DCIT, Jaipur V. UNIQUE BUILDERS & DEVELOPERS(AJAY), Jaipur

ITA 531/JPR/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5315 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 9 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 30-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Document seized
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VH-VKJ-EHUK] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF; D LNL; DS LE{K BEFORE: SHRI T.R.MEENA, AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA- @ ITA NO. 531/JP/2014 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2011-12 DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, JAIPUR. CUKE VS. M/S UNIQUE BUILDERS & DEVELOPERS (AJAY), 8 TH FLOOR, THE MILE STONE, TONK ROAD, GANDHI NAGAR, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ L A-@ PAN/GIR NO.: AACFU 0541 N VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT VK;DJ VIHY LA- @ ITA NO. 534/JP/2014 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2011-12 DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, JAIPUR. CUKE VS. M/S UNIQUE AFFORDABLE HOMES PVT. LTD., 8 TH FLOOR, THE MILE STONE, TONK ROAD, GANDHI NAGAR, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ L A-@ PAN/GIR NO.: AAACU 9543 P VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT VK;DJ VIHY LA- @ ITA NO. 537/JP/2014 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2011-12 DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, JAIPUR. CUKE VS. M/S UNIQUE BUILDERS & DEVELOPERS (KRISHNA), 8 TH FLOOR, THE MILE STONE, TONK ROAD, GANDHI NAGAR, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ L A-@ PAN/GIR NO.: AACFU 0684 L VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT ITA 531, 534 & 537/JP/2014_ DCIT VS. M/S UNIQUE BUILDERS 2 JKTLO DH VKSJ LS @ REVENUE BY : SHRI M.S. MEENA (CIT) FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI P.C. PARWAL (CA) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 01/04/2016 MN?KKS'K .KK DH RKJH[ K @ DATE OF PRONOUNCEMENT : 13/05/2016 VKNS'K @ ORDER PER: T.R. MEENA, A.M. ALL THE THREE APPEALS FILED BY THE REVENUE ARISE AGAINST THE ORDER DATED 05/05/2014, 07/05/2014 AND 06/05/2014 PASSED BY THE LEARNED CIT(A), CENTRAL, JAIPUR FOR A.Y. 2011-12. THE RESPEC TIVE GROUNDS OF ALL THE APPEALS ARE AS UNDER:- GROUNDS OF ITA NO. 531/JP/2014 1 WHETHER CIT(A) WAS JUSTIFIED IN DELETING THE ADDI TION OF RS. 7,46,17,737 MADE BY THE AO BY REJECTING APPLICATION OF SECTION 145(3) WHEN THE ASSESSEE IS NOT MAINTAINING QUANTITATIVE AND QUALITATIVE STOCK REGI STER AND THE DOCUMENT SEIZED FROM SHRI NAVIN BHUTANI (A- 2/51) AND FROM SHRI VIBHISHEK SINGH (PARTNER) A-2/1 9 INDICATED ON-MONEY RECEIVED. 2. WHETHER CIT(A) WAS JUSTIFIED IN REJECTING APPLICAT ION OF PERCENTAGE COMPLETION METHOD BY THE AO, WHEN THIS REJECTION MEANS ACCEPTANCE OF NIL RETURN OF THE ASSESSEE ENGAGED IN CONSTRUCTION AND SALE OF RESIDENTIAL / COMMERCIAL PROJECTS. 3. WHETHER CIT(A) WAS JUSTIFIED IN RELYING UPON THE DECISION OF ITAT IN THE CASE OF THE ASSESSEE DATED ITA 531, 534 & 537/JP/2014_ DCIT VS. M/S UNIQUE BUILDERS 3 15.3.2013 IN WHICH ITS ORDER IN THE CASE OF UNIQUE BUILDERS & DEVELOPERS DATED 14.3.2013 WAS RELIED UPON, THOUGH THESE ORDERS HAVE BEEN APPEALED AGAINST BEFORE HON'BLE HIGH COURT BY THE DEPARTMENT ON PERVERSITY OF FACTS. 4. WHETHER CIT(A) WAS JUSTIFIED IN IGNORING THAT THE ITAT ORDER DATED 14.3.2013 STATED A WRONG FACT THAT THE TWO BROTHERS HAD SEPARATED IN 2006 AND THAT THE DOCUMENT (A2/51) WAS SEIZED FROM THE LAPTOP OF AN EMPLOYEE OF THE SEPARATED AJIT PAL GROUP, IGNORING THE FACT THAT THE TWO BROTHERS - SHRI AJAY PAL SINGH AND SHRI AJIT PAL SINGH - WERE ACTIVELY ENGAGED IN BUSIN ESS TOGETHER AS PARTNERS THEMSELVES OR THROUGH THEIR FAMILIES IN VARIOUS SISTER CONCERNS OF THE ASSESSEE FIRM AND THE SEIZED DOCUMENT MENTIONED THE PROJECTS OF THE FIRM LIKE ROYAL PARADISE. GROUNDS OF ITA NO. 534/JP/2014 1 WHETHER CIT(A)(C) WAS JUSTIFIED IN DELETING THE ADDITION OF RS.3,08,84,508 REJECTING APPLICATION OF SECTION 145(3) WHEN THE ASSESSEE IS NOT MAINTAINING QUANTITATIVE AND QUALITATIVE STOCK REGISTER AND SEI ZED DOCUMENT LIKE (A-2/51) REFLECT ON-MONEY RECEIVED BY THE CONCERNS IN WHICH DIRECTORS ARE PARTNERS. 2. WHETHER CIT(A)(C) WAS JUSTIFIED IN REJECTING APPLICATION OF PERCENTAGE COMPLETION METHOD BY THE AO WHEN THIS REJECTION NEEDS ACCEPTANCE OF LOSS RET URN OF THE ASSESSEE ENGAGED IN CONSTRUCTION AND SALE OF RESIDENTIAL / COMMERCIAL PROJECTS. 3. WHETHER CIT(A) WAS JUSTIFIED IN RELYING UPON THE DECISION OF ITAT IN THE CASE OF THE ASSESSEE DATED 15.3.2013 IN WHICH ITS DECISION IN THE CASE OF UNIQU E BUILDERS & DEVELOPERS DATED 14.3.2013 WAS RELIED ITA 531, 534 & 537/JP/2014_ DCIT VS. M/S UNIQUE BUILDERS 4 UPON, THOUGH THESE ORDERS HAVE BEEN APPEALED AGAINST BEFORE HON'BLE HIGH COURT BY THE DEPARTMENT ON PERVERSITY OF FACTS. 4. WHETHER CIT(A) WAS JUSTIFIED IN IGNORING THE FAC T THAT THE TWO BROTHERS - SHRI AJAY PAL SINGH AND SHRI AJIT PAL SINGH - WERE ACTIVELY ENGAGED IN BUSINESS TOGETHER EVEN IN THE FIRM - M/S UNIQUE BUILDERS & DEVELOPERS - WHOSE TRIBUNAL ORDER DATED HAS BEEN FOLLOWED IN THE ASSESSEE COMPANY CASE BY ITAT IN ORDER 15.3.2013. 5. WHETHER CIT(A)(C) WAS JUSTIFIED IN IGNORING THAT THE DOCUMENT SEIZED FROM SHRI NAVIN BHUTANI SPECIFICALL Y MENTIONED THE PROJECTS UNDERTAKEN BY THE ASSESSEE GROUP AND REFLECTED THE PROFITS, THAT THE ITAT ORDER DATED 14.3.2013 FOLLOWED IN ITAT ORDER DATED 15.3.2013 WAS PERVERSE IN IGNORING THE FACT THAT THE TWO BROTHERS WERE ACTIVELY ENGAGED IN BUSINESS TOGETHER AND THE DOCUMENT SEIZED FROM THE LAPTOP OF SHRI BHUTANI REFLECTED THE PROFITS OF THE PROJECTS OF THE ENTIRE GROUP NOT JUST OF ONE BROTHER. 6. WHETHER CIT(A)(C) WAS JUSTIFIED IN NOT TAKING COGNIZANCE OF THE DOCUMENT A- 2/19 SEIZED FROM THE POSSESSION OF THE DIRECTOR OF THE ASSESSEE COMPANY - SHRI VIBHISHEK SINGH - WHICH REFLECTED ON-MONEY RECEIVED. GROUNDS OF ITA NO. 535/JP/2014 1 WHETHER CIT(A) WAS JUSTIFIED IN DELETING THE ADDI TION OF RS. 10,43,80,980 REJECTING APPLICATION OF SECTIO N 145(3) WHEN THE ASSESSEE IS NOT MAINTAINING QUANTITATIVE AND QUALITATIVE STOCK REGISTER AND SEI ZED DOCUMENTS LIKE A-2/51 PROVED ON-MONEY RECEIVED FROM THE PROJECT UNIQUE TOWER UNDERTAKEN BY THE ASSESSEE FIRM. ITA 531, 534 & 537/JP/2014_ DCIT VS. M/S UNIQUE BUILDERS 5 2. WHETHER CIT(A) WAS JUSTIFIED IN REJECTING APPLICAT ION OF PERCENTAGE COMPLETION METHOD BY THE AO, WHEN THIS REJECTION MEANS ACCEPTANCE OF LOSS RETURNS OF THE ASSESSEE ENGAGED IN CONSTRUCTION AND SALE OF RESIDENTIAL / COMMERCIAL PROJECTS. 3. WHETHER CIT(A) WAS JUSTIFIED IN RELYING UPON THE DECISION OF ITAT IN THE CASE OF UNIQUE BUILDERS & DEVELOPERS DATED 14.3.2013 WHICH HAS BEEN APPEALED AGAINST BEFORE HON'BLE HIGH COURT BY THE DEPARTMENT ON PERVERSITY OF FACTS. 4. WHETHER CIT(A) WAS JUSTIFIED IN IGNORING THAT THE ITAT ORDER DATED 14.3.2013 STATED A WRONG FACT THAT THE TWO BROTHERS HAD SEPARATED IN 2006 AND THAT THE DOCUMENT (A2/51) WAS SEIZED FROM THE LAPTOP OF AN EMPLOYEE OF THE SEPARATED AJIT PAL GROUP, IGNORING THE FACT THAT THE TWO BROTHERS - SHRI AJAY PAL SINGH AND SHRI AJIT PAL SINGH - WERE ACTIVELY ENGAGED IN BUSIN ESS AS PARTNERS THEMSELVES OR THROUGH THEIR FAMILIES IN THE ASSESSEE FIRM ITSELF, AND THE SEIZED DOCUMENT A2/51 MENTIONED THE RESIDENTIAL PROJECT 'UNIQUE TOWER' AT JAGATPURA UNDERTAKEN BY THE ASSESSEE FIRM. 2. IN THESE CASES, THE LD ASSESSING OFFICER MADE SC RUTINY ASSESSMENTS U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) ON 20/3/2014 AND ASSESSED THE ASSESSEES INCOME ON THE BASIS OF PERCENTAGE COMPLETION METHOD AND ASSESSED THE TOTAL INCOME AS UNDER:- : UNIQUE BUILDERS & DEVELOPERS (AJAY) RS. 7,46,17 ,740/-. : UNIQUE AFFORDABLES HOUSE P LTD. RS. 2,98,15,384 /- & : UNIQUE BUILDERS & DEVELOPERS (KRISHNA) RS. 10,4 2,72,046/-. ITA 531, 534 & 537/JP/2014_ DCIT VS. M/S UNIQUE BUILDERS 6 3. IN ALL THESE CASES, THE ASSESSEES PREFERRED APP EALS BEFORE THE LD CIT(A), WHO HAD ALLOWED THE APPEALS BY CONSIDERING TH E HONBLE ITAT DECISION IN ASSESSEES OWN CASE 2008-09 AND 2009-10 O RDER DATED 15/3/2013 AND FOR A.Y. 2003-04 TO 2009-10 ORDER DAT ED 14/03/2013 AND ALLOWED THE APPEALS IN FAVOUR OF THE ASSESSEES. 4. NOW THE REVENUES ARE IN APPEALS BEFORE US. THE LD CIT DR HAS VEHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFF ICER. AT THE OUTSET, THE LD AR OF THE ASSESSEE HAS ARGUED THAT THE HONB LE TRIBUNAL HAS CONSIDERED THESE ISSUES IN ASSESSEES OWN CASE IN IT A NO. 589 & 590/JP/2012, ITA NO. 618 & 619/JP/2012 A.Y. 2008-09 AND 2009-10 ORDER DATED 15/3/2013 AND ITA NOS. 73 TO 77/JP/2012 , 689 TO 690/JP/2012 A.Y. 2003-04 TO 2008-09, ITA NO. 78 TO 80/JP/2012 AND ITA NO. 208 TO 210/JP/2012 FOR A.Y. 2007-08 TO 2009-10 ORDER DATED 14/03/2013 IN FAVOUR OF THE ASSESSEE AND HELD THAT PERCENTAGE COMPLETION METHOD IS NOT APPLICABLE IN THE CASES OF ASSESSEES. THEREFORE, HE PRAYED TO UPHOLD THE ORDERS OF THE LD CIT(A). 5. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. THE CO ORDINATE BENCH HAS CONSIDERED THIS ISSUE IN ASSESSEES OWN CASE FOR TH E APPEALS MENTIONED ITA 531, 534 & 537/JP/2014_ DCIT VS. M/S UNIQUE BUILDERS 7 ABOVE. THE COORDINATE BENCH HAS PASSED THE SPEAKING ORDER IN THE APPEAL MENTIONED ABOVE AND ALLOWED THE APPEALS IN FA VOUR OF THE ASSESSEE. BY RESPECTFULLY FOLLOWING THE ORDER OF THE COORDINATE BENCH IN ASSESSEES OWN CASE, WE UPHOLD THE ORDERS OF THE LD C IT(A). 6. IN THE RESULT, THE ALL THE REVENUES APPEAL ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13/05/2016. SD/- SD/- YFYR DQEKJ VH-VKJ-EHUK (LALIET KUMAR) (T.R. MEENA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ @ JAIPUR FNUKAD @ DATED:- 13 TH MAY, 2016 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- THE DCIT, CENTRAL CIRCLE-2, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- M/S UNIQUE BUILDERS & DEVELOPERS (AJ AY)/ M/S UNIQUE AFFORDABLE HOMES PVT. LTD./ M/S UNIQUE BUILDERS & DEVELOPERS (KRISHNA), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 531, 534 & 537/JP/2014) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR