ACIT, Circle-2(3), Hyderabad v. M/s. Gati Limited, Secunderabad

ITA 862/HYD/2011 | 2005-2006
Pronouncement Date: 16-09-2011 | Result: Dismissed

Appeal Details

RSA Number 86222514 RSA 2011
Assessee PAN AABCG3709Q
Bench Hyderabad
Appeal Number ITA 862/HYD/2011
Duration Of Justice 4 month(s) 6 day(s)
Appellant ACIT, Circle-2(3), Hyderabad
Respondent M/s. Gati Limited, Secunderabad
Appeal Type Income Tax Appeal
Pronouncement Date 16-09-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 16-09-2011
Assessment Year 2005-2006
Appeal Filed On 10-05-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.862/HYD/2011 : ASSESSMENT YEAR 2005-0 6 ASST COMMISSIONER OF INCOME - TAX CIRCLE 2(3) HYDERABAD V/S. M/S. GATI LIMITED HYDERABAD ( PAN AABCG 3709 Q ) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.S.CHANDRASEKHARAM RESPONDENT BY : SHRI Y.RATNAKAR DATE OF HEARING 11.8.2011 DATE OF PRONOUNCEMENT 16.9.2011 O R D E R PER G.C.GUPTA VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2005-06 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME-TAX (APPEALS). 2. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER- 1. THE LEARNED CIT(A) ERRED IN LAW AND FACTS OF THE CA SE IN ALLOWING THE APPEAL CONTRAVENING THE PROVISIONS OF SECTION 1 15VK OF THE INCOME-TAX ACT 1961. 2. THE LEARNED CIT(A) OUGHT TO HAVE OBSERVED THAT THE ASSESSEE HAS FAILED TO ARRIVE AT PROFITS ON SALE OF SHIPS TO BE WORKED OUT SEPARATELY IN COMPLIANCE OF PROVISIONS OF SECTION 1 15VK OF THE INCOM E TAX ACT 1961. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBM ITTED THAT THE APPEAL OF THE ASSESSEE HAS BEEN DECIDED BY THE CIT(A) IN ITA NO.862/H/2011 M/S. GATI LIMITED HYDERABAD 2 CONTRAVANTION OF THE PROVISIONS OF S.115VK OF THE I NCOME-TAX ACT 1961. HE SUBMITTED THAT IN ACCORDANCE WITH THE PRO VISIONS OF S.115VK OF THE ACT THE ASSESSEE WAS OBLIGED TO ARR IVE AT THE FIGURE OF PROFIT ON SALE OF SHIP(S) AND SHOULD HAVE WORKED OUT THE SAME SEPARATELY AS PER THE PROVISIONS OF THE ACT WHICH THE ASSESSEE HAS FAILED AND THEREFORE THE MATTER MAY BE RESTORED T O THE FILE OF THE ASSESSING OFFICER FOR RECTIFICATION. 4. THE LEARNED COUNSEL FOR THE ASSESSEE HAS OPPO SED THE SUBMISSIONS OF THE LEARNED DEPARTMENTAL REPRESENTAT IVE. HE SUBMITTED THAT THE GROUND OF APPEAL OF THE REVENUE AND THE SUBMISSIONS MADE BY THE LEARNED DEPARTMENTAL REPRES ENTATIVE ARE OF ACADEMIC VALUE ONLY FOR THE REASON THAT THE CIT( A) HAS HELD THAT THE ACTION OF THE ASSESSING OFFICER IN REOPENING TH E ASSESSMENT UNDER S.147 OF THE ACT WAS NOT VALID AND HAS ACCORDINGLY CANCELLED THE SAME. THE REVENUE HAS NOT PREFERRED ANY GROUND IN T HIS APPEAL AGAINST THE ORDER OF THE CIT(A) IN HOLDING THE RE-A SSESSMENT PROCEEDINGS AS INVALID. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE F IND THAT THE CIT(A) HAS VACATED THE ORDER OF ASSESSMENT PA SSED BY THE ASSESSING OFFICER UNDER S.143(3) READ WITH S.147 OF THE ACT BY HOLDING THAT THE REOPENING OF THE ASSESSMENT UNDER S.147 OF THE ACT WAS NOT IN ACCORDANCE WITH LAW. THE REVENUE HAS NOT PREFERRED ANY GROUND IN THIS APPEAL AGAINST THE DECISION OF THE C IT(A) ON THAT ASPECT. ACCORDINGLY THE ORDER OF THE CIT(A) HOLDI NG THE RE- ASSESSMENT PROCEEDINGS UNDER S.147 AS BAD IN LAW H AS BECOME FINAL AND CONSEQUENTLY THE GROUNDS OF APPEAL RAISED BY T HE REVENUE IN THE PRESENT APPEAL BEFORE US ARE MERELY ACADEMIC IN NA TURE. IN THESE ITA NO.862/H/2011 M/S. GATI LIMITED HYDERABAD 3 FACTS WE HOLD THAT THE APPEAL OF THE REVENUE IS LI ABLE TO BE DISMISSED AS THE RE-ASSESSMENT PROCEEDING UNDER S. 147 HAS BEEN HELD BY THE CIT(A) AS INVALID AND THIS ORDER OF TH E CIT(A) TO THAT EFFECT HAS BECOME FINAL. WE ARE NOT ADJUDICATING O N THE MERITS OF THE ISSUES RAISED BY THE REVENUE IN THIS APPEAL AS THE Y ARE OF ACADEMIC NATURE ONLY. 6. IN THE RESULT APPEAL OF THE REVENUE IS DISMI SSED. ORDER PRONOUNCED IN THE COURT ON 16.9.2011 SD/- SD/- (CHANDRA POOJARI) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 16.9.2011 COPY FORWARDED TO: 1. M/S. GATI LIMITED 1 - 7 - 293 M.G.ROAD SECUNDERABAD. 2. ASST. COMMISSIONER OF INCOME-TAX CIRCLE 2(3) H YDERABAD. 3. COMMISSIONER OF INCOME - TAX(APPEALS) - VIJAYAWADA 4. COMMISSIONER OF INCOME - TAX II HYDERABAD 5. THE DEPARTMENTAL REPRESENTATIVE ITAT HYDERABAD. B.V.S