ACIT, Jaipur V. RAJ ADARSH DEVELOPERS P LTD., Jaipur

ITA 230/JPR/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54152 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 11-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K MEENA

Judgement Text

1 ITA 230-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 230/JP/2011 ASSTT. YEAR : 2005-06. THE ACIT, CIRCLE-3, VS. M/S. RAJ ADARSH DEVELOPE RS P. LTD., JAIPUR. SHOP NO. 4, VAISHALI MARG, D-MARG, HANUMAN NAGAR, JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.K. MEENA RESPONDENT BY : NONE (NOTICE RETURNED UNSERVED ) DATE OF HEARING : 25.8.2011. DATE OF PRONOUNCEMENT : 09.9.2011. ORDER DATE OF ORDER : 09/9/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY DEPARTMENT AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2005-06. 2. THE DEPARTMENT IS OBJECTING IN DELETING THE DISA LLOWANCE OF RS. 11,08,310/- MADE BY AO ON ACCOUNT OF EXPENSES CLAIMED AS REGISTRATIO N CHARGES AND DEMOLITION CHARGES. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. 4. ON THE OTHER HAND, THE LD. D/R PLACED RELIANCE O N THE ORDER OF A.O. 5. THE APPEAL IS BEING DISPOSED OFF AFTER TAKING IN TO CONSIDERATION THE ORDERS OF AO AND LD. CIT (A). 2 6. DURING THE ASSESSMENT PROCEEDINGS, THE AO NOTED THAT ASSESSEE CONTINUED TO DERIVE INCOME FROM REAL ESTATE BUSINESS. DURING TH E YEAR ASSESSEE HAS SOLD PLOT NO. D-70, BANI PARK SCHEME-E, JAIPUR TO M/S. SHYAM KRIPA CONS TRUCTION FOR RS. 76,00,000/-. AGAINST SUCH SALES RECEIPTS, AMONGST OTHER EXPENSES , CONSTRUCTION AND MISC. EXPENSES OF RS. 18,42,423/- WERE CLAIMED. THIS INCLUDED REGIST RATION EXPENSES AT RS. 8,01,560/- AND RS. 13,35,173/- TOWARDS DEMOLITION CHARGES. ACCORD ING TO THE AO, THE REGISTRATION CHARGES WERE TO BE PAID BY THE RESPECTIVE PARTIES I N THE RATIO OF 50-50, WHEREAS ASSESSEES SHARE COMES TO RS. 4,00,780/-. THE AO FOUND THAT E XPENSES OF RS. 3,33,333/- ARE ALSO FOUND VERIFIABLE. THEREFORE, HE ALLOWED THE EXPENDI TURE OF RS. 7,34,113/- OUT OF TOTAL EXPENDITURE OF RS. 18,42,423/-. IN THIS WAY DISALL OWANCE OF RS. 11,08,310/- WAS MADE. DETAILED SUBMISSIONS WERE FILED BEFORE LD. CIT (A) ALONG WITH DETAILS OF EXPENDITURE INCURRED BY THE ASSESSEE. COPY OF BALANCE SHEET WAS ALSO FILED SHOWING ASSESSEE HAD INCURRED EXPENDITURE. AFTER TAKING INTO CONSIDERATI ON THE DETAILED SUBMISSIONS AND DETAILED EXPENDITURE, IT WAS FOUND THAT ASSESSEE HA S INCURRED ALL THE EXPENDITURE ON ACCOUNT OF SALE OF PLOT TO M/S. SHYAM KRIPA CONSTRU CTION. ACCORDINGLY, HE DELETED THE ADDITION. THE FINDINGS OF LD. CIT (A) AT PAGE 5 OF HIS ORDER ARE AS UNDER :- I HAVE CONSIDERED THE FACTS OF THE CASE AND THE S UBMISSIONS MADE. ON PERUSAL OF DETAILS ON RECORD IT IS SEEN THAT THE AO HAS DISALLOWED THE REGISTRATION EXPENSES ON THE BASIS OF SALE DEED BUT THE SAME HAS NOT BEEN CONSIDERED COMPLETELY BY HIM. A PERUSAL OF THE SALE DEED CLEARLY SHOWS PURCHASE OF STAMP OF RS. 1,00,000/- WHICH IS MENTIO NED ON THE REVERSE OF PAGE 1 OF THE SALE DEED. THE DEED WRITER CHARGES AR E ALSO INEVITABLE. IN VIEW OF THE SAME, THERE APPEARS TO BE NO JUSTIFICAT ION FOR DISALLOWANCE AS MADE BY THE AO. THE APPELLANT HAS CLAIMED 50% OF T HE REGISTRATION CHARGES OF RS. 9,78,560/- AS PER THE SALE DEED. TH E SAME IS, THEREFORE, 3 ALLOWED TO THE APPELLANT. FURTHER, ON PERUSAL OF TH E BALANCE SHEET OF THE APPELLANT, UNDER THE HEAD CURRENT LIABILITIES A S UM OF RS. 10,19,840/- HAS BEEN SHOWN AS PAYABLE TO M/S. SEWA NIRMAN PVT. LTD. UNDER THE HEAD LOANS AND ADVANCES THE SAID SUM IS SHOWN AS RECEI VABLE FROM THE APPELLANT. THE LIABILITY BEING A MATTER OF RECORD C OULD NOT HAVE BEEN DISALLOWED BY THE AO. THE ADDITION MADE BY THE AO O N THIS ACCOUNT IS, THEREFORE, DELETED. THESE FINDINGS REMAINED UNCONTROVERTED, THEREFORE, WE FIND NO REASON TO INTERFERE WITH THE ORDER OF LD. CIT (A) AND ACCORDINGLY THE SAME I S CONFIRMED. 7. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMI SSED. 8. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 09. 9.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- COPY FORWARDED TO :- THE ACIT, CIRCLE-3, JAIPUR. M/S. RAJ ADARSH DEVELOPERS P. LTD., JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 230/JP/2011) BY ORDER, AR ITAT JAIPUR.