ACIT, CHENNAI V. M/s Shriram Properties and Constructions (Chennai) Pvt. Ltd., CHENNAI

ITA 1510/CHNY/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 7818 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2000-2001
• Appeal Filed On: 15-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R SIVARAMAN
• Keywords: Cost of acquisition

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A CHENNAI BEFORE SHRI U.B.S. BEDI, J.M. AND SHRI SANJAY ARORA, AM .. I.T.A. NO. 1510 & 1511/MDS/2010 ASSESSMENT YEARS 2000-01 & 2002-03 THE A.C.I.T. COMPANY CIRCLE VI (2) CHENNAI VS M/S SHRIRAM PROPERTIES AND CONSTRUCTIONS [CHENNAI] PVT. LTD GREAMS DUGAR, 149 GREAMS ROAD CHENNAI 600 006. (PAN NO. AACCS 0655 G) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R. SIVARAMAN DEPARTMENT BY : SHRI SHAJI P. JACOB O R D E R PER SANJAY ARORA, A.M: THESE ARE SET OF TWO APPEALS BY THE REVENUE ARISIN G OUT OF THE ORDER PASSED BY THE CIT(A)-V, CHENNAI OF EVEN DATE, I.E., 28.06.2010, I N RESPECT OF ASSESSMENT YEARS 2000- 01 AND 2002-03. 2. AT THE VERY OUTSET, IT WAS SUBMITTED BY THE LD. A.R., THE ASSESSEES COUNSEL, THAT THE REVENUES APPEALS FOR THE TWO YEARS UNDER REFERENCE STAND DECIDED AGAINST IT AND IN FAVOUR OF THE ASSESSEE VIDE ORDER PASSED BY THE TRI BUNAL IN THE ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2001-02 IN ITA NO. 1260/MDS/2010 DA TED 29.9.2010 [ QUA ITA NO. 1510/MDS/2010] AND VIDE ITS ORDER IN THE CASE OF A GROUP CONCERN, M/S. RAMBAI PAGE 2 OF 3 I.T.A. NO. 1510 & 1511/MDS/2010 2 PROPERTIES (P.) LTD., IN ITA NO. 1758/MDS/2008 DATE D APRIL, 2009 WHICH PERTAINS TO A.Y. 2003-04, I.E., QUA ITA NO. 1511/MDS/2010, PLACING THE COPIES OF THE S AID ORDERS ON RECORD. 3. THE LD. D.R. CONFIRMED THIS POSITION, BEING SPEC IFICALLY QUERIED IF ALL THE GROUNDS FOR ASSESSMENT YEAR 2002-03 STOOD SO COVERED; THE R EVENUES APPEAL FOR ASSESSMENT YEAR 2000-01 RAISING ONLY A SINGLE ISSUE, AND TO WHICH H E REPLIED IN THE AFFIRMATIVE FURTHER SUBMITTING THAT THE LD. CIT(A) HAD, IN FACT, DECIDE D THESE APPEALS BY FOLLOWING THE ORDERS PASSED BY THE CHENNAI BENCH OF THE TRIBUNAL. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS ON RECORD, INCLUDING THE ORDERS PASSED BY THE TRIBUNAL BEING R ELIED UPON. THE APPEAL FOR ASSESSMENT YEAR 2000-01 (ITA 1510/MDS./2010) RELATES TO SINGLE ISSUE, THAT IS, THE NATURE OF THE CONSIDERATION PAID TOWARD THE COST OF ACQUISITION O F DEVELOPMENT RIGHTS, AS BEING CAPITAL OR REVENUE, AND WHICH STANDS DECIDED BY THE TRIBUNA L FOR (A.Y. 2001-02) TO BE REVENUE, I.E., IN FAVOUR OF THE ASSESSEE, BY FOLLOWING THE O RDER BY THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR ASSESSMENT YEAR 1999-2000 (IN ITA NO. 1518 /MDS/2009 DATED 23.4.2010). AS REGARDS THE APPEAL FOR ASSESSMENT YEAR 2002-03 (ITA 1511/MDS./2010), WE FIND THAT THOUGH THE SAME RAISES A NUMBER OF GROUNDS, THE ONL Y ISSUE BEING AGITATED BY THE REVENUE RELATES TO THE NATURE OF THE EXPENDITURE INCURRED B Y WAY OF MINIMUM GUARANTEE CHARGES, AND WHICH AGAIN STANDS DECIDED AS REVENUE, I.E., IN FAVOUR OF THE ASSESSEE, BY FOLLOWING THE EARLIER ORDER PASSED BY THE CHENNAI BENCH OF TH IS TRIBUNAL IN ITA NO. 1240/MDS/2005 DATED 28.2.2007. ON BOTH THE ISSUES, THEREFORE, TH E VIEW BEING CANVASSED BY THE ASSESSEE REPRESENTS THE CONSISTENT VIEW OF THE TRIBUNAL. WE FIND NO REASON NOT TO ADOPT THE SAME, AND FOLLOWING THE AFORE-STATED ORDERS, SUSTAIN THE IMPUGNED ORDERS, DISMISSING THE APPEALS BY THE REVENUE. WE DIRECT ACCORDINGLY. PAGE 3 OF 3 I.T.A. NO. 1510 & 1511/MDS/2010 3 5. IN THE RESULT, BOTH APPEAL OF THE REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29.11.2010. SD/- SD/- (U.B.S. BEDI) (SANJAY ARORA ) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE NOVEMBER 29, 2010. VL COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE.