DCIT CEN CIR-36, MUMBAI V. SUMER CORPORATION, MUMBAI

ITA 7294/MUM/2008

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 79263 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 25-06-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 26-12-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PERCY J PARIWALLA
• Keywords: Search and seizure
• Section: 143(3); 153A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL I B ENCH, MUMBAI , !', % % % % &' . % . () . % . , !' * BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND DR.S.T.M. PAVALAN, JUDICIAL MEMBER ./ I.T.A. NO. 7294/MUM/2008 ( + + + + / ASSESSMENT YEAR :2007-08 THE DCIT, CENTRAL CIRCLE-36, AAYAKAR BHAVAN, MUMBAI-400 020 / VS. M/S. SUMER CORPORATION, 220,COMMERCE HOUSE, 140, NAGINDAS MASTER ROAD, MUMBAI-400 023 ', ./ -. ./ PAN/GIR NO. : AACFS 4279F ( ,/ / APPELLANT ) .. ( 01,/ / RESPONDENT ) ,/ 2 / APPELLANT BY: SHRI SANTOSH KUMAR 01,/ 3 2 / RESPONDENT BY: SHRI PERCY J.PARIWALLA 3 4) / DATE OF HEARING :25.06.2014 56+ 3 4) / DATE OF PRONOUNCEMENT :25.06.2014 !7 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A)-CENTRAL VI, MUMBAI DT.26.11.2008 PERTAINING TO A.Y. 2007-08. 2. THE REVENUE HAS RAISED FOLLOWING TWO GROUNDS OF APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION WITHOUT APPRECIATING THE FACT THAT THE WORK IN RESPECT OF CHANDIVALI ITA NO. 7294/M/2008 2 PROJECT WAS COMPLETED BOTH IN RESPECT OF CONSTRUCTI ON AS WELL AS REALIZATION OF SALE CONSIDERATION. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E IN LAW, THE LD. CIT(A) ERRED IN CONSTRUING THE MEANING OF PROJECT AS LAID DOWN IN PROVISION OF SEC. 80IB(10) OF THE I.T. ACT, 1961 WITH THE MEANING OF PROJECT IN THE PROJEC T COMPLETION METHOD OF RECOGNITION OF REVENUE AND THE REBY DELETING THE ADDITIONS MADE IN THE HANDS OF THE ASS ESSEE. 3. AT THE VERY OUTSET, THE LD. SR. COUNSEL FOR THE ASSESSEE SHRI PERCY J. PARDIWALLA STATED THAT BECAUSE OF SUBSEQUENT EVE NTS THE APPEAL FILED BY THE REVENUE BECOME OTIOSE. HE FILED 2 ASSESSMENT O RDERS ONE PASSED U/S. 143(3)/153A FOR A.Y. 2007-08 DT. 28.3.2013 AND THE OTHER FOR A.Y. 2011/12 PASSED U/S. 143(3) DT. 28.3.2013. IT IS TH E SAY OF THE LD. COUNSEL THAT IN ORDER U/S. 153A, THE REVENUE HAS ACCEPTED T HE PROJECT COMPLETION METHOD OF THE ASSESSEE AND IN A.Y. 2011-12, THE INC OME DERIVED FROM THE CHANDIVALI PROJECT HAS BEEN ASSESSED TO TAX ON THE BASIS OF THE PROJECT COMPLETION METHOD THEREFORE THIS APPEAL FILED BY TH E REVENUE BECOME INFRUCTUOUS. 4. PER CONTRA, THE LD. DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ORDER OF THE AO. 5. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE LOWE R AUTHORITIES. WE ALSO HAVE THE BENEFIT OF THE ASSESSMENT ORDER IN TH E CASE OF THE ASSESSEE ONE PASSED U/S. 153A OF THE ACT FOR A.Y. 2007-08 AN D THE OTHER PASSED U/S. 143(3) FOR A.Y. 2011-12. WE FIND FORCE IN THE SUBMISSION OF THE LD. SENIOR COUNSEL. AFTER THE SEARCH AND SEIZURE OPERA TION, THE ASSESSMENT WAS FRAMED U/S. 153A FOR A.Y. 2007-08 FOR CHANDIVAL I PROJECT. THE AO HAS ACCEPTED THAT THE ASSESSEE FOLLOWS PROJECT COMP LETION METHOD AND INCOME FROM THIS PROJECT AND ALLOWABILITY OF THE SA ME WOULD BE DETERMINED WHEN THE PROJECT STATED TO HAVE BEEN COM PLETED IN THE ITA NO. 7294/M/2008 3 ASSESSMENT YEAR 2011-12 AND IN THE ASSESSMENT ORDER FOR A.Y. 2011-12, THE AO HAS ACCEPTED THE PROFIT OF CHANDIVALI PROJEC T AND ALLOWED THE CLAIM OF DEDUCTION U/S. 80IB(10) OF THE ACT. WITH THIS MATERIAL EVIDENCE ON RECORD, WE HAVE NO HESITATION TO HOLD THAT THIS APPEAL FILED BY THE REVENUE IS OTIOSE AND ACCORDINGLY DISMISSED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON 25.6.2014. !7 3 6+ 8 9!: 25.6.2014 6 3 ; SD/- SD/- (DR. S.T.M. PAVALAN) (N.K. BILLAIYA) !' /JUDICIAL MEMBER !' / ACCOUNTANT MEMBER MUMBAI; 9! DATED 25 TH JUNE, 2014 . . ./ RJ , SR. PS !7 !7 !7 !7 3 33 3 04 04 04 04 <+4 <+4 <+4 <+4 / COPY OF THE ORDER FORWARDED TO : 1. ,/ / THE APPELLANT 2. 01,/ / THE RESPONDENT. 3. = ( ) / THE CIT(A)- 4. = / CIT 5. >; 04 , , / DR, ITAT, MUMBAI 6. ;& ? / GUARD FILE. !7 !7 !7 !7 / BY ORDER, 14 04 //TRUE COPY// @ @@ @ / A A A A - - - - (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI