Smt. C Valsala, Trivandrum V. Income Tax Officer, Trivandrum

ITA 175/COCH/2009

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58284 (ITAT-COCHIN)
• Duration Of Justice: 2 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 09-02-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 03-04-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIJAYAPRABHA

Judgement Text

1 ITA NO.175/COCH/2009 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKA RAN(AM) I.T.A NO. 175/COCH/2009 (ASSESSMENT YEAR 2005-06) SMT. C. VALSALA VS ITO, WD.1(3) SREE SUBRAMANIAM ENTERPRISES TRIVANDRUM SREE KUMAR THEATRE BLDG TAMPANOOR, TRIVANDRUM PAN : ACDPC9167B (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SMT. VIJAYAPRABHA DATE OF HEARING : 09-02-2012 DATE OF PRONOUNCEMENT : 17-02-2012 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF CIT(A)-I, TRIVANDRUM DATED 07-11-2008 AND PERTAINS TO ASSESSMENT YEAR 20 05-06. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS ADDIT ION OF RS.7,45,620. NO ONE APPEARED FOR THE ASSESSEE EVEN THOUGH THE CASE WAS POSTED FOR HEARING TODAY, AT THE REQUEST OF THE ASSESSEE. THEREFORE, WE HEARD THE L D.DR AND PROCEEDED TO DISPOSE OF THE APPEAL ON MERIT. 3. SMT. VIJAYAPRABHA, THE LD.DR SUBMITTED THAT THE ASSESSEE WAS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING. EVENTHOUGH THE PR OJECT WAS COMPLETED IN FEBRUARY, 2005 AND THE INCOME WAS RECEIVABLE FROM KADAMATTATH U KATHANAR PROJECT, THE ASSESSEE 2 ITA NO.175/COCH/2009 HAS OFFERED FOR TAXATION THE INCOME WHICH WAS ACTUA LLY RECEIVED UPTO 31-03-2005. THE ONLY EXPLANATION OF THE ASSESSEE BEFORE THE ASSESSI NG OFFICER WAS THAT THE PROCEEDS WERE RECEIVED BY 23-06-2005; THEREFORE, IT COULD NO T BE BROUGHT TO TAX FOR THE YEAR UNDER CONSIDERATION. ACCORDING TO THE LD.DR, EVEN THOUGH SOME OF THE PROCEEDS WERE RECEIVED BEYOND THE FINANCIAL YEAR RELEVANT TO ASSE SSMENT YEAR UNDER CONSIDERATION THE PROJECT WAS ACTUALLY COMPLETED IN FEBRUARY, 2005 AN D THEREFORE, WHATEVER AMOUNT WAS RECEIVABLE AS ON 31-03-2005 IRRESPECTIVE OF THE ACT UAL RECEIPT HAS TO BE OFFERED FOR TAXATION. ACCORDINGLY, THE ASSESSING OFFICER MADE ADDITION OF RS. 7,45,620 WHICH WAS RIGHTLY CONFIRMED BY THE COMMISSIONER OF INCOME-TAX (A). 4. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD.DR AND ALSO PERUSED THE MATERIAL ON RECORD. AS SEEN FROM THE ORDER OF THE LOWER AUT HORITIES, THE PROJECT WAS COMPLETED IN THE MONTH OF FEBRUARY, 2005. AS SOON AS THE PRO JECT WAS COMPLETED, THE PROCEEDS WERE RECEIVABLE BY THE ASSESSEE. IT IS NOT IN DISP UTE THAT THE ASSESSEE IS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING. THEREFORE, WHATEV ER AMOUNT WAS RECEIVABLE WAS TO BE CONSIDERED IRRESPECTIVE OF THE ACTUAL RECEIPT OF THE AMOUNT. IN THIS CASE, ADMITTEDLY, AS ON 31-03-2005 THE AMOUNT OF RS. 7,45,620 IS RECE IVABLE BY THE ASSESSEE. THEREFORE, THE COMMISSIONER OF INCOME-TAX(A) HAS RIGHTLY CONFI RMED THE ORDER OF THE LOWER AUTHORITY. THIS TRIBUNAL DO NOT FIND ANY INFIRMITY IN THE ORDER OF LOWER AUTHORITY. THEREFORE, WE CONFIRM THE ORDER OF COMMISSIONER OF INCOME-TAX(A). 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 17 TH DAY OF FEBRUARY, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 17 TH FEBRUARY, 2012 PK/- COPY TO: 3 ITA NO.175/COCH/2009 1. SMT. C. VALSALA, SREE SUBRAMANIAM ENTERPRISES, SREE KUMAR THEATRE BLDG, TAMPANOOR, TRIVANDRUM 2. THE ITO, WD.1(3), TRIVANDRUM 3. THE COMMISSIONER OF INCOME-TAX(A)-I, TRIVANDRUM 4. THE COMMISSIONER OF INCOME-TAX, TRIVANDRUM 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH