Tca/391/2014 Of Commissioner Of Income Tax v. M/S International Agricultural

DATE: 19.03.2021 THE HON'BLE MR. JUSTICE M.DURAISWAMYAND THE HON'BLE MRS.JUSTICE T.V.THAMILSELVI The Commissioner of Income Tax,Company Circle, Madurai. M/s.International Agricultural Processing Private Limited,332/5, Peranai Road,Musuvanathu, Madurai – 624 219.PAN : ... Respondent Prayer: Tax Case Appeal preferred under Section 260A of theIncome Tax Act, 1961, against the order of the Income TaxAppellate Tribunal, Madras, "A" Bench, dated 30.10.2013 inI.TA.No.1638/Mds/2013 for the assessment year 2008-09 preferredagainst the order of the Commissioner of Income Tax-II, No.2,V.P.Rathinasamy Nadar Road, Bibikulam, Madurai-625 002 made inC.No.114/3/CIT-II/2012-13, for the Assessment year 2008 and 2009and date of order : 26/12/2012 and against the order of theAssistant Commissioner of Income Tax, Circle III(Concur.Jurdn.), Madurai, made in PAN/GIR No. , Assessment year2008 and 2009 and date of order 30/2/2011. Challenging the order passed in I.TA.No.1638/Mds/2013 inrespect of the assessment year 2008-09 on the file of the IncomeTax Appellate Tribunal, Chennai, "A" Bench, the Revenue hasfiled the above appeal. https://hcservices.ecourts.gov.in/hcservices/ 2.The above appeal was admitted on the following substantialquestions of law: “1)Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in quashing theorder of the Commissioner of Income Tax passedu/s 263 of the Income Tax Act, 1961 as non-speaking and cryptic order? 2)Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthere was no valid reason in the order passed bythe Commissioner of Income Tax u/s 263 of theAct, regarding the genuineness of the expenditureclaimed in the profit and loss account, balancesheet items and details of the annexure whichwere not examined by the Assessing Officer whichcould be termed as prejudicial to the interestof the Revenue and erroneous order?” 3.On a careful consideration of the materials available onrecord and the submissions made by Mr.M.Swaminathan, learnedsenior standing counsel appearing for the appellant – Revenue,it could be seen that the proceedings under Section 263 havebeen initiated by the Commissioner of Income Tax. The firstreason cited in the show cause notice was that deduction underSection 10B has been allowed without excluding other incomes.The assessee placed on record the copy of the assessment orderdated 30.12.2011 passed under Section 143(3) read with Section147 wherein the Assessing Officer has categorically stated thatthe assessee has not claimed deduction under Section 10B.Therefore, the finding of the Commissioner of Income Tax thatthe assessee has claimed deduction under Section 10B isfactually incorrect. So far as the genuineness of theexpenditure claimed in the profit and loss account were notverified by the Assessing Officer and the Balance Sheet itemsand details of annexure were not examined at the time ofassessment. The Tribunal, while setting aside the order ofCommissioner of Income Tax, held that the Commissioner of IncomeTax cannot direct the Assessing Officer to conduct rovingenquiry without any specific directions with regard to specificexpenditure or income claimed or suppressed by the assessee.Further, the Tribunal observed that the order passed by theCommissioner of Income Tax is a non-speaking and cryptic order.The Commissioner of Income Tax has not given any valid reason tocome to the conclusion that the order passed by the AssessingOfficer is erroneous and prejudicial to the interest of theRevenue. 4.For the reasons stated above, we do not find any error orirregularity in the order passed by the Tribunal. Further, we donot find any ground much less any substantial question of law tointerfere with the order passed by the Tribunal. The appeal isliable to be dismissed. Accordingly, the Tax Case Appeal isdismissed. No costs. Sd/-Assistant Registrar //True Copy//Sub Assistant RegistrarVATo1. The Income Tax Appellate Tribunal, Chennai, "A" Bench.2. The Commissioner of Income Tax-II, No.2, V.P.Rathinasamy Nadar Road, Bibikulam, Madurai 625 0023. The Assistant Commissioner of Income Tax, Circle-III, (formerly Company Circle II), Madurai.4. The Commissioner of Income Tax Company Circle, Madurai.+1cc to Mr.M.Swaminathan, Advocate, S.R.No.18133 T.C.A.No.391 of 2014 GSM(CO)TE (23/04/2021)