ITO, Vellore V. M/s. J.P.& B.K.Real Estate, Vellore

ITA 1384/CHNY/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68875 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 28-11-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 22-06-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: K MEENAKSHISUNDHARAM

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : CHENNAI BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER I.T.A. NO. 1384/MDS/2012 & C.O. NO. 194/MDS/2012 ( IN ITA NO. 1384/MDS/2012 ) ASSESSMENT YEAR : 2006-07 INCOME TAX OFFICER, WARD-1(1), VELLORE VS M/S. J.P. & B.K. REAL ESTATE, NO.33, VENGAPPA CHETTY STREET, VELLORE 632 001 [PAN: AAFFJ 3038 A] (APPELLANT) (RESPONDENT/CROSS OBJECTOR) REVENUE BY : SHRI S. DAS GUPTA ASSESSEE BY : SHRI K. MEENAKSHISUNDHARAM DATE OF HEARING : 28-11-2013 DATE OF PRONOUNCEMENT : 28-11-2013 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE APPEAL OF THE REVENUE IS DIRECTED AGAINST THE O RDER OF COMMISSIONER OF INCOME TAX(APPEALS)-IX, CHENNAI DAT ED 21-03-2012 RELEVANT TO THE ASSESSMENT YEAR (AY) 200 6-07. THE I.T.A. NO. 1384/MDS/12 & C.O. NO. 194/MDS/12 :- 2 -: ASSESSEE HAS FILED CROSS-OBJECTIONS IN SUPPORT OF T HE ORDER OF THE CIT(APPEALS). HOWEVER, THE CROSS-OBJECTIONS HAVE B EEN FILED WITH THE DELAY OF 122 DAYS. AN AFFIDAVIT CITING REASONS FOR DELAY IN FILING OF CROSS-OBJECTIONS HAVE BEEN FILED BY THE ASSESSEE . WE HAVE PERUSED THE SAME AND ARE SATISFIED THAT THE DELAY I N FILING OF THE CROSS-OBJECTIONS IS NOT DELIBERATE OR WILLFUL BUT F OR THE REASONS MENTIONED IN THE AFFIDAVIT. THE DELAY OF 122 DAYS IN FILING OF THE CROSS-OBJECTIONS IS CONDONED AND THE SAME ARE TAKEN UP FOR ADJUDICATION ALONG WITH APPEAL. 2. THE ASSESSEE IS A FIRM CARRYING ON THE BUSINESS OF REAL ESTATE. ASSESSEE FILED ITS RETURN OF INCOME FOR TH E AY. 2006-07 ON 31-10-2006 DECLARING ITS TOTAL INCOME AS ` 3,10,000/-. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND NOTIC E U/S.143(2) OF THE INCOME TAX ACT, 1961 (HEREIN AFTER REFERRED TO AS THE ACT) WAS ISSUED TO THE ASSESSEE. THE ASSESSING OFFICER VIDE ORDER DATED 19-03-2008 COMPLETED THE ASSESSMENT. SUBSEQU ENTLY, THE COMMISSIONER OF INCOME TAX VIII, CHENNAI SERVED SH OW CAUSE NOTICE U/S. 263 OF THE ACT ON 05-11-2009 TO THE ASS ESSEE. THE COMMISSIONER OF INCOME TAX, SET ASIDE THE ASSESSMEN T ORDER I.T.A. NO. 1384/MDS/12 & C.O. NO. 194/MDS/12 :- 3 -: DATED 19-03-2008 AND REMITTED THE FILE BACK TO THE ASSESSING OFFICER POINTING OUT CERTAIN DEFICIENCIES IN THE OR IGINAL ASSESSMENT. THE ASSESSING OFFICER IN VIEW OF THE D IRECTIONS OF THE COMMISSIONER OF INCOME TAX, COMPLETED THE ASSES SMENT AND ASSESSED THE INCOME OF THE ASSESSEE AT ` 1,73,24,970/- VIDE ORDER DATED 30-12-2010. AGGRIEVED AGAINST THE ASSESSMENT ORDER, THE ASSESS EE PREFERRED AN APPEAL BEFORE THE CIT(APPEALS). THE C IT(APPEALS) DELETED THE ADDITION ` 1,60,14,970/- AND ALLOWED THE APPEAL OF THE ASSESSEE. AGGRIEVED AGAINST THE ORDER OF THE CIT(APPEALS), T HE REVENUE HAS COME IN APPEAL BEFORE THE TRIBUNAL. 3. DURING THE COURSE OF SUBMISSIONS MADE BY THE LD. DR AND THE AR OF THE ASSESSEE WE FIND THAT THE ASSESSMENT ORDERS REFERRED TO BY THE REPRESENTATIVES OF BOTH THE SIDE S ARE INCONGRUENT. MOREOVER, CERTAIN FACTS WHICH ARE ESS ENTIAL FOR THE DECISION OF THE CASE ARE NOT FORTHCOMING FROM THE O RDERS OF THE AUTHORITIES BELOW. IN OUR CONSIDERED OPINION, THE MATTER NEEDS REVISIT TO THE ASSESSING OFFICER FOR REMOVAL OF AM BIGUITY WITH I.T.A. NO. 1384/MDS/12 & C.O. NO. 194/MDS/12 :- 4 -: RESPECT TO ISSUE OF ALLEGED DEVELOPMENT EXPENSES AN D DIS- ALLOWANCE U/S.40(A)(IA). THE IMPUGNED ORDER PASSED BY THE CIT(APPEALS) IS SET ASIDE AND THE FILE IS REMITTED BACK TO ASSESSING OFFICER WITH A DIRECTION TO DECIDE THE MA TTER AFRESH, IN ACCORDANCE WITH LAW. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWE D FOR STATISTICAL PURPOSES AND CROSS-OBJECTIONS OF THE AS SESSEE ARE DISMISSED. ORDER PRONOUNCED ON THURSDAY, THE 28 TH NOVEMBER, 2013 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) (VI KAS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER DATED: 28 TH NOVEMBER, 2013 TNMM COPY TO: ASSESSEE/AO/CIT(A)/CIT/DR