UNIQUE BUILDERS (RAMA), Jaipur V. DCIT, Jaipur

ITA 649/JPR/2012

• Counselvise Citation: 64923114 RSA 2012
• Duration Of Justice: 2 year(s) 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 02-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS ROLEE AGARWAL CIT DR DHK
• Assessee Lawyers: JAVED KHAN
• Section: 234B; 144

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 VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH VH-VKJ-EHUK] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI T.R. MEENA, AM VK;DJ VIHY LA-@ ITA NO. 649 & 650/JP/2012 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 & 2009-10 M/S. UNIQUE BUILDERS (RAMA) C-116, JANPATH, LAL KOTHI SCHEME, JAIPUR CUKE VS. THE DCIT CENTRAL CIRCLE- 2 JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AACFU 0823 D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MANISH AGARWAL, CA & SHRI JAVED KHAN, ADVOCATE JKTLO DH VKSJ LS@ REVENUE BY : MRS. ROLEE AGARWAL, CIT - DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 17/11/2014 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 16/01/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM BOTH THESE APPEALS HAVE BEEN FILED BY THE ASSESSEE AGAINST COMMON ORDER OF THE LD. CIT(A)- CENTRAL, JAIPUR DA TED 02-05-2012 FOR THE ASSESSMENT YEARS 2008-09 AND 2009-10 WHEREIN VA RIOUS GROUNDS ARE RAISED BUT IN EFFECT THE MAIN GROUNDS ARE AS UNDER: - (I) UPHOLDING THE REJECTION OF BOOKS OF ACCOUNT U/ S 145(3) OF THE ACT. ITA NO.649/JP/2012 M/S. UNIQUE BUILDERS (RAMA) VS. DCIT, CENTRAL CIRCL E- 2, JAIPUR . 2 (II) APPLYING PERCENTAGE COMPLETION METHOD IN PLACE OF PROJECT COMPLETION METHOD FOLLOWED BY THE ASSESSEE, . (III) MAKING ADDITION OF RS. 2,98,230/- FOR ASSESSM ENT YEAR 2008-09 AND RS. 3,21,705/- FOR THE ASSESSMENT YEAR 2009-10 BY ABOVE CHANGE OF METHOD 2.1 THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET CONTENDS THAT THE ISSUE IN QUESTION IS SQUARELY COVERED BY ITAT JAIPU R BENCH CONSOLIDATED ORDER DATED 14-03-2013 IN THE ASSESSEE'S OWN GROUP CASES I.E. M/S. UNIQUE BUILDERS & DEVELOPERS VS. DCIT (ITA NOS. 73 TO 77/JP/12, 689 TO 690/JP/12 FOR ASSESSMENT YEAR 2003-04 TO 2006-07 , 2009-10, 2007-08 & 2008-09) AND UNIQUE BUILDERS & DEVELOPERS (KRISHN A) (ITA NO. 78 TO 80/JP/12 FOR THE ASSESSMENT YEAR 2007-08 TO 2009-10 ) WHEREIN THE REJECTION OF BOOKS OF ACCOUNT U/S 145(3) OF THE ACT HAVE BEEN HELD TO BE NOT PROPER AND ASSESSEE'S METHOD OF ACCOUNTING I.E. PROJECT COMPLETION METHOD HAS BEEN UPHELD BY FOLLOWING OBSERVATIONS BY THIS BENCH OF ITAT IN ITS GROUP CASES (SUPRA) 13. CONSIDERING ENTIRE CONSPECTUS OF THE CASE IN THE LIGHT OF THE PECULIAR FACTS AND FINDINGS REACHED HEREIN BEFO RE IN THIS CASE, IT IS NEITHER PROPER NOR JUSTIFIED TO HOLD THAT THE BOOKS OF ACCOUNT MAINTAINED BY THE ASSESSEE DID NOT PRESENT TRUE AND COMPLETE PICTURE OF ITS ACCOUNTS AND FINANCIAL TRANSACTIONS. IT IS A CA SE WHERE ACCOUNTS OF THE ASSESSEE ARE CORRECT AND COMPLETE. METHOD OF AC COUNTING AND ACCOUNTING STANDARD HAS BEEN REGULARLY FOLLOWED. TR UE AND CORRECT PROFITS OF THE BUSINESS OF THE ASSESSEE COULD BE DE DUCED FROM SUCH BOOKS OF ACCOUNTS. IN THIS VIEW OF THE MATTER THE AS SESSING AUTHORITY ITA NO.649/JP/2012 M/S. UNIQUE BUILDERS (RAMA) VS. DCIT, CENTRAL CIRCL E- 2, JAIPUR . 3 COULD NOT CHANGE THE METHOD REGULARLY ADOPTED BY TH E ASSESSEE FROM PROJECT COMPLETION METHOD TO PERCENTAGE COMPLETION METHOD ON IRRELEVANT CONSIDERATIONS. WE, ARE, THEREFORE, SAT ISFIED THAT PROVISIONS OF SECTION 145(3) ARE NOT ATTRACTED IN THIS CASE. T HE LEARNED CIT(A), IS FOUND TO HAVE ERRED IN UPHOLDING THE DECISION OF LE ARNED ASSESSING AUTHORITY TO INVOKE SECTION 145(3) OF THE ACT AND MA KING ASSESSMENT IN THE MANNER PROVIDED UNDER SECTION 144 OF THE ACT. W E, THEREFORE, SET ASIDE THE DECISION IN THIS REGARD AND ALLOW GROUND NOS. 2 & 3 RAISED IN APPEAL BY THE ASSESSEE IN ASSESSMENT YEAR 2003-04. 14. IN THE LIGHT OF OUR DECISION IN ASSESSEES APPE AL, THE GROUNDS RAISED IN APPEAL BY REVENUE BECOME INFRUCTU OUS AND STAND REJECTED. 15. PARTIES HAVE FAIRLY ADMITTED THAT THERE BEING I DENTICAL FACTS IN THE APPEALS FOR THE ASSESSMENT YEARS 2004-0 5 TO 09-10 AND IDENTICAL ISSUES HAVE BEEN RAISED, THE SAME MAY THE REFORE BE DISPOSED OFF IN THE LIGHT OF DECISION AND CONCLUSIONS THAT I S TAKEN FOR ASSESSMENT YEAR 2003-04. THAT BEING SO THE FACTS AND CIRCUMSTAN CES BEING PARAMETERIA SAME IN ASSESSMENT YEARS 2004-05 TO 09-10 AND NO NEW FACT OR REASONING IS SHOWN TO HAVE BEEN TAKEN BY THE LEARNED CIT(A) IN TAKING THE DECISION, WE FOR THE PARITY OF REASONS AN D RESPECTIVELY FOLLOWING OUR DECISION FOR ASSESSMENT YEAR 2003-04, ALLOW ASSESSEES GROUND NOS. 2 & 3 IN ALL THESE YEARS IN APPEAL WHER EAS REVENUES GROUNDS IN APPEAL FOR ASSESSMENT YEARS 2004-05 TO 06 -07 AND 09-10 BECOME INFRUCTUOUS AND STAND REJECTED. CHARTING OF INTEREST UNDER SECTION 234B BEING MANDATORY AND CONSEQUENTIAL, THE ASSESSING AUTHORITY SHALL RE-COMPUTE THE SAME ACCORDINGLY. 16. IN THE RESULT, ALL THE APPEALS BY ASSESSEE STAN D PARTLY ALLOWED AND THAT BY REVENUE STAND DISMISSED. 2.2 THE LD. DR IS HEARD. 2.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE FACTS AND CIRCUMSTANCES OF THE ASSESSEE'S CASE AND ITS OTHER GROUP CASES ARE SIMILAR. THUS IN VIEW THEREOF AND BY RESPECTFULLY FOLLOWING THE CONSOLIDATED ORDER REFER RED ABOVE, WE UPHOLD ITA NO.649/JP/2012 M/S. UNIQUE BUILDERS (RAMA) VS. DCIT, CENTRAL CIRCL E- 2, JAIPUR . 4 THE REJECTION OF BOOKS OF ACCOUNT OF THE ASSESSEE A ND METHOD OF ACCOUNTING OF PERCENTAGE COMPLETION METHOD AS FOLLO WED BY THIS BENCH OF ITAT IN ASSESSEE'S GROUP OF CASES. THUS IN THE E NTIRETY OF THE FACTS AND CIRCUMSTANCES, THE ADDITIONS ARE DELETED AND THE AP PEALS OF THE ASSESSEE ARE ALLOWED. 3.0 IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED ORDER PRONOUNCED IN THE OPEN COURT ON 16/01/2015 . SD/- SD/- VH-VKJ-EHUK VKJ-IH-RKSYKUH (T.R. MEENA) (R.P.TOLANI) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16 TH JANUARY, 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. UNIQUE BUILDERS (RAMA) AIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE DCIT, CENTRAL CIRCLE- 2, JAIPU R . 3. VK;DJ VK;QDRVIHY@ THE CIT(A). 4. VK;DJ VK;QDR@ CIT, JAIPUR 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.649/JP/2012) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR