Income Tax Appellate Tribunal - Chennai
C.Aryama Sundaram, Chennai vs Department Of Income Tax on 20 December, 2011
IN THE INCOME-TAX APPELLATE TRIBUNAL
CHENNAI 'A' BENCH, CHENNAI.
Before Shri N.S. Saini, Accountant Member &
Shri George Mathan, Judicial Member
I.T.A. Nos. 1151/Mds/2011
Assessment Year: 1998-99
The Assistant Commissioner of Shri C. Aryama Sundaram,
Income Tax, Vs. New No. 108, Armenian Street,
Business Circle VIII, Chennai 6. Chennai 600 001.
[PAN: AJYPS1233N]
(Appellant) (Respondent)
I.T.A. No. 731/Mds/2009
Assessment Year: 1998-99
The Assistant Commissioner of Shri C. Aryama Sundaram,
Income Tax, New No. 108, Armenian Street,
Vs.
Circle III, Chennai 34. Chennai 600 001.
[PAN: AJYPS1233N]
(Appellant) (Respondent)
C.O. No. 89/Mds/2009
[In I.T.A. No. 731/Mds/2009]
Assessment Year: 1998-99
Shri C. Aryama Sundaram, The Assistant Commissioner of
New No. 108, Armenian Street, Income Tax,
Vs.
Chennai 600 001. Circle III, Chennai 34.
[PAN: AJYPS1233N]
(Appellant) (Respondent)
Revenue by : Shri Shaji P. Jacob, Sr. DR
Assessee by : Ms. Maya J. Nichane, Advocate
Date of Hearing : 20.12.2011
Date of pronouncement : 20.12.2011
ORDER
PER BENCH I.T.A. No. 1151/Mds/2011 is an appeal filed by the Revenue against 2 I.T.A. Nos Nos.1151/ 51/Mds/11 Mds/11, 11, 731/Mds/09 & CO No. 89/Mds/09 the order of the ld. CIT(A) VIII, Chennai in ITA No. 99/08-09 dated 25.03.2011 for the assessment year 1998-99. I.T.A. No. 731/Mds/2009 is an appeal filed by the Revenue against the order of the ld. CIT(A) VIII, Chennai in ITA No. 11/06-07 dated 11.03.2009 for the assessment year 1998-99 and the C.O. No. 89/Mds/2009 filed by the assessee against the appeal of the Revenue in I.T.A. No. 731/Mds/2009. Shri Shaji P. Jacob, Sr. DR represented on behalf of the Revenue and Ms. Maya J. Nichane, Advocate represented on behalf of the assessee.
2. At the time of hearing, it is submitted by the ld. DR that the ld. CIT(A) in his order for the assessment year 1998-99 in ITA No. 11/06-07 dated 11.03.2009, against which is the appeal of the Revenue in I.T.A. No. 731/Mds/2009, has quashed the assessment order on the ground that the notice under section 143(2) had not been issued to the assessee within 12 month period from the date of filing of return of income. It was the submission that the ld. CIT(A) had given the liberty to initiate fresh proceedings under section 143(2) of the Act. It was the submission that consequent on the order of the ld. CIT(A), the Revenue has filed an appeal in I.T.A. No. 731/Mds/2009 and on account of the order of the ld. CIT(A) in not disposing of the grounds raised before him, the assessee has filed the cross objection in CO No. 89/Mds/2009. It was the further submission that consequent on the order of the ld. CIT(A) in ITA No. 11/06-07 dated 11.03.2009, the Assessing Officer had initiated fresh proceedings and had 3 I.T.A. Nos Nos.1151/ 51/Mds/11 Mds/11, 11, 731/Mds/09 & CO No. 89/Mds/09 passed the assessment order on 29.12.2009 against which, the assessee preferred appeal before the CIT(A) VIII, Chennai. It was the submission that in the meantime, when the said appeal was pending before the ld. CIT(A), the Tribunal has passed the order in I.T.A. No. 731/Mds/2009 and C.O. No. 89/Mds/2009 dated 06.08.2010, wherein the order of the ld. CIT(A) VIII, Chennai in appeal No. ITA No. 11/06-07 dated 11.03.2009 had been modified to hold that as the notice under section 143(2) was not issued within the prescribed period of 12 months from the date of filing of return, the assessment proceeding was quashed also the liberty given by the ld. CIT(A) to initiate fresh proceedings had been quashed. It was the submission that consequent upon the order of the Tribunal dated 06.08.2010, the ld. CIT(A) had been passed the order in ITA No. 99/08-09 dated 25.03.2011, whereby the assessment order passed on 29.12.2009 was quashed by following the decision of the Tribunal in I.T.A. No. 731/Mds/2009 and C.O. No. 89/Mds/2009 dated 06.08.2010. It was the further submission that through a miscellaneous application in M.A. No. 190/Mds/2011 filed by the Revenue against the order of the Tribunal in I.T.A. No. 731/Mds/2009 and C.O. No. 89/Mds/2009 dated 06.08.2011, the Tribunal had accepted the mistake apparent from the record of the order and recalled the order of the Tribunal dated 06.08.2010 in I.T.A. No. 731/Mds/2009 and C.O. No. 89/Mds/2009 vide Tribunal's order in M.A. No. 190/Mds/2011 dated 04.11.2011.
3. It was the submission that consequently, the appeal of the Revenue in 4 I.T.A. Nos Nos.1151/ 51/Mds/11 Mds/11, 11, 731/Mds/09 & CO No. 89/Mds/09 I.T.A. No. 731/Mds/2009 and C.O. No. 89/Mds/2009 of the assessee was liable to be disposed of first. It was the submission that in view of the second proviso to section 148, the Assessing Officer had the liberty to issue notice under section 143(2) beyond the period of 12 month of filing of return.
4. It was the submission that the order of the CIT(A) in appeal No. ITA No. 11/06-07 dated 11.03.2009 was liable to be reversed. With these submissions of the ld. DR, the ld. AR had no objection.
5. It was fairly agreed by both the sides to restore the appeal to the file of the ld. CIT(A) to adjudicate the other grounds as raised by the assessee in its appeal in ITA No.11/06-07 before the ld. CIT(A). Consequent on the submissions of the ld counsels, we are of the view that in view of the second proviso to section 148 and as also recognized by us in the order in M.A. No. 190/Mds/2011 dated 04.11.2011, the Assessing Officer was competent to issue notice on 10.03.2006 in respect of the returns filed by the assessee on 29.10.1998. Consequently, the findings of the ld. CIT(A) stands reversed. As it is further noticed that the ld. CIT(A) has not adjudicated other grounds being ground No. 1 to 6 of the assessee's appeal in ITA No. 11/06-07 filed by the assessee before the ld. CIT(A), we restore the appeal for adjudication on the said grounds after allowing adequate opportunity of hearing to the assessee.
7. As we have recalled the order of the Tribunal in I.T.A. No. 731/Mds/2009 and C.O. 89/Mds/2009 dated 06.08.2010 vide our order in 5 I.T.A. Nos Nos.1151/ 51/Mds/11 Mds/11, 11, 731/Mds/09 & CO No. 89/Mds/09 M.A. No. 190/Mds/2011 dated 04.11.2011 and as by our order in appeal No. I.T.A. 731/Mds/2009 and C.O. No. 89/Mds/2009 passed above, we have set aside the order of the ld. CIT(A) and restored the appeal to the file of the ld. CIT(A) for adjudication. The appeal filed by the Revenue in I.T.A. No. 1151/Mds/2011 becomes infructuous and is dismissed as such.
8. In the result, the appeal of the Revenue in I.T.A. No. 1151/Mds/2011 is dismissed, the appeal of the Revenue in I.T.A. No. 731/Mds/2009 stands allowed and the C.O. filed by the assessee in C.O. No. 89/Mds/2009 is allowed for statistical purposes.
Order pronounced in the open Court soon after the conclusion of hearing on 20.12.2011.
Sd/- Sd/- (N.S.SAINI) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Chennai, Dated, the 20.12.2011 Vm/- To: The assessee//A.O./CIT(A)/CIT/D.R.