2016 (12) TMI 1243

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....ferred to as the "CIT(A)"] relevant to the A.Y.2011-12. The above said appeals are taken up for adjudication because common question of law and facts involved therein. ITA NO.3055/MUM/2015 (Destimoney India Services Pvt. Ltd.):- 2. The brief facts of the case are that the assessee filed the return of income on 27.09.2011 showing total loss to the tune of Rs. 5,79,50,090/-. The revised return was filed on 31.03.2013 wherein total income has been shown as Nil. The assessment was completed u/s.143(3) of the Income Tax Act, 1961 (in short "the Act") on 29.03.2014 determining the total taxable income to the tune of Rs. 18,16,28,888/-. During the course of assessment proceedings various additions / disallowances were made which included und....

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....ugned order passed u/s.263 is grossly arbitrary and bad in law in relation to the issue raised and adjudicated therein and needs to be summarily rejected. 2. That on the facts and in the circumstances of the case, the learned Commissioner of Income Tax - 6, Mumbai [here-in-after referred to as the ld. CIT] was not justified in initiating the proceedings u/s.263 of the Income Tax Act, 161 (here-in-after referred to as the Act) in utter disregard of the fact that the order passed by the Assessing Officer was neither erroneous nor prejudicial to the interests of the revenue. 3. That on the facts and in the circumstances of the case and without prejudice to the ground no.1 & 2 taken above, the ld. CIT has erred in law in holding that the ....

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....ore the same was not sent to the concerned counsel to take the action, hence the delay is liable to be condoned. It is argued that huge tax demand is involved, therefore the matter is liable to be considered on merits in the interest of justice. On the other hand the learned Departmental Representative has refuted the said contentions. It is not in dispute that the assessee filed the present appeal 201 days delayed. The assessee took the plea of the loss of the documents. On appraisal of the order in question, we are of the view that the case of the assessee deserved to be heard on merit in the interest of justice being declining the application for the condonation of delay would cause injustice. The application is supported by affidavit, t....

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....ble Chandigarh Tribunal in Liberty Plywood Pvt. Ltd. Vs. ACIT in ITA No.727/Chd/2012 dated 17.12.2012 and Hon'ble Madra High Court in Commissioner of Income Tax Vs. SPEL Semi Conductor Ltd. in ITA No.2490/Mad/2006 dated 10.10.2012. In view of the above said circumstances when the claim has been justifiably allowed by the Assessing Officer then the same cannot be treated as a ground to invoked the provision u/s.263 of the Act because the order is not erroneous and prejudicial in the interest of revenue. Taking into account of the above said facts and circumstances we are of the view that the CIT has passed the order dated 26.08.2014 wrongly and illegally which is not required to be sustainable in the eyes of law, therefore we set aside the s....

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....tification was erroneous and prejudicial to the interest of revenue, therefore, invoked the provision u/s.263 of the Act by setting aside the rectification order and decide the matter afresh in accordance with law. Feeling aggrieved the assessee has filed the present appeal before us. The assessee has raised the following ground:- "1. That on the facts and in the circumstances of the case, the impugned order passed u/s.263 is grossly arbitrary and bad in law in relation to the issue raised and adjudicated therein and needs to be summarily rejected. 2. That on the facts and in the circumstances of the case, the learned Commissioner of Income Tax - 6, Mumbai [here-in-after referred to as the ld. CIT] was not justified in initiating the ....

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....r on the point of setting off unabsorbed depreciation and thereafter, the CIT(A) invoked the provision u/s.263 of the Act and set aside the order passed u/s.154 of the Act and directed the Assessing Officer to decide the matter afresh which was wrong against law and facts. It was also contended that the assessee received the copy of order delayed and the said order mixed with the other papers of the company, therefore the same was not sent to the concerned counsel to take the action, hence the delay is liable to be condoned. It is argued that huge tax demand is involved, therefore the matter is liable to be considered on merits in the interest of justice. On the other hand the learned Departmental Representative has refuted the said content....