ACIT, Jaipur V. MURANO DEVELOPERS PVT. LTD., Jaipur

ITA 535/JPR/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5210 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 10 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 31-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G R PAREEK

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 HKKXPAN] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF;D LN L; DS LE{K BEFORE: SHRI BHAGCHAND, AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA- @ ITA NO. 535/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 MURANO DEVELOPERS PVT. LTD., 338, TRIPOLIA BAZAR, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ L A-@ PAN/GIR NO.: AAFCM 0318 R VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI G.R. PAREEK (JCIT) FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI P.C. PARWAL (CA) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 03/06/2016 MN?KKS'K .KK DH RKJH[ K @ DATE OF PRONOUNCEMENT : 13/06/2016 VKNS'K @ ORDER PER: LALIET KUMAR, J.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 07/05/2014 PASSED BY THE LD CIT(A), CENTRAL, JAIPUR. THE EFFECTIVE GROUNDS OF APPEAL ARE AS UNDER:- 1 WHETHER CIT(A) WAS JUSTIFIED IN DELETING THE ADDI TION OF RS. 1,36,00,361/- REJECTING APPLICATION OF SECTI ON ITA 535/JP/2014_ DCIT VS. M/S MURANO DEVELOPERS PVT. LTD. 2 145(3) WHEN THE ASSESSEE IS NOT MAINTAINING QUANTITATIVE AND QUALITATIVE STOCK REGISTER AND THE DOCUMENT LIKE A-2/51 AND A2/19 PROVED ON-MONEY RECEIVED FROM THE VARIOUS PROJECTS OF GROUP. 2. WHETHER CIT(A) WAS JUSTIFIED IN REJECTING APPLIC ATION OF PERCENTAGE COMPLETION METHOD BY THE AO, WHEN THIS REJECTION MEANS ACCEPTANCE OF LOSS RETURN OF T HE 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 M/S UNIQUE BUILDER S & DEVELOPERS DATED 14-03-2013 IN WHICH HAS BEEN APPEALED AGAINST BEFORE HONBLE HIGH COURT BY THE DEPARTMENT ON PERVERSITY OF FACTS. 4. WHETHER CIT(A) WAS JUSTIFIED IN IGNORING THAT THE ITAT ORDER DATED 14-03-2013 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 IN VARIOUS CONCERNS OF THE GROUP, AND THE SEIZED DOCUMENT A2/51 AND THE DOCUMENT A2/19 SEIZED FROM THE DIRECTOR OF THE COMPANY REFLECTED ON-MONEY RECEIVED. 5. WHETHER THE CIT(A)(C) WAS RIGHT IN DELETING THE ADDITION OF RS. 5,77,832/- BEING INCOME FROM OTHER SOURCES AND OF RS. 33,790/- BEING STCG DESPITE THE FACT THAT THE LOSS AS SHOWN BY THE ASSESSEE WAS ARRIVED AT AFTER ADJUSTING THE ABOVE TWO NON-BUSINES S ITA 535/JP/2014_ DCIT VS. M/S MURANO DEVELOPERS PVT. LTD. 3 INCOME FROM THE BUSINESS LOSS COMPUTED ON THE BASIS OF PROJECT COMPLETION METHOD. 2. THE LD DR HAS SUBMITTED THAT THE IMPUGNED ORDER P ASSED BY THE LD CIT(A) WAS PASSED ON THE ORDER OF THE HONBLE ITAT JAIPUR BENCH, JAIPUR IN ITA NO. 150/JP/2014 ORDER DATED 13/05/201 6 FOR THE A.Y. 2010-11. THE SAID ORDER OF THE HONBLE TRIBUNAL WAS C HALLENGED BY THE DEPARTMENT BEFORE THE HON'BLE HIGH COURT AND THE RE SULT OF THE HONBLE COURT IS AWAITED. BESIDES, THIS IT IS SUBMITTED THAT PROJECT COMPLETION METHOD IS NOT CORRECT METHOD AS THE ASSESSEE HAS BE EN ACCEPTING AMOUNT FROM THE CONSUMERS IN INSTALLMENT BASIS. THER EFORE, THE PERCENTAGE COMPLETION METHOD IS CORRECT AND APPROPR IATE METHOD. 3. ON THE OTHER HAND, THE LD AR OF THE ASSESSEE HAS RELIED UPON THE ORDERS OF THE HONBLE ITAT, JAIPUR BENCH, JAIPUR IN ASSESSEES OWN CASE BEING ITA NO. 150/JP/2014 ORDER DATED 13/05/2016 FO R THE A.Y. 2010- 11. FURTHER THE LD AR HAS ALSO PLACED ON RECORD THE JUDGMENT OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF PARAS BUIL DTECH INDIA PRIVATE LIMITED AND ANR. VS CIT & ANR (2016) 382 ITR 0630 WHER EIN THE HON'BLE HIGH COURT HAS DECIDED THE ISSUE IN THE IDENTICAL F ACTS AND CIRCUMSTANCES OF THE CASE ON THE BASIS OF PERCENTAGE COMPLETION M ETHOD. ITA 535/JP/2014_ DCIT VS. M/S MURANO DEVELOPERS PVT. LTD. 4 4. 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 THE APPEAL MENTIONED 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 ORDER OF THE LD CI T(A). IT IS MADE CLEAR THAT IN CASE, THE HON'BLE HIGH COURT DECIDED THE ISSUE IN FAVOUR OF THE REVENUE, THE REVENUE SHALL BE AT LIBERTY TO TAK E ALL STEPS TO ENFORCE THE ORDER PASSED BY THE LD ASSESSING OFFICER. 5. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 13/06/2016. SD/- SD/- HKKXPAN YFYR DQEKJ (BHAGCHAND) (LALIET KUMAR) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ @ JAIPUR FNUKAD @ DATED:- 13 TH JUNE, 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 MURANO DEVELOPERS PVT. LTD., JAI PUR. ITA 535/JP/2014_ DCIT VS. M/S MURANO DEVELOPERS PVT. LTD. 5 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. 535/JP/2014) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR