T.K. JOSHI, NAVI MUMBAI V. DCIT RG 22(3), NAVI MUMBAI

ITA 5257/MUM/2009

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 48688 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 21-02-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 14-09-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MAHUA SARKAR
• Assessee Lawyers: PRAKASH PANDIT

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH E, MUMBAI BEFORE SHRI P.M. JAGTAP AND SMT. ASHA VIJAYARAGHAV AN, JM I.T.A.NO.5257/MUM/2009 ASSESSMENT YEAR: 2006-07 SHRI T.K. JOSHI, SHRI HARI, FLAT NO. 11, PLOT NO. 11, SECTOR 40, OPP. KONKAN RAILWAY STATION, NERUL, NAVI MUMBAI. PAN: ACDPT 4836 C VS. THE DY.COMMISSIONER OF INCOME-TAX, RANGE 22(3), NAVI MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PRAKASH PANDIT RESPONDENT BY : MS. MAHUA SARKAR O R D E R PER P.M. JAGTAP, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS)-XXII, MUMBAI, D ATED 22.07.2009 FOR THE ASSESSMENT YEAR 2006-07. 2. GROUND NO. 1 & 2 OF THIS APPEAL RELATE TO THE AD DITION OF RS.13,57,202/- MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LEARNED CIT(A) BY ENHANCING THE CLOSING WORK IN PROGRESS OF SURYAGAYATRI PROJEC T, WHEREAS GROUND NOS. 3 & 4 RELATE TO THE ADDITION OF RS.2,75,273/- MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LEARNED CIT(A) BY WAY OF ENHANCING THE CLOSING WORK-IN-PROGRESS OF SURYAKIRAN PROJECT. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. THE SHORT POINT WHICH HAS BEEN RAISED BY THE LEARNED COUNSEL OR THE ASSESSEE IS THAT ALTHOUGH THE CLOSIN G WORK-IN-PROGRESS OF THE AFORESAID TWO PROJECTS OF THE ASSESSEE WAS ENHANCED BY THE ASSESSING OFFICER FOR THE YEAR UNDER CONSIDERATION, THE CORRESPONDING VAL UE OF OPENING WORK IN PROGRESS FOR THE IMMEDIATELY SUCCEEDING YEAR I.E. 2007-08, W AS NOT RAISED BY HIM. HE HAS INVITED OUR ATTENTION TO THE RELEVANT PROFIT & LOSS ACCOUNT OF THE YEAR UNDER ITA NO.5257/M/2009 SHRI T.K. JOSHI 2 CONSIDERATION AS WELL AS FOR THE IMMEDIATELY SUCCEE DING YEAR TO SUPPORT AND SUBSTANTIATE THIS STAND. HE HAS SUBMITTED THAT AS A RESULT OF NON-ENHANCEMENT OF CORRESPONDING VALUE OF OPENING WORK-IN-PROGRESS FOR THE SUCCEEDING YEAR, THE AMOUNTS IN QUESTION ARE ADDED TO THE TOTAL INCOME O F THE ASSESSEE TWICE WHICH IS NOT PERMISSIBLE IN LAW. HE HAS CONTENDED THAT THE ASSESSING OFFICER MAY, THEREFORE, BE DIRECTED TO VERIFY THIS POSITION FROM THE ACTUAL RECORD AND ALLOW APPROPRIATE RELIEF TO THE ASSESSEE. SINCE THE LEAR NED DEPARTMENTAL REPRESENTATIVE HAS NOT RAISED ANY OBJECTION IN THIS REGARD, WE RES TORE THIS MATTER TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO VERIFY THE ST AND OF THE ASSESSEE THAT THERE HAS BEEN A DOUBLE ADDITION OF THE SAME AMOUNT IN THE YE AR UNDER CONSIDERATION AS WELL AS IN THE ASSESSMENT YEAR 2007-08 AND ALLOW APPROPR IATE RELIEF TO THE ASSESSEE ON SUCH VERIFICATION IN ACCORDANCE WITH LAW. GROUND N OS. 1 TO 4 OF THE ASSESSEES APPEAL ARE ACCORDINGLY TREATED AS ALLOWED FOR STATI STICAL PURPOSES. 4. THE REMAINING GROUND RAISED BY THE ASSESSEE IN THIS APPEAL I.E. GROUND NOS. 5 TO 7 ARE NOT PRESSED BY THE LEARNED COUNSEL FOR THE ASSESSEE AT THE TIME OF HEARING BEFORE US. THE SAME ARE ACCORDINGLY DISMIS SED AS NOT PRESSED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH DAY OF APRIL, 2011. SD/- SD/= (ASHA VIJAYARAGHAVAN) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED THE 27 TH APRIL, 2011. KN COPY TO: 1. THE ASSESSEE 2. THE REVENUE 3. THE CIT-22, MUMBAI. 4. THE CIT(A)-XXII, MUMBAI 5. THE DR E BENCH, MUMBAI BY ORDER /TRUE COPY/ ASST. REGISTRAR, ITAT, MUMBAI