DCIT, Hyderabad V. M/s PCL-STICCO Joint Venture, Hyderabad

ITA 663/HYD/2010

• Counselvise Citation: [2010] 100 COUNSELVISE.COM (IT) 5315 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2010
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 30-04-2010

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO489/HYD/2006 ASSESSMENT 2002-03 DCIT, CIRCLE 16(3), HYD. VS M/S PLL & PCL JOINT VENTURE (AAAP 1577G/P-601) (APPELLANT) (RESPONDENT) ITA NO490/HYD/2006 ASSESSMENT 2003-04 DCIT, CIRCLE 16(3), HYD. VS M/S PLL & PCL JOINT VENTURE (APPELLANT) (RESPONDENT) ITA NO491/HYD/2006 ASSESSMENT 2004-05 DCIT, CIRCLE 16(3), HYD. VS M/S PLL & PCL JOINT VENTURE (APPELLANT) (RESPONDENT) ITA NO409/HYD/2010 ASSESSMENT 2005-06 DCIT, CIRCLE 16(3), HYD. VS M/S PLL & PCL JOINT VENTURE (APPELLANT) (RESPONDENT) ITA NO492/HYD/2006 ASSESSMENT 2002-03 DCIT, CIRCLE 16(3), HYD. VS M/S PCL & SITCCO JOINT VENTURE (PAN AAAAP 1488P/S-608) (APPELLANT) (RESPONDENT) ITA NO493/HYD/2006 ASSESSMENT 2003-04 DCIT, CIRCLE 16(3), HYD. VS M/S PCL & SITCO JOINT VENTURE (APPELLANT) (RESPONDENT) ITA NO494/HYD/2006 ASSESSMENT 2004-05 DCIT, CIRCLE 16(3), HYD. VS M/S PCL & SITCO JOINT VENTURE (APPELLANT) (RESPONDENT) ITA NO495/HYD/2006 ASSESSMENT 2002-03 DCIT, CIRCLE 16(3), HYD. VS M/S PCL & SUNCON JOINT VENTURE (PAN AAAAP 1497P/IS-609) (APPELLANT) (RESPONDENT) ITA NO496/HYD/2006 ASSESSMENT 2003-04 DCIT, CIRCLE 16(3), HYD. VS M/S PC L & SUNCON JOINT ITA NOS.489 & OHER 15 APPEALS/OF 2006 M/S PCL,PLL,SUNCON&SITCCO 2 2 VENTURE (APPELLANT) (RESPONDENT) ITA NO497/HYD/2006 ASSESSMENT 2004-05 DCIT, CIRCLE 16(3), HYD. VS M/S PCL & SUNCON JOINT VENTURE (APPELLANT) (RESPONDENT) ITA NO149/HYD/2008 ASSESSMENT 2005-06 DCIT, CIRCLE 16(3), HYD. VS M/S PCL & SUNCON JOINT VENTURE (APPELLANT) (RESPONDENT) ITA NO150/HYD/2008 ASSESSMENT 2005-06 DCIT, CIRCLE 16(3), HYD. VS M/S PCL & SITCO JOINT VENTURE (APPELLANT) (RESPONDENT) ITA NO662/HYD/2010 ASSESSMENT 2006-07 DCIT, CIRCLE 16(3), HYD. VS M/S PCL & SUNCON JOINT VENTURE (APPELLANT) (RESPONDENT) ITA NO663/HYD/2010 ASSESSMENT 2006-07 DCIT, CIRCLE 16(3), HYD. VS M/S PCL & SITCO JOINT VENTURE (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. VASUNDHARA SINHA, DR RESPONDENT BY : SHRI RAGHUVENDER RAO O R D E R PER BENCH : THESE 14 APPEALS PREFERRED BY THE REVENUE ARE DIR ECTED AGAINST DIFFERENT ORDERS OF THE CIT(A)-V & VI HYDER ABAD AND PERTAINS TO ASSESSMENT YEARS 2002-03, 2003-04, 2004-05, 2005-06 , 2006-07. SINCE ISSUES INVOLVED IN THESE APPEALS ARE COMMON IN NATU RE, THEY ARE CLUBBED TOGETHER, HEARD TOGETHER AND DISPOSED OFF VIDE THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. ITA NOS.489 & OHER 15 APPEALS/OF 2006 M/S PCL,PLL,SUNCON&SITCCO 3 3 2. THE FIRST COMMON ISSUE IN THESE APPEALS ARE WI TH REGARD TO DISPOSING OF THE APPEAL BY CIT(A) WITHOUT THE JURIS DICTION WHEN THE JURISDICTION OVER THE FILES WERE TRANSFERRED FROM C IT(A) VI TO CIT(A) IV, HYDERABAD. 3. ACCORDING TO THE DEPARTMENTAL REPRESENTATIVE T HE JURISDICTION OF THE ASSESSEES CASES ARE FALL WITHIN THE JURISD ICTION OF THE FOLLOWING OFFICES: ASSESSEES NAME JURISDICTION 1. PLL-PCL JOINT VENTURE ITO WARD 7 (1), HYDERABA D ** 2. PCL STICCO JOINT VENTURE ITO 7(1), HYDERABAD ** 3. PCL SUNCON JOINT VENTURE ITO 7 (1), HYDERABAD ** ** PRESENTLY DCIT, RANGE 16(3), HYDERABAD 4. FURTHER, THE LEARNED DEPARTMENTAL REPRESENTAT IVE SUBMITTED THAT VIDE NOTIFICATION DATED 27.10.2005 THE FILES O F THE ABOVE ASSESSEES CASES ARE TRANSFERRED FROM THE O/O ADDITIONAL CIT, RANGE 7, HYDERABAD TO THE O/O ADDL. CIT, RANGE 16, HYDERABAD. CONSEQUENT LY, CIT(A)- V OR VI, HYDERABAD CEASED TO BE HAVING JURISDICTION OVER THE ASSESSEES CASES AND ONLY CIT(A)-IV, HYDERABAD IS HAVING JURISDICTION OV ER THESE ASSESSEES CASES. FURTHER, THE LEARNED DEPARTMENTAL REPRESENT ATIVE FILED A COPY OF THE NOTIFICATION DATED 27.10.2005 AND ALSO FILED A COPY OF EARLIER NOTIFICATION DATED 27.08.2001. THESE NOTIFICATIONS ARE REPRODUC ED HEREIN BELOW FOR CLARITY: A) PROCEEDINGS OF THE CHIEF COMMISSIONER OF INCOME TAX-II, HYDERABAD MUNTASIR AHMED, IRS ITA NOS.489 & OHER 15 APPEALS/OF 2006 M/S PCL,PLL,SUNCON&SITCCO 4 4 CHIEF COMMISSIONER OF INCOME TAX-II HYDERABAD F.NO.CCIT-II/TECH/12(7)/JURS/2005-06 DAT ED 27.10.2005 ORDER U/S 127 OF THE IT ACT, 1961: IN EXERCISE OF THE POWERS CONFERRED UNDER SUB SECTI ON (2)(A) OF SECTION 127 OF THE IT ACT, 1961 (43 OF 1961) AND ALL OTHER POWERS ENABLING ME IN THIS BEHALF, I THE CHIEF COMMISSIONER OF INCOME TAX -II, HYDERABAD HEREBY TRANSFER THE CASES, THE PARTICULARS OF WHICH ARE ME NTIONED IN COLUMN (4) FROM THE ASSESSING OFFICER IN THE COLUMN (5) TO THE ASSESSING OFFICER MENTIONED IN COLUMN (6) OF THE SCHEDULE. THIS IS ISSUED WITH THE CONCURRENCE OF THE CHIEF CO MMISSIONER OF INCOME TAX I, ANDHRA PRADESH, HYDERABAD. SCHEDULE S.NO. GIR/PAN STATUS NAME AND ADDRESS OF THE ASSESSEE FROM TO 1 AAAAP 1497 P AOP PCL SUNCON JV ADDL.CIT, RANGE 7, HYDERABA ADDL.CIT RANGE 16, HYDERABAD 2 AAAP 1577G AOP PCL PLL DO DO 3 AAAP 1488N AOP PCL STICCO DO DO 4 AAGFP 1664B AOP PCL INTERTECH LEN HYDRO DO DO REASONS FOR TRANSFER THE ABOVE MENTIONED ASSESSEES ARE ASSOCIATED OF T HEIR PRINCIPAL COMPANY M/S PROGRESSIVE CONSTRUCTION LTD. ASSESSED TO TAX IN RAGE-16. TO HAVE AN OVERALL PERSPECTIVE OF THE CASE AND FACILIT ATE A REALISTIC ASSESSMENT OF ACTUAL CONTRACTUAL PROFITS AND GAINS, THESE CAS ES ARE CENTRALIZED WITH ONE ASSESSING OFFICER. THIS NOTIFICATION SHALL COME INTO EFFECT 1-11-2005 (SD/- ) MUNTASIR AHMED CHIEF CIT, II, HYDERABAD B) PROCEEDINGS OF THE CHIEF COMMISSIONER OF INCOME TAX-I ANDHRA PRADESH, HYDERABAD NO.CC/TECH/5(1)/2001-2002(APPEALS) DT.27.8.2001 NOTIFICATION ITA NOS.489 & OHER 15 APPEALS/OF 2006 M/S PCL,PLL,SUNCON&SITCCO 5 5 IN SUPERSESSION OF ALL EARLIER ORDERS/NOTIFICATIO NS IN RESPECT OF JURISDICTION OF CIT(APPEALS) IN ANDHRA PRADESH REGI ON AND IN EXERCISE OF THE POWERS CONFERRED BY SUB SECTIONS (1) AND (2) OF SE CTION 120 OF THE INCOME TAX, 1961 (43 OF 1961) AND IN EXERCISE OF THE POWER S CONFERRED ON ME BY THE GOVT. OF INDIA, CENTRAL BOARD OF DIRECTOR TAXES, NE W DELHI, NOTIFICATION NO.7842 IN F.NO.279/17/88-ITJ/O.361 (E) DATED 30 TH MARCH, 1988. I, THE CHIEF COMMISSIONER OF INCOME TAX-I HEREBY: A) DIRECT THAT, NOTWITHSTANDING ANYTHING OTHERWISE CONTAINED IN ANY OTHER NOTIFICATION, THE COMMISSIONER OF INCOME TAX SPECIF IED IN COLUMN (2) OF THE SCHEDULE GIVEN BELOW HAVING THEIR HEADQUARTERS AT T HE PLACES SPECIFIED IN THE CORRESPONDING E NTRIES IN COLUMN (3) OF THE SAID SCHEDULE, SHALL EX ERCISE THE POWERS AND PERFORM THE FUNCTIONS IN RESPECT OF ANY APPEAL FILE D BY CASES OR CLASS OF CASES OF PERSONS SPECIFIED IN COLUMN (5) AND FALLIN G WITHIN THE JURISDICTION OF THE INCOME TAX AUTHORITIES SPECIFIED IN COLUMN (4). S.NO. CHARGER HQS INCOME TAX AUTHORITIES SPECIFICAT ION OF CASES 1 CIT(A) I HYDERABAD COMMISSIONER OF INCOME TAX (CENTRAL), HYDERABAD DIRECTOR OF INCOME TAX (EXEMPTIONS), HYD ALL CASES 2 CIT(A) II HYDERABAD COMMISSIONER OF INCOME TAX-I, HYDERABAD ALL CASES 3 CIT(A) III HYDERABAD COMMISSIONER OF INCOME TAX-II, HYDERABAD ALL CASES 4 CIT(A) IV HYDERABAD COMMISSIONER OF INCOME TAX-III, HYDERABAD ALL CASES 5 CIT(A) V HYDERABAD COMMISSIONER OF INCOME TAX-IV, HYDERABAD ALL CASES 6 CIT(A) VI HYDERABAD COMMISSIONER OF INCOME TAX-V, HYDERABAD COMMISSIONER OF INCOME TAX-VI, HYDERABAD ALL CASES 7 CIT(A) I VIZAG COMMISSIONER OF INCOME TAX-I, VIZAG ALL CASES 8 CIT(A) II VIZAG COMMISSIONER OF INCOME TAX-II VIZAG ALL CASES 9 CIT(A) VIJAYAWADA CIT, VIJAYAWADA ALL CASES 10 CIT(A) GUNTUR CIT, GUNTUR ALL CASES 11 CIT(A) TIRUPATHI CIT, THIRUPATHI ALL CASES 12 CIT(A) RAJAHMUNDRY CIT, RAJAHMUNDRY ALL CASES 2. THIS NOTIFICATION SHALL COME INTO FORCE W.E.F. 1.09.2001. (SD/) (C.V. PADMANABHAN) CHIEF COMMISSIONER OF INCOME TAX-I, ANDHRA PRADESH, HYDERABAD. ITA NOS.489 & OHER 15 APPEALS/OF 2006 M/S PCL,PLL,SUNCON&SITCCO 6 6 5. ACCORDING TO THE LEARNED DEPARTMENTAL REPRE SENTATIVE, THE CASES OF THE ASSESSEES FALLS UNDER THE JURISDICTION OF CIT(A) IV, HYDERABAD. 6. THE LEARNED AUTHORISED REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT AS PER THE CIRCULAR DATED 27.8.2001, ONLY THE APPEALS TO BE FILED W.E.F. 27.10.2005 WOULD FALLS UNDER THE JURIS DICTION OF CIT(A)-IV AND NOT THE APPEALS WHICH ARE ALREADY FILED BEFORE THIS DATE. ACCORDING TO AR, IN THESE CASES, THE APPEALS WERE FILED BEFORE 27.10 .2005 AND THE CIT(A) V OR VI, HYDERABAD AS THE CASE MAY BE IS HAVING JURIS DICTION OVER THE ASSESSEE AS ON DATE AND HE HAS VALIDLY PASSED THE O RDER IN THESE CASES. 7. WE HAVE HEARD BOTH THE PARTIES AND ALSO CAR EFULLY GONE THROUGH THE NOTIFICATIONS FILED BEFORE US. IN OUR OPINION, THE ASSESSEES CASES HAVE BEEN TRANSFERRED FROM ADDITIONAL CIT- RA NGE 7, HYDERABAD TO ADDL. CIT-16, HYDERABAD VIDE NOTIFICATION DATED 27. 10.2005 CITED SUPRA 8. AS PER THE NOTIFICATION DATED 27.8. 2005, CIT( A)-IV IS HAVING CONCURRENCE JURISDICTION OVER THE ASSESSEES CASES AND HE SHALL REQUIRE TO PASS THE ORDERS IN THESE CASES. THERE IS NO DISPUT E THAT THE ORDERS PASSED U/S 127 OF THE ACT IS BAD IN LAW. AS PER THIS PROV ISION, IT IS PROVIDED THAT TRANSFER COULD BE MADE AT ANY STAGE OF THE PROCEEDI NGS AND ONCE THE TRANSFER HAS BEEN MADE, THE JURISDICTION OVER THE A SSESSEE CHANGES AND THE PREVIOUS CIT(A) WHO HOLD THE JURISDICTION OVER THE CASE WHETHER ON TERRITORIAL BASIS OR BY ANY PREVIOUS ASSIGNMENT LOS ES HIS JURISDICTION. THERE IS NO SUCH DISPUTE IN THESE CASES. AS AFTER THE NOTIFICATION CITED SUPRA, THE TERRITORY OF CIT(A) VI CEASED TO HAVE JU RISDICTION AND THE CIT(A)- IV ASSUMES JURISDICTION FOR ALL PENDING MATTERS. WE ARE SATISFIED THAT THERE WAS A TRANSFER OF JURISDICTION UNDER THE VALID ORDE R CITED SUPRA. FOR THE PURPOSE OF FACILITATING THE ASSESSMENT, THIS TRANSF ER ORDER IS VALID FOR ALL PURPOSES AND IT IS TO BE ACTED UPON. HENCE THE CIT (A) IV CAN ONLY PASS ITA NOS.489 & OHER 15 APPEALS/OF 2006 M/S PCL,PLL,SUNCON&SITCCO 7 7 ORDERS IN THESE CASES AND ORDERS PASSED BY CIT(A) VI IS BAD IN LAW. ACCORDINGLY, WE SET ASIDE THE ISSUE TO THE FILE OF CIT(A) IV TO DECIDE AFRESH IN ACCORDANCE WITH LAW. 9. SINCE ISSUES RELATING TO THE LEGAL GROUND IS A LLOWED, WE REFRAIN FROM GOING INTO THE MERIT OF THE OTHER ISSU ES RAISED BEFORE US. 10. IN THE RESULT, THE APPEALS FILED BY THE REVEN UE ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29 .10 .2010 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 29 TH OCTOBER, 2010 COPY FORWARDED TO: 1. THE DCIT, CIRCLE 16(3), HYDERABAD 2. 1. M/S PLL-PCL JOINT VENTURE, 65A GROUND FLOOR, RR TOWERS, CHIRAG ALI LANE, ABIDS, HYDERABAD 2. 1. M/S PCL & SITCCO JOINT VENTURE, 65A GROUND FLOOR, RR TOWERS, CHIRAG ALI LANE, ABIDS, HYDERABAD 3. 1. M/S PCL & SUNCON JOINT VENTURE, 65A GROUND F LOOR, RR TOWERS, CHIRAG ALI LANE, ABIDS, HYDERABAD 3. CIT(A)-V & VI HYDERABAD. 4. CIT, HYDERABAD 5. THE D.R., ITAT, HYDERABAD. NP