The ITO, Ward-8(3), Ahmedabad V. Shukun Properties Pvt.Ltd., Ahmedabad

ITA 283/AHD/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60394 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 29-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, , , , C, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, C BENCH . .. . . .. . , !' !' !' !', , , , #$ %&'( #$ %&'( #$ %&'( #$ %&'(, , , , )* + ) )* + ) )* + ) )* + ) ' ' ' ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.283/AHD/2010 [ASSTT.YEAR : 2006-2007] THE ITO, WARD-8(3) AHMEDABAD. /VS. SHUKUN PROPERTIES PVT. LTD. STHAPATYA, 8, PUSHKUNJ SOCIETY MANINAGAR, AHMEDABAD. PAN : AAHC 2437 FL ( (( (-. -. -. -. / APPELLANT) ( (( (/0-. /0-. /0-. /0-. / RESPONDENT) + 1 2 )/ REVENUE BY : SHRI SANJAY DHARIWAL, SR.DR 4& 1 2 )/ ASSESSEE BY : NONE 5 1 &(*/ DATE OF HEARING : 22 ND MAY, 2012 678 1 &(*/ DATE OF PRONOUNCEMENT : 1-06-2012 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL OF THE REVENUE FOR THE ASSESSMENT YEAR 2006-2007 IS DIRECT ED AGAINST THE ORDER OF THE LD CIT(A)-XIV, AHMEDABAD DATED 10.11.2 009. 2. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE. THE APPLICATION OF THE ASSESSEE FOR ADJOURNMENT OF THE CASE HAS BEEN ITA NO.283/AHD/2010 -2- REJECTED BY THE BENCH. ACCORDINGLY, THE APPEAL OF T HE REVENUE IS BEING DECIDED EX PARTE QUA THE ASSESSEE-RESPONDENT ON MERIT AFTER HEARING THE LEARNED DR. 3. THE ONLY GROUND OF THE REVENUES APPEAL READS AS UNDER: 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.5,33,034/- MADE BY THE AO BY EST IMATING GP ON UNACCOUNTED BOOKING RECEIPTS. 4. THE LEARNED DR HAS RELIED ON THE ORDER OF THE AO . HE REFERRED TO VARIOUS RELEVANT PORTIONS OF THE ASSESSMENT ORDE R IN SUPPORT OF THE CASE OF THE REVENUE. HE SUBMITTED THAT THE ADDITIO N WAS RIGHTLY MADE BY TREATING THE BOOKING RECEIPTS AS INCOME OF THE A SSESSEE BY INVOKING PROVISIONS OF SECTION 4 OF THE IT ACT. 5. WE HAVE CONSIDERED SUBMISSIONS OF THE LEARNED DR AND PERUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CIVIL ORGANIZER AND DEVE LOPERS. THE ASSESSEE IS FOLLOWING METHOD OF ACCOUNTING AS PROJE CT COMPLETION METHOD CONSISTENTLY FOR THE PAST MANY YEARS. THE D EPARTMENT HAS ACCEPTED THE METHOD OF ACCOUNTING IN THE EARLIER YE ARS. THE ASSESSEE HAS SHOWN RECEIPTS FOR THE PROJECT SHUKUN ARCADE AS ADVANCES AS IT WAS IN ITS PRIMARY STAGE AND THE SAME WAS NOT ACCEP TED BY THE AO. NO VALID REASON FOR NOT ACCEPTING THE METHOD OF ACC OUNTING REGULARLY EMPLOYED AND ACCEPTED BY THE DEPARTMENT IN THE PAST , WAS GIVEN BY THE AO. THE CIT(A) HAS RECORDED THAT THE AO HAS AC CEPTED THE PROJECT COMPLETION METHOD WITH RESPECT TO OTHER PRO JECTS OF THE ASSESSEE VIZ., SPANDAN, SVMC AND MISC. MEMBERS WHER EAS FOR THE PROJECT SHUKUN ARCADE THE AO HAS ADOPTED DIFFERE NT ACCOUNTING STANDARDS WHICH IS NOT JUSTIFIED. THE CIT(A) HAS R ELIED ON THE CERTAIN ITA NO.283/AHD/2010 -3- DECISIONS OF THE HIGH COURT IN SUPPORT OF HIS DECIS IONS. THERE BEING NO MISTAKE IN THE ORDER OF THE CIT(A) IN HOLDING TH AT THERE IS NO JUSTIFICATION WITH THE AO TO REJECT REGULARLY EMPLO YED PROJECT COMPLETION METHOD OF ACCOUNTING, WE CONFIRM THE SAM E AND THE GROUND OF THE APPEAL OF THE REVENUE BEING WITHOUT A NY MERIT IS DISMISSED. 6. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %&' %&' %&' %&'( (( ( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD