DCIT, Circle-3(2), Hyd, Hyderabad V. Siva Swathi Constructions Pvt.Ltd., Hyd, Hyderabad

ITA 724/HYD/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6224 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 26-09-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 28-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: D SATYANARAYANA
• Keywords: Revised return
• Section: 143(3)

Judgement Text

1 ITA.NO.724/HYD/2015 M/S. SIVA SWATHI CONSTRUCTIONS P. LTD., HYDERABAD. IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA.NO.724/HYD/2015 ASSESSMENT YEAR 2012-2013 THE DCIT, CIRCLE - 3(2) HYDERABAD. VS. M/S. SIVA SWATHI CONSTRUCTIONS P. LTD., HYDERABAD. PAN AAICS9943F (APPELLANT) (RESPONDENT) FOR REVENUE : SMT. SUMAN MALIK FOR ASSESSEE : MR. D. SATYANARAYANA DATE OF HEARING : 2 6 .0 9 .2016 DATE OF PRONOUNCEMENT : 2 6 .09.2016 ORDER PER D. MANMOHAN, V.P. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)-III, HYDERABAD AND IT PERTA INS TO THE A.Y. 2012-2013. THE ONLY GROUND URGED BY THE REVENUE READS AS UNDER : THE LD. CIT(A) OUGHT NOT HAVE ALLOWED THE ASSESSEE S CLAIM OF DEDUCTION UNDER SECTION 80IA OF THE ACT RELYING ON THE ORDER OF HONBLE ITAT, ALTHOUGH THE ASSESSEE WAS NO T OWNER OF THE PROPERTY AND DID NOT SATISFY THE CONDITIONS OF BEING A DEVELOPER I.E., DEVELOPMENT, OPERATING, MAINTENANCE , FINANCIAL INVOLVEMENT, DEFECT CORRECTION AND LIABIL ITY PERIOD IN THE CONTRACT AGREEMENT ? 2. FACTS NECESSARY FOR DISPOSAL OF THIS APPEAL ARE STATED IN BRIEF. THE ASSESSEE-COMPANY IS ENGAGED IN THE BU SINESS OF EXECUTION OF CIVIL CONTRACTS. FOR THE YEAR UNDER CONSI DERATION, IT 2 ITA.NO.724/HYD/2015 M/S. SIVA SWATHI CONSTRUCTIONS P. LTD., HYDERABAD. DECLARED INCOME OF RS.7.57 CRORES AFTER CLAIMING DE DUCTION UNDER SECTION 80IA AT RS.7.45 CRORES. THEREAFTER, A REVISED RETURN WAS FILED ENHANCING THE INCOME TO RS.8.43 CRORES AND THE R ETURN WAS PROCESSED ACCORDINGLY. LATER ON, THE CASE OF THE ASSES SEE WAS SELECTED FOR SCRUTINY AND IN THE ASSESSMENT COMPLETED U NDER SECTION 143(3) OF THE I.T. ACT, THE ASSESSING OFFICER ESTIMATED THE INCOME AT RS.16,58,97,397 AND ALSO ADDED A SUM OF RS.65,35,736 UNDER THE HEAD OTHER INCOME AND THUS, DETERMINED THE TOTAL INCOME AT RS.17.24 CRORES. THE ASS ESSEE WAS NOT GRANTED DEDUCTION UNDER SECTION 80IA OF THE ACT ON TH E GROUND THAT HE WAS EXECUTING CONTRACTS FOR AND ON BEHAL F OF THE CONCERNED GOVERNMENT AND THERE IS CERTAINLY NO CONTRIB UTION OF MAINTAINING, DEVELOPING OR OPERATING OF ANY INFRASTRUC TURE FACILITY AS ENVISAGED IN CLAUSE (C) TO SUB-SECTION (4) OF SECTI ON 80IA OF THE ACT. 3. AGGRIEVED, ASSESSEE CHALLENGED THE ORDER OF THE ASSESSING OFFICER BY CONTENDING BEFORE THE CIT(A) THAT UNDER THE SAME SET OF FACTS AND CIRCUMSTANCES, THE ITAT, HYDERABA D BENCH IN ASSESSEES OWN CASE FOR THE A.YS. 2009-10 AND 201 1-12 HAVE TAKEN A VIEW THAT ASSESSEE IS ENTITLED TO DEDUCTION UNDER SECTION 80IA OF THE ACT. THE LD. CIT(A) RELIED UPON THE ORDERS OF THE ITAT IN ASSESSEES OWN CASE (ITA.NO.1008 AND 1009/H/2013 DATED 25.10.2013) TO HOLD THAT ASSESSEE IS ENGAGED IN THE SA ME PROJECT AND HENCE, FOR THE REASONS GIVEN IN THE ORDER PASSED BY ITAT, THE ASSESSEE IS ENTITLED TO DEDUCTION UNDER SECTION 80IA OF THE ACT EVEN IN THIS YEAR. AGGRIEVED, REVENUE IS IN APPEAL B EFORE US. 4. DURING THE COURSE OF HEARING, IT IS NOT DISPUTED THA T EVEN FOR THE A.Y. 2011-2012 (ITA.NO.189/HYD/2015), T HE ITAT A 3 ITA.NO.724/HYD/2015 M/S. SIVA SWATHI CONSTRUCTIONS P. LTD., HYDERABAD. BENCH, HYDERABAD HAD TAKEN A SIMILAR VIEW IN FAVOUR OF THE ASSESSEE. CONSISTENT WITH THE VIEW TAKEN THEREIN, WE HO LD THAT THE ASSESSEE IS ENTITLED TO DEDUCTION UNDER SECTION 80IA OF THE ACT AND SINCE THE VIEW TAKEN BY THE LD. CIT(A) IS IN CONSO NANCE WITH THE VIEW TAKEN BY THE ITAT (SUPRA), WE UPHOLD THE ORDE R OF THE LD. CIT(A) AND DISMISS THE APPEAL FILED BY THE REVENUE. ORDER PRONOUNCED IN THE OPEN COURT ON 26.09.2016 SD/- SD/- (B. RAMAKOTAIAH) (D.MANMOHAN) ACCOUNTANT MEMBER. VICE PRESIDENT HYDERABAD, DATED 26 TH SEPTEMBER, 2016 VBP/- COPY TO: 1. THE DCIT, CIRCLE-3(2), 7 TH FLOOR, B BLOCK, I.T. TOWERS, A.C. GUARDS, HYDERABAD. 2. M/S. SIVA SWATHI CONSTRUCTIONS P. LTD., 8-2-684/3/3 0 & 31, ROAD NO.12, BANJARA HILLS, HYDERABAD. 3. CIT(A)-3, HYDERABAD. 4. COMMISSIONER OF INCOME TAX-3, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE ITAT, A BENCH, HYDERAB AD 6. GUARD FILE.