The DCITNavsari Circle, Navsari V. M/s. Naranlala Pvt.Ltd., Navsari

ITA 1744/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89263 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 06-04-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 01-07-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Opportunity of being heard

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD 00 , ! ' #$, % & BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER !./ ITA NO.1744/AHD/2011 % ) *)/ ASSESSMENT YEAR: 2008-09 ACIT, NAVSARI CIRCLE, NAVSARI. VS M/S. NARANLALA PVT. LTD. , NEAR RAILWAY STATION, NAVSARI. PAN : AAACN 7719 C +, / (APPELLANT) -. +, / (RESPONDENT) REVENUE BY : SHRI NIMESH YADAV, SR. D.R. ASSESSEE(S) BY: SHRI SUNIL TALATI, A.R. / DATE OF HEARING : 06/04/2015 / DATE OF PRONOUNCEMENT: 10/04/2015 // O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), VALSAD DATED 31.03.2011. 2. THE SOLE GROUND OF APPEAL RAISED BY THE REVENUE IN THIS APPEAL IS THAT THE CIT(A) ERRED IN DELETING THE ADDITION OF R S.99,99,041/- MADE ON ACCOUNT OF RETENTION MONEY. 3. THE BRIEF FACTS OF THE CASE ARE THAT DURING THE ASSESSMENT PROCEEDINGS THE A.O. OBSERVED THAT THE ASSESSEE HAS SHOWN RETENTION MONEY OF RS.99,99,041/- WHICH WAS EXCLUDED FROM THE PROFIT. THE A.O. SHOW CAUSED THE ASSESSEE. THE ASSESSEE CONTENDED T HAT THE RIGHT TO RECEIVE THE RETENTION MONEY WAS NOT ACCRUED TO THE ASSESSEE AND HENCE ITA NO.1744/AHD/2011 NARANLALA PVT LTD FOR AY 2008-09 2 THE SAME WAS NOT SHOWN IN ITS INCOME DURING THE YEA R UNDER CONSIDERATION. ACCORDING TO THE A.O. THE ASSESSEE WAS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING AND IN MERCANTILE S YSTEM OF ACCOUNTING THE RETENTION MONEY IS ACCRUED TO THE ASSESSEE AS S OON THE ENTRIES ARE POSTED IN THE BOOKS OF ACCOUNT. HE OBSERVED THAT T HE ASSESSEE ITSELF IN THE PAST WAS SHOWING INCOME ON THE BASIS OF ENTIRE TURNOVER. SIMILAR TYPE OF RETENTION MONEY CLAUSE WAS THERE AND THAT T HE ASSESSEE HAS CHANGED HIS METHOD OF ACCOUNTING. HE, THEREFORE, B ROUGHT TO TAX THE RETENTION MONEY OF RS.99,99,041/-. 4. ON APPEAL, THE CIT(A) DELETED THE ADDITION BY OB SERVING THAT HIS PREDECESSOR IN THE CASE OF THE ASSESSEE ITSELF IN T HE EARLIER ASSESSMENT YEARS 2002-03, 2005-06 AND 2006-07 VIDE APPELLATE O RDER NO.CIT(A)/VLS/95/05-06 DATED 14.12.2005 AND THAT HE HIMSELF IN THE A.Y. 2007-08 VIDE APPELLATE ORDER NO.CIT(A)/VLS/238 /09-10 DATED 29.11.2010 HAS DECIDED THE ISSUE IN FAVOUR OF THE A SSESSEE. HE, THEREFORE, FOLLOWING THE PRECEDENCE, DELETED THE AD DITION OF RS.99,99,041/-. 5. BOTH THE PARTIES BEFORE US AGREED THAT THE ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF THIS BENCH O F THE TRIBUNAL IN THE CASE OF THE ASSESSEE IN THE A.Y. 2002-03 IN ITA NO. 1977/AHD/2011, ORDER DATED 27.03.2015 AND IN THE A.Y. 2006-07 IN I TA NOS.1831 & 2128/AHD/2009 VIDE ORDER DATED 17.06.2011 WHEREIN I T WAS HELD AS UNDER:- 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED TH E MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT THE COORDINATE BENCH (ITAT C BENCH ITA NO.1744/AHD/2011 NARANLALA PVT LTD FOR AY 2008-09 3 AHMEDABAD) IN ITA NO.1831/AHD/2009 FOR AY 2006-07(S UPRA) HAS GIVEN DIRECTION TO THE AO THAT READS AS UNDER:- 8. ON CONSIDERATION OF THE FACTS OF THE CASE IT I S CLEAR THAT EARLIER THE ISSUE WAS DECIDED AGAINST THE ASSESSEE BY ITAT AHME DABAD BENCH IN THE CASE OF THE ASSESSEE ITSELF, COPIES OF THE SAME ARE FILED IN THE PAPER BOOK. THE AUTHORITIES BELOW HAVE GONE BY THE FINDIN GS GIVEN AGAINST THE ASSESSEE IN THE EARLIER YEARS AND CONFIRMED THE ADDITION ON THIS ISSUE. THEREFORE, COMPLETE FACTS OF THE CASE WERE N OT EXAMINED AND VERIFIED INCLUDING THE AMOUNT IF ANY INCURRED BY TH E ASSESSEE FOR BUSINESS PURPOSE OUT OF THE RETENTION AMOUNT. HOWEV ER, AFTER PASSING OF THE IMPUGNED ORDERS, THERE IS A CHANGE ON THE MA TTER IN ISSUE AND THE POINTS HAVE NOW BEEN DECIDED IN FAVOUR OF THE A SSESSEE WHICH IS ALSO NOT DISPUTED BY THE LEARNED DR. HOWEVER, THE A UTHORITIES BELOW HAVE NO OCCASION TO EXAMINE THE FACTS OF THE CASE I N THE LIGHT OF THE ABOVE DECISIONS CITED BY THE LEARNED COUNSEL FOR TH E ASSESSEE. BOTH THE PARTIES AGREED THAT THE MATTER MAY BE REMANDED TO THE FILE OF THE AO FOR RECONSIDERATION OF THE ISSUE IN THE LIGHT OF THE DECISION DELIVERED BY THE HON'BLE PUNJAB & HARYANA HIGH COUR T AND THE HON'BLE SUPREME COURT (SUPRA). WE FIND FORCE IN THE SUBMISSIONS OF BOTH THE PARTIES THAT THE MATTER REQUIRES RECONSIDE RATION IN THE LIGHT OF THE ABOVE DECISIONS. WE ACCORDINGLY, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THIS ISSUE TO THE FIL E OF THE AO FOR RECONSIDERATION OF THE SAME IN THE LIGHT OF THE ABO VE DECISIONS CITED BY THE LEARNED COUNSEL FOR THE ASSESSEE. THE AO SHALL ALSO VERIFY THE DETAILS FILED BY THE ASSESSEE ON THIS ISSUE AND SHA LL PASS REASONED ORDER IN ACCORDANCE WITH LAW BY GIVING REASONABLE S UFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IN THE RESULT, THESE GROUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED FOR S TATISTICAL PURPOSES. 4.1. SINCE THE FACTS ARE IDENTICAL TO THE FACTS OF ASSESSEES OWN CASE FOR AY 2006-07 AND FOLLOWING THE TRIBUNAL ORDER, TH E ISSUE IS RESTORED BACK TO THE FILE OF AO TO DECIDE THE SAME IN THE LI GHT OF THE DIRECTION GIVEN BY THE COORDINATE BENCH IN ITA NO.1831/AHD/20 09 FOR AY 2006- 07(SUPRA). 6. RESPECTFULLY FOLLOWING THE ABOVE QUOTED ORDERS O F THE TRIBUNAL IN ASSESSEES OWN CASE, WE RESTORE THE ISSUE BACK TO T HE FILE OF A.O. WITH THE SAME DIRECTIONS AS GIVEN IN ITA NO.1831/AHD/200 9 FOR A.Y. 2006- ITA NO.1744/AHD/2011 NARANLALA PVT LTD FOR AY 2008-09 4 07. THUS, THE GROUND OF APPEAL OF THE REVENUE IS A LLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 10 TH DAY OF APRIL, 2015 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 10/04/2015 PBN/* / 0 -%$12 32*$ / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! / CONCERNED CIT 4. ! () / THE CIT(A), AHMEDABAD 5. $%& '', , )*++ / DR, ITAT, AHMEDABAD 6. &,- . / GUARD FILE. / ' / BY ORDER, 4/ !5 ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD