DCIT, Jaipur V. UNIQUE BUILDERS & DEVELOPERS (KRISHNA), Jaipur

ITA 1006/JPR/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5229 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 23-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P C PARWAL CA DHK
• Keywords: Document seized; Documents seized
• Section: 80IB

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF;D LN L; DS LE{K BEFORE:SHRI BHAGCHAND, AM & SHRI LALIET KUMAR, J M VK;DJ VIHY LA-@ ITA NO. 1006/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2012-13 THE DCIT CENTRAL CIRCLE- 2 JAIPUR CUKE VS. M/S. UNIQUE BUILDERS & DEVELOPERS (KRISHNA), 8 TH FLOOR, THE MILE STONE, TONK ROAD, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACFU 0684 L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY: SHRI M.S. MEENA, CIT -DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL, CA LQUOKBZ DH RKJH[K@ DATE OF HEARING : 13/06/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 15/06/2016 VKNS'K@ ORDER PER BHAGCHAND, AM THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)- 4, JAIPUR DATED 30-10-2015 FOR THE ASSESSME NT YEAR 2012-13 RAISING THEREIN FOLLOWING GROUNDS OF APPEAL. (1) WHETHER ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE THE LD. CIT(A) WAS RIGHT IN DELETING THE ADDITION O F RS. 4,62,43,750/- MADE ON THE BASIS OF SEIZED DOCUMENTS FROM SHRI NAVEEN BHUTANI ITA NO. 1006/JP/2015 THE DCIT, CENTRAL CIRCLE- 2, JAIPUR VS. M/S. UNIQU E BUILDERS & DEVELOPER (KRISHNA) JAIPUR . 2 (2) WHETHER ON THE FACTS AND IN CIRCUMSTANCES OF TH E CASE THE LD. CIT(A) WAS JUSTIFIED IN NOT CONFIRMING TH E ADDITION OF RS. 4,62,43,750/- MADE BY THE AO BY ADOPTING THE PERCENTAGE COMPLETION METHOD FOR COMPUTING THE TRUE AND CORRECT INCOME OF THE ASSESSEE. 2.1 AT THE OUTSET OF THE HEARING, THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE ISSUES RAISED BY THE REVENUE IN THIS APPEA L ARE COVERED VIDE ORDER DATED 14-03-2013 OF ITAT COORDINATE BENCH IN THE C ASE OF UNIQUE BUILDERS & DEVELOPERS (ITA NO. 73 TO77/JP/2012, 689 TO 690/JP/2012 FOR A.Y. 2003-04, 04-05,05-06,06-07, 09-10, 07-08 A ND 08-09 ASSESSEE AND ITA NO. 211 TO215/JP/2012 FOR A.Y. 2003-04,04-0 5,05-06, 06-07 & 09-10 REVENUE) AND IN ASSESSEE'S OWN CASE BEARIN G ITA NO. 78 TO 80/JP/2012 - ASSESSEE AND IN ITA NO. 208 TO 210/JP/ 2012-REVENUE FOR THE ASSESSMENT YEAR 2007-08 TO 2009-10. THE LD. C IT(A) HAS GRANTED THE RELIEF TO THE ASSESSEE ON THE BASIS OF DECISION OF THE ITAT COORDINATE BENCH IN ASSESSEE'S OWN CASE (SUPRA). 2.2 THE LD. DR RELIED ON THE ORDER OF THE AO. 2.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT EMERGES FROM THE RECORD THA T IN THE CASE OF THE ITA NO. 1006/JP/2015 THE DCIT, CENTRAL CIRCLE- 2, JAIPUR VS. M/S. UNIQU E BUILDERS & DEVELOPER (KRISHNA) JAIPUR . 3 ASSESSEE I.E. M/S. UNIQUE BUILDERS & DEVELOPERS (KR ISHNA), RELIEF HAS BEEN GRANTED BY THE LD. CIT(A) ON THE BASIS OF THE DECISION OF ITAT COORDINATE BENCH IN ASSESSEE'S OWN CASE (SUPRA) BY OBSERVING AS UNDER:- 3.2 I HAVE DULY CONSIDERED ASSESSEE'S SUBMISSION AND ALSO TAKEN A NOTE OF FACTUAL MATRIX OF CASE AS EMANATING FROM THE ASSESSMENT ORDER AND PENALTY ORDER PASSED BY THE AO . IN THIS CASE, ASSESSMENT WAS COMPLETED AT A TOTAL INCOME OF RS. 4 ,62,43,750/- AGAINST THE RETURNED NIL INCOME WHEREIN NET ADDITIO N OF RS. 4,62,43,750/- ON ACCOUNT OF PROFIT COMPUTED BY CHA NGE IN METHOD OF ACCOUNTING TO PERCENTAGE COMPLETION METHOD AND F URTHER ENHANCED AS PER DOCUMENT FOUND INVENTORIZED & SEIZE D (WITH IDENTIFICATION MARK AS A-2 PG 51) FROM THE POSSESSI ON OF THIRD PARTY. ON SIMILAR FACTS IN ASSESSEE'S OWN CASE FOR A.Y. 2010-11 [ITA NO. 603/12-13] AND ASSESSMENT YEAR 2011-12 [IT A NO. 828/13-14 AND LD. CIT(A) CENTRAL, JAIPUR FOLLOWING THE FINDINGS GIVEN BY JURISDICTIONAL ITAT BENCH JAIPUR IN ASSESS EE'S OWN CASE FOR A.Y. 2003-04, 2004-05,2005-06, 206-07 AND 2009- 10 (ITA NO. 73 TO 77/JP/12, 689-690/JP/12 DATED 14-03-2012) (PB 1-12) WHEREIN THE HON'BLE ITAT HAS DELETED THE ENTIRE AD DITIONS MADE ON ACCOUNT OF PROFIT COMPUTED BY CHANGE IN METHOD OF ACCOUNTING TO PERCENTAGE COMPLETION METHOD AND FURTHER ENHANCE D AS PER DOCUMENT FOUND, INVENTORISED AND SEIZED (WITH IDENT IFICATION MARK AS A-2 PG 51) FROM THE POSSESSION OF THIRD PARTY . IT IS SEEN THAT HON'BLE ITAT BENCH HAS DELETED THE ENTIRE ADDITION MADE AND HELD THAT THE COMPUTATION OF INCOME BY FOLLOWING PROJECT COMPLETION METHOD IS THE CORRECT METHOD FOR RECOGNITION OF THE INCOME OF THE ASSESSEE WHICH IS REGULARLY FOLLOWED BY THE ASSESSE E BY HOLDING INTER ALIA AS UNDER:- .THE RECORD ALSO REVEALS THAT IN HIS STATEMENT RECORDED U/S 132(4) OF THE ACT ON 28-01-2009 HE ADM ITTED THAT THE LAPTOP AND THE PEN DRIVE FROM WHICH THE DA TA HAS BEEN COPIED AND PRINTOUT TAKEN RELATES TO UNIQUE DR EAM ITA NO. 1006/JP/2015 THE DCIT, CENTRAL CIRCLE- 2, JAIPUR VS. M/S. UNIQU E BUILDERS & DEVELOPER (KRISHNA) JAIPUR . 4 BUILDERS. THIS CONCERN IS UNRELATED TO THE APPELLAN T. NO OTHER QUESTIONS HAVE BEEN SHOWN TO BE ASKED FROM HI M IN THE IN THE STATEMENT RECORDED DURING THE COURSE OF SEAR CH ABOUT THE SAID ANNEXURE A-2/51.THE LD. DR ALSO PRODUCED A COPY OF STATEMENT DATED 16-03-2009 OF SHRI NAVEEN BHUTANI RECORDED UU131 OF THE ACT, WHEREIN HE STATED THAT T HE PRINTOUT TAKEN FROM THE PEN DRIVE RUNNING INTO215 P AGES RELATES TO THE PROJECTS OF THE UNIQUE GROUP. THIS S TATEMENT ALSO DID NOT SHOWN ANY SPECIFIC QUESTION ABOUT THE AFFAIRS OF THE APPELLANT OR ITS MEMBERS. HE DID NOT SAY THAT T HE DATA OR DETAILS WRITTEN THEREIN, BELONGS TO THE APPELLANT B EFORE US. WHAT HE SAID AS UNIQUE GROUP WAS IN RELATION TO THE UNIQUE DREAM BUILDERS ONLY. THIS PERSON WAS NOT PRODUCED F OR EXAMINATION BY THE APPELLANT ON CAREFUL PERUSAL OF AFOREMENTIONED DECISIONS GIVE N BY HON'BLE ITAT JAIPUR. IT IS SEEN THAT ON ALL THE TH REE COUNTS THE TRADING ADDITION HAS BEEN DELETED. SINCE THE AO HAS NOT BROUGHT ON RECORD ANY EVIDENCE OR CASE LAW TO CONTROVERT THE F INDINGS GIVEN BY HON'BLE ITAT BENCH JAIPUR IN A.Y. 2003-04 TO 2009- 10 AND LD. CIT(A) CENTRAL, JAIPUR IN A.Y. 2010-11 AND 2011-12 IN ASSESSEE'S OWN CASE, I FIND THAT THE PRESENT CASE IS ALSO COVE RED BY THOSE ORDERS AS FACTS OF THE CASE ARE QUITE SIMILAR. IN V IEW OF THESE FACTS AND CIRCUMSTANCES OF THE CASE, THE GROUNDS OF APPEA LS NO.1 & 2 ARE DECIDED IN FAVOUR OF THE APPELLANT AND ADDITION MAD E OF RS. 4,62,43,750/- BY FOLLOWING THE PERCENTAGE COMPLETIO N METHOD AND FURTHER ENHANCED AS PER DOCUMENTS FOUND, INVENTORIZ ED AND SEIZED (WITH IDENTIFICATION MARK AS A-2 PG 51) FROM THE PO SSESSION OF THIRD PARTY, IS HEREBY DELETED. 3.2 GROUND NO. 3: THE AO ERRED IN REJECTING THE ASSESSEE'S ALTERNATE AND WITHOUT PREJUDICE CLAIM FOR DEDUCTION U/S 80IB(10) IN RELATION TO NET PROFITS DETERMINED ON PERCENTAGE COMPLETION METHOD. 3.2.1 I HAVE CAREFULLY CONSIDERED ASSESSEE'S SUBMIS SION AND ALSO TAKEN A NOTE OF THE FACTUAL MATRIX OF THE CASE . REGARDING THE ITA NO. 1006/JP/2015 THE DCIT, CENTRAL CIRCLE- 2, JAIPUR VS. M/S. UNIQU E BUILDERS & DEVELOPER (KRISHNA) JAIPUR . 5 CLAIM OF DEDUCTION U/S 80IB OF THE ACT, ON PERUSAL OF THE HON'BLE ITAT (SUPRA), THIS ISSUE HAS BEEN HELD TO BE OF ACA DEMIC INTEREST. FURTHER, SINCE THE APPELLANT HAS NOT SHOWN ANY INCO ME ON THE BASIS OF PERCENTAGE COMPLETION METHOD DURING THE YEAR REL EVANT TO A.Y. AS WELL, THE CLAIM U/S 80IB OF THE ACT REMAINS OF A CADEMIC INTEREST BECAUSE THE MAIN ADDITION STANDS DELETED. BY RESPECTFULLY FOLLOWING THE DECISION OF COORDINAT E BENCH IN ASSESSEE'S OWN CASE (SUPRA), WE DISMISS THE APPEAL OF THE REVE NUE. 3.0 IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 15/06/20 16. SD/- SD/- YFYR DQEKJ HKKXPUN (LALIET KUMAR) (BHAGCHAND ) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 15/06/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE DCIT, CIRCLE-2. JAIPUR 2. IZR;FKHZ@ THE RESPONDENT-M/S.UNIQUE BUILDERS & DEVELOPERS (KRISHNA), JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 1006/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR