Income Tax Appellate Tribunal - Chandigarh
Sh. Rajiv Kumar, Mohali vs Dcit, Chandigarh on 12 December, 2017
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IN THE INCOME TAX APPELLATE TRIBUNAL
CHANDIGARH BENCHES 'B', CHANDIGARH
BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER &
Ms. ANNAPURNA GUPTA, ACCOUNTANT MEMBER
ITA No. 231/Chd/2015
Assessment Year: 2007-08
The DCIT, Vs. Shri S.L. Arora,
Central Circle-1, H.No. 123, Phase 3-B-1,
Chandigarh Mohali
PAN No. ACLPA9483C
C.O. No.34/Chd/2017
(in ITA No. 231/Chd/2015)
Assessment Year: 2007-08
Shri S.L. Arora, vs The DCIT, Central Circle-1,
H.No. 123, Phase 3-B-1, Chandigarh
Mohali
PAN No. ACLPA9483C
ITA No. 232/Chd/2015
Assessment Year: 2007-08
The DCIT, Vs. Shri Rajiv Kumar,
Central Circle-1, H.No. 123, Phase 3-B-1,
Chandigarh Mohali
PAN No. AFYPK8488H
C.O. No.35/Chd/2017
(in ITA No. 232/Chd/2015)
Assessment Year: 2007-08
Shri Rajiv Kumar, vs The DCIT, Central Circle-1,
H.No. 123, Phase 3-B-1, Chandigarh
Mohali
PAN No. AFYPK8488H
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ITA No. 233/Chd/2015
Assessment Year: 2007-08
The DCIT, Vs. M/s Karan Empire Pvt Ltd.,
Central Circle-1, # 123, Phase 3-B-1,
Chandigarh Mohali
PAN No. AACCK7646P
C.O. No.36/Chd/2017
(in ITA No. 233/Chd/2015)
Assessment Year: 2007-08
M/s Karan Empire Pvt Ltd., Vs. The DCIT, Central Circle-1,
# 123, Phase 3-B-1, Chandigarh
Mohali
PAN No. AACCK7646P
(Appellant) (Respondent)
Appellant By : Sh. Ashish Abrol
Respondent By : Sh. Parikshit Aggarwal
Date of hearing : 12.12.2017
Date of Pronouncement : 12.12.2017
ORDER
Per Sanjay Garg, Judicial Member:
The captioned appeals preferred by the Revenue and the corresponding Cross Objections by the related assessees have been preferred against the separate orders of the Commissioner of Income Tax (Appeals), [hereinafter referred to as CIT(A)]-3, Gurgaon dated 30.12.2014.
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2. The Ld. Counsel for the assessee has submitted that due to the subsequent factual developments, his Cross objections may be heard first which will have a bearing on all the appeals filed by the Revenue. We, accordingly, proceed to hear the following identical Cross objections raised by the assessees:-
1. On the facts and in the circumstances of the case and in law, the Worthy CIT(A) in Appeal No. 40C/CIT(A)(C)/GGN/2013- 14 dated 30.12.2014 has erred in passing that order in contravention of the provisions of Section 250(6) of the Income Tax Act, 1961, to the extent of not allowing some of the grounds raised by the appellant.
2. That on facts, circumstances and legal position of the case, the impugned proceedings initiated u/s 148 of the Act, whereby the original assessment framed u/s 153A has been re-opened, deserves to be declared, illegal and void ab initio, since the initiation of said original assessment u/s 153A has been declared illegal by Hon'ble ITAT and hence re opening of an illegally initiated assessment is also illegal.
3. The Ld. Counsel for the assessee, at the outset, has submitted that originally the assessment was framed u/s 153A of the Income-tax Act, 1961 (in short 'the Act') vide order dated 21.8.2009. Subsequently, the reopening of the assessment was made by way of issuance of notice on 16.3.2012 and on the reopening of the assessment, certain additions were made vide order dated 31.3.2013. The Ld. Counsel has further submitted that assessee had challenged in appeal the original assessment framed u/s 153A of the Act. The matter travelled upto the level of the Tribunal and the Tribunal vide order dated 22.12.2016 in ITA Nos. 41/Chd/2011 & 4 Others, has quashed the original assessment itself, being framed under the inappropriate provisions of the Act, therefore, the subsequent reopening of the assessment and orders passed u/s 147 of the Act have no legs to stand, when the very foundation upon which the subsequent proceedings u/s 147 read with Rule 148 were initiated and finalized has ceased to exist, the subsequent orders accordingly cannot survive.
3. The Ld. DR has been fair enough to admit this factual positon. In view of the above, the subsequent orders passed in the reopened assessment proceedings being become redundant and are ordered to the quashed. The Cross objections raised by the assessee are, thus, allowed.
In view of this, there is no merit in the appeals of the Revenue and the same are accordingly ordered to be dismissed.
Order pronounced in the Open Court on 12.12.2017 Sd/- Sd/-
(ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 12.12.2017 Rkk Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR