ITO, CHENNAI V. Sanghvi and Doshi Enterprises, CHENNAI

ITA 1844/CHNY/2014

• Counselvise Citation: 184421714 RSA 2014
• Duration Of Justice: 1 year(s) 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2015
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 08-09-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 26-06-2014
• Court: TRIBUNAL
• Department Lawyers: DR B NISCHAL
• Section: 80IB

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . . . , . !' , # $ % [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ] ./ I.T.A.NO.1844/MDS/2014 / ASSESSMENT YEAR : 2004-05 THE INCOME TAX OFFICER BUSINESS WARD XV(3) CHENNAI VS. M/S SANGHVI & DOSHI ENTERPRISE NO.560, 3H CENTURY PLAZA ANNA SALAI, TEYNAMPET CHENNAI 600 019 [PAN AAYFS 0257 P ] ( &' / APPELLANT) ( ()&' /RESPONDENT) / APPELLANT BY : DR. B NISCHAL, JCIT /RESPONDENT BY : SHRI RAGHAV RAJEEV MENON, ADVOCATE / DATE OF HEARING : 08 - 09 - 2015 ! / DATE OF PRONOUNCEMENT : 13 - 11 - 2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-V, CHENNA I, DATED 8.2.2014 AND PERTAINS TO ASSESSMENT YEAR 2004-05. 2. DR. B. NISCHAL, LD. DEPARTMENTAL REPRESENTATIVE SUB MITTED THAT THE ASSESSEE CLAIMED DEDUCTION U/S 80IB OF T HE ACT. THE ASSESSING OFFICER FOUND THAT THE ASSESSEE ACTED ON LY AS A CONTRACTOR/BUILDER FOR M/S HOTEL MULLAI PVT. LTD. THE ASSESSEE HAS NOT ITA NO.1844/14 :- 2 -: UNDERTOOK ANY DEVELOPMENT OF HOUSING PROJECT, THERE FORE, BY PLACING RELIANCE ON THE DECISION OF THIS TRIBUNAL IN SASHWA T CONSTRUCTION (P) LTD. IN I.T.A.NO.1828/MDS/2007, DATED 27.2.2009, D ISALLOWED THE CLAIM OF THE ASSESSEE. HOWEVER, ON APPEAL BY THE ASSESSEE, THE CIT(A) FOUND THAT IN RESPECT OF THE VERY SAME PROJE CT IN THE ASSESSEES OWN CASE FOR ASSESSMENT YEARS 2005-06 AN D 2006-07, THE MADRAS HIGH COURT FOUND THAT THE ASSESSEE IS A CON TRACTOR. THEREFORE, BY FOLLOWING THE JUDGMENT OF THE MADRAS HIGH COURT, THE CIT(A) ALLOWED THE CLAIM OF THE ASSESSEE. 3. ON THE CONTRARY, SHRI RAGHAV RAJEEV MEMON, LD. COUN SEL FOR THE ASSESSEE SUBMITTED THAT FOR THE ASSESSMENT YEAR S 2005-06 AND 2006-07, THE MADRAS HIGH COURT ALLOWED THE CLAIM OF THE ASSESSEE FOR DEDUCTION U/S 80IB OF THE ACT. THE ASSESSEE HAS ALSO FILED THE COPY OF THE JUDGMENT OF THE MADRAS HIGH COURT. THE HIGH COURT AFTER TAKING NOTE OF THE AGREEMENT ENTERED INTO BY THE A SSESSEE WITH M/S HOTEL MULLAI PVT. LTD DATED 28.4.2003, FOUND THAT I T IS A JOINT DEVELOPMENT OF PROPERTY IN THE NAME AND STYLE OF V IMALACHAL. THE HIGH COURT FOUND THAT THE ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S 80IB OF THE ACT. 4. IN THE CASE BEFORE US, THE ASSESSMENT YEAR UNDER CONSIDERATION IS 2004-05. THE CIT(A) DIRECTED THE ASSESSING OFFICER TO ITA NO.1844/14 :- 3 -: VERIFY THE FACTS OF THE CASE AND IN CASE THE FACTS OF THE YEAR UNDER CONSIDERATION ARE SIMILAR TO THAT OF ASSESSMENT YEA RS 2005-06 AND 2006-07 AS DECIDED BY THE HIGH COURT, TO ALLOW DEDU CTION U/S 80IB OF THE ACT. SINCE THE CIT(A) HAS DIRECTED TO FOLLOW T HE JUDGMENT OF THE MADRAS HIGH COURT IN ASSESSEES OWN CASE FOR ASSES SMENT YEARS 2005- 06 AND 2006-07, THIS TRIBUNAL DO NOT FIND ANY REASO N TO INTERFERE WITH THE ORDER OF THE CIT(A). ACCORDINGLY, THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH NOVEMBER 2015, AT CHENNAI. SD/- SD/- ( . !' ) (A. MOHAN ALANKAMONY) # / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED: 13 TH NOVEMBER, 2015 RD &' ()*) / COPY TO: 1 . / APPELLANT 4. + / CIT 2. / RESPONDENT 5. ),- . / DR 3. +/' / CIT(A) 6. -01 / GF