Sheetal Infrastructure Pvt.Ltd., Ahmedabad V. The Jt. CIT, Range-8, Ahmedabad

ITA 2310/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6151 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 04-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JM AND SHRI AMARJIT SINGH, AM ./ITA.NO. 2310/AHD/2015 ( / ASSTT YEAR :2011-12) SHEETAL INFRASTRUCTURE PVT. LTD., 25, 4 TH FLOOR, SHUKUN MALL, NR. RAJASTHAN HOSPITAL, SHAHIBAUG, AHMEDABAD. PAN: AAICS9312A VS. THE JCIT, RANGE-8, AHMEDABAD. (APPELLANT) (RESPONDENT) / APPELLANT BY: URVASHI SHODHAN, A.R / RESPONDENT BY: RAJDEEP SINGH, SR. D.R. / DATE OF HEARING 08-01-2018 /DATE OF PRONOUNCEMENT 01-02-2018 / O R D E R PER AMARJIT SINGH, ACCOUNTANT MEMBER: IN THIS CASE RETURN OF INCOME ON DECLARING INCOME OF RS. 400 82,629/- WAS FILED ON 29.09.2011. SUBSEQUENTLY THE CASE WAS SELECTED UNDER SCRUTINY ASSESSMENT BY ISSUING NOTI CE U/S. 143(2) OF THE ACT ON 06.08.2012. ITA.NO.2310/AHD/2015 ASSESSMENT YEAR 2011-12 - 2 2. THE ASSESSEE COMPANY WAS ENGAGED IN THE BUSINESS OF REAL ESTATE DEVELOPER AND BUILDER. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE A.O. HAS NOTICED THAT THE ASSESSEE HAD DEDUCTED AN AMOUNT OF RS. 25,60,600/- FROM BUSINESS INCOME I N THE COMPUTATION OF INCOME FILED ALONG WITH THE RETURN O F INCOME. THE BACKGROUND OF THIS ISSUE IS THAT IN THIS CASE SEARC H ACTION WAS TAKEN PLACE ON 29.08.2008. DURING THE COURSE OF SEA RCH CERTAIN LOOSE PAPER WERE FOUND AND IMPOUNDED. THESE LOOSE P APERS WERE CONTAINING THE DETAILS OF VARIOUS EXPENSES INCURRED BY ASSESSEE IN CASH. ON THE BASIS OF ENTRIES MADE IN THE SEIZED PA PERS FOR EXPENDITURE IN CASH THE ASSESSEE HAS CLAIMED AN EXP ENDITURE OF RS. 4,42,75,986/- AGAINST ON-MONEY RECEIPT FROM VEDIKA EXOTICA PROJECT. DURING THE COURSE OF ASSESSMENT PROCEEDING S FOR A.Y. 2009-10 THE A.O. HAS DISALLOWED THE CLAIM OF EXPEND ITURE OF RS. 2,99,61,986/- OUT OF THE AFORESAID CLAIM OF THE ASS ESSEE. 3. ON APPEAL AGAINST THE ORDER OF A.O. FOR A.Y. 200 9-10 THE LD. CIT(A) HAS HELD THAT OUT OF THE CLAIM OF EXPENSES O F THE ASSESSEE AN AMOUNT OF RS. 82,60,000/- HAD BEEN INCURRED ON P URCHASING LAND FOR V-69 SCHEME. THE LD. CIT(A) HAS FURTHER ST ATED THAT ON- MONEY SPENT ON PURCHASING OF THIS LAND NAMED V-69 S CHEME WILL INCREASE THE WORK IN PROGRESS OF THE CLOSING STOCK OF THE PROJECT, THEREFORE, THE CLAIM OF THE ASSESSEE FOR THIS AMOUN T AS EXPENDITURE WAS NOT ALLOWED. THE ASSESSEE HAS CLAIMED 31% OF TH E EXPENDITURE OF RS. 82,60,000/- WHICH CAME TO RS. 25,60,600/- BY STATING THAT 31% OF THE REVENUE OF VEDIKA EXOTICA SCHEME WAS REC OGNIZED DURING THE YEAR UNDER CONSIDERATION A.Y. 2011-12. T HE A.O. HAS NOT ACCEPTED THE CLAIM OF THE ASSESSEE BY STATING T HAT REVENUE HAS NOT ACCEPTED THE ORDER OF THE LD. CIT(A). ITA.NO.2310/AHD/2015 ASSESSMENT YEAR 2011-12 - 3 4. AGGRIEVED ASSESSEE FILED APPEAL BEFORE THE LD. C IT(A) WHO IS DISMISSED THE APPEAL OF THE ASSESSEE BY STATING THA T EXPENDITURE WAS NOT SUPPORTED BY ANY EVIDENCE, THEREFORE CANNOT BE ALLOWED YEAR UNDER CONSIDERATION. 5. DURING THE COURSE OF APPEAL BEFORE US THE LD. CO UNSEL HAS FURNISHED PAPER BOOK CONTAINING COPY OF ORDER OF LD . CIT(A) AND ORDER OF THE ITAT IN THE CASE OF ASSESSEE FOR A.Y. 2009-10. 6. ON THE OTHER HAND THE LD. D.R. SUPPORTED THE ORD ER OF LD. CIT(A). 7. WE HAVE HEARD BOTH THE SIDE AND PERUSED THE MATE RIAL AVAILABLE ON RECORD CAREFULLY. WE OBSERVE THAT THE LD. CIT(A) HAS NOT ALLOWED THE CLAIM OF ON MONEY PAID FOR PURCHASE FOR THE PROJECT V-69 SCHEME FOR THE ASSESSMENT YEAR 2009-10 SINCE T HE PROJECT HAS NOT BEEN STARTED DURING THE A.Y. 2009-10 AND ST ATED THAT SAME WILL BE INCLUDED IN THE CLOSING STOCK OF THE LAND. WE HAVE ALSO TAKEN INTO CONSIDERATION THE CONTENTION OF THE LD. COUNSE L THAT WHEN THE ORDER OF THE LD. CIT(A) WAS PASSED FOR A.Y. 2009-10 BY THAT TIME THE RETURN OF A.Y. 2011-12 WAS ALREADY FILED AND BO OKS OF ACCOUNTS WERE ALSO FINALIZED. THEREFORE THE ASSESSEE HAS CLA IMED THAT 31% OF THE REVENUE OF VEDIKA EXOTICA SCHEME WHICH WAS R ECOGNIZED DURING THE A.Y. 2011-12 AND ACCORDINGLY CLAIMED 31% OF THE EXPENDITURE OF RS. 82,60,000/- I.E. RS. 25,60,6000/ - DURING THE YEAR UNDER CONSIDERATION. WE OBSERVE THAT ABOVE STA TED FACT DEMONSTRATE THAT ASSESSEE IS JUSTIFIED IN CLAIMING THE ABOVE ITA.NO.2310/AHD/2015 ASSESSMENT YEAR 2011-12 - 4 EXPENDITURE DURING THE YEAR UNDER CONSIDERATION. TH EREFORE, THE APPEAL OF THE ASSESSEE IS ALLOWED. 9. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 01 / 02/2018 AT AHMEDABAD. SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER (AMARJIT SINGH) ACCOUNTANT MEMBER DATED, 01/ 02/2018 MUKUL !' #' / COPY OF THE ORDER FORWARDED TO : 1. $% / THE APPELLANT 2. &$% / THE RESPONDENT. 3. '(( ) * / CONCERNED CIT 4. ) * ( ) / THE CIT(A)- 5. '-. , , /DR,ITAT, AHMEDABAD. 6. .0 12 / GUARD FILE. ) ' / BY ORDER, ' (3 (ASSTT.REGISTRAR) ITAT, AHMEDABAD