Chaitanya Infrastructure Private Ltd., RAJKOT-GUJARAT V. The Assistant Commissioner of Income Tax, Centrasl Circle-1, RAJKOT-GUJARAT

MA 01/RJT/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0249 (ITAT-RAJKOT)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2004-2005
• Appeal Filed On: 01-07-2019
• Court: TRIBUNAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , RAJKOT BENCH, RAJKOT BEFORE SHRI RAJPAL YADAV , HON BLE JUDICIAL MEMBER AND SHRI WASEEM AHMED HON BLE ACCOUNTANT MEMBER MISC. APPLICATION NO. 01 /RJT/201 9 IN ITA NO. 109 / RJT /201 2 / ASSTT. YEAR: 201 0 - 1 1 M/S.CHAITANYA INFRASTRUCTURE P.LTD. FIRST FLOOR, MARUTI SHOP PI NG CENTRE ASTRON CHOWK , RAJKOT. VS . ACIT, CENT.CIR.1 RAJKOT. ( APPLICANT ) ( RESPONENT ) ASSESSEE BY : SHRI D.M. RINDANI, AR REVENUE BY : SHRI ANIL KUMAR DAS, DR / DATE OF HEARING : 20 / 0 9 / 201 9 / DATE OF PRONOUNCEMENT: 20 / 0 9 /201 9 / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER : PRESENT MA IS DIRECTED AT THE INSTANCE OF THE ASSESSEE POINTING OUT APPARENT ERROR IN THE ORDER OF THE TRIBUNAL DATED 27.1.2018 PASSED FOR THE ASSTT.YEARS 2004 - 05 AND 2005 - 06. 2. IT IS PLEADED IN THE APPLICATION THAT A DISPUTE AROSE WITH REGARD TO THE D ETERMINATION OF RATES REQUIRED TO BE ADOPTED FOR SALE OF SHOPS AND OFFICES AT DIFFERENT FLOORS . DURING THE COURSE OF HEARING, THE DETAILS IN TABULAR FORM EXHIBITING THE RATE ADOPTED BY THE AO AND CONFIRMED BY THE LD.CIT(A) AS WELL AS THE WEIGHTED AVERAGE RATE WORKED OUT BY THE ASSESSEE ON THE BASIS OF BOOKS OF ACCOUNTS WERE SUBMITTED BEFORE THE TRIBUNAL. THE TRIBUNAL, IN PRINCIPLE, AGREED THAT THE RATES CALCULATED BY THE ASSESSEE AND ADOPTED BY THE MA NO. 01 /RJT/201 9 2 CIT(A) ARE TO BE TAKEN TOGETHER AND DIVIDED BY TWO, AND WHATEVER COMES OUT IS REQUIRED TO BE ADOPTED BY THE AO. A CHART SUBMITTED DURING THE COURSE OF HEARING READS AS UNDER: FLOOR WEIGHTED AVERAGE RATE PER SQ.MTS. (AS PER BOOKS) RATE ADOPTED BY CIT PER SQ.MTS. RATE ADOPTED BY ACIT PER SQ.MTS. GROUND FLOOR RS.50251.77 RS.30,042/ - RS.30,042/ - FIRST FLOOR RS.29,288.33 RS.30,042/ - RS.30,042/ - SECOND FLOOR RS.17,703.97 RS.30,042/ - RS.30,042/ - THIRD FLOOR RS.10,975.65 RS.22,000/ - RS.30,042/ - FOURTH FLOOR RS.11,056.58 RS.22,000/ - RS.30,042/ - FIFTH FLOOR RS.11,545.41 RS.22,000/ - RS.30,042/ - 3 . THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT AS FAR AS THE RATES AS DIRECTED BY THE TRIBUNAL TO BE ADOPTED FOR ALL THE FLOORS ARE CONCERNED, THERE IS NO DISPUTE EXCEPT THIRD FLOOR. ACCORDING TO HIM, THE TRIBUNAL WHILE DECIDING THIS ISSUE TOOK INTO CONSIDERATION THE R ATES OF TWO FLOORS I.E. SECOND AND THIRD FLOOR, WHEREAS THE RATES OF BOTH THE FLOORS ARE DIFFERENT. FOR THE SECOND FLOOR, THE LD.CIT(A) HAS ADOPTED RS.30,042/ - PER SQ. METER WHEREAS IN THE BOOKS IT WAS RS.17,703/ - PER SQ.METER. WHEN BOTH THESE RATES ADDED TOGETHER THEN IT COMES TO A FIGURE OF ROUGHLY RS.47,745 PER SQ.METER. THE TRIBUNAL HAS DIVIDED IT BY TWO. THE TRIBUNAL DIRECTED THE AO TO ADOPT THE RATE AT FIGURE OF RS. 24,000/ - PER SQ.METER. THIS VERY RATE HAS BEEN APPLIED FOR THIRD FLOOR. IF THE ACT UAL RATE OF THIRD FLOOR ADOPTED BY THE CIT(A) AT RS.22,000/ - AND AT BOOK RATE OF ASSESSEE AT RS.10,975/ - ARE CLUBBED AND DIVIDED BY TWO, THEN IT WILL COME TO RS.16,487/ - . IN PRINCIPLE, FINDING OF THE TRIBUNAL IS THAT RATES DETERMINED BY THE CIT(A) AND WOR KED OUT IN THE BOOKS ARE TO BE CLUBBED TOGETHER, AND THEREAFTER THAT FIGURE WOULD BE DIVIDED BY TWO. WHATEVER AMOUNTS COMES OUT IS TO BE APPLIED FOR SALE OF EACH FLOOR. SINCE THERE WAS TWO DIFFERENT RATES FOR SECOND AND THIRD FLOOR, AND THIS UNIFORM FIGU RE DIRECTED BY THE TRIBUNAL RESULTED INTO CONTRADICTION. IN VIEW OF THE ABOVE FACTS, WE ARE SATISFIED THAT AN INADVERTENT ERROR HAS CREPT IN THE ORDER OF THE TRIBUNAL WHEREBY A DIRECTION FOR ADOPTING RATE OF THIRD FLOOR AT RS.24,390/ - IS GIVEN. MA NO. 01 /RJT/201 9 3 WE RECTIFY THIS ORDER AND DIRECT THE AO TO ADOPT THE RATE OF THIRD FLOOR AT RS.16,500/ - PER SQ.METER. 4 . WITH THE ABOVE OBSERVATION, THIS MA IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 2 0 T H SEPTEMBER, 201 9 AT RAJKOT . S D / - S D / - (WASEEM AHMED ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER