DCIT, Alwar V. KRISH INFRASTRUCTURE (P) LTD., Alwar

ITA 1019/JPR/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5259 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 29-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA
• Assessee Lawyers: RAJEEV SOGANI C A DHK
• Section: 143(3); 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. 1019/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12 THE DCIT CENTRAL CIRCLE ALWAR CUKE VS. M/S. KRISH INFRASTRUCTURE (P) LTD. 114-A, RIICO INDUSTRIAL AREA BHIWADI, ALWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACCK 8871 A VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI O.P. BHATEJA, ADDL CIT -DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI RAJEEV SOGANI, CA LQUOKBZ DH RKJH[K@ DATE OF HEARING : 15/06/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 16/06/2016 VKNS'K@ ORDER PER BHAGCHAND, AM THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-4, JAIPUR DATED 26-10-2015 FOR THE ASSESSMEN T YEAR 2011-12 RAISING THEREIN FOLLOWING GROUNDS OF APPEAL. 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) WAS JUSTIFIED IN NOT CONFIRMING THE ADDITION OF RS. 94,37,450/- MADE BY THE AO BY ADOPT ING THE PERCENTAGE COMPLETION METHOD FOR COMPUTING THE TRUE AND CORRECT INCOME OF THE ASSESSEE. ITA NO. 1019/JP/2015 DCIT, CENTRAL CIRCLE- ALWAR VS. M/S KRISH INFRASTR UCTURE (P) LTD., ALWAR . 2 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, THE LD. CIT(A) WAS RIGHT IN ALLOWING THE CLAI M U/S 80IB IGNORING THE FACT THAT THE SAID CLAIM WAS REJECTED BY THE AO IN ABSENCE OF ANY EVIDENCE WHATSOEVER TO PROVE THE ELIGIBILITY OF THE CLAIM AND CORRECTNESS OF THE PRO FIT OF THE PHASE WHICH WAS CLAIMED TO BE ELIGIBLE FOR SUCH DED UCTION. 2.1 AT THE OUTSET OF THE HEARING, THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE ISSUE RAISED BY THE REVENUE IN THIS APPEAL IS 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 THE CASE OF UNIQUE BUILDER S & DEVELOPERS (KRISHNA) BEARING ITA NO. 78 TO 80/JP/2012 - ASSESS EE AND IN ITA NO. 208 TO 210/JP/2012-REVENUE FOR THE ASSESSMENT YEAR 2007-08 TO 2009-10. THE LD. CIT(A) HAS GRANTED THE RELIEF TO THE ASSESS EE ON THE BASIS OF DECISIONS OF THE ITAT COORDINATE BENCH (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 ASSESSEE I.E. M/S. KRISH INFRASTRUCTURE (P) LTD. RE LIEF HAS BEEN GRANTED BY ITA NO. 1019/JP/2015 DCIT, CENTRAL CIRCLE- ALWAR VS. M/S KRISH INFRASTR UCTURE (P) LTD., ALWAR . 3 THE LD. CIT(A) ON THE BASIS OF THE DECISIONS OF ITA T COORDINATE BENCH (SUPRA) BY OBSERVING AS UNDER:- 3.1.2 I HAVE DULY CONSIDERED ASSESSEE'S SUBMISSIO N AND CAREFULLY GONE THROUGH THE ASSESSMENT ORDER PAS SED U/S 143(3) OF THE ACT BY THE AO. IN THIS CASE, MY ATTENTION IS DRAWN TOWARDS HON'BLE ITAT BENCH JAIPURS DECISION IN ASSESSEE'S OWN CASE IN A.Y. 2008-09 AND 2010-11 VIDE ORDER DATED 12-08-201 4 IN ITA NO. 1096 & 1097/JP/2011 WHEREIN HON'BLE ITAT HAS H ELD THAT AO CANNOT CHANGE THE METHOD OF ACCOUNTING TO PERCENTAG E COMPLETION METHOD. FURTHER, LD. CIT(A), CENTRAL, JAIPUR RESPEC TFULLY FOLLOWING THE SAME HAS ALLOWED ASSESSEE'S APPEAL IN A.Y. 2010 -11 VIDE ORDER DATED 12-08-2014 IN ITA NO. 261/2013-14 (REF. PB P G 1 TO 8). THEREFORE, FACTS OF THE CASE ARE SAME AND COVERED B Y THE FINDINGS OF HON'BLE ITAT BENCH JAIPUR IN ASSESSEE'S OWN CASE FOR THE PREVIOUS A.YS. ACCORDINGLY, AO IS DIRECTED TO ADOPT THE PERCENTAGE COMPLETION METHOD AND DETERMINING THE INCOME ACCORD INGLY IS NOT SUSTAINED. THEREFORE, ADDITION OF RS. 94,37,450/- I S HEREBY DELETED. ASSESSEE APPEAL IS GROUND NO. 1 STANDS ALLOWED. BY RESPECTFULLY FOLLOWING THE DECISIONS OF COORDINA TE BENCH IN UNIQUE BUILDERS & DEVELOPERS AND ITS KRISHNA GROUP CASES ( SUPRA), WE DISMISS THE GROUND NO. 1 OF THE APPEAL OF THE REVENUE. 3.1 IN GROUND NO. 2, THE REVENUE HAS RAISED THE ISS UE OF ALLOWING DEDUCTION U/S 80IB OF THE ACT BY THE LD. CIT(A). IT IS NOTICED THAT THE LD. CIT(A) HAS DEALT WITH THIS ISSUE IN PARA 3.2.2 OF H IS ORDER WHICH IS REPRODUCED AS UNDER:- 3.2.2. I HAVE DULY CONSIDERED THE ASSESSEE'S SUBMISSION AND ALSO TAKE A NOTE OF THE FACTUAL MATR IX OF THE CASE. REGARDING THE CLAIM OF DEDUCTION U/S 80IB OF THE AC T, ON PERUSAL OF ITA NO. 1019/JP/2015 DCIT, CENTRAL CIRCLE- ALWAR VS. M/S KRISH INFRASTR UCTURE (P) LTD., ALWAR . 4 THE ORDER OF HON'BLE ITAT (SUPRA), THIS ISSUE HAS BEEN HELD TO BE OF ACADEMIC INTEREST. FURTHER, SINCE THE APPELLANT HAS NOT SHOWN ANY INCOME ON THE BASIS OF PERCENTAGE COMPLETION METHOD DURING THE YEAR RELEVANT TO A.Y. AS WELL, THE CLAIM U/S 80IB O F THE ACT REMAINS OF ACADEMIC INTEREST BECAUSE THE MAIN ADDITION STAN DS DELETED. 3.2 THE LD. DR RELIED ON THE ORDER OF THE AO 3.3 ON THE OTHER HAND, THE LD. AR OF THE ASSESSEE R ELIED ON THE ORDER OF THE LD. CIT(A). 3.4 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND FROM THE RECORD THAT T HIS ISSUE HAS BEEN DISPOSED OFF VIDE ORDER DATED 14-03-2013 BY THE CO ORDINATE BENCH OF ITAT JAIPUR IN THE CASE OF M/S. UNIQUE BUILDERS & DEVELOPERS (KRISHNA) VS. DCIT (ITA NO. 78 TO 80/JP/2012 FOR THE ASSESSME NT YEAR 2007-08 TO 2009-10 ASSESSEE AND IN ITA NO. 208 TO 210/JP/2012 REVENUE ) BY OBSERVING AS UNDER:- 21.1. HEARD PARTIES WITH REFERENCE TO MATERIAL ON RECORD AND THE DETAILED SUBMISSIONS OF THE ASSESSEE CONTAINED IN THE SYNOPSIS LAID ON RECORD. SINCE WE HAVE RECOR DED A FINDING AND REACHED A CONCLUSION IN THE EARLIER GRO UNDS IN APPEAL THAT THE INCOME OF THE APPELLANT HAS TO BE A SSESSED ON THE BASIS OF PROJECT COMPLETION METHOD, THE ISSUE O F DEDUCTION U/S 80IB(10) ON THE PROFITS DEDUCTED BY A PPLYING PERCENTAGE COMPLETION METHOD BECOMES ACADEMIC AND N EEDS NO DISCUSSION THEREON. ACCORDINGLY, THIS GROUND IN ALL THESE APPEALS STANDS DISPOSED OFF. ITA NO. 1019/JP/2015 DCIT, CENTRAL CIRCLE- ALWAR VS. M/S KRISH INFRASTR UCTURE (P) LTD., ALWAR . 5 BY RESPECTFULLY FOLLOWING THE DECISIONS OF COORDINA TE BENCH IN UNIQUE BUILDERS & DEVELOPERS ( KRISHNA) (SUPRA), WE DISMIS S THE GROUND NO. 2 OF THE APPEAL OF THE REVENUE. 4.0 IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16-06-2016 SD/- SD/- YFYR DQEKJ HKKXPUN (LALIET KUMAR) (BHAGCHAND ) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16/06/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE DCIT, CENTRAL CIRCLE, ALWAR 2. IZR;FKHZ@ THE RESPONDENT- M/S. KRISH INFRASTRUCTURE (P) LTD. ALWAR 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. 1019/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR