Aronudoi Appertment Private Limited, Guwahati V. Deputy Commissioner of Income Tax, Circle-2, Guwahati

ITA 36/GTY/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0167 (ITAT-GUWAHATI)
• Duration Of Justice: 2 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 25-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ANIL KUMAR AGARWALA
• Section: 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC GAUHATI BEFORE SHRI S ANJAY G ARG , JUDICIAL MEMBER . / ITA NO. 36 / GAU/2019 ASSESSMENT YEAR: 20 12 - 13 ARUNUDOI APARTMENT PRIVATE LIMITED PAN: AABCA 7523J / V/S . DCIT, CIRCLE - 2, GUWAHATI / APPELLANT .. / RESPONDENT HEARING THROUGH VIDEO CONFERENCING / BY APPELLANT SHRI ANIL KUMAR AGARWALA, FCA, A .R / BY RESPONDENT SHRI AMITAVA SEN, JCIT, SR - DR / DATE OF HEARING 16 - 03 - 20 2 1 / DATE OF PRONOUNCEMENT 16 - 03 - 20 2 1 / O R D E R TH E PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 29 - 11 - 2018 OF THE COMMISSIONER OF INCOME - TAX (APPEALS) - 1, GUWAHATI [HEREINAFTER REFERRED TO AS CIT(A)] . 2. THE ASSESSEE IN THIS APPEAL HAS CONTESTED THE VALIDITY OF CONFIRMATION OF ADDITION OF RS. 1,64,911/ - , WHICH WAS MADE BY THE LEARNED ASSESSING OFFICER ( IN SHOR T, THE LD. AO) ON ACCOUNT OF UNDER VALUATION OF WORK IN PROGRESS . 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS BROUGHT MY ATTENTION TO THE IMPUGNED ASSESSMENT ORDER. A PERUSAL OF THE RELEVANT PART OF THE ASSESSMENT ORDER SHOWS THAT THE ONLY REASON FOR MAKING THE IMPUGNED ADDITION MADE BY THE LD. AO IS AS UNDER: - THE POSSIBILITY OF UNDERVALUATION OF WORK IN PROGRESS CANNOT BE RULED OUT AND AS SUCH I ADD 2% TO VALUE OF WORK IN PROGRESS ON ESTIMATE TO TAKE CARE OF REVENUE RECOGNITION ON CONS TRUCTION CONTRACTS, WHICH COMES TO RS. 13, 64,911/ - I.E 2% OF RS. 6,82,45,563/ - . ITA NO. 36/GAU/2019 A.Y. 20 12 - 13 ARUNUDOI APARTMENT (P) LTD PAGE 2 4. A PERUSAL OF THE ABOVE RE A SON SHOWS THAT THE LD. AO HAS NOT POINTED OUT ANY ERROR OR DEFECT IN THE ACCOUNTS FURNISHED BY THE ASSESSEE. HE HAS JUST MENTIONED THAT THE POSSIBILITY OF UNDERVALUATION OF WORK IN PROGRESS CANNOT BE RULED OUT. MERELY ON THIS BASIS , HE ADDED 2% OF THE VALUE OF WORK IN PROGRESS , WHICH IS ON ESTIMATE BASIS. THE LD. CIT(A) ALSO UPHELD THE ORDER OF THE LD. AO IN A MECHANICAL MANNER WITHOUT APPLICATION OF MIND. THE REASONS MENTIONED IN THE ASSESSMENT ORDER FOR MAKING THE IMPUGNED ADDITION ARE VAGUE, ABSURD AND BASELESS. THESE REASONS ARE BASED SOLELY ON ASSUMPTION S OF THE LD.AO . THE LD. AO WITHOUT POINTING OUT ANY ERROR/DEFECT IN THE ACCOU NT S OR ANY OTHER EVIDENCE REGARDING UNDERVALUATION OF WORK IN PROGRESS , MADE THE IMPUGNED ADDITION, WHICH IS NOT SUSTAINABLE IN THE EYES OF LAW. ACCORDINGLY, THE SAME IS ORDERED TO BE DELETED. IN VIEW OF THE ABOVE, THE APPEAL OF THE ASSESSEE STANDS ALLO WED. ORDER PRONOUNCED IN OPEN COURT AT THE TIME OF HEARING ON TUESDAY , 1 6 TH MARCH , 2021 . S D/ - (S ANJAY . GAR G ) JUDICIAL MEM BER * *PP /SR.PS - 16 - 03 - 2021 /KOLKATA / COPY OF ORDER FORWARDED TO: - 1. /APPELLANT / ASSESSEE: ARUNUDOI APARTMENT PRIVATE LIMITED M.C ROAD, OPP: GUWAHATI CLUB, GUWAHATI - 781003, ASSAM, 781003. 2. /RESPONDENT - DCIT, CIR - 2, AAYKAR BHAWAN, G.S ROAD, CHRISTIAN BASTI, GUWAHATI - 781005. ASSAM 3. / CONCERNED CIT 4. - / CIT (A) 5. , / DR, ITAT, GUWAHATI 6. / GUARD FILE. BY ORDER/ , /TRUE COPY/ SENIOR PRIVATE SECRETARY