Asst. Commissioner of Income Tax, Central Circle-1(2), Hyderabad V. Amsri Realtors Private Limited, Secunderabad

ITA 387/Hyd/2018

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 2658 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 26-09-2018
• Assessment Year: 2010-2011
• Appeal Filed On: 26-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISHA S GUPT
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA. NOS. 385 TO 387/HYD/2018 ASSESSMENT YEAR S 2008 - 09 TO 2010 - 11 ACIT, CENTRAL CIRCLE - 1(2), HYDERABAD. VS. M/S. AMSRI REALTORS PRIVATE LIMITED, SECUNDERABAD. PAN: AAGCA 1145 F (APPELLANT) (RESPONDENT) ITA. NOS. 388 TO 393/HYD/2018 ASSESSMENT YEAR S 2008 - 09 TO 2013 - 14 ACIT, CENTRAL CIRCLE - 1(2), HYDERABAD. VS. M/S. AMSRI PROPERTIES AND TOWNSHIPS PRIVATE LIMITED, SECUNDERABAD. PAN: AAGCA 1599 R (APPELLANT) (RESPONDENT) ITA. NOS. 394 TO 399/HYD/2018 ASSESSMENT YEAR S 2008 - 09 TO 2013 - 14 ACIT, CENTRAL CIRCLE - 1(2), HYDERABAD. VS. M/S. AMSRI CONSTRUCTIONS PRIVATE LIMITED, SECUNDERABAD. PAN: AAFCA 5309 Q (APPELLANT) (RESPONDENT) ITA. NOS. 400 & 401/HYD/2018 ASSESSMENT YEAR S 2008 - 09 & 2010 - 11 ACIT, CENTRAL CIRCLE - 1(2), HYDERABAD. VS. M/S. AMSRI BUILDERS PRIVATE LIMITED, SECUNDERABAD. PAN: AAECA 2834 R (APPELLANT) (RESPONDENT) ITA. NOS. 402 TO 407/HYD/2018 ASSESSMENT YEAR S 2008 - 09 TO 2013 - 14 ACIT, CENTRAL CIRCLE - 1(2), HYDERABAD. VS. M/S. AMSRI DEVELOPERS PRIVATE LIMITED, SECUNDERABAD. PAN: AAGCA 0793 F (APPELLANT) (RESPONDENT) 2 ITA. NOS. 408 TO 412/HYD/2018 ASSESSMENT YEAR S 2008 - 09, 2009 - 10 & 2011 - 12 TO 2013 - 14 ACIT, CENTRAL CIRCLE - 1(2), HYDERABAD. VS. M/S. AMSRI HOMES PRIVATE LIMITED, SECUNDERABAD. PAN: AAGCA 1280 M (APPELLANT) (RESPONDENT) ITA. NOS. 413 TO 417 /HYD/2018 ASSESSMENT YEAR S 2008 - 09 & 2010 - 11 TO 2013 - 14 ACIT, CENTRAL CIRCLE - 1(2), HYDERABAD. VS. M/S. AMSRI INFRA PROJECTS PRIVATE LIMITED, SECUNDERABAD. PAN: AAGCA 0788 A (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI K.C. DEVDAS FOR REVENUE : SMT. AMISHA S. GUPT, DR DATE OF HEARING : 26.09.2018 DATE OF PRONOUNCEMENT : 10.10 .2018 ORDER PER BENCH : ALL THESE ARE REVENUES APPEALS AGAINST THE ORDERS OF THE RESPECTIVE COMMISSIONER OF INCOME TAX (APPEALS) HOLDING THAT THE ASSESSMENTS COMPLETED U/S 143(3) R.W.S 153C OF THE ACT ARE INVALID. 2. AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THESE APPEALS ARE TO BE DISMISSED ON ACCOUNT LOW TAX EFFECT IN ACCORDANCE WITH THE CBDT CIRCULAR NO.3 OF 2018. IT IS SUBMITTED THAT THERE WAS A SEARC H ON 27.12.2013 IN THE CASE OF M/S. AMSRI BUILDERS AND PARTNERS AND THE CASE OF THE ASSESSEE WAS COVERED U/S 153C OF THE ACT AND THE CIT(A) ALLOWED THE APPEALS OF THE ASSESSEES ON THE GROUND THAT THERE WAS NO INCRIMINATING MATERIAL FOUND IN THE 3 COURSE OF S EARCH PROCEEDINGS NOR WAS THERE ANY UNDISCLOSED INCOME IN THE CASE OF THE ASSESSEES. IT WAS ALSO SUBMITTED THAT IN ALL THE CASES, THE A.O. HAS ONLY DISTURBED THE WORK - IN - PROGRESS WHICH WAS NOT DEBITED TO THE PROFIT & LOSS ACCOUNT BUT WAS RECORDED IN THE BALANCE SHEET , AS THE BUSINESS WAS YET TO COMMENCE. HE SUBMITTED THAT THE ITAT IN THE ASSESSEES OWN CASE FOR THE A.Y. 2007 - 08 HAD DELETED THE ADJUSTMENT TO WORK - IN - PROGRESS. THE ASSESSEE HAS ALSO FILED A LETTER DATED 21.08.2018 TO THIS EFFECT, WHICH WAS RECEIVED BY THE BENCH ON 14/09/2018 , AND IT IS PLACED ON RECORD IN ALL THE APPEALS. 3. LEARNED DEPARTMENTAL REPRESENTATIVE , HOWEVER , SUBMITTED THAT THOUGH THERE IS LOW TAX EFFECT IN ALL THESE APPEALS, THERE IS A NOTIONAL TAX BY VIRTUE OF ADJUSTMENT TO THE WORK - IN - PROGRESS WHICH WOULD HAVE THE EFFECT ON THE COMPUTATION OF INCOME IN THE SUBSEQUENT ASSESSMENT YEARS. 4. WE HAVE GONE THROUGH THE BOARD CIRCULAR NO.3/2018 DATED 11/07/2018 WHEREIN THE TAX EFFECT HAS BEEN EXPLAINED AS THE DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOUL D HAVE BEEN CHARGEABLE HAD SUCH TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAINST WHICH APPEAL IS INTENDED TO BE FILED . IN ALL THE APPEALS BEFORE US, ADMITTEDLY THE INCOME RETURNED BY THE ASSESSEE HAS BEEN ACCEPTED BY THE A.O. AND THEREFORE, THERE IS NO DIFFERENCE BETWEEN THE TAX ON THE TOTAL INCOME ASSESSED AND THE TAX THAT WOULD HAVE BEEN CHARGEABLE HAD SUCH INCOME BEEN REDUCED BY THE AMOUNT OF INCOME IN RESPECT OF THE ISSUES AGAINST WHICH APPEALS HAVE BEEN FILED AND THE REFORE, WE HAVE SATISFIED THAT THE TAX EFFECT IN ALL THESE APPEALS IS NIL AND THEREFORE , THEY ARE COVERED BY THE BOARDS CIRCULAR NO.3/2018. FURTHER, WE ALSO FIND THAT EVEN ON MERITS , THE ORDER OF THE CIT(A) CANNOT BE INTERFERED WITH , AS THE ASSESSMENTS WE RE COMPLETED 4 U/S 153C BY ACCEPTING THE RETURN OF INCOME OF THE ASSESSEES AND NO ADDITIONS ARE MADE ON THE BASIS OF ANY INCRIMINATING MATERIAL FOUND DURING THE SEARCH. THEREFORE, EVEN ON MERITS, THE REVENUES APPEALS ARE LIABLE TO BE DISMISSED. 5. IN THE RESULT, ALL THE REVENUES APPEALS ARE DISMISSED BOTH ON ACCOUNT LOW TAX EFFECT AS WELL AS ON MERITS. PRONOUNCED IN THE OPEN COURT ON 10 TH OCTOBER , 2018. SD / - SD/ - (S. RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 10 TH OCTOBER , 2018 OKK COPY TO: - 1) (I) M/S. AMSRI REALTORS PVT LTD.,(II) M/S. AMSRI PROPERTIES AND TOWNSHIPS PVT LTD; (III ) M/S. AMSRI CONSTRUCTION PVT LTD; (IV) M/S. AMSRI DEVELOPERS PRIVATE LIMITED; (V) M/S. AMSRI BUILDERS PRIVATE LIMITED ; (VI) M/S. AMSRI HOMES PRIVATE LIMITED; (VII) M/S. AMSRI INFRA PROJECTS PRIVATE LIMITED, D.NO.9 - 1 - 164, 5 TH FLOOR, AMSRI PLAZA, S.D. ROAD, SECUNDERABAD. 2) ACIT, CENTRAL CIRCLE - 1(2), HYDERABAD. 3) THE CIT(A) - 11 , HYDERABAD 4) THE PR. CIT - 11 , HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE