Income Tax Appellate Tribunal - Panji
Colorcon Asia Private Limited, Verna vs Jcit, Special Range, Panaji on 24 August, 2023
॥आयकरअपीलीय न्यायाधिकरण, पणजी न्यायपीठ, पणजीमें॥
IN THE INCOME TAX APPELLATE TRIBUNAL, PANAJI BENCH, PANAJI
BEFORE HON'BLE SHRI S. S.GODARA, JUDICIAL MEMBER
AND
SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER
(Through Virtual Hearing from Pune)
Sr ITA No(s). Appellant Respondent Asst. Yr.
Good Luck Developers, The Income Tax Officer,
Ahmad Mansion, Ambaji,
Ward-2, Margao.
1 59/PAN/2020 Fatorda, 2006-07
Goa - 403602.
PAN: AAFFG2839J
Surendra Ramnath Nayak, The Income Tax Officer,
No.820/5, Chatrapathi Road,
2 46/PAN/2020 Tilakwadi Belgaum, Karnataka Ward-1(2), 2013-14
- 590006.
PAN: AFFPN9639K Panaji-Goa.
Swati Vivek Kerkar, Asst. Commissioner of Income
Tax,
3 48/PAN/2020 Mangurism, Khorlim, Mapusa, 2011-12
Circle-2(1),
Goa - 403507.
PAN: AESPK5683F Panaji - Goa.
M/s. Agencia Commercial
International, The Income Tax Officer,
4 49/PAN/2020 19, Garden Center, Phase II, 2013-14
Ward-2(4),
Mapusa, Bardez Goa - 403507.
PAN: AAPFA0708E Panaji-Goa.
Mr.Joseph R. Fernandes, ACIT,
H.No.797/6, Mandopa Navelim,
5 53/PAN/2020 Salcete, Circle-1,Magoa. 2007-08
Goa - 403707.
PAN: AAHPF1154B
Mr. John Fernandes, ACIT,
Prop. M/s.Boatcraft Ap-1,
Reliance Park, Near Rice Bowl
6 56/PAN/2020 Circle-1, Margao. 2008-09
Restaurant, Colva, Margoa,
Goa - 403708.
PAN: AAEPF6148C
ITAT-Panaji Page 1 of 10
Good Luck Developers, & Others. 37 Appeals
CBDT Circular No. 19/2019 dt. 14/08/2019
Mr. John Fernandes, ACIT,
Prop.M/8s.Boatcraft, Ap-1,
Reliance Park, Near Rice Bowl
7 57/PAN/2020 Circle-1,Margoa. 2009-10
Restaurant, Colva, Margoa,
Goa - 403708.
PAN: AAEPF6148C
Mr. John Fernandes, ACIT,
Prop.M/8s.Boatcraft, Ap-1,
Reliance Park, Near Rice Bowl
8 58/PAN/2020 Circle-1,Margoa. 2010-11
Restaurant, Colva, Margoa,
Goa - 403708.
PAN: AAEPF6148C
N.S.Narvekar Minerals, The ACIT,
Bombi Niwas, Margoa,
9 61/PAN/2020 Circle-1, Margao. 2015-16
Goa - 403601.
PAN: AAEFN1223C
The Gokul Urban Co-op
Credit Society Limited, The ACIT,
Ground Floor, Shalini
Apartment,Opp.Market Yard
Circle-1(1), Panaji.
10 31/PAN/2023 Nirancal Road, 2013-14
Ponda -
Goa - 403401.
PAN: AADFT0211H
The Gokul Urban Co-op
Credit Society Limited, The ACIT,
Ground Floor, Shalini
Apartment,Opp.Market Yard
Circle-1(1), Panaji.
11 32/PAN/2023 Nirancal Road, 2014-15
Ponda -
Goa - 403401.
PAN: AADFT0211H
The Gokul Urban Co-op
Credit Society Limited, The ITO,
Ground Floor, Shalini
Apartment,Opp.Market Yard Ward-2(5), Panaji.
12 33/PAN/2023 Nirancal Road, Ponda - 2016-17
Goa - 403401.
PAN: AADFT0211H
ITAT-Panaji Page 2 of 10
Good Luck Developers, & Others. 37 Appeals
CBDT Circular No. 19/2019 dt. 14/08/2019
The Gokul Urban Co-op
Credit Society Limited, The DCIT,
Ground Floor, Shalini
Apartment,Opp.Market Yard Circle-2(1), Panaji.
13 34/PAN/2023 Nirancal Road, Ponda - 2017-18
Goa - 403401.
PAN: AADFT0211H
The Gokul Urban Co-op
Credit Society Limited, The DCIT,
Ground Floor, Shalini
14 35/PAN/2023 Apartment,Opp.Market Yard Circle-1(1), Panaji. 2018-19
Nirancal Road, Ponda, Goa-01
PAN: AADFT0211H
Chowgule & Company Pvt.
Ltd., The JCIT,
15 36/PAN/2020 Chowgule House, Mormugoa, 2010-11
Special Range, Panaji, Goa.
Harbour, Goa - 403803.
PAN: AACC5479J
The JCIT, Colorcon Asia Private Limited,
Plot No.M-14 to M-18, Verna
16 19/PAN/2020 Special Range, Panaji, Goa. 2008-09
Indl. Estate, Goa - 403722.
PAN: AAACC2281Q
The JCIT, Colorcon Asia Private Limited,
Plot No.M-14 to M-18, Verna
17 20/PAN/2020 Special Range, Panaji, Goa. 2010-11
Indl. Estate, Goa - 403722.
PAN: AAACC2281Q
The JCIT, Colorcon Asia Private Limited,
Plot No.M-14 to M-18, Verna
18 21/PAN/2020 Special Range, Panaji, Goa. 2011-12
Indl. Estate, Goa - 403722.
PAN: AAACC2281Q
The JCIT, Colorcon Asia Private Limited,
Plot No.M-14 to M-18, Verna
19 22/PAN/2020 Special Range, Panaji, Goa. 2012-13
Indl. Estate, Goa - 403722.
PAN: AAACC2281Q
The JCIT, Chowgule & Company Pvt. Ltd.,
Chowgule House, Mormugoa,
20 23/PAN/2020 Special Range, Panaji, Goa. 2009-10
Harbour, Goa - 403803.
PAN: AACC5479J
ITAT-Panaji Page 3 of 10
Good Luck Developers, & Others. 37 Appeals
CBDT Circular No. 19/2019 dt. 14/08/2019
The JCIT, Chowgule & Company Pvt. Ltd.,
Chowgule House, Mormugoa,
21 27/PAN/2020 Special Range, Panaji, Goa. 2014-15
Harbour, Goa - 403803.
PAN: AACC5479J
The JCIT, Chowgule & Company Pvt. Ltd.,
Chowgule House, Mormugoa,
22 26/PAN/2020 Special Range, Panaji, Goa. 2013-14
Harbour, Goa - 403803.
PAN: AACC5479J
The JCIT, Chowgule & Company Pvt. Ltd.,
Chowgule House, Mormugoa,
23 25/PAN/2020 Special Range, Panaji, Goa. 2012-13
Harbour, Goa - 403803.
PAN: AACC5479J
The JCIT, Chowgule & Company Pvt. Ltd.,
Chowgule House, Mormugoa,
24 24/PAN/2020 Special Range, Panaji, Goa. 2011-12
Harbour, Goa - 403803.
PAN: AACC5479J
The Income Tax Officer, Sri Arnav Jeet Baruah,
25 37/PAN/2020 Ward-1(3), Flat No.10, S-1, Kamat Kinara 2013-14
Panaji-Goa. Caranzalem, Miramar, Panaji.
The JCIT, Chowgule & Company Pvt. Ltd.,
Chowgule House, Mormugoa,
26 43/PAN/2020 Special Range, Panaji, Goa. 2010-11
Harbour, Goa - 403803.
PAN: AACC5479J
The JCIT, Chowgule & Company Pvt. Ltd.,
Chowgule House, Mormugoa,
27 44/PAN/2020 Special Range, Panaji, Goa. 2016-17
Harbour, Goa - 403803.
PAN: AACC5479J
DCIT, M/s.Vibhav Real Estate,
Opp.Eurico Silva House,
28 47/PAN/2020 Circle-2(1), Panaji. St.Joaquim Road, Borda, 2015-16
Margoa, Salcete, Goa - 403001.
PAN: AAIFV2802K
CO. No. The JCIT, Chowgule & Company Pvt. Ltd.,
Chowgule House, Mormugoa,
29 04/PAN/2020 Special Range, Panaji, Goa. 2013-14
Harbour, Goa - 403803.
(arising out of
PAN: AACC5479J
26/PAN/2020)
ITAT-Panaji Page 4 of 10
Good Luck Developers, & Others. 37 Appeals
CBDT Circular No. 19/2019 dt. 14/08/2019
CO. No. Chowgule & Company Pvt. Ltd., The JCIT,
Chowgule House, Mormugoa,
30 01/PAN/2020 Special Range, Panaji, Goa. 2009-10
Harbour, Goa - 403803.
(arising out of
PAN: AACC5479J
23/PAN/2020)
CO. No. Chowgule & Company Pvt. Ltd., The JCIT,
Chowgule House, Mormugoa,
31 01/PAN/2021 Special Range, Panaji, Goa. 2016-17
Harbour, Goa - 403803.
(arising out of
PAN: AACC5479J
44/PAN/2020)
CO. No. Chowgule & Company Pvt. Ltd., The JCIT,
Chowgule House, Mormugoa,
32 02/PAN/2020 Special Range, Panaji, Goa. 2011-12
Harbour, Goa - 403803.
(arising out of
PAN: AACC5479J
24/PAN/2020)
CO. No. Chowgule & Company Pvt. Ltd., The JCIT,
Chowgule House, Mormugoa,
33 03/PAN/2020 Special Range, Panaji, Goa. 2012-13
Harbour, Goa - 403803.
(arising out of
PAN: AACC5479J
25/PAN/2020)
CO. No. Chowgule & Company Pvt. Ltd., The JCIT,
Chowgule House, Mormugoa,
34 05/PAN/2020 Special Range, Panaji, Goa. 2014-15
Harbour, Goa - 403803.
(arising out of
PAN: AACC5479J
27/PAN/2020)
CO. No. Colorcon Asia Private Limited, The JCIT,
Plot No.M-14 to M-18, Verna
35 08/PAN/2020 Special Range, Panaji, Goa. 2008-09
Indl. Estate, Goa - 403722.
(arising out of
PAN: AAACC2281Q
19/PAN/2020)
CO. No. Colorcon Asia Private Limited, The JCIT,
Plot No.M-14 to M-18, Verna
36 09/PAN/2020 Special Range, Panaji, Goa. 2010-11
Indl. Estate, Goa - 403722.
(arising out of
PAN: AAACC2281Q
20/PAN/2020)
CO. No. Colorcon Asia Private Limited, The JCIT,
Plot No.M-14 to M-18, Verna
37 10/PAN/2020 Special Range, Panaji, Goa. 2011-12
Indl. Estate, Goa - 403722.
(arising out
PAN: AAACC2281Q
21/PAN/2020)
CO. No. Colorcon Asia Private Limited, The JCIT,
Plot No.M-14 to M-18, Verna
38 11/PAN/2020 Special Range, Panaji, Goa. 2012-13
Indl. Estate, Goa - 403722.
(arising out of
PAN: AAACC2281Q
22/PAN/2020)
ITAT-Panaji Page 5 of 10
Good Luck Developers, & Others. 37 Appeals
CBDT Circular No. 19/2019 dt. 14/08/2019
द्वारा / Represented
Assessee by : For Sr No 3 & 4 Mr S. J. Kamat, For Sr No. 10 to 14 Ms Priyanka,
For Sr No. 15, 20 to 24, 26, 27 & 29 to 34 Ms Hiral Sejpal,
For Sr No. 16 to 19 & 35 to 38 Mr Vishal Karla, For Sr No. 28 Mr R Pikale,
For Sr No. 38 Mr Samir Anvekar and None for Sr No. 1, 2, 5 to 9 & 25.
Revenue by : Shri N. Shrikanth for Sr No. 1 to 14, 25 & 28 and Shri B. Y. Chavan for Sr No. 15
to 24, 26, 27, 29 to 38.
सनु वाई की तारीख / Date of conclusive Hearing : 10/08/2023
घोषणा की तारीख / Date of Pronouncement : 24/08/2023
आदेश / ORDER
PER BENCH;
These Thirty Eight appeals and cross objections are instituted u/s 253(1) and (2) of the Income-tax Act, 1961 ['the Act' hereinafter] are directed against separate orders of first appellate authority ['CIT(A)' hereinafter] passed u/s 250 of the Act for various assessment years ['AY' hereinafter]
2. During the course of hearing, a common threadbare issue in all these appeals came to the attention of the bench, for the reason, these are taken up together for the sake of brevity and for a common & consolidated order. We have taken 'Good Luck Developers' ITA No. 59/PAN/2020 as lead case, resultantly adjudication laid in succeeding paragraphs shall mutatis-mutandis apply to remaining thirty seven appeals/Cos. as placed at Sr No. 2 to 38.
3. At the outset of virtual hearing, learned counsels for respective assessee's ['ARs' hereinafter], without going into merits, have raised an oral legal ground challenging very validity of the impugned orders in the light of Circular No.19/2019 dt. 14/08/2019 issued by the Central Board of Direct Taxes ['CBDT' hereinafter].
ITAT-Panaji Page 6 of 10Good Luck Developers, & Others. 37 Appeals CBDT Circular No. 19/2019 dt. 14/08/2019
4. Per contra, Ld. Departmental Representatives Mr N. Shrikanth & Mr. Chavan ['DR' hereinafter] objecting the admission submitted that, the impugned orders indeed bears a manual Appeal Register Number alongwith ITA Nos. allotted thereto, therefore corresponding Document Identification Number ['DIN' hereinafter] in compliance with the CBDT Circular (supra) must have been generated, which however remained to be quoted in the body thereof while communicating to the respective assessee. The Ld. DR also capitulated that, aforestated circular (supra) came into force w.e.f. 01/10/2019 whereas the impugned appellate orders were passed in initial transition period wherefore department was instructed for maintaining parallel manual records in addition to DIN records. Therefore the Ld. CIT(A) as an abundant precaution has invariably quoted these control numbers which can be vouched with corresponding DIN (if any) and compliance of CBDT Circular (supra).
5. Heard common rival contentions; and subject to rule 18 of Income Tax Appellate Tribunal, Rules 1963, perused material placed on record, case laws relied by both the parties and duly considered the facts of the case in the light of settled legal position which are also forewarned to respective rival parties.
6. Before setting clock for adjudication, first to deal with the question as to 'whether such legal ground raised first time before the Tribunal can be admitted?' more specifically when it was not raised before the first appellate authority and not the subject matter of impugned orders assailed against. In this context, it shall suffice to quote that, the legal ground raised by the ITAT-Panaji Page 7 of 10 Good Luck Developers, & Others. 37 Appeals CBDT Circular No. 19/2019 dt. 14/08/2019 assessee is ascended out of the impugned order and goes to challenge validity thereof. Admittedly no new facts are required to be investigated or verified for the purpose, therefore such being a bald legal ground deserves admission in the light of ratio laid down by the Hon'ble Apex Court in 'CIT Vs National Thermal Power Company Ltd.' reported in 229 ITR 383 (SC), and Hon'ble Delhi High Court in 'Gedore Tools Pvt Ltd. Vs CIT' reported in 238 ITR 268. After due consideration of assessee's plea and submission, we are satisfied that, omission to raise legal ground while filing present appeal was neither wilful nor unreasonable, for the reason we deem it fit to admit in the light of judicial precedents laid in 'Jaora Sugar Mills Pvt. Ltd v CIT' reported in 124 ITR 482 (MP), and 'CIT v Western Rolling Mills Pvt. Ltd.' reported at 156 ITR 54 (Bom) and 'Jute Corporation of India Ltd. v CIT' find placed in 187 ITR 688(SC) and 'Ahmedabad Electricity Co. Ltd. v CIT' reported in 199 ITR 351(Bom), ergo same stands admitted.
7. We observed that, in order to prevent manual practice of issuance of notice, order, summons, letter or any other correspondence [defined as 'Communication'] and to maintain proper audit trail of all communication the CBDT in exercise of its power u/s 119 of the Act, vide circular No. 19/2019 dt. 14/08/2019 mandated the income tax authorities w.e.f. 01/10/2019 for generation, allotment and communication of computer generated DIN in relation to any assessment, appeals, orders, statutory or otherwise, exemptions, enquiry, investigation, verification of information, penalty, prosecution, rectification, approval etc. ITAT-Panaji Page 8 of 10 Good Luck Developers, & Others. 37 Appeals CBDT Circular No. 19/2019 dt. 14/08/2019
8. Albeit para 2 of aforestated circular mandates for DIN compliance, para 3 thereof provides five exceptional circumstances wherefore manual communication is permitted without initially complying with DIN requirement. However such issuance of manual communication requires recording of reasons therefore and prior approval from CCIT/DGIT. In terms of para-5 it is also subjected for regularisation of DIN compliance within a period of 15 working days of such manual issuance. Here it is worthy to note that, any communication made not in conformity with or in violation of Para-2 save otherwise provided in Para 3 & 5 thereof, invariably renders the communication as invalid and shall be deemed to have never been issued.
9. While vouching the effect of non-generation vis-à-vis non-quoting of DIN, we note that, the Hon'ble Delhi High Court while dealing with similar issue in 'CIT Vs Brandix Mauritius Holdings Ltd.' (163/2023 dt. 20/03/2023), has held that the communication in relation to assessments, appeals, orders etc., which finds mention in paragraph 2 of the 2019 circular, albeit without DIN, can have no standing in law, having regard to the provisions of paragraph 4 of the 2019 circular. It is further observed by the Hon'ble High Court that in view of the decision of Hon'ble Supreme Court in the case of 'K.P. Varghese Vs ITO, Ernakulum (1981) 4 SCC 173 and in the case of 'Back Office IT Solutions Pvt. Ltd. Vs UOI' (2021) SCC online Del 2742, circulars issued by the CBDT binds the Revenue in their administration or implementation, and such circulars cannot be side-stepped causing prejudice to the assessee by bringing to naught the object for which such circulars are issued.
ITAT-Panaji Page 9 of 10Good Luck Developers, & Others. 37 Appeals CBDT Circular No. 19/2019 dt. 14/08/2019
10. In light of aforestated legal position & our discussion, in the present case we note that, the impugned appellate order was subject matter of DIN compliance; however same remained to be complied by generating & quoting the DIN in the body thereof. Thus admittedly impugned appeal order was communicated in violation of Para-2 of CBDT Circular (supra). Further, the Revenue also failed to place on record any evidence showcasing effectively that the case of the assessee fell within any of the five exceptional circumstances as envisaged in Para-3 and accompanying therewith evidentiary documents in terms Para-5 thereof in establishing regularisation of earlier manual communication. Therefore, this communication of impugned order suffered from compliance and rendered invalid as if it has never been issued. In our considered view, for the aforestated reasons, the impugned order ceases to have any effect in the eyes of law as non-est. In view of this categorical finding, delving deeper into merits is unwarranted.
10.1 In result, the appeal of the assessee is ALLOWED. Next fourteen appeals of different assessee's placed at Sr No. 2 to 15 also stands ALLOWED. Next thirteen appeals & a cross objection of the Revenue placed at Sr No. 16 to 29 are DISMISSED, and Next nine Cross Objections of different assessee's placed at Sr No. 30 to 38 are stands ALLOWED.
U/r 34 of ITAT Rules, these orders are pronounced in the open court on this Thursday 24th day of August, 2023.
-S/d- -S/d-
S. S.GODARA G. D. PADMAHSHALI
JUDICIAL MEMBER ACCOUNTANT MEMBER
पणु े / PUNE ; ददनाांक / Dated : 24th day of August, 2023.
आदेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to :
1.अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT-(A) Panaji-1, Goa
4. The Pr.CIT, Panaji 5. DR, ITAT, Bench, Panaji 6.गार्डफ़ाइल / Guard File.
*SGR(Allotment 19:19) आदेशानुसार / By Order
वररष्ठ दनजी सदिव / Sr. Private Secretary
आयकर अपीलीय न्यायादधकरण, पुणे / ITAT, Pune.
ITAT-Panaji Page 10 of 10