M/s Datta Builders & Developers , Dharwad V. Income Tax Officer Ward-2(1), Hubli

ITA 3210/BANG/2018

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8922 (ITAT-BANGALORE)
• Duration Of Justice: 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 30-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KARUPPASWAMY S.R
• Assessee Lawyers: ASHOK KULKARNI
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH C SMC BEFORE SHRI N.V VASUDEVAN, VICE PRESIDENT ITA NO.3210/BANG/2018 ASSESSMENT YEAR : 2015-16 M/S DATTA BUILDERS & DEVELOPERS VAMANA TOWERS, TIKARE ROAD, OPP. RAM MANDIRA, DHARWAD. PAN AAJFD 9537 A VS. THE INCOME-TAX OFFICER, WARD-2(1), NAVANAGAR, HUBBALLI. APPELLANT RESPONDENT APPELLANT BY : SHRI ASHOK KULKARNI, ADVOCATE RESPONDENT BY : SHRI KARUPPASWAMY S.R, ADDL. CIT DATE OF HEARING : 17.12.2018 DATE OF PRONOUNCEMENT : 21.12.2018 O R D E R PER SHRI N.V VASUDEVAN, VICE PRESIDENT : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE OR DER DATED 26/9/2018 OF CIT(A), HUBBALLI RELATING TO ASST. Y EAR 2015-16. 2. THE ASSESSEE IS A BUILDER AND IN THE COURSE OF A SST. PROCEEDINGS, THE AO CALLED FOR DETAILS OF CUSTOMERS WHO HAD PURC HASED PROPERTIES FROM THE ASSESSEE. IT IS NOT IN DISPUTE THAT THE ASSESS EE CARRIED OUT 2 PROJECTS NAMELY DATTA RESIDENCY AND DATTA ENCLAVE. IN THE P ROJECT DATTA ITA NO.3210/B/18 2 RESIDENCY, THE ASSESSEE HAD SHOWN CUSTOMER DETAILS WHICH READS AS FOLLOWS:- A) SRI.AMIT KULKARNI RS.18,00,000=00 B) SRI.N.S.KULKARNI RS.14,00,000=00 C) SRI.SACHIDANAND JOSHI RS.11,00,000=00 D) SRI.V.MADHAV RS.02,00,000=00 E) TOTAL RS.45,00,000=00 3. THE AO HOWEVER FOUND REGARDING PROFIT AND LOSS A CCOUNT THAT THE RECEIPTS DECLARED FROM THE PROJECT DATTA RESIDENCY WAS ONLY RS.31,30,887/-. SINCE THERE WAS A DIFFERENCE OF RS .13,69,113/- BETWEEN THE DETAILS OF CUSTOMERS IN DATTA RESIDENCY PROJECT AS PER THE INFORMATION PROVIDED BY THE ASSESSEE AND AS DECLARED BY THE ASS ESSEE IN THE PROFIT AND LOSS ACCOUNT, THE AO ADDED THE DIFFERENCE TO TH E TOTAL INCOME OF THE ASSESSEE. THE PLEA OF THE ASSESSEE WAS THAT IN THE PROFIT AND LOSS ACCOUNT, THE RECEIPTS FROM DATTA RESIDENCY PROJECT WAS SHOWN LESS AND TO THE SAME EXTENT RECEIPTS FROM THE PROJECT DATTA ENC LAVE WAS SHOWN MORE. THEREFORE ENTIRE RECEIPTS FROM BOTH THE PROJECTS HA S BEEN DULY DECLARED. IT WAS PURELY A MISTAKE IN SHOWING THE RECEIPTS FROM D ATTA RESIDENCY PROJECT AS RECEIPTS OF DATTA ENCLAVE PROJECT IN THE PROFIT AND LOSS ACCOUNT. THIS WAS NOT BELIEVED BY THE AO. 4. AGGRIEVED BY THE AFORESAID DIRECTION, THE ASSES SEE PREFERRED APPEAL BEFORE THE CIT(A). UNFORTUNATELY, THE APPEAL OF TH E ASSESSEE WAS DISMISSED AS NONE APPEARED ON BEHALF OF THE ASSESSE E. AGGRIEVED BY THE AFORESAID DIRECTION OF THE CIT(A), ASSESSEE HAS FI LED PRESENT APPEAL BEFORE THE TRIBUNAL. AT THE TIME OF HEARING, THE LD COUNSEL FOR THE ASSESSEE ITA NO.3210/B/18 3 FILED A RECONCILIATION OF DIFFERENCES IN THE TWO PR OJECTS WHICH IS GIVEN AS ANNEXURE-I TO THIS ORDER. 5. THE PRAYER OF THE LEARNED COUNSEL FOR THE ASSESS EE BEFORE ME WAS TO REMAND TO THE AO THE ISSUE FOR FRESH CONSIDERATI ON OF THE AFORESAID RECONCILIATION AND IF IT IS FOUND THAT ENTIRE RECE IPTS FROM THE TWO PROJECTS HAS BEEN DISCLOSED BY THE ASSESSEE AND THAT IT WAS ONLY AN ERROR IN REPORTING THE RECEIPTS FROM ONE PROJECT AS RECEIPT S OF OTHER PROJECTS, THEN THE AO WILL DELETE THE ADDITION MADE. 6. I ACCEPT THE PRAYER OF THE LEARNED COUNSEL FOR THE ASSESSEE AND DIRECT THE AO TO EXAMINE THE RECONCILIATION SO FILED BY TH E ASSESSEE AND GIVEN AS ANNEXURE TO THIS ORDER AND IF IT IS FOUND THAT E NTIRE RECEIPTS FROM THE TWO PROJECTS HAS BEEN DISCLOSED BY THE ASSESSEE AND THA T IT WAS ONLY AN ERROR IN REPORTING THE RECEIPTS FROM ONE PROJECT AS RECE IPTS OF OTHER PROJECTS, THEN THE AO WILL DELETE THE ADDITION MADE. THE AO W ILL AFFORD OPPORTUNITY OF BEING HEARD BEFORE DECIDING THE ISSUE. 7. IN THE RESULT, APPEAL BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST DECEMBER, 2018 . SD/- (N.V VASUDEVAN) VICE PRESIDENT ENCL: ANNEXURE-I BANGALORE DATED : 21/12/2018 VMS ITA NO.3210/B/18 4 COPY TO :1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER ASST. REGI STRAR, ITAT, BANGALORE