DCIT, Jaipur V. Rama ajit vuilders & developers, Jaipur

ITA 879/JPR/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5207 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 20-11-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KALIKA SINGH
• Keywords: Document seized; Documents seized

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 HKKXPAN] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF;D LN L; DS LE{K BEFORE: SHRI BHAGCHAND, AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA- @ ITA NO. 879/JP/2013 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, JAIPUR. CUKE VS. M/S RAMA AJIT BUILDERS & DEVELOPERS, 31, MISHRA MARKET, AGRA ROAD, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ L A-@ PAN/GIR NO.: AAJFR 0156 M VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT VK;DJ VIHY LA- @ ITA NO. 880/JP/2013 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2010-11 DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, JAIPUR. CUKE VS. M/S UNIQUE BUILDERS & DEVELOPERS (AJAY), 8 TH FLOOR, THE MILE STONE, TONK ROAD, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ L A-@ PAN/GIR NO.: AACFU 0541 N VIHYKFKHZ @ APPELLANT IZR;FKHZ @ RESPONDENT JKTLO DH VKSJ LS @ REVENUE BY : SHRI KALIKA SINGH (CIT) FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI P.C. PARWAL (CA) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 02/06/2016 MN?KKS'K .KK DH RKJH[ K @ DATE OF PRONOUNCEMENT : 13/06/2016 ITA 879 & 880/JP/2013_ DCIT VS. M/S RAMA AJIT BUILDERS 2 VKNS'K @ ORDER PER: LALIET KUMAR, J.M. BOTH THE APPEALS FILED BY THE REVENUE ARISE AGAINS T THE ORDER DATED 29/04/2013 AND 23/09/2013 PASSED BY THE LEARNED CIT (A), CENTRAL, JAIPUR FOR A.Y. 2010-11. THE EFFECTIVE GROUNDS OF BO TH THE APPEALS ARE AS UNDER:- GROUNDS OF ITA NO. 879/JP/2013 1 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE ID. CIT(A), CENTRAL, JAIPUR HAS ERRED IN DELETING TH E ADDITION OF RS. 5,62,75,218/- MADE BY THE AO BY REJECTING THE BOOKS OF ACCOUNTS AND BY ESTIMATING T HE PROFIT, BECAUSE THE REJECTION AND SUBSEQUENT ESTIMATION OF PROFITS IS JUSTIFIED IN VIEW OF THE DOCUMENTS SEIZED FROM THE LAPTOP OF SHRI NAVIN BHUTANI WHICH CLEARLY MENTIONS THE PROFITS ON THE SPECIFIC C2 PLAZA PROJECT UNDERTAKEN BY THE ASSESSE E FIRM, WHICH WERE NOT DISCLOSED IN THE RETURN. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, ID. CIT(A), CENTRAL, JAIPUR HAS ERRED IN NOT APPRECIATIN G THAT THE DOCUMENT SEIZED FROM SHRI NAVIN BHUTANIS LAPTOP CANNOT BE DISMISSED AS NOT BELONGING TO AJAY PAL GROUP BECAUSE BOTH THE BROTHERS - SHRI AJAY PAL SINGH AND AJIT PAL SINGH - ARE PARTNERS IN THE ASSE SSEE FIRM AND THEIR BUSINESSES CANNOT BE TERMED SEPARATE . 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE ID. CIT(A), CENTRAL, JAIPUR HAS ERRED IN NOT APPRECIATING THAT BY NOT UPHOLDING REJECTION OF BOO KS AND ESTIMATION OF PROFIT, LOSS DECLARED BY THE ASSE SSEE ITA 879 & 880/JP/2013_ DCIT VS. M/S RAMA AJIT BUILDERS 3 FIRM HAS TO BE ACCEPTED DESPITE THE ASSESSEE MAKING HUGE PROFITS IN CONSTRUCTION BUSINESS WHICH SEARCH PROVED. GROUNDS OF ITA NO. 880/JP/2013 1 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E ID. CIT(A)(C), JAIPUR HAS ERRED IN DELETING THE ADDITION OF RS. 2,07,82,752/- MADE BY THE AO BY APPLICATION OF SECTION 145(3) AND ESTIMATION OF PROFITS WHEN THE ASSESSEE IS NOT MAINTAINING QUANTITATIVE AND QUALITATIVE STOCK REGISTER AND SEIZED DOCUMENTS LIK E A- 2/51 FOUND FROM THE LAPTOP OF SHRI NAVIN BHUTANI REFLECT ON MONEY RECEIVED. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE ID. CIT(A)(C), JAIPUR HAS ERRED IN REJECTING APPLICATION OF PERCENTAGE COMPLETION METHOD BY THE AO, WHEN THIS REJECTION MEANS ACCEPTANCE OF LOSS RETURNS OF THE ASSESSEE ENGAGED IN CONSTRUCTION AND SALE OF RESIDENTIAL/COMMERCIAL PROJECTS. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE ID. CIT(A)(C), JAIPUR HAS ERRED IN IGNORING THE FACTS TH AT THE TWO BROTHERS-SHRI AJAY PAL SINGH AND SHRI AJIT P AL SING- WERE ACTIVELY ENGAGED IN BUSINESS IN VARIOUS SISTER CONCERNS OF THE ASSESSEE FIRM. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE ID. CIT(A)(C), JAIPUR HAS ERRED IN IGNORING THE FACT THA T THE DOCUMENT SEIZED FROM SHRI NAVIN BHUTANI (A-2/51 ) AND FROM SHRI VIBHISHEK PAL SINGH (PARTNER) A-2/19, INDICATED ON MONEY RECEIVED. 2. THE LD CIT DR HAS SUBMITTED THAT THE IMPUGNED ORD ER PASSED BY THE LD CIT(A) WAS PASSED ON THE ORDER OF THE HONBLE ITAT JAIPUR BENCH, ITA 879 & 880/JP/2013_ DCIT VS. M/S RAMA AJIT BUILDERS 4 JAIPUR IN ITA NOS. 145, 146 AND 147/JP/2012 ORDER D ATED 15/3/2013 FOR THE A.Y. 2007-08 TO 2009-10 AND ITA NO. 589 & 590/J P/2012 & ITA NO. 618 TO 619/JP/2012 FOR A.Y. 2008-09 AND 2009-10 ORD ER DATED 15/03/2013. THE SAID ORDERS OF THE HONBLE TRIBUNAL WA S CHALLENGED BY THE DEPARTMENT BEFORE THE HON'BLE HIGH COURT AND TH E RESULT OF THE HONBLE COURT IS AWAITED. BESIDES, THIS IT IS SUBMIT TED THAT PROJECT COMPLETION METHOD IS NOT CORRECT METHOD AS THE ASSE SSEE HAS BEEN ACCEPTING AMOUNT FROM THE CONSUMERS IN INSTALLMENT BASIS. THEREFORE, THE PERCENTAGE COMPLETION METHOD IS CORRECT AND APP ROPRIATE METHOD. 3. ON THE OTHER HAND, THE LD AR OF THE ASSESSEE HA S RELIED UPON THE ORDERS OF THE HONBLE ITAT, JAIPUR BENCH, JAIPUR IN ASSESSEES OWN CASE BEING ITA NOS. 145, 146 AND 147/JP/2012 ORDER DATED 15/3/2013 FOR THE A.Y. 2007-08 TO 2009-10 AND ITA NO. 589 & 590/JP/20 12 & ITA NO. 618 TO 619/JP/2012 FOR A.Y. 2008-09 AND 2009-10 ORDER D ATED 15/03/2013. FURTHER THE LD AR HAS ALSO PLACED ON RECORD THE JUD GMENT OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF PARAS BUILDTECH I NDIA PRIVATE LIMITED AND ANR. VS CIT & ANR (2016) 382 ITR 0630 WHEREIN THE HON' BLE HIGH COURT HAS DECIDED THE ISSUE IN THE IDENTICAL FACTS AND CI RCUMSTANCES OF THE CASE ON THE BASIS OF PERCENTAGE COMPLETION METHOD. ITA 879 & 880/JP/2013_ DCIT VS. M/S RAMA AJIT BUILDERS 5 4. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. THE C OORDINATE BENCH HAS CONSIDERED THIS ISSUE IN ASSESSEES OWN CASES FOR TH E APPEALS MENTIONED ABOVE. THE COORDINATE BENCH HAS PASSED THE SPEAKING ORDER IN THE APPEAL MENTIONED ABOVE AND ALLOWED THE APPEALS IN FA VOUR OF THE ASSESSEE. BY RESPECTFULLY FOLLOWING THE ORDER OF THE COORDINATE BENCH IN ASSESSEES OWN CASE, WE UPHOLD THE ORDERS OF THE LD CIT(A). IT IS MADE CLEAR THAT IN CASE, THE HON'BLE HIGH COURT DECIDED THE ISSUE IN FAVOUR OF THE REVENUE, THE REVENUE SHALL BE AT LIBERTY TO TAK E ALL STEPS TO ENFORCE THE ORDER PASSED BY THE LD ASSESSING OFFICER. 5. IN THE RESULT, THE BOTH THE REVENUES APPEAL ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13/06/2016. SD/- SD/- HKKXPAN YFYR DQEKJ (BHAGCHAND) (LALIET KUMAR) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ @ JAIPUR FNUKAD @ DATED:- 13 TH JUNE, 2016 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- THE DCIT, CENTRAL CIRCLE-2, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- M/S RAMA AJIT BUILDERS & DEVELOPERS/ M/S UNIQUE BUILDERS & DEVELOPERS (AJAY), JAIPUR. ITA 879 & 880/JP/2013_ DCIT VS. M/S RAMA AJIT BUILDERS 6 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 879 AND 880/JP/2013) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR