Naresh J. Karda, Nashik V. Assistant Commissioner of Income-tax, Central Circle -2, Nashik

ITA 817/PUN/2019

AI Insights

The case involves multiple appeals related to the tax assessments of Shri Naresh Jagumal Karda and M/s. Karda Constructions Pvt. Ltd. The primary issues revolved around the application of section 43CA, the percentage completion method in accounting, and the deductibility of compensation sums paid to customers under section 37(1) of the Income Tax Act. The tribunal's decision referenced a detailed discussion in a previous case involving the same assessee, which covered all the issues presented in these appeals. The tribunal partly accepted the appeals, aligning with the previous decisions on similar grounds.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 113058 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowedPartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 29-11-2022
• Assessment Year: 2015-2016
• Appeal Filed On: 26-05-2019
• Laws Referred To: Section 43CA, Section 37(1)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 37(1)

Judgement Text

35 ITA.Nos.814 to 817/PUN./2019, ITA.Nos.798 to 800/PUN./2019, ITA.No.813/PUN./2019 & ITA.No.796/PUN./2019 Shri Naresh Jagumal Karda, Nashik, & M/s. Karda Constructions Pvt. Ltd., Nashik. 28. Both the learned representatives are ad idem during the course of hearing submitted that our foregoing detailed discussion in former assessee Shri Naresh Jagumal Karda’s seven cases (supra) squarely covers all these issues wherein we have inter alia restored sec.43CA addition back to the Assessing Officer, upheld the CIT(A)'s action deleting the addition on account of percentage completion method and agreed with the assessee’s contention that its entire compensation sums paid to customers deserve to be granted deduction u/s 37(1) of the Act, respectively. We thus partly accept both these cross-appeals in very terms. 29. No other ground or arguments have been raised before us during the course of hearing. 30. These Revenue’s and assessee’s latter cross-appeals ITA.No.796/PUN./2019 and ITA.No.813/PUN./2019 are partly accepted for statistical purposes in above terms. 31. To sum-up, the former assessee’s appeal ITA.No.814/PUN./2019 is dismissed. The Revenue’s and former assessee’s cross-appeals ITA.Nos.798 to 800 & 815 to 817/PUN./2019 are partly allowed for statistical purposes. The Revenue’s and latter assessee’s cross-appeals ITA.No.796/PUN./ 2019 and ITA.No.813/PUN./2019 are partly accepted for statistical purposes in above terms. A copy of this common order be placed in the respective case files. 36 ITA.Nos.814 to 817/PUN./2019, ITA.Nos.798 to 800/PUN./2019, ITA.No.813/PUN./2019 & ITA.No.796/PUN./2019 Shri Naresh Jagumal Karda, Nashik, & M/s. Karda Constructions Pvt. Ltd., Nashik. Order pronounced in the open Court on 28 th December, 2022. Sd/- Sd/- (GD PADMASHALI) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 28 th December, 2022 VBP/- Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5 . DR, ITAT, “A” Bench, Pune. 6. Guard File. BY ORDER, // TRUE COPY // Senior Private Secretary ITAT, Pune.