Dismissed

Pr. Commissioner of Income Tax (C)-1 v. M/S Rehab Housing Pvt. Ltd.

Bombay HC22 Jul 2019ITXA/503/2017

Case brief

AI extract

What is this about?

This bench dismissed revenue appeals regarding assessment under section 153A for AY 2005-06. Relying on Central and High Court precedents, the court upheld the Tribunal's decision to quash the assessment, ruling that re-examination was barred when issues were already finalized in the original assessment.

What did the court decide?

Revenue appeals dismissed; Tribunal order upholding deletion of assessment under section 153A affirmed.

Pr. Commissioner of Income Tax (C)-1 Vs M/S Rehab Housing Pvt. Ltd. — Income Tax | Bombay HC (2019)

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Sherla V.

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ITXA.502.2017+_32.doc

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY O.O.C.J.

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INCOME TAX APPEAL NO.502 OF 2017

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Pr. Commissioner of Income Tax (C) - 1 … Appellant Vs M/s.Rehab Housing Pvt. Ltd. … Respondent

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With

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INCOME TAX APPEAL NO.503 OF 2017

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Pr. Commissioner of Income Tax (C) - 1 … Appellant Vs M/s.Rehab Housing Pvt. Ltd. … Respondent

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With

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INCOME TAX APPEAL NO.504 OF 2017

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Pr. Commissioner of Income Tax (C) - 1 … Appellant

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M/s.Rehab Housing Pvt. Ltd. … Respondent

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And

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INCOME TAX APPEAL NO.521 OF 2017

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Pr. Commissioner of Income Tax (C) - 1 … Appellant Vs M/s.Rehab Housing Pvt. Ltd. … Respondent

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Page 1 of 4

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ITXA.502.2017+_32.doc

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Mr.Suresh Kumar for the Appellant

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Mr.Mahendra G. i/b Law Charter for the Respondent

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CORAM: AKIL KURESHI &

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S.J. KATHAWALLA, JJ.

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DATED: JULY 22, 2019

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P.C.:

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These appeals are filed by the Revenue to challenge the judgment of the Income Tax Appellate Tribunal. The facts being similar, we may peruse the Income Tax Apepal No.502 of 2017. The following question is presented for our consideration:

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a) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in quashign the order under section 153A stating that in absence of any incriminating material on issue which has already been examined and finalized in original assessment cannot be reexamined and reopened?

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The respondent – assessee is a private limited company. The appeal concerns the Assessment Year 2005 – 2006. The Tribunal by the impugned judgment while allowing the assessee’s

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Page 2 of 4

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ITXA.502.2017+_32.doc

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appeal, deleted the assessment made under section 153A of the Income Tax Act, 1961 (for short, ‘the Act’), primarily on the ground that the so called incriminating material, which was the basis for such assessment, was already before the Assessing Officer at the time of framing the original assessment. The Tribunal noted that the entire issue of deduction u/s 80-IB (10) of the Act was examined by the Assessing Officer having regard to such material. The Tribunal was, therefore, of the opinion that such assessment cannot be reexamined or reopened in exercise of powers under section 153A of the Act. The Tribunal placed reliance on the decision of the Division Bench of this Court in the case of Commissioner of Income Tax II vs. Continental Warehousing Corporation (Nhava Sheva) Ltd. reported in (2015) 64 Taxmann.com 34(SC).

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We have perused the judgment of this Court in Commissioner of Income Tax II vs. Continental Warehousing Corporation (Nhava Sheva) Ltd. (supra) dated 21.4.2015 and noticed that an identical issue had come up for consideration. The Division Bench had rejected the Revenue’s appeals and confirmed the decision of the Special Bench of the Tribunal. Reliance is also

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Page 3 of 4

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ITXA.502.2017+_32.doc

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placed on the decision of the Delhi High Court in the case of Commissioner of Income Tax vs. Anil Kumar Bhatia reported in [2013] 352 ITR 493 and of this Court in the case of Commissioner of Income Tax (Central), Nagpur vs. Murli Agro Products Ltd. reported in [2014] 49 Taxmann.com 172 (Bombay) .

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In view of this, the Appeals are dismissed.

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(S.J. KATHAWALLA, J.) (AKIL KURESHI, J.)

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Page 4 of 4

Pr. Commissioner of Income Tax (C)-1 v. M/S Rehab Housing Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Pr. Commissioner of Income Tax (C)-1 v. M/S Rehab Housing Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

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