M/s Magus Bengal Estates LLP, Kolkata V. A.C.I.T.,CC-3(2), Kolkata

ITSSA 41/KOL/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6517 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 30 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 16-09-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 03-09-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 17-01-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA C BENCH, KOLKATA (VIRTUAL COURT) (BEFORE SRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SRI ABY T. VARKEY, JUDICIAL MEMBER) I.T.(S.S.)A. NO. 41/KOL/2020 ASSESSMENT YEAR: 2015-16 M/S. MAGUS BENGAL ESTATES LLP..............................................................APPELLANT [PAN: AAUFM 9171 E] VS. ACIT, CENTRAL CIRCLE-3(2), KOLKATA.............................................................................RESPONDENT APPEARANCES BY: SH. S.K. TULSIYAN, SR. ADV., APPEARED ON BEHALF OF THE ASSESSEE. SH. VIJAY SHANKAR, CIT, APPEARED ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : SEPTEMBER 3 RD , 2020 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 16 TH , 2020 ORDER PER J. SUDHAKAR REDDY, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-21, KOLKATA, [HEREINAFTER THE CIT(A)], PASSED U/S. 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DATED 14.11.2019 FOR THE ASSESSMENT YEAR 2015-16. 2. THE SOLE ISSUE THAT ARISES FOR ADJUDICATION, IS WHETHER THE DISALLOWANCE MADE BY THE AO AND SUSTAINED BY THE LD. CIT(A) AMOUNTING TO 5,40,909/-, BEING INTEREST PAID ON DELAYED PAYMENT OF SERVICE TAX IS JUSTIFIED OR NOT. THE AO DISALLOWED THE AMOUNT ON THE GROUND THAT, THE ASSESSEE FOLLOWS PROJECT COMPLETION METHOD OF ACCOUNTING AND ACCORDINGLY THE AMOUNT HAS TO BE CAPITALIZED AS WORK-IN-PROGRESS. ON AN ENQUIRY FROM THE BENCH, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT HE WOULD NOT HAVE ANY GRIEVANCE, IF THE EXPENDITURE IN QUESTION IS ALLOWED BY THE AO WHILE COMPUTING THE INCOME OF THE ASSESSEE UNDER PROJECT COMPLETION METHOD. 3. THE LD. DR SUBMITTED THAT THIS WAS THE STAND OF THE AO. 2 I.T.(S.S.)A. NO. 41/KOL/2020 ASSESSMENT YEAR: 2015-16 M/S. MAGUS BENGAL ESTATES LLP. 4. IN VIEW OF THE ABOVE DISCUSSION WE DIRECT THE AO TO ALLOW THIS AMOUNT OF 5,40,909/- AS AN EXPENDITURE INCURRED BY THE ASSESSEE AGAINST INCOME TO BE COMPUTED UNDER PROJECT COMPLETION METHOD. IN THE RESULT, THIS GROUND OF THE ASSESSEE IS DISMISSED. 5. ALL OTHER GROUNDS HAVE NOT BEEN PRESSED BY THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. KOLKATA, THE 16 TH SEPTEMBER, 2020. SD/- SD/- [ABY T. VARKEY] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 16.09.2020 BIDHAN COPY OF THE ORDER FORWARDED TO: 1. M/S. MAGUS BENGAL ESTATES LLP, 33A, CANAL CIRCULAR ROAD, KOLKATA-700 054. 2. ACIT, CENTRAL CIRCLE-3(2), KOLKATA. 3. CIT(A)-21, KOLKATA. (SENT THROUGH MAIL) 4. CIT- 5. CIT(DR), KOLKATA BENCHES, KOLKATA. (SENT THROUGH MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES