GIRAFEE DEVELOPERS P.LTD, MUMBAI V. DCIT 9(3)(2), MUMBAI

ITA 4416/MUM/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6053 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 24-06-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K SAIKIA
• Assessee Lawyers: VIRAL DOSHI
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, AM AND SHRI SANDEEP GOSAIN, JM ./ I.T.A. NO. 4416/MUM/2016 ( / ASSESSMENT YEAR: 2011 - 12 ) GIRAFFE DEVE LOPERS PVT. LTD. UNIT NO. 11, G WING, AKRUTI COMMERCIAL COMPLEX, CENTRAL ROAD, MIDC, ANDHERI (E), MUMBAI - 400 093 / VS. DCIT - 9(3)(2), MUMBAI ./ ./ PAN/GIR NO. AACCN 2778 D ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI VIRAL DOSHI / RESPONDENT BY : SHRI S. K. SAIKIA / DATE OF HEARING : 05.06.2018 / DATE OF PRONOUNCEMENT : 02.07 .2018 / O R D E R PER S HAMIM YAHYA, A. M.: T HIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 16, MUMBAI DATED 31.03.2016, PERTAINING TO THE ASSESSMENT YEAR 2011 - 12. 2. T HE GROUNDS OF APPEAL READ AS UNDER : 1. ON THE FACTS AND CIRCUMSTANC ES OF THE CASE AND IN LAW, THE LEARNED CIT (A) - 16 HAS ERRED IN CONFIRMING DISALLOWANCE OF PROVISION FOR PROPERTY TAX AMOUNTING TO 2 ITA NO. 4416/MUM/2016 GIRAFFE DEVELOPERS PVT. LTD. RS.22,13,733/ - (OUT OF TOTAL PROVISION FOR PROPERTY TAX OF RS.1,46,11,472/ - ) MADE BY THE LAO U/S 43B OF THE ACT. 2. ON THE F ACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT (A) - 16 HAS ERRED IN CONFIRMING DISALLOWANCE OF PROFESSIONAL FEES EXPENSE OF RS.27,57,500/ - (OUT OF TOTAL DISALLOWANCE OF RS.4,15,83,100/ - ) MADE BY LAO U/S 40 (A) (IA) OF THE ACT DUE TO NON - PA YMENT OF TDS. APPELLANT PLEADS THAT THE SAID EXPENSE IS NOT CLAIMED AS AN EXPENSE, IN THE CURRENT YEAR, IN THE PROFIT AND LOSS ACCOUNT IN THE FIRST PLACE. THE SAID EXPENSE HAS ONLY BEEN ROUTED THROUGH THE PROFIT AND LOSS ACCOUNT BUT ULTIMATELY HAS BEEN DEB ITED TO THE WORK IN PROGRESS ACCOUNT. THE SAME BEING CAPITALIZED AND FORMING PART OF CLOSING STOCK (WORK IN PROGRESS) FOR THE APPELLANT, THE IMPACT ON THE PROFIT AND LOSS ACCOUNT IS REVENUE NEUTRAL. CONSIDERING THE ABOVE, THE ADDITION OF THE EXPENSE IS UNF AIR, ARBITRARY AND EXCESSIVE. 3. THAT THE APPELLANT RESERVES ITS RIGHTS TO AMEND, ALTER OR RAISE ANY OTHER ADDITIONAL GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF APPELLATE PROCEEDINGS. 3. A T THE OUTSET , IN THIS CASE THE LEARNED COUNSEL OF THE ASSESSE E SUBMITTED THAT HE SHALL BE WITHDRAWING THE APPEAL. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE DID NOT HAVE ANY OBJECTION TO THIS PROPOSITION. 5 . UP ON CAREFUL CONSIDERATION WE HAVE GRANTED PERMISSION TO WITHDRAW THE APPEAL. ACCORDINGLY , THIS APPEAL IS DISMISSED AS WITHDRAWN. 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 02.07.2018 SD/ - SD/ - ( SANDEEP GOSAIN ) (S HAMIM YAHYA) / J UDICIAL MEMBER / A CCOUNTANT MEMBER MUMBAI ; DATED : 02.07.2018 . . ./ ROSHANI , SR. PS 3 ITA NO. 4416/MUM/2016 GIRAFFE DEVELOPERS PVT. LTD. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / B Y ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI