ACIT, UDAIPUR v. M/s. Shree Rajasthan Syntex Ltd.,, UDAIPUR

ITA 541/JODH/2007 | 1999-2000
Pronouncement Date: 30-11-2011 | Result: Dismissed

Appeal Details

RSA Number 54123314 RSA 2007
Bench Jodhpur
Appeal Number ITA 541/JODH/2007
Duration Of Justice 4 year(s) 5 month(s) 8 day(s)
Appellant ACIT, UDAIPUR
Respondent M/s. Shree Rajasthan Syntex Ltd.,, UDAIPUR
Appeal Type Income Tax Appeal
Pronouncement Date 30-11-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 30-11-2011
Date Of Final Hearing 29-11-2011
Next Hearing Date 29-11-2011
Assessment Year 1999-2000
Appeal Filed On 21-06-2007
Judgment Text
1 ITA 541(2)-07 IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH JODHPUR. ( BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ) ITA NO. 541/JODH/2007 ASSTT. YEAR : 1999-2000. THE ACIT CIRCLE-2 VS. SHREE RAJASTHAN SYNTEX LTD. UDAIPUR. SRSL HOUSE PULLA BHUWANA ROAD NH-8 UDAIPUR. ITA NO. 406/JODH/2007 ASSTT. YEAR : 1999-2000. SHREE RAJASTHAN SYNTEX LTD. VS. THE ACIT CIRCL E-2 UDAIPUR. UDAIPUR. (APPELLANTS) (RESPONDENTS) DEPARTMENT BY : SHRI SUNIL MATHUR ASSESSEE BY : SHRI AMIT KOTHA RI DATE OF HEARING : 29.11.2011 DATE OF PRONOUNCEMENT : 30.11.2011. ORDER DATED : 30.11.2011 PER R.K. GUPTA J.M. THESE ARE TWO APPEALS BY DEPARTMENT AND ASSESSEE A GAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 1999-2000. 2. FIRST ISSUE IN THE APPEAL OF THE DEPARTMENT IS A GAINST QUASHING REOPENING OF THE ASSESSMENT UNDER SECTION 148 OF THE I.T. ACT. 2 3. THE RETURN OF INCOME WAS FILED ON 23.12.1999 DEC LARING A LOSS OF RS. 31 17 294/- WHICH WAS PROCESSED ON 3.4.2001 UNDER SECTION 143(1 ). SUBSEQUENTLY THE ASSESSMENT WAS REOPENED BY ISSUING NOTICE UNDER SECTION 148. IT WAS CONTENDED BEFORE ASSESSING OFFICER THAT NOTICE ISSUED UNDER SECTION 148 IS BAD IN LAW. THE REASON RECORDED WERE ALSO ASKED FOR. IT WAS ALSO CHALLENGED THE REOPENING OF THE ASSESSMENT BEFORE HONBLE HIGH COURT. HOWEVER ASSESSING OFFICER WAS NOT SATISFIE D WITH THE REPLY. ACCORDINGLY DEPRECIATION CLAIMED ON LEASED ASSETS WAS DISALLOWE D AND ALSO THE EXCISE DUTY WAS INCLUDED IN THE CLOSING STOCK. IT WAS SUBMITTED BE FORE LD. CIT (A) THAT ON IDENTICAL FACTS THE ASSESSMENT FOR ASSESSMENT YEAR 1996-97 AND 97-9 8 WERE ALSO REOPENED AND THE TRIBUNAL HAS QUASHED THE REOPENING OF THE ASSESSMEN T FOR BOTH THE YEARS COPIES OF THE ORDERS WERE ALSO FILED BEFORE LD. CIT (A). IT WAS ALSO SUBMITTED THAT PROCEEDINGS UNDER SECTION 148 FOR ASSESSMENT YEAR 1998-99 WAS ALSO IN ITIATED AND SAME HAS BEEN QUASHED BY LD. CIT (A) UDAIPUR. THE LD. CIT (A) AFTER CONSID ERING THE SUBMISSIONS AND PERUSING THE MATERIAL ON RECORD FOUND THAT THE GROUNDS ON WHICH THE ASSESSMENT WAS REOPENED UNDER SECTION 148 WAS FULLY COVERED BY THE DECISION OF TR IBUNAL. SINCE THE POINT ON WHICH REOPENING OF THE ASSESSMENT WAS MADE HAS ALREADY BE EN DECIDED IN FAVOUR OF THE ASSESSEE THERE IS NO GROUND LEFT FOR REOPENING THE ASSESSMENT FOR THE YEAR UNDER CONSIDERATION. ACCORDINGLY HE CANCELLED THE REOPE NING OF THE ASSESSMENT AND THE ASSESSMENT WAS HELD AS VOID ABINITIO. THE LD. CIT ( A) HAS ALSO DECIDED THE ISSUE ON MERIT AND CERTAIN ADDITIONS WERE SUSTAINED AND CERTAIN AD DITIONS WERE DELETED. 4. NOW AGAINST THE ORDER OF LD. CIT (A) BOTH ARE IN APPEAL HERE BEFORE THE TRIBUNAL. 3 5. THE DEPARTMENT IS OBJECTING IN QUASHING THE REOP ENING OF THE ASSESSMENT UNDER SECTION 148 AND OTHER ADDITIONS DELETED I.E. ON ACC OUNT OF DEPRECIATION ON LEASED ASSETS AS DIFFERENCE IN INTEREST AND LIABILITY ON ACCOUNT OF MODVAT AVAILED. 6. THE ASSESSEE IN ITS APPEAL IS OBJECTING SUSTAINI NG OF CERTAIN ADDITIONS BY LD. CIT (A). 7. WE WILL TAKE FIRST APPEAL OF THE DEPARTMENT. 8. REGARDING GROUND NO. 1 THE LD. CIT D/R FAIRLY A DMITTED THAT THIS ISSUE IS COVERED BY THE ORDER OF TRIBUNAL FOR EARLIER YEAR. HOWEVER HE STRONGLY PLACED RELIANCE ON THE ORDER OF ASSESSING OFFICER. 9. IN REPLY THE LD. COUNSEL OF THE ASSESSEE STATED THAT THE TRIBUNAL HAS QUASHED THE ASSESSMENT FOR A.Y. 1996-97 TO 98-99 WHICH WAS REOP ENED ON THE SAME IDENTICAL FACTS. IT WAS FURTHER SUBMITTED THAT THE HONBLE HIGH COURT H AS UPHELD THE ORDER OF THE TRIBUNAL QUASHING THE ASSESSMENT FOR A.Y. 1997-98. COPY OF T HE ORDER OF HONBLE HIGH COURT IS PLACED IN THE PAPER BOOK AT PAGES 33 TO 44. 10. AFTER CONSIDERING THE ORDERS OF THE ASSESSING O FFICER AND LD. CIT (A) AND THE CONTENTION OF BOTH THE PARTIES WE FIND THAT ISSUE SQUARELY COVERED BY THE ORDER OF HONBLE RAJASTHAN HIGH COURT FOR ASSESSMENT YEARS 1996-97 A ND 97-98 REPORTED IN 217 CTR 209 COPY OF THE SAME IS PLACED ON RECORD. THE HONBLE HIGH COURT HAS CONCLUDED THAT REOPENING OF THE ASSESSMENT WAS INVALID. SINCE THE FACTS ARE IDENTICAL FOR THE YEAR UNDER CONSIDERATION AS ON THE SAME REASONING THE ASSESSME NT WAS REOPENED FOR A.Y. 1999-2000 THEREFORE RESPECTFULLY FOLLOWING THE DECISION OF H ONBLE RAJASTHAN HIGH COURT IN CASE OF ASSESSEE ITSELF WE HOLD THAT LD. CIT (A) WAS JUSTI FIED IN QUASHING THE ASSESSMENT. ACCORDINGLY THE ORDER OF LD. CIT (A) IS CONFIRMED. 4 11. SINCE WE HAVE CONFIRMED THE QUASHING OF THE ASS ESSMENT THEREFORE WE FEEL THAT THERE IS NO NEED TO DECIDE THE REMAINING GROUNDS IN THE APPEAL OF THE DEPARTMENT OR IN THE APPEAL OF THE ASSESSEE AS ASSESSMENT HAS ALREADY BE EN QUASHED. 12. IN THE RESULT THE APPEAL OF THE DEPARTMENT IS DISMISSED AND THE APPEAL OF THE ASSESSEE WILL BE TREATED AS ALLOWED. 13. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 30 .11.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JODHPUR COPY FORWARDED TO :- THE ACIT CIRCLE-2 UDAIPUR. M/S. SHREE RAJASTHAN SYNTEX LTD. UDAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 541(2)/JODH/2007) BY ORDER AR ITAT JODHPUR.