VASTU SHILPA COMPLEX DESIGNER P. LTD, MUMBAI V. ITO WD 8(3)(4), MUMBAI

ITA 5518/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 1441 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2006-2007
• Appeal Filed On: 08-10-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIRENDRA OJHA
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI VIJAY PAL RAO, JM ITA NO.5518/MUM/2009 : ASST.YEAR 2006-2007 M/S.VASTU SHILPA COMPLEX DESIGNER PRIVATE LIMITED, HILL PARK COMPLEX A-1 TOWER, OFF CAPTAIN SAWANT MARG JOGESHWARI (WEST) MUMBAI 400 102. PA NO.AAACV2440E. VS. THE INCOME TAX OFFICER WARD 8(3)(4) MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : --- NONE (W.S.) RESPONDENT BY : SHRI VIRENDRA OJHA O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDE R PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 21.7.2009 I N RELATION TO THE ASSESSMENT YEAR 2006-2007. 2. ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE ESTIMATION OF GROSS PROFIT AT 10% AGAINST 5.5% DECLARED BY THE ASSESSEE THEREBY C ONFIRMING ADDITION OF RS.11,24,703. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE ESTIMATED GROSS PROFIT AT THE RATE OF 5.5% OF THE PROJECT EXP ENSES TRANSFERRED TO WORK-IN- PROGRESS AND OTHER RECEIPTS OF LEGAL CHARGES OF RS. 3,26,500. AGAINST THIS THE ASSESSEE CLAIMED OPERATING EXPENSES OF RS.10,77,269 AND DEPRECIATION OF RS.38,069. THUS NET PROFIT OF RS.5,39,275 WAS DETER MINED. THE ASSESSING OFFICER, FOLLOWING HIS ACTION TAKEN IN ASSESSMENT YEARS 2001 -2002, 2003-2004 AND 2005- 2006, APPLIED PROFIT RATE OF 10% ON THE AMOUNT OF W ORK-IN-PROGRESS. THE LEARNED CIT(A), FOLLOWING THE ORDER OF HIS PREDECESSORS, ECHOED THE ASSESSMENT ORDER ON THIS POINT, AGAINST WHICH THE ASSESSEE IS IN APPEAL BEFORE US. ITA NO.5518/MUM/2009 M/S.VASTU SHILPA COMPLEX DESIGNER PVT.LTD. 2 3. WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENT ATIVE AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE ASSESSEE HAS FILED WRITTEN SUBMISSIONS DATED 9.6.2010 STATING THAT THE TRIBUNAL IN ASSESSEES O WN CASE FOR THE IMMEDIATELY PRECEDING YEAR I.E. ASSESSMENT YEAR 2005-2006 HAS A PPROVED 10% PROFIT RATE. THE COPY OF THE ORDER IS ALSO AVAILABLE ON RECORD. THRO UGH WRITTEN SUBMISSIONS IT HAS BEEN URGED THAT EVERY YEAR IS A SEPARATE UNIT OF A SSESSMENT. HOWEVER WE ARE UNABLE TO FIND ANYTHING FROM THE WRITTEN SUBMISSION S DISTINGUISHING THE FACTS OF THE INSTANT YEAR FROM THOSE OF THE EARLIER YEARS. THE L EARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT SINCE THE INSTANT ASS ESSMENT YEAR IS BASED ON THE EARLIER YEARS ASSESSMENT, THE VIEW FINALLY TAKEN B Y THE TRIBUNAL BE APPLIED. IT IS OBSERVED FROM THE TRIBUNAL ORDER IN ITA NO.6729/MUM /2008 IN RELATION TO THE ASSESSMENT YEAR 2005-2006 THAT IT APPROVED THE RATE OF 10% BY FURTHER FOLLOWING THE ORDER PASSED BY THE CO-ORDINATE BENCH OF THE TR IBUNAL IN ASSESSMENT YEAR 2003- 2004. THUS IT BECOMES CLEAR THAT 10% PROFIT RATE OF WORK-IN-PROGRESS HAS BEEN APPROVED BY THE TRIBUNAL FOR THE IMMEDIATELY PRECED ING YEAR AND STILL ANOTHER EARLIER YEAR. IN THE ABSENCE OF ANY DISTINGUISHING FEATURE HAVING BEEN BROUGHT TO OUR NOTICE, WE ARE NOT INCLINED TO DEVIATE FROM THE EARLIER VIEW. RESPECTFULLY FOLLOWING THE PRECEDENT, WE APPROVE THE ACTION OF THE LEARNED CIT(A) IN DIRECTING THE APPLICATION OF PROFIT RATE OF 10% ON THE AMOUNT OF WORK-IN-PROGRESS. 4. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THIS 18 TH DAY OF JUNE, 2010. SD/- SD/- (VIJAY PAL RAO) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 18 TH JUNE, 2010 . DEVDAS* ITA NO.5518/MUM/2009 M/S.VASTU SHILPA COMPLEX DESIGNER PVT.LTD. 3 COPY TO : 1. THE APPELLANT. 2. THE RESPONDENTS. 3. THE CIT CONCERNED 4. THE CIT(A)-XXIX, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.