ACIT(E), Jaipur V. MURANO DEVELOPERS PVT. LTD., Jaipur

ITA 907/JPR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4842 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 14-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY MALIK CIT DHK
• Section: 145; 144

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 907/JP/16 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14 THE ASSTT. COMMISSIONER OF INCOME TAX, CICLE-1, JAIPUR CUKE VS. M/S MURAO DEVELOPERS PVT. LTD. 338, TRIPOLIA BAZAR, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAFCM 0318 R VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI AJAY MALIK (ADDL. CIT ) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 15.12.2016 ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 15/12/2016. VKNS'K@ ORDER PER SHRI VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)-4, JAIPUR DATED 19.08.2016 WHEREIN THE REVENUE HAS TAK EN FOLLOWING GROUNDS OF APPEAL: (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS . 1,06,04,676/- MADE U/S 145(3) WHEN THE ASSESSEE FAILED TO PRODUCE STOC K REGISTER, BASIS OF CALCULATION CLOSING STOCK AND VARIOUS DETAILS ABOUT DIRECT EXPENSES DURING THE ASSESSMENT PROCEEDINGS. (II) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN NOT CONFIRMING THE ADDI TION OF RS.1,06,04,676/- MADE BY THE AO BY ADOPTING THE PE RCENTAGE ITA NO. 907/JP/16 THE ACIT, CIRCLE-1, JAIPUR VS. M/S MURANO DEVELOPER S (P) LTD, JAIPUR 2 COMPLETION METHOD FOR COMPUTING THE TRUE AND CORREC T INCOME OF THE ASSESSEE. 2. AT THE OUTSET OF HEARING, THE LD. AR OF THE ASSE SSEE SUBMITTED THAT THE TRIBUNAL HAS DECIDED THE ISSUES IN QUESTION IN FAVO UR OF THE ASSESSEE VIDE ITS ORDER DATED 13.05.2016 IN ITA NO. 150/JP/2014 FOR AY 2010-11 AND ORDER DATED 13.06.2016 IN ITA NO. 535/JP/2014 FOR AY 201 1-12. 2.1 THE RELEVANT FINDINGS OF THE COORDINATE BENCH I N ITA NO. ITA NO. 150/JP/2014 IS REPRODUCED AS UNDER: 7.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. IT EMERGES FROM THE RECORD THAT ON SIMI LAR ISSUES THE CO-ORDINATE BENCH IN ASSESSEES GROUP CASE (SUPRA) HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY FOLLOWING OBSER VATION: (13) CONSIDERING THE ENTIRE CONSPECTUS OF THE CASE IN THE LIGHT OF THE PECULIAR FACTS AND FINDINGS REACHED HEREIN BEFORE IN THIS CA SE, IT IS NEITHER PROPER NOR JUSTIFIED TO HOLD THAT THE BOOKS OF ACCOUNT MAI NTAINED BY THE ASSESSEE DID NOT PRESENT TRUE AND COMPLETE PICTURE OF ITS ACCOUNTS AND FINANCIAL TRANSACTIONS. IT IS A CASE WHERE ACCOUNT S OF THE ASSESSEE ARE CORRECT AND COMPLETE. METHOD OF ACCOUNTING AND ACCO UNTING STANDARD HAS BEEN REGULARLY FOLLOWED. TRUE AND CORRECT PROFI TS OF THE BUSINESS OF THE ASSESSEE COULD BE DEDUCED FROM SUCH BOOKS OF AC COUNTS. IN THIS VIEW OF THE MATTER THE ASSESSING AUTHORITY COULD NOT CHA NGE THE METHOD REGULARLY ADOPTED BY THE ASSESSEE FROM PROJECT COMP LETION METHOD TO PERCENTAGE COMPLETION METHOD ON IRRELEVANT CONSIDER ATIONS. WE ARE, THEREFORE, SATISFIED THAT PROVISIONS OF SECTION 145 (3) ARE NOT ATTRACTED IN THIS CASE. THE LD. CIT(A) IS FOUND TO HAVE ERRED I N UPHOLDING THE DECISION OF LD. ASSESSING AUTHORITY TO INVOKE SECTION 145(3) OF THE ACT AND MAKING ASSESSMENT IN THE MANNER PROVIDED UNDER SECTION 144 OF THE ACT. WE, THEREFORE, SET ASIDE THE DECISION IN THIS REGARD AN D ALLOW GROUND NOS. 2 & 3 RAISED IN APPEAL BY THE ASSESSEE IN ASSESSMENT YE AR 2003-04. 2.2 THE RELEVANT FINDINGS OF THE COORDINATE BENCH I N ITA NO. 535/JP/2014 (SUPRA) TAKING INTO CONSIDERATION ABOVE DECISION AN D THE DECISION OF THE ITA NO. 907/JP/16 THE ACIT, CIRCLE-1, JAIPUR VS. M/S MURANO DEVELOPER S (P) LTD, JAIPUR 3 HONBLE DELHI HIGH COURT IN CASE OF PARAS BUILTECH INDIA PRIVATE LIMITED 382 ITR 630 IS REPRODUCED AS UNDER: 4. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE COORDINATE BENCH HAS CONSIDERED THIS ISSUE IN ASSESSEES OWN CASE FOR THE APPEAL MENTION ED ABOVE. THE COORDINATE BENCH HAS PASSED THE SPEAKING ORDER IN T HE APPEAL MENTIONED ABOVE AND ALLOWED THE APPEALS IN FAVOUR O F THE ASSESSEE. BY RESPECTFULLY FOLLOWING THE ORDER OF THE COORDINATE BENCH IN ASSESSEES OWN CASE, WE UPHOLD THE ORDER OF THE LD. CIT(A). I T IS MADE CLEAR THAT IN CASE, THE HONBLE HIGH COURT DECIDED THE ISSUE IN F AVOUR OF THE REVENUE, THE REVENUE SHALL BE AT LIBERTY TO TAKE ALL THE STE PS TO ENFORCE THE ORDER PASSED BY THE LD. ASSESSING OFFICER. 2.3 UNDISPUTEDLY, THERE ARE NO CHANGES IN THE FACTS AND CIRCUMSTANCES OF THE CASE. NO CONTRARY AUTHORITY HAS BEEN BROUGHT TO OU R NOTICE SUBSEQUENT TO ABOVE DECISIONS OF THE COORDINATE BENCH. IN VIEW O F THE SIMILAR FACTS AND CIRCUMSTANCES OF THE CASE AND RESPECTFULLY FOLLOWIN G THE DECISION OF COORDINATE BENCH IN ASSESSEES OWN CASE (SUPRA), THE GROUNDS O F APPEAL TAKEN BY THE REVENUE ARE DISMISSED. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15/12/ 2016. SD/- SD/- (KUL BHARAT ) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 15/12/2016 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CIRCLE-1, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- M/S MURANO DEVELOPERS PVT. LTD. JA IPUR ITA NO. 907/JP/16 THE ACIT, CIRCLE-1, JAIPUR VS. M/S MURANO DEVELOPER S (P) LTD, JAIPUR 4 3. VK;DJ VK;QDR@ CIT I, JAIPUR 4. VK;DJ VK;QDRVIHY@ THE CIT(A)-4, JAIPUR 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 907/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR.