DCIT, New Delhi V. M/s. A.R Chadha & Co. India Pvt. Ltd., New Delhi

ITA 4660/DEL/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66020 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-12-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 21-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHIM SINGH
• Keywords: Rule of consistency

Judgement Text

ITA NO. 4660/DEL/2011 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 4660/DEL/2011 A.Y. : 2007-08 DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1), ROOM NO. 390, C.R. BUILDING, NEW DELHI 110 002 VS. M/S A.R. CHADHA & CO. INDIA PVT. LTD., OFFICE NO. 8, 1 ST FLOOR, ATMA RAM MANSION (SCINDIA HOUSE) CONNAUGHT PLACE, NEW DELHI 110 001 (PAN/GIR NO. : AAACA1108L) (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSESSEE BY : SH. RANJAN CHOPRA, CA DEPARTMENT BY : SH. BHIM SINGH, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-IV, NEW DEL HI DATED 26.8.2011 PERTAINING TO ASSESSMENT YEAR 2007-08. 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF I NCOME TAX (A) ERRED IN DELETING THE ADDITION OF ` 17,13,624/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ALV OF CONNAUGHT PLACE PROPER TY. 3. ON THIS ISSUE, ASSESSING OFFICER NOTED THAT AS SESSEE HAS COMPUTED ALV OF CONNAUGHT PLACE PROPERTY AT ` 18876/- . HE WAS OF THE OPINION THAT ALV SHOULD BE DETERMINED AT ` 17,3 2,500/- AS IN PRECEDING YEAR. ASSESSEE IN THIS REGARD EXPLAINED BEFORE THE ASSESSING OFFICER THAT SIMILAR ADDITION MADE BY THE ASSESSING OFFICER ITA NO. 4660/DEL/2011 2 FOR ASSESSMENT YEAR 2003-04 & 2004-05 WERE DELETED BY THE ITAT. HOWEVER, THE ASSESSING OFFICER DID NOT ACCEPT THE CONTENTION. HE MADE THE ADDITION OF ` 17,13,624/- IN THIS REGARD. 4. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX (A) NOTED THAT ASSESSING OFFICER HAS MADE THE ADDITION FOR THE REASONS AND DISCUSSIONS MADE ON THIS POINT FOR THE ASSESSME NT YEAR 2006-07. HOWEVER, LD. COMMISSIONER OF INCOME TAX (A) NOTED THAT ITAT HAS DISMISSED THE DEPARTMENTAL APPEAL ON THIS ISSUE FOR A SSESSMENT YEAR 2006-07. IN VIEW OF THIS LD. COMMISSIONER OF INCOME TAX (A) HELD THAT THE ADDITION OF ` 17,13,624/- MADE BY THE ASSESSING OFFICER TOWARDS ALV OF THE PROPERTY IS HEREBY DELETED. 5. AGAINST THE ABOVE ORDER THE REVENUE IS IN APPEAL BEFORE US. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORDS. LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT THE ISSUE INVOLVED IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE D ECISION OF THE ITAT IN ASSESSEES OWN CASE FOR ASSESSMENT YEARS 2003-04 , 2004-05 & 2006-07. 6.1 LD. DEPARTMENTAL REPRESENTATIVE CONCEDED THAT TH E ISSUE IS COVERED BY THE DECISION OF THE ITAT IN ASSESSEES O WN CASE FOR EARLIER YEARS. 6.2 WE FIND THAT IN THE ORDER DATED 13.3.2009 FOR ASSESSMENT YEARS 2003-04 AND 2004-05 AND VIDE ORDER DATED 6.5.2010 F OR ASSESSMENT YEAR THE TRIBUNAL HAS DELETED THE ADDITION BY HOLDI NG AS UNDER:- 9. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IT I S NOTICED THAT THE ISSUE IN THIS GROUND IS SQUARELY COVERED BY THE DECISION OF THIS TRIBUNAL IN THE ITA NO. 4660/DEL/2011 3 ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 1998-99 , WHEREIN IT HAS BEEN HELD AS FOLLOWS:- HERE IN THIS CASE, THE FINDING WAS AGAINST THE REVENUE IN EARLIER YEARS AS PER ORDERS OF LD. COMMISSIONER OF INCOME TAX (A) BUT THOSE ORDERS HAVE BEEN ACCEPTED BECAUSE APPEAL IS PREFERRED BEFORE THE TRIBUNAL ON THESE GROUNDS. THEREFORE, THE REVENUE IN SUBSEQUENT YEAR CANNOT TAKE THE DIFFERENT VIEW ON THE MATTER. ON PRINCIPLE OF CONSISTENCY THE REVENUE AUTHORITIES SHOULD ADOPT THE SAME VIEW ON THE SAME MATTER IN ISSUE. THE ONLY REASON GIVEN BY THE ASSESSING OFFICER FOR MAKING THE ADDITION WAS HIS FINDING IN THE ASSESSMENT YEAR 1996-97 WHICH HAVE BEEN SET ASIDE BY THE LD. COMMISSIONER OF INCOME TAX (A) AND THE FINDINGS OF THE LD. COMMISSIONER OF INCOME TAX (A) HAVE BECOME FINAL. THEREFORE, NO BASIS IS LEFT WITH THE ASSESSING OFFICER FOR MAKING THE ENHANCEMENT IN THE ALP ADOPTED BY THE ASSESSEE. WE ACCORDINGLY ARE OF THE VIEW THAT THE ORDERS OF THE AUTHORITIES BELOW CANNOT SUSTAIN UNDER LAW. WE ACCORDINGLY SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND THE ADDITION ARE DELETED AND THE APPEAL FOR THE ASSESSEE IS ALLOWED. RESPECTFULLY FOLLOWING THE DECISION OF THE COORDINATE BENCH OF THIS TRIBUNAL IN THE ITA NO. 4660/DEL/2011 4 ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 1998-99, THE ADDITION AS CONFIRMED BY THE LD. COMMISSIONER OF INCOME TAX (A) STANDS DELETED. CONSEQUENTLY, GROUND NO. 4 OF THE ASSESSEES APPEALS FOR THE ASSESSMENT YEARS 2003-04 AND 2004-05 STAND ALLOWED. 7. RESPECTFULLY FOLLOWING THE PRECEDENTS AS ABOVE, WE UPHOLD THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (A) AND D ECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE. 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11/12/2012. SD/- SD/- [ [[ [RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV RAJPAL YADAV] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 11/12/2012 SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES