DEEKAY REALTORS P.LTD, MUMBAI V. DCIT 4(1), MUMBAI

ITA 6628/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2476 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 13-11-2013
• Court: TRIBUNAL
• Department Lawyers: B S BIST
• Assessee Lawyers: RASHMIKANT C MODY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & RAMLAL NEGI (JM) I.T.A. NO. 6628 /MUM/ 20 1 3 (ASSESSMENT YEAR 20 1 0 - 11 ) I.T.A. NO. 7521/MUM/2014 (ASSESSMENT YEAR 2011 - 12) DEEKAY REALTORS PVT. LTD. 42/44, SHRINIWAS BUI LDING BANDU GOKHALE PATH COW LANE, GIRGAON MUMBAI - 400 004. VS. DCIT - 4(1) AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. ( APPELLANT ) ( RESPONDENT ) PAN NO . AAACD1536B ASSESSEE BY SHRI RASHMIKANT C. MODY DEPARTMENT BY SHRI B.S. BIST DATE OF HEARING 20. 7 . 201 6 DATE OF PRONOUNCEMENT 20 . 7 . 201 6 O R D E R PER B.R. BASKARAN (AM) : - BOTH THE APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER S PASSED BY LEARNED CIT(A) - 8, MUMBAI AND THEY RELATE TO A.Y. 2010 - 11 & 2011 - 12. 2. THE ASSESSEE IS A GGRIEVED BY THE DECISION OF LEARNED CIT(A) IN CONFIRMING THE ADDITIONS MADE BY THE ASSESSING OFFICER TO THE TOTAL INCOME OF THE ASSESSEE. 3. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CONSTRUCTION AND DEVE LOPMENT. THE ASSESSEE OFFERED INCOME UNDER PERCENTAGE COMPLETION METHOD. THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS WORKED OUT PERCENTAGE OF COMPLETION BY EXCLUDING COST OF LAND . H ENCE THE ASSESSING OFFICER RECOMPUTED THE PROFIT UNDER PERCENTAGE COMPLETION METHOD BY INCLUDING COST OF LAND AND THE SAME HAS RESULTED IN AN DEEKAY REALTORS PVT. LTD. 2 ADDITION OF ` 5,98,680/ - IN A.Y. 2010 - 11 AND ` 4,16,529/ - IN A.Y. 2011 - 12. LEARNED CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER AND HENCE THE ASSESSEE HAS FILED THESE APPEA LS BEFORE US. 4. THE LEARNED AR WAS ASKED ABOUT THE METHOD FOLLOWED IN OTHER YEARS. HE SUBMITTED T HAT IN A.Y. 2009 - 10 AND 2012 - 13, THE ASSESSEE HAS ACCEPTED THE WORKINGS MADE BY THE ASSESSING OFFICER. THUS, WE NOTICED THAT THE ASSESSEE HAS ACCEPTED THE M ETHOD ADOPTED BY THE AO IN OTHER YEARS AND HENCE THE VARIATION MADE IN THE YEARS UNDER CONSIDERATION TO THE WORKING OF PERCENTAGE OF COMPLETION WOULD NOT REQUIRE ANY INTERFERENCE . 5. LEARNED AR SUBMITTED THAT THE ASSESSEE HAD COMPUTED FINAL PROFIT UPON COMPLETION OF PROJECT BY OFFSETTING THE INCOME AS DECLARED BY IT IN THE RETURN S OF INCOME OF EARLIER YEARS . HE SUBMITTED THAT THE INCOME ASSESSED BY THE ASSESSING OFFICER, IF CONFIRMED BY THE TRIBUNAL, SHOULD BE SET OFF AT THE TIME OF ASCERTAINING FINAL PR OFIT UPON COMPLETION OF THE PRO JECT. ACCORDINGLY, HE PRAYED THAT SUITABLE DIRECTION MAY BE GIVEN TO THE ASSESSING OFFICER IN THIS REGARD. 6. WE ALSO HEARD LD D.R ON THE ALTERNATIVE PLEA PUT FORTH BY LD A.R. THE LD D.R DID NOT OBJECT TO THE SAME. HAVING HEARD THE RIVAL SUBMISSIONS ON THIS ISSUE, WE ARE OF THE VIEW THAT THERE IS MERIT IN THE SUBMISSIONS MADE BY THE ASSESSEE. ACCORDINGLY W E DIRECT THE ASSESSING OFFICER TO ARRIVE AT THE FINAL PROFIT UPON COMPLETION OF THE PROJECT BY OFFSETTING THE INCOME TH AT HAS ALREADY BEEN ASSESSED IN THE EARLIER YEARS. 7. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASSESSEE ARE TREATED AS PARTLY ALLOWED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 20 .7.2016 SD/ - SD/ - (RAMLAL NEGI ) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 20 / 7 / 20 1 6 DEEKAY REALTORS PVT. LTD. 3 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT , MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI PS