S.M. Arshad, Mangalore V. DCIT, Bangalore

ITA 1385/BANG/2012

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9482 (ITAT-BANGALORE)
• Duration Of Justice: 3 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 25-07-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 25-10-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: R KRISHNAN
• Keywords: Rule of consistency; Deemed dividend

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, BANGALORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO. 138 5 / BANG/20 1 2 (ASSESSMENT YEAR: 20 0 8 - 09 ) SHRI S.M.ARSHAD, FLAT NO.604, DOOR NO.14 - 2 - 175 - 40, LIGHT HOUSE CONDOMINIUM, LIGHT HOUSE HILL ROAD, MANGALORE - 575001. PA NO.ACZPA0799F VS. APPELLANT DEPUTY COMMISSIONER OF INCOME - TAX, CENTRAL CIRCLE, MANGALORE. RESPONDENT APPELLANT BY : SHRI R.KRISHNAN, CA. RESPONDENT BY : SHRI SANJAY KUMAR, CIT(DR) DATE OF HEARING : 25/07/2016 DATE OF PRONOUNCEMENT : 19 /08/2016 O R D E R PER I NTURI RAMA RAO, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE CIT(A) - VI, BANGALORE, DATED 16/08 /2012 FOR THE ASSESSMENT YEAR 200 8 - 09. 2 THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL: ITA NO . 138 5 /BANG/201 2 PAGE 2 OF 3 3. GROUND NOS.1 TO 4 RELATE TO ASSESSMENT OF DEEMED DIVIDEND OF RS.27,63,459/ - . FACTS OF THE CASE ARE IDENTICAL TO THE FACTS IN ASSESSMENT YEAR 2007 - 08 DECIDED BY US BY ORDER OF EVEN DATE IN ITA NO.1384/BANG/2012. FOR THE SAME REASONS STATED IN OUR ORDER OF EVEN DATE, WE UPHOLD THE ADDITION AND DISMISS THE GROUNDS OF APPEAL. 4. GROUND NO.5 RELATES TO ADDITION OF RS.36,686/ - ON ACCOUNT OF DIFFERENCE IN R ECOGNITION OF INCOME FOLLOWING CASH SYSTEM OF ACCOUNTING. THE ASSESSING OFFICER MADE ADDITION TAKING INTO CONSIDERATION GROSS RECEIPTS MENTIONED IN TDS CERTIFIATE OF ITA NO . 138 5 /BANG/201 2 PAGE 3 OF 3 RS.11,67,981/ - IN RESPECT OF INCOME FROM M/S.H.M.LEISURE. IT WAS EXPLAINED THAT INCOME W AS OFFERED IN RESPECT OF M/S.H.M.LEISURE ON CASH BASIS WHEREAS TDS CERTIFICATE WAS ISSUED BY THE DEDUCTOR ON THE BASIS OF MERCANTILE BASIS SYSTEM. IT WAS STATED THAT THE ASSESSEE WAS FOLLOWING CONSISTENTLY THIS METHOD OF RECOGNISING INCOME IN RESPECT OF M/S.H.M.LEISURE , FOLLOWING THE PRINCIPLE OF CONSISTENCY,WE HOLD THAT THE ADDITION OF RS.36,686/ - IS NOT WARRANTED AND THEREFORE, WE DIRECT THE AO TO DELETE THE ADDITION. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH AUGUST , 2016 S D/ - S D/ - (VIJAY PAL RAO) (INTURI RAMA RAO) JUDICIAL MEMBER A CCOUNTANT MEMBER PLACE : BANGALORE D A T E D : 19 /0 8 /2016 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - II BA NGALORE 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE