DCIT, New Delhi V. M/s Sabh Infrastructure Ltd., New Delhi

ITA 480/DEL/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2749 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 31-03-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 28-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RENUKA JAIN GUPTA
• Assessee Lawyers: RAMESH CHAWLA; HARPREET SINGH CAS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH G GG G : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI I.C.SUDHIR I.C.SUDHIR I.C.SUDHIR I.C.SUDHIR, ,, , JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NOS SS S. .. .478/DEL/2013 & 480/DEL/2013 478/DEL/2013 & 480/DEL/2013 478/DEL/2013 & 480/DEL/2013 478/DEL/2013 & 480/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEARS SS S : : : : 2008 2008 2008 2008- -- -09 & 2009 09 & 2009 09 & 2009 09 & 2009- -- -10 1010 10 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX INCOME TAX INCOME TAX INCOME TAX, ,, , CIRCLE CIRCLE CIRCLE CIRCLE- -- -7(1), 7(1), 7(1), 7(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S SABH INFRASTRUCTURE LTD., M/S SABH INFRASTRUCTURE LTD., M/S SABH INFRASTRUCTURE LTD., M/S SABH INFRASTRUCTURE LTD., B BB B- -- -76, IIND FLOOR, KRISHNA NAGAR, 76, IIND FLOOR, KRISHNA NAGAR, 76, IIND FLOOR, KRISHNA NAGAR, 76, IIND FLOOR, KRISHNA NAGAR, SAFDARJUNG ENCLAVE, SAFDARJUNG ENCLAVE, SAFDARJUNG ENCLAVE, SAFDARJUNG ENCLAVE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 029. 110 029. 110 029. 110 029. PAN : PAN : PAN : PAN : AABCS5720R. AABCS5720R. AABCS5720R. AABCS5720R. (APPELLANT) (RESPONDENT) APPELLANT BY : SMT.RENUKA JAIN GUPTA, SR.DR. RESPONDENT BY : SHRI RAMESH CHAWLA AND SHRI HARPREET SINGH, CAS. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VP VPVP VP : : : : THESE APPEALS BY THE REVENUE ARE DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-X, NEW DELHI DATED 7 TH DECEMBER, 2012 FOR THE AY 2008- 09 AND 2009-10. 2. THE ONLY GROUND RAISED BY THE REVENUE IN THESE APP EALS READS AS UNDER:- GROUND RAISED IN ITA NO.478/DEL/2013: GROUND RAISED IN ITA NO.478/DEL/2013: GROUND RAISED IN ITA NO.478/DEL/2013: GROUND RAISED IN ITA NO.478/DEL/2013:- -- - THE LD.CIT(A) ERRED IN LAW AND ON THE FACTS AND CIRCUMSTANCES OF THE CASE, IN DELETING THE ADDITION OF RS.1,55,62,683/- MADE BY THE ASSESSING OFFICER REJECTING THE METHOD OF ACCOUNTING ADOPTED BY THE ASSESSEE COMPANY FOR REVENUE RECOGNITION AND APPLYING THE PERCENTAGE COMPLETION METHOD. ITA-478 & 480/D/2013 2 GROUND RAISED IN ITA NO.480/DEL/2013: GROUND RAISED IN ITA NO.480/DEL/2013: GROUND RAISED IN ITA NO.480/DEL/2013: GROUND RAISED IN ITA NO.480/DEL/2013:- -- - THE LD.CIT(A) ERRED IN LAW AND ON THE FACTS AND CIRCUMSTANCES OF THE CASE, IN DELETING THE ADDITION OF RS.80,54,775/- MADE BY THE ASSESSING OFFICER REJECTING T HE METHOD OF ACCOUNTING ADOPTED BY THE ASSESSEE COMPANY FOR REVENUE RECOGNITION AND APPLYING THE PERCENTAGE COMPLETION METHOD. 3. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERI AL PLACED BEFORE US. WE FIND THAT LEARNED CIT(A) ALLOWED THE RELIEF FOLLOWING THE ORDER OF LEARNED CIT(A) FOR AY 2006-07 & 2007-08 WH ICH IS UPHELD BY THE ITAT. THE RELEVANT OBSERVATION OF LEARNED CIT(A ) IN THIS REGARD READS AS UNDER:- 2.2 AFTER GOING THROUGH THE FACTS OF THE CASE AND OBSERVATIONS OF THE A.O. AS WELL AS THE SUBMISSIONS OF THE A.R. OF THE APPELLANT AND FINDINGS OF THE CIT(A) FOR A.YRS. 2006-07 AND 2007-08 AND DECISION OF THE HONBLE ITAT IN ITA NO.4572/DEL/2009 AND 2813/DEL/2010 OF G BENCH , THESE GROUNDS ARE BEING FINALIZED AFTER MAKING THE FOLLOWING OBSERVATIONS: (A) ON GOING THROUGH THE ASSESSMENT ORDER IT IS OBSERVED THAT THE ASSESSING OFFICER HAS PRIMARILY MADE TH E ADDITION BY OBSERVING THAT THE PROVISIONS OF AS:7 IS APPLICABLE IN THE CASE OF THE APPELLANT COMPANY. TH IS SAME ISSUE HAS BEEN CONSIDERED BY LD.CIT(A) IN A.YRS. 2006-07 AND 2007-08, WHICH IS ALSO PART OF THE ORDER OF THE HONBLE ITAT FOR THESE ASSESSMENT YEARS. THIS IDENTICAL ISSUE HAS BEEN DISCUSSED IN PARA 5 OF THE ORDER OF THE IT AT. (B) THE HONBLE ITAT DECIDED THE ISSUE IN FAVOUR OF T HE APPELLANT BY RELYING ON THE DECISION OF CIT V. MANISH BUILDWELL PVT.LTD. IN ITA NO.928/2011 DATED 15-11-2 011. THIS DECISION HAS ALSO BEEN ELABORATELY DISCUSSED IN THE ORDER OF THE HONBLE ITAT REFERRED TO BY THE A.R. O F THE APPELLANT. IN THIS PARTICULAR YEAR ALSO, THE A.O. HA S ONLY RELIED UPON THE REVISED AS:7 WHICH WAS ALSO APPLICABLE IN THE EARLIER YEARS. (C) AFTER GOING THROUGH THE ORDER OF THE CIT(A) IN A.YRS. 2006-07 AND 2007-08 AND THE ORDER OF THE ITAT FOR A .YRS. ITA-478 & 480/D/2013 3 2006-07 AND 2007-08, IT IS CLEAR THAT THE FACTS AND I SSUES FOR THIS YEAR ARE SIMILAR TO THAT OF A.YRS. 2006-07 AN D 2007- 08. FROM THE ORDER OF THE HONBLE ITAT IT IS AMPLY CLEAR THAT THE ISSUE HAS BEEN WELL SETTLED IN FAVOUR OF THE APPELLANT. AFTER CONSIDERING THE FACTS OF THE CASE AND THE DECISIO N OF THE HONBLE ITAT FOR A.YRS. 2006-07 AND 2007-08, FOL LOWING THE CODE OF JUDICIAL DISCIPLINE, I AM INCLINED TO AG REE WITH THE ARGUMENTS OF THE A.R. OF THE APPELLANT THAT THE ISSUE IS ALREADY COVERED SQUARELY IN FAVOUR OF THE APPELLANT. AS A RESULT, THESE GROUNDS OF THE APPELLANT ARE TREATED AS ALLOWED. 4. AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDES AN D THE FACTS OF THE CASE, WE DO NOT FIND ANY INFIRMITY IN THE PRE SENT ORDER OF LEARNED CIT(A). HE SIMPLY FOLLOWED THE ORDER OF ITAT IN ASSESSE ES OWN CASE FOR THE EARLIER TWO YEARS. THAT THE ONLY DISPUTE IS WITH REGARD TO METHOD OF ACCOUNTING FOLLOWED BY THE ASSESSEE. THE ASSESSEE IS CONSISTE NTLY FOLLOWING THE METHOD OF ACCOUNTING OF RECOGNIZING T HE REVENUE ON PROJECT COMPLETION METHOD WHILE THE ASSESSING OFFICER R EJECTED THE SAME AND COMPUTED THE INCOME ON THE BASIS OF PERCENTAG E COMPLETION METHOD. THE ITAT IN ASSESSEES OWN CASE IN THE EARLIER Y EARS HAS UPHELD THE PROJECT COMPLETION METHOD BEING FOLLOWED BY THE ASSESSEE. IN VIEW OF THE ABOVE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LEARNED CIT(A). THE SAME IS SUSTAINED AND THE REVENUE S APPEALS ARE DISMISSED. 5. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DISMI SSED. DECISION PRONOUNCED IN THE OPEN COURT ON 31 ST JULY, 2013. SD/- SD/- ( (( (I.C.SUDHIR I.C.SUDHIR I.C.SUDHIR I.C.SUDHIR) )) ) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) (G.D.AGRAWAL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 31.07.2013 VK. ITA-478 & 480/D/2013 4 COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -7(1), NEW 7(1), NEW 7(1), NEW 7(1), NEW DELHI. DELHI. DELHI. DELHI. 2. RESPONDENT : M/S SABH INFRASTRUCTURE LTD., M/S SABH INFRASTRUCTURE LTD., M/S SABH INFRASTRUCTURE LTD., M/S SABH INFRASTRUCTURE LTD., B BB B- -- -76, IIND FLOOR, KRISHNA NAGAR, 76, IIND FLOOR, KRISHNA NAGAR, 76, IIND FLOOR, KRISHNA NAGAR, 76, IIND FLOOR, KRISHNA NAGAR, SAFDARJUNG ENCLAVE, NEW DELHI SAFDARJUNG ENCLAVE, NEW DELHI SAFDARJUNG ENCLAVE, NEW DELHI SAFDARJUNG ENCLAVE, NEW DELHI 110 029. 110 029. 110 029. 110 029. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR