Deputy Commissioner of Income-tax, Central Circle -2 (4), Pune V. M/s. Anshul Karan Development Corporation, Pune

ITSSA 92/PUN/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3705 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 1 month(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 29-06-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 29-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAVEEN GUPTA
• Keywords: Tax effect; Tax effect
• Section: 143(3); 153A

Judgement Text

आयकर अपीलीय अिधकरण “ए” Ɋायपीठ पुणे मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपीलसं. / IT(SS)A No.92/PUN/2019 िनधाᭅरण वषᭅ /Assessment Year: 2016-17 The Deputy Commissioner of Income Tax, Central Circle-2(4), Pune. Vs Anshul Karan Development Corporation, Unit-501, 5 th Floor, Karan Tej Bonita, CTS No.1187/16, Ghole Road, Shivajinagar, Pune – 411005. PAN: AAHFK 7405 L Appellant/ Assessee Respondent/ Revenue Cross Objection No.30/PUN/2022 (arising out of IT(SS)A No.92/PUN/2019) िनधाᭅरणवषᭅ /Assessment Year: 2016-17 Anshul Karan Development Corporation, Unit-501, 5 th Floor, Karan Tej Bonita, CTS No.1187/16, Ghole Road, Shivajinagar, Pune – 411005. PAN: AAHFK 7405 L Vs The Deputy Commissioner of Income Tax, Central Circle-2(4), Pune. Appellant/ Assessee Respondent/ Revenue Assessee by Shri S N Puranik – AR Revenue by Shri Naveen Gupta – DR Date of hearing 16/06/2022 Date of pronouncement 30/06/2022 आदेश/ ORDER PER DR.DIPAK P.RIPOTE, AM: This appeal filed by the Revenue and Cross Objection appeal filed by the Assessee are directed against the order of ld.Commissioner of Income-tax(Appeals)-12, Pune’s, order dated IT(SS)A No.92/PUN/2019 [R] & C.O.No.30/PUN/2022 [A] for A.Y.2016-17 Anshul Siddhi Promotors & Builders 2 29.03.2019 for the Assessment Year 2015-16, involving proceedings under section 143(3) r.w.s 153A of the Income Tax Act, 1961. The Revenue has raised the following grounds of appeal: “1. On the facts and circumstances of the case and law, the Ld.CIT(A) erred in deleting the addition of Rs.73,70,895/- made by the AO on account of change in method of revenue recognition from project completion method to percentage completion method. 2. On the facts and circumstances of the case and in law, the Ld.CIT(A) erred in rejecting the method of revenue recognition applied(Project completion method) by the AO without appreciating the fact that the major portion of the project has been completed and already sold/booked but revenue has not been recognized by the assessee. 3. The appellant craves leave to add, modify or delete any or all of the aforesaid grounds of appeals.” 2. In Cross Objection appeal, the Assessee following grounds of appeal: “1. Cross-objector prays for dismissal of Appeal of Revenue as the tax effect is below the monetary limit prescribed by the CBDT. 2. Without prejudice to Ground No.1, Cross objector objects to Ground No.1 and 2 by the Revenue as the assessee has consistently followed Project Completion Method of revenue recognition and accepted by Revenue in the earlier assessments completed U/s.143(3), cross objector prays to uphold the CIT(A) order in that respect. IT(SS)A No.92/PUN/2019 [R] & C.O.No.30/PUN/2022 [A] for A.Y.2016-17 Anshul Siddhi Promotors & Builders 3 3. Cross objector prays to accept that project completion method is accepted method of accounting for real estate development projects. 4. Cross-objector prays for just and equitable relief. 5. Cross-objector prays to add, alter, amend and / or withdraw the Ground/s during appellate proceedings as occasion may demand.” IT(SS)A No.92/PUN/2019 (by Revenue): 3. The tax effect in this appeal is Rs.25.50 lakhs, the appeal filed by the revenue is below the taxable limit set out by CBDT. The CBDT has issued circular No.17/2019 dated 08-08-2019 revising upward the monetary limits for filing of appeals by the Department in Income-tax Cases before various appellate forums. The earlier circular No.03/2018 dated 11/07/2018 fixed monetary limit for filing of appeals by the Revenue before the Tribunal at Rs.20.00 lakh. Such limit has now been enhanced in the Circular dated 08-08-2019 to Rs.50.00 lakh. Since tax effect in the instant appeal is less than the revised monetary limit of Rs.50.00 lakh, we are not inclined to entertain this appeal. 4. At this juncture, it is pertinent to note that the CBDT vide F.No.279/Misc/M-13/2018-ITJ dated 20-08-2019 has clarified that the revised monetary limits so mentioned in Circular No.17/2019 are applicable to all pending appeals. In view of the foregoing IT(SS)A No.92/PUN/2019 [R] & C.O.No.30/PUN/2022 [A] for A.Y.2016-17 Anshul Siddhi Promotors & Builders 4 discussion, we dismiss the appeal filed by the Revenue. However, it is made clear that if the tax effect in this appeal is found by the AO to be more than the prescribed monetary limit of Rs.50.00 lakh or the case(s) is found to be covered by an exception, it will be open to the Revenue to move the Tribunal for recalling the order. 5. Therefore, the Revenue’s appeal is dismissed on the ground of low tax effect, accordingly appeal number in IT(SS)A No.92/PUN/2019 is dismissed on the ground of low tax effect. Cross Objection No.30/PUN/2022 (by Assessee): 6. The Ground No.1 of the Cross Objection appeal is allowed as the Revenue’s appeal is dismissed on low tax effect. 6.1 Remaining grounds becomes academic, hence, not adjudicated. 6.2 Therefore, the grounds of appeal raised by the assessee in Cross Objection Appeal are Partly Allowed. 7. To sum up, appeal filed by the Revenue is Dismissed and Cross Objection appeal filed by the Assessee is Partly Allowed. Order pronounced in the open Court on 30 th June, 2022. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 30 th June, 2022/ SGR* IT(SS)A No.92/PUN/2019 [R] & C.O.No.30/PUN/2022 [A] for A.Y.2016-17 Anshul Siddhi Promotors & Builders 5 आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “ए” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकरअपीलीयअिधकरण, पुणे/ITAT, Pune.