Assistant Commissioner of Income-tax, Circle - 2, Pune V. Vijay Tukaram Raundal, Pune

ITA 180/PUN/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0942 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2022
• Appeal Filed By: Department
• Order Result: PartlyAllowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 29-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH, ‘B’ PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.179 and 180/PUN/2019 नधा रण वष / Assessment Years : 2014-15 and 2015-16 ACIT, Circle-2, Pune Vs. Vijay Tukaram Raundal, Teerth Technospace, 708, C-Wing, Beside Mercedes Benz Showroom, Baner Road, Baner, Pune 411 045 PAN : AAQPR0124G Appellant Respondent Cross Objection Nos.25 and 26/PUN/2021 (Arising out of ITA No.179 and 180/PUN/2019 नधा रण वष / Assessment Year : 2014-15 and 2015-16 Vijay Tukaram Raundal, Teerth Technospace, 708, C-Wing, Beside Mercedes Benz Showroom, Baner Road, Baner, Pune 411 045 PAN : AAQPR0124G Vs. ACIT, Circle-2, Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : These two appeals by the Revenue and equal number of cross- objections by the assessee relating to A.Yrs. 2014-15 and 2015-16 arise out of the separate orders passed by the ld. CIT(A) on 2.11.2018 and 12.11.2018 respectively. Since identical facts and Assessee by Shri Mihir Naniwadekar Revenue by Shri Sardar Singh Meena Date of hearing 25-08-2022 Date of pronouncement 30-08-2022 ITA Nos.179 and 180/PUN/2019 CO Nos.25 and 26/PUN/2021 Vijay T. Raundal 2 grounds are involved in these appeals, we are, therefore, proceeding to dispose them off by this consolidated order for the sake of convenience. A.Y.2014-15 : 2. The Revenue is firstly aggrieved by the grant of deduction by the ld. CIT(A) u/s.80IB(10) amounting to Rs.33,31,31,238/-. 3. Both the sides are in agreement that the facts and circumstances of this issue are similar to those of the immediately preceding assessment year 2013-14, which was argued extensively by both the sides. In fact, no separate arguments were advanced for this year and the rival parties adopted their respective arguments made for the preceding year. 4. We have passed a separate order today for the assessment year 2013-14 in which the decision of the ld. CIT(A) in granting the deduction has been overturned by restoring the assessment order on this score. Following such decision, we allow the grounds of the Revenue on this count. 5. The only other issue raised by the Department is against the deletion of the addition on account of annual letting value of unsold flats, which was taxed by the AO. The AO noticed that the assessee ITA Nos.179 and 180/PUN/2019 CO Nos.25 and 26/PUN/2021 Vijay T. Raundal 3 was holding closing stock of 49 flats and 2 bungalows, but had not shown any rental income. He computed the annual letting value of such flats and bungalows and made an addition of Rs.3,91,825/-. The ld. CIT(A) deleted such addition by relying on the Pune Bench Tribunal order passed in the case of Cosmopolis Construction Vs. ITO (ITA Nos.230 and 231/PUN/2018). 6. After considering the rival submissions on this issue and perusing the relevant material on record, we find that this issue is squarely covered by the order passed by the Pune Bench of the Tribunal in Cosmopolis Construction (supra) determining the issue in assessee’s favour. An amendment has been carried out to section 23 by insertion of sub-section (5) w.e.f. 01-04-2018. This amendment has no application to the year under consideration. We, therefore, approve the action of the ld. CIT(A) on this ground. 7. The assessee in its Cross Objection has supported the order passed by the ld. CIT(A) for granting deduction u/s.80IB(10) of the Act. Grounds in support of the order passed by the ld. CIT(A) on this issue are dismissed because of our allowing the connected grounds of the Revenue’s appeal. ITA Nos.179 and 180/PUN/2019 CO Nos.25 and 26/PUN/2021 Vijay T. Raundal 4 8. Ground relating to Education Cess was not pressed by the ld. AR. The same is, therefore, ‘not pressed’. 9. The only other ground is about levy of tax u/s.115JC of the Act. Both the sides have adopted the arguments made by them while arguing such issue for the preceding year. This issue has been discussed by the Tribunal in its order for the immediately preceding assessment year 2013-14 and the corresponding ground raised by the assessee has been dismissed. We follow the same view for the instant year as well and dismiss the ground. 10. In the result, the appeal by the Revenue is partly allowed and the CO is dismissed. A.Y.2015-16 : 11. The Revenue has firstly challenged the grant of deduction by the ld. CIT(A) u/s 80IB(10) amounting to Rs.10,07,52,080/-. Both the sides are in agreement that the facts and circumstances of the appeal by the Revenue for the A.Y. 2015-16 are similar to the preceding year. We follow our view taken in respect of such appeal and allow the grounds of the Revenue. 12. The other issue challenged by the Department is against the allowing of relief in respect of the ALV determined by the AO in ITA Nos.179 and 180/PUN/2019 CO Nos.25 and 26/PUN/2021 Vijay T. Raundal 5 respect of unused flats. This issue is also similar to the preceding year. Following the view taken above, this ground is dismissed. 13. The grounds taken by the assessee in his C.O. for the assessment year 2014-15 are conceded to be similar to the preceding year. Following our decision for the preceding year, the grounds are dismissed. 14. In the result, the appeal by the Revenue is partly allowed and the CO of the assessee is dismissed. Order pronounced in the Open Court on 30 th August, 2022. Sd/- Sd/- ( S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 30 th August, 2022 सतीश ITA Nos.179 and 180/PUN/2019 CO Nos.25 and 26/PUN/2021 Vijay T. Raundal 6 आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. The CIT(A)-3, Pune 4. The Pr.CIT-2, Pune DR, ITAT, ‘B’ Bench, Pune 5. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 25-08-2022 Sr.PS 2. Draft placed before author 30-08-2022 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *