THE ORDER U/S.263 OF THE ACT ON 14.8.2008 DETERMIN ING THE INCOME OF RS.1 34 27 664/- UNDER NORMAL PROVISIONS OF THE ACT. AGAINST THE SAID ORDER THE ASSESSEE FILED APPEAL BEFORE THE LD. CIT( A) WHO WHILE OBSERVING THAT AGAINST THE CITS ORDER U/S.263 THE APPE LLANT IS ALREADY IN APPEAL BEFORE THE ITAT THE ASSESSING OFFICERS ORDER IS IN THE ESSENCE ONLY IN CITS ORDER THEREFORE THIS ISSUE CAN BE D ECIDED ONLY BY THE ITAT DISMISSED THE ASSESSEES APPEAL. 3. BEING AGGRIEVED BY THE ORDER OF THE LD. CIT(A) T HE ASSESSEE IS IN APPEAL BEFORE US CHALLENGING IN ALL THE GROUNDS THE VA LIDITY OF THE ORDER PASSED BY THE LD. CIT(A) AND THE SUSTENANCE OF DISALLOWAN CE OF DEDUCTION U/S.80 M . ITA NO.4745/M/09 A.Y:03-04 3 4. AT THE TIME OF HEARING THE LD. COUNSEL FOR THE ASSE SSEE AT THE OUTSET SUBMITS THAT THE TRIBUNAL IN THE APPEAL FILE D BY THE ASSESSEE AGAINST THE ORDER PASSED U/S.263 OF THE ACT HAS CANCELLED THE ORDER PASSED U/S.263 OF THE ACT IN PSL CORROSION CONTROL SERVI CES LTD. VS. ACIT IN ITA NO.3022/MUM/2008 FOR THE ASSESSMENT YEAR 20 03-04 ORDER DATED 17.9.2009. HE THEREFORE SUBMITS THAT IN THE LIGHT OF THE ABOVE THE ORDER PASSED BY THE ASSESSING OFFICER GIVING E FFECT TO THE ORDER U/S.263 OF THE ACT AND THE ORDER PASSED BY THE LD . CIT(A) BE CANCELLED. HE ALSO PLACED ON RECORD THE COPY OF THE SAID ORDER OF THE TRIBUNAL. 5. ON THE OTHER HAND THE LD. DR SUPPORTS THE ORDER OF THE ASSESSING OFFICER AND THE LD. CIT(A). 6. HAVING CAREFULLY HEARD THE SUBMISSIONS OF THE RIVAL P ARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD WE FIND ME RIT IN THE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE TRI BUNAL IN AN APPEAL FILED AGAINST THE REVISION ORDER PASSED U/S.263 OF THE ACT HAS CANCELLED THE SAID ORDER PASSED U/S.263 OF THE ACT ON THE GROUND THAT ACTION U/S.263 HAS BEEN TAKEN AFTER THE RECEIPT OF AUDI T OBJECTION WHICH IS NOT PERMISSIBLE IN LAW AND SINCE FOR ASSESSMENT YE AR 2003- 04 THE PROVISIONS OF SECTION 115-O WERE NOT APPLICABLE THEREFORE THE ASSESSMENT ORDER COULD NOT BE SAID TO BE ERRONEOUS AS WELL AS ITA NO.4745/M/09 A.Y:03-04 4 PREJUDICIAL TO THE INTERESTS OF THE REVENUE. IN THIS VIEW OF THE MATTER WE ARE OF THE VIEW THAT THE CONSEQUENTIAL ORDERS PASSED BY THE ASSESSING OFFICER GIVING EFFECT TO THE ORDER U/S.263 OF TH E ACT DATED 14.8.2008 AND THE ORDER PASSED BY THE LD. CIT(A) DATE D 5.6.09 HAVE NO LEGS TO STAND AND ACCORDINGLY THE SAME ARE CANCELLED. THE GROUNDS TAKEN BY THE ASSESSEE ARE THEREFORE ALLOWED. 7. IN THE RESULT ASSESSEE'S APPEAL STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 7.5.2010. SD/- SD/- (T.R. SOOD) ( D.K. AGARWAL ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI DATED: 7.5.2010. 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. ITA NO.4745/M/09 A.Y:03-04 5 DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 28.4.10 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 29.4.10 SR.PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON 7.5.10 SR.PS/PS 7. FILE SENT TO THE BENCH CLERK 11.5.10 SR.PS/PS 8 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER