AVR Vaithamanidhi Constructions, CHENNAI V. DCIT, Coimbatore

ITA 1112/CHNY/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7754 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-07-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 30-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Assessee Lawyers: S SRIDHAR
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , ' # . $ , & ' BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICI AL MEMBER ./ I.T.A.NO.1112/MDS/2014 ( / ASSESSMENT YEAR: 2009-10) M/S. AVR VAITHAMANIDHI CONSTRUCTIONS, 364, BAZAAR STREET, SALEM-636 001. VS THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1 COIMBATORE. PAN: AAMFA4825D ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. S.SRIDHAR, ADVOCATE /RESPONDENT BY : MR. SUPRIYO PAL, JCIT /DATE OF HEARING : 3 RD NOVEMBER, 2016 /DATE OF PRONOUNCEMENT : 28 TH DECEMBER, 2016 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL IS FILED BY THE ASSESSEE AGGRIEVED BY T HE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (AP PEALS)- II, COIMBATORE DATED 26.02.2014 IN ITA NO.149/11-12 PASSED UNDER SECTION 143(3) R.W.S. 250(6) OF THE ACT. 2. THE ASSESSEE HAS RAISED SEVERAL ELABORATE GROUND S IN ITS APPEAL, HOWEVER, THE CRUX OF THE ISSUE IS AS FO LLOWS:- THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN PARTLY CONFIRMING THE ORDER OF THE LEARNED ASSESSING OFFICER WHO HAD MADE ADDITION OF ` 2,58,47,280/- BASED ON PERCENTAGE COMPLETION METHOD IN THE JOINT DEVELOPMENT PROJECT. 2 ITA NO.1112MDS/2014 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A FIRM ENGAGED IN THE BUSINESS OF PROPERTY DEVELOPMENT. DU RING THE RELEVANT ASSESSMENT YEAR, THE ASSESSEE WAS ENGAGED IN A JOINT DEVELOPMENT OF A PROJECT AND A PORTION OF THE CONTRACT WAS ALSO EXECUTED. HOWEVER, THE ASSESSEE HAS NOT DE CLARED ANY PROFIT FOR THE RELEVANT ASSESSMENT YEAR. THERE AFTER ANALYZING THE ISSUE IN DETAIL, THE LEARNED ASSESSIN G OFFICER WORKED OUT THE PROFIT OF THE ASSESSEE BASED ON PER CENTAGE COMPLETED METHOD AND MADE ADDITION OF RS. 2,58,47, 282/-. 4. ON APPEAL, THE LEARNED COMMISSIONER OF INCOME TA X (APPEALS) CONFIRMED THE ACTION OF THE LEARNED ASSES SING OFFICER, HOWEVER, GRANTED CERTAIN RELIEF. 5. AT THE OUTSET THE LEARNED AUTHORIZED REPRESENTAT IVE SUBMITTED THAT THE ASSESSEE HAD COMPLETED THE ENTIR E PROJECT DURING THE ASSESSMENT YEAR 2012-13 AND DISCLOSED TH E PROFIT OF RS.4,55,12,920/- BASED ON PROJECT COMPLETION METHOD AND THE SAME WAS ASSESSED TO TAX UNDER SECTION 143( 3) OF THE ACT VIDE ORDER DATED 07.11.2014. HE FURTHER AR GUED BY 3 ITA NO.1112MDS/2014 STATING THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) DID NOT HAVE THE BENEFIT OF THIS ORDER BE CAUSE HE HAD PASSED THE ORDER ON 26.02.2014. IT WAS THEREFOR E REQUESTED THAT THE MATTER MAY BE REMITTED BACK TO H IS FILE FOR FRESH CONSIDERATION OTHERWISE IT WOULD AMOUNT TO DO UBLE TAXATION WHICH IS AGAINST LAW. 6. THE LEARNED DEPARTMENTAL REPRESENTATIVE DID NOT EXPRESS ANY SERIOUS OBJECTIONS FOR REMITTING BACK T HE MATTER TO THE FILE OF LD.CIT(A). 7. AFTER HEARING BOTH SIDES, WE FIND MERIT IN THE C ONTENTION OF THE LEARNED AUTHORIZED REPRESENTATIVE, BECAUSE A S POINTED OUT BY HIM, THE LEARNED ASSESSING OFFICER H AD COMPLETED THE ASSESSMENT FOR THE ASSESSMENT YEAR 20 12-13 ON 07.11.2014, WHEREIN HE ASSESSED THE INCOME OF TH E ASSESSEE AT RS.4,55,12,920/- WHILE AS THE APPELLAT E ORDER OF THE LD.CIT(A) FOR THE RELEVANT ASSESSMENT YEAR 2009 -10 IS DATED 26/02/2014. WE ALSO FIND THE ORDER OF THE LD. A.O DATED 07/11/2014 FOR THE ASSESSMENT YEAR 2012-13 TO BE CR YPTIC AND DOES NOT CONTAIN ANY OF THESE FACTS. THEREFORE, IN THE 4 ITA NO.1112MDS/2014 INTEREST OF JUSTICE, WE REMIT THE MATTER BACK TO TH E FILE OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) FOR DE NOVO CONSIDERATION IN ORDER TO PASS APPROPRIATE ORDER AS PER LAW & MERITS AFTER DULY CONSIDERING THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) OF THE ACT FOR THE ASSESSMENT YEAR 2012-13 DATED 07.11.2014. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 28 TH DECEMBER, 2016 SD/- SD/- ( ' # . $ ) ( . ) ( DUVVURU RL REDDY ) ( A. MOHAN ALANKAMONY ) # % / JUDICIAL MEMBER % / ACCOUNTANT MEMBER # /CHENNAI, ( /DATED 28 TH DECEMBER, 2016 SOMU *+ ,+ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. - () /CIT(A) 4. - /CIT 5. + 1 /DR 6. /GF