United Racing and Bloodstock Breeders Ltd.,, Bangalore v. ITO, Bangalore

CO 12/BANG/2010 | 2000-2001
Pronouncement Date: 28-05-2010 | Result: Dismissed

Appeal Details

RSA Number 1221123 RSA 2010
Bench Bangalore
Appeal Number CO 12/BANG/2010
Duration Of Justice 3 month(s) 25 day(s)
Appellant United Racing and Bloodstock Breeders Ltd.,, Bangalore
Respondent ITO, Bangalore
Appeal Type Cross Objection
Pronouncement Date 28-05-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted Not Allotted
Tribunal Order Date 28-05-2010
Assessment Year 2000-2001
Appeal Filed On 03-02-2010
Judgment Text
PAGE 1 OF 5 ITA NO.1221/BANG/2009 & C.O.NO.12/BANG/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE SHRI GEORGE GEORGE K. J.M. AND SHRI A MOHAN ALANKAMONY A.M. ITA NO.1221/BANG/2009 (ASST. YEAR 2000-01) THE INCOME TAX OFFICER WARD-12(2) BANGALORE. - APPELLANT VS M/S UNITED RACING & BLOODSTOCK BREEDERS LTD. 3 7 TH CROSS UB CRECENT 41 VITTAL MALLYA ROAD BANGALORE-27. - RESPONDENT C.O.NO.12/BANG/2010 (ITA NO.1221/BANG/2009) (BY ASSESSEE) REVENUE BY : SHRI JASON P BOAZ ASSESSEE BY : SHRI B K MANJUNATH O R D E R PER GEORGE GEORGE K : THIS APPEAL OF THE REVENUE AND CROSS OBJECTION O F THE ASSESSEE IS DIRECTED AGAINST THE CIT(A)-VI'S ORDER DATED 20.10.2009. THE ASSESSMENT YEAR CONCERNED IS 2000-01. 2. THE REVENUE HAS RAISED SIX GROUNDS BUT THEY RE LATE TO THE SOLITARY ISSUE NAMELY WHETHER THE CIT(A) IS JU STIFIED IN DELETING AN ADDITION OF RS.24 45 579/- MADE BY THE ASSESSING OFFICER U/S 69B OF THE I T ACT FOR THE PURCHASE OF HORSES. PAGE 2 OF 5 ITA NO.1221/BANG/2009 & C.O.NO.12/BANG/2010 2 3. BRIEFLY STATED THE FACTS ARE AS FOLLOWS:- THE ASSESSEE IS A COMPANY. FOR THE CONCERNED ASS T. YEAR IT FILED THE RETURN OF INCOME ON 27.11.2000 D ECLARING A LOSS OF RS.2 74 79 660/-. ASSESSMENT U/S 143(3) WAS COMPLE TED ON 24.3.2003 DETERMINING A LOSS OF RS.2 01 68 006/-. CONSEQUENT TO RECEIPT OF INFORMATION FROM THE DIRECTORATE OF REVE NUE INTELLIGENCE THAT THE ASSESSEE HAD MADE UNDISCLOSED PAYMENTS FOR PURCHASE OF HORSES THE ASSESSING OFFICER ISSUED NOTICE U/S 148 OF THE ACT WHICH WAS SERVED ON THE ASSESSEE ON 2.2.2007. ON T HE BASIS OF ASSESSABLE VALUE OF HORSES IMPORTED DURING THE ASST . YEAR DETERMINED BY THE DIRECTORATE OF REVENUE INTELLIGEN CE THE ASSESSING OFFICER IN THE COURSE OF REASSESSMENT A DDED THE DIFFERENCE OF ASSESSABLE VALUE AND VALUE DISCLOSED BY THE ASSESSEE OF THE TWO HORSES NAMELY SUPER FAN AND BURDEN OF PROOF AS UNEXPLAINED INVESTMENT. THE ADDITIONS WERE MADE ON THE SAME REASONING AS MADE IN THE ASST. YEARS 1998-99 AND 20 03-04. 4. ON APPEAL BEFORE THE FIRST APPELLATE AUTHORITY IT WAS CONTENDED THAT THE REOPENING OF THE ASSESSMENT AFT ER A PERIOD OF FOUR YEARS FROM THE END OF THE ASST. YEAR IS BAD I N LAW SINCE CONDITION PRECEDENT FOR REOPENING IS ABSENT. ON ME RITS IT WAS CONTENDED THE ISSUE IN QUESTION IS SQUARELY COVERE D IN FAVOUR OF THE ASSESSEE BY THE ORDERS OF TRIBUNAL IN ASSESSEES OW N CASE FOR THE ASST. YEARS 1998-99 AND 2003-04 (ITA NO.816/06 DATE D 2.5.2008 AND ITA NO.1122/08 DATED 31.3.2009). THE CIT(A) F OLLOWING THE ORDERS OF THE TRIBUNAL CITED SUPRA IN ASSESSEES OW N CASE DECIDED THE ISSUE ON MERITS IN FAVOUR OF THE ASSESSEE. PAGE 3 OF 5 ITA NO.1221/BANG/2009 & C.O.NO.12/BANG/2010 3 5. THE REVENUE BEING AGGRIEVED IS IN APPEAL BEFORE US. 6. THE LEARNED DR CONTENDED THAT THE ASSESSING OFF ICER HAD RIGHTLY ADOPTED THE VALUE OF HORSES BECAUSE THE DIRECTORATE OF REVENUE INTELLIGENCE HAD UNEARTHED THE FACT THAT TH E VALUE OF HORSES ARE NOT THE SAME AS DECLARED BY THE ASSESSEE AND FU RTHER THE ASSESSEE HIMSELF HAS ADMITTED AN HIGHER VALUE BEFOR E THE SETTLEMENT COMMISSION. HE ALSO SUBMITTED THAT THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASST. YEAR 2003-04 HAS NOT ATTAINED FINALITY SINCE REVENUE HAS FILED AN APPEAL U/S 260A OF THE I T ACT BEFORE THE HONBLE HIGH COURT. 7. PER CONTRA THE LEARNED AUTHORIZED REPRESENTATI VE OF THE ASSESSEE SUBMITTED THAT THE ISSUE IS SQUARELY COVER ED BY THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE CIT ED SUPRA. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS ON RECORD. WE HAVE PERUSED THE ORDERS OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASST. YEAR 1998-99 (ITA NO.816/06 DATED 2.5.2008)AND FOR THE ASST. YEAR 2003-04 (ITA NO.1122/08 DATED 31.3.2009). THE RELEVANT PORTION OF THE TRIB UNALS ORDER CONCERNING ASST. YEAR 1998-99 IS REPRODUCED BY THE CIT(A) AT PAGES 9 AND 10 OF HIS ORDER AND HENCE THE SAME IS NOT RE ITERATED HERE. SINCE THE ADDITION MADE FOR THE INSTANT CASE IS IDE NTICAL TO THE ADDITION MADE FOR THE ASST. YEARS 1998-99 AND 2003- 04 WE RESPECTFULLY FOLLOW THE COORDINATE BENCH DECISION I N ASSESSEES OWN CASE CITED SUPRA AND HOLD THAT THE ADDITION OF RS.2 4 45 579/- MADE BY THE ASSESSING OFFICER HAS BEEN CORRECTLY DELETED BY CIT(A). PAGE 4 OF 5 ITA NO.1221/BANG/2009 & C.O.NO.12/BANG/2010 4 HENCE WE FIND NO INFIRMITIES IN THE ORDER OF THE C IT(A) WARRANTING OUR INTERFERENCE. 9. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS DISMISSED. 10. IN THE CROSS OBJECTION THE ASSESSEE HAS RAISE D THE FOLLOWING GROUNDS:- I) THAT THE NOTICE INITIATION AND SUBSEQUENT ALL PROCEEDINGS U/S 148 IS BAD IN LAW IS WITHOUT JURISDICTION BARRED BY LIMITATION AND REQUIRES TO BE CANCELLED. II) THE CONDITIONS PRECEDENT TO JUSTIFY THE REOPENING OF THE ASSESSMENT U/S 147 OF THE ACT BEING ABSENT THE REOPENING OF THE ASSESSMENT IS BAD IN LAW AND REQUIRES TO BE CANCELLED. III) THAT THE ASSESSMENT ORDER PASSED DOES NOT COMPLY WITH THE PROCEDURE PRESCRIBED BY THE SUPREME COURT IN 259 ITR 19 FOR 148 PROCEEDINGS. 11. SINCE THE ISSUE ON MERITS IS DECIDED IN FAVOUR OF THE ASSESSEE WE DO NOT VENTURE TO ADJUDICATE THE ABOVE GROUNDS. MOREOVER GROUND 4 RAISED BEFORE THE CIT(A) WITH R EFERENCE TO VALIDITY OF REOPENING OF ASSESSMENT HAS BEEN ADJUD ICATED BY CIT(A) IN FAVOUR OF THE ASSESSEE (PARA 2.4 AT PAGE 7 OF CIT(A)S ORDER). THEREFORE WE FEEL THAT THESE ISSUES ARE O NLY ACADEMIC AND WE DISMISS THE GROUNDS RAISED. PAGE 5 OF 5 ITA NO.1221/BANG/2009 & C.O.NO.12/BANG/2010 5 12. IN THE RESULT THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED . THE ORDER PRONOUNCED ON FRIDAY THE 28 TH DAY OF MAY 2010 AT BANGALORE. SD/- SD/- (A MOHAN ALANKAMONY) (GEORGE GEORGE K) ACCOUNTANT MEMBER JUDICIAL MEMBER COPY TO : 1) THE ASSESSEE (2) THE REVENUE (3) TH E CIT(A) CONCERNED. (4) THE CIT CONCERNED. (5) THE DR (6) GUARD FILE. (7) GUARD FILE NEW DELHI. MSP/25.5 BY ORDER ASST. REGISTRAR ITAT BANGALORE.