Income Tax Appellate Tribunal - Jaipur
M/S Goodwill Timber Supply, Kota vs Income Tax Officer, Kota on 23 March, 2018
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IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
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BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM
vk;dj vihy [email protected] No. 12/JP/2018
(Arising out of ITA No. 372/JP/2018)
fu/kZkj.k o"kZ@Assessment Year : 2006-07
M/s Goodwill Timber Supply cuke The ITO,
663-B, Pratap Nagar, Chambal Vs. Ward-1(1),
Garden Road, Dadabari, Kota. Kota.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AQGPS 4582 H
vihykFkhZ@Appellant izR;FkhZ@Respondent
fu/kZkfjrh dh vksj l@
s Assessee by : Shri Prakul Khurana (Adv.)
jktLo dh vksj ls@ Revenue by : Shri Varinder Mehta (CIT)
lquokbZ dh rkjh[k@ Date of Hearing : 23/03/2018
mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 23/03/2018
vkns'k@ ORDER
PER: VIJAY PAL RAO, J.M. By way of this application the assessee is seeking stay against the demand of Rs. 1.15 crores comprising of tax Rs. 49.68 lacs and interest of Rs. 65.58 lacs arising from the reassessment order for the assessment year 2006-07.
2. The ld. AR of the assessee has submitted that the impugned reassessment order passed by the AO is barred by limitation as per the S.A. No. 12JP/2018 M/s Goodwill timber Supply vs. ITO provisions of section 150(2) of the Act. He has pointed that initial assessment was made in the hand of wrong persons by the AO vide order dated 27.02.2014 and on appeal, the ld. CIT(A) directed the AO to assess the income in the correct hands and accordingly, the AO issued a notice u/s 148 of the Act on 03.03.2015. The ld. AR has submitted that the assessment is barred by limitation and therefore, bad in law. In support of his contention, he has relied upon the decision of Hon'ble Madras High Court in case of Kalapet Primary Agriculture Co-op. Credit Society Ltd. vs. ITO 378 ITR 658 as well as decision of the Coordinate Benech of this Tribunal in case of Ramesh Chand Soni HUF vs. ITO 191 TTJ 137. Thus, the ld. AR has submitted that when the reassessment order passed by the AO is barred by limitation then, there is no liability on the assessee to pay the impugned demand and major part is on account of interest. Hence, he has prayed that the demand in question may be stayed till the disposal of appeal of the assessee.
3. On the other hand, the ld. DR has vehemently opposed to the stay of demand and submitted that the assessee may be directed to pay at least 50% of the demand if this Tribunal grants the stay.
4. We have considered the rival submissions as well as relevant material on record. There is no dispute that the assessment was 2 S.A. No. 12JP/2018 M/s Goodwill timber Supply vs. ITO reopened by the notice issued u/s 148 on 03.03.2015 as per order of the ld. CIT(A) in case of Ms Brijendra Sethi and Shri Bhuvnesh Sethi. The reassessment in the cases of these two persons were passed by the AO on 27.02.2014. Therefore, even if the limitation as provided u/s 150(2) is taken into consideration prima facie it appears that on the date of the order dated 27.02.2014 when the assessment was framed in the wrong hands the AO could not have opened the assessment of the assessee for the year under consideration. However, the issue has to be dealt in detail with while dealing with the appeal of the assessee which is fixed for hearing on 22.05.2018. Hence, in the facts and circumstances of the case as well as in view of the decisions as relied upon the assessee, we grant stay against the demand subject to payment of Rs. 10 lacs by the assessee on or before on 31.03.2018. Subject to the payment of Rs. 10 lacs as directed by us the balance demand is stayed for a period of 180 days or till disposal of the appeal of the assessee. The hearing of the appeal of the assessee is proposed from 22.05.2018 to 25.04.2018. The view expressed in this order shall have no bearing on the merits of the appeal. We make it clear that the date of hearing of the assessee's appeal is pronounced in the court and has been noted down by both parties, therefore, no separate notice of 3 S.A. No. 12JP/2018 M/s Goodwill timber Supply vs. ITO hearing shall be issued. Further in case the assessee seeks adjournment of hearing without any reasonable cause the stay granted by us shall stand vacated.
In the result, the stay application is allowed in above terms. In order pronounced in the open court on 23/03/2018 Sd/- Sd/-
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(Vikram Singh Yadav) (Vijay Pal Rao)
ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member
Tk;iqj@Jaipur
fnukad@Dated:- 23/03/2018.
*Santosh.
vkns'k dh izfrfyfi vxzfs 'kr@Copy of the order forwarded to:
1. vihykFkhZ@The Appellant- M/s Goodwill Timber Supply, Kota.
2. izR;FkhZ@ The Respondent- The ITO,Ward-1(1), Kota.
3. vk;dj vk;qDr@ CIT
4. vk;dj vk;qDr@ CIT(A)
5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur.
6. xkMZ QkbZy@ Guard File {S.A. No. 12/JP/2018} vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar 4