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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI KUL BHARAT & SHRI MANISH BORAD
Appellant by Shri Manoj Gupta, A.R. Respondent by Smt. Ashima Gupta, D.R. Date of Hearing: 19.11.2019 Date of Pronouncement: 21.11.2019 आदेश / O R D E R PER KUL BHARAT, J.M: This appeal by the assessee is directed against order of the Ld. Pr. CIT-1, Indore dated 18.3.2019 pertaining to the [ ] [M/s. Delight Cotton P. Ltd., Indore] assessment year 2014-15. The assessee has raised following grounds of appeal:
1. That on the facts and in the circumstances of the case the Ld. CIT has erred in setting aside the order of the A.O. passed u/s 143(3) of the I.T. Act, for examinations of the large specified domestic transactions allegedly holding it erroneous in so far as prejudicial to interest of revenue. The order passed by CIT-1 Indore u/s 263 of the I.T. Act, is bad in law and facts, requires to be quashed in full.
The appellant crave to add, amend or alter any of the ground stated above, either before or at the time of hearing of appeal.
The only effective ground in this appeal is against setting aside the order passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter called as ‘the Act’) by invoking the provisions of section 263 of the Act. The facts giving rise to the present appeal are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s [ ] [M/s. Delight Cotton P. Ltd., Indore] 143(3) of the Act was framed vide order dated 31.8.2016.
While framing the assessment the A.O. accepted the return declared by the assessee, however, subsequently Ld. Pr.
CIT issued a notice u/s 263 of the Act calling upon the assessee as to why the assessment order so framed should not be revised on the basis that the A.O. did not examine loss from currency fluctuations and also did not refer matter to the TPO for computing value of specified domestic transactions. The Ld. CIT after considering the submissions of the assessee set aside the assessment order and directed him to perse assessment afresh. The Ld. Pr.
CIT accepted the contention in respect of the loss on account of foreign exchange fluctuation; however, in respect of the subject issue the assessment order was set aside. Aggrieved against this, the assessee is in present appeal before this Tribunal. Ld. Counsel for the assessee at the outset submitted that the issue is squarely covered
[ ] [M/s. Delight Cotton P. Ltd., Indore] by the decision of this Tribunal rendered in the case of Swastik Coal Corporation Pvt. Ltd. Vs. Pr. CIT (2019) 35 ITJ 489. Ld. D.R. fairly conceded that the issue is covered by the decision of this Tribunal, however, supported the order of the Ld. Pr. CIT.
We have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. The issue on which the order is revised is with regard to the opinion of the Ld. CIT that the A.O. failed to refer the specified domestic transactions to the TPO. We find that the identical issue was before this Vs. PCIT (supra) in which the Tribunal decided the issue as under:
[ ] [M/s. Delight Cotton P. Ltd., Indore] [ ] [M/s. Delight Cotton P. Ltd., Indore] [ ] [M/s. Delight Cotton P. Ltd., Indore]
Taking a consistent view, we hereby set aside the order of Ld. Pr. CIT as the assessment order is not prejudicial to the interest of revenue.
[ ] [M/s. Delight Cotton P. Ltd., Indore]
In the result, the appeal filed by the assessee is allowed.
Order was pronounced in the open court on 21.11.2019.