THAKUR INFRAPROJECT P.LTD, RAIGAD V. ACIT CEN CIR, MUMBAI

MA 08/PUN/2020

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0050 (ITAT-PUNE)
• Duration Of Justice: 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 28-05-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S P WALIMBE
• Assessee Lawyers: HARI KRISHAN
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI PARTHA SARATHI CHAUDHURY , JM . / MA NO. 07 /PUN/ 20 20 (ARISING OUT OF ITA NO S . 4169 & 5002 /MUM/2011 ) / ASSESSMENT YEAR : 20 07 - 08 S.C. THAKUR & BROTHERS, PLOT NO. 265/1, OM SADANIKA, PANVEL URBAN ROAD, PANVEL, RAIGAD PAN : AADCS8865K ....... / APPELLANT / V/S. ACIT, CENTRAL CIRCLE, MUMBAI / RESPONDENT . / MA NO. 08 /PUN/ 20 20 (ARISING OUT OF ITA NO S . 4171 & 5003/MUM/2011 ) / ASSESSMENT YEAR : 20 08 - 09 THAKUR INFRAPROJECT PVT. LTD., PLOT NO. 265/1, OM SADANIKA, PANVEL URBAN ROAD, PANVEL, RAIGAD PAN : AACCT6451F ....... / APPELLANT / V/S. ACIT, CENTRAL CIRCLE, MUMBAI / RESPONDENT ASSESSEE BY : SHRI HARI KRISHAN REVENUE BY : SHRI S. P. WALIMBE / DATE OF HEARING : 26 - 06 - 2020 / DAT E OF PRONOUNCEMENT : 26 - 06 - 2020 2 MA NO S . 07 & 08/PUN/2020 / ORDER PER D. KARUNAKARA RAO , AM: BOTH THE MISCELLANEOUS APPLICATION S ARISE FROM THE ASSESSEES APPEAL S IN ITA NO S . 4169 /MUM/2011 AND 4171 /MUM/2011 FOR THE ASSESSMENT YEAR S 2007 - 08 AND 2008 - 09, RESPECTIVELY . 2. A T THE OUTSET THE LD. AR FOR THE ASSESSEE MENTIONED THAT THE TRIBUNAL ORDER DATED 28 - 02 - 2020 NEEDS COUPLE OF RECTIFICATIONS. REFERRING TO THE FIRST RECTIFICATION , THE LD. AR MENTIONED THAT , IN PARA 25 OF THE ORDER , THERE IS A NEED FOR INCORPORATING A CLARI FICATION FOR AVOIDING THE REPEATED TAXATION OF SUM OF RS. 52,02,910/ - (RS.50,00,000/ - + RS.21,910/ - + RS.1,81,000/ - ). IF THIS CLARIFICATION IS NOT DONE, THE ORDER GIVING EFFECT TO THE TRIBUNALS ORDER WILL RESULT IN TAXATION OF EXCESS INCOME EXCEEDING THE S TATED 10% AS HELD BY THE CIT(A)/TRIBUNAL. AFTER CONSIDERING THE SAME, WE FIND THERE IS A REQUIREMENT OF AMENDING A PART OF THE PARA NO. 25 TO PROVIDE FOR CEILING OF THE 10% . THE FOLLOWING MODIFIED PART OF THE PARA SHALL REPLACE THE EXISTING AS UNDER : I N SUMMARY, WE PROCEED TO HOLD THAT THE ORDER OF CIT(A) WITH 10% SHOULD BE FAIR AND REASONABLE ON THIS ISSUE OF QUANTIFICATION OF THE BUSINESS PROFITS. THEREFORE, WE PROCEED TO CONFIRM THE MANNER OF QUANTIFICATION OF BUSINESS PROFITS AT THE RATE OF 10%. TH IS 10%/NET PROFIT SHALL INCLUDE THE AMOUNTS OF RS.52,02,910/ - (RS.50,00,000/ - + RS.21,910/ - + RS.1,81,000/ - ). THE AO SHALL ENSURE NO DISALLOWANCES ARE RECEIPTS IS TAXED TWICE. ACCORDINGLY, SINCE WE CONFIRMED THE ORDER OF THE CIT(A), THE RELEVANT GROUNDS/A DDITIONAL GROUNDS RAISED BY THE ASSESSEE ARE DISMISSED. ACCORDINGLY, WE ORDER THE ASSESSING OFFICER TO QUANTIFY THE PROFITS OF THE BUSINESS AND DELETE ALL THE BUSINESS LINKED ITEMISED ADDITIONS. THUS, THE FIRST PART OF THE RECTIFICATION IS ALLOWED. 3 MA NO S . 07 & 08/PUN/2020 3 . REFERRING TO THE SECOND RECTIFICATION , THE LD. AR FOR THE ASSESSEE BROUGHT TO OUR ATTENTION TO PARA 42 OF THE ORDER AND SUBMITTED THAT THERE IS AN APPRE HENSION IN THE MIND OF THE ASSESSING OFFICER ABOUT THE REQUIREMENT OF AVOIDING DOUBLE TAXATION OF CERTA IN RECEIPTS WHICH ARE TO BE TAXED AT THE RATE OF 100%. ON HEARING BOTH THE PARTIES , THE FOLLOWING SENTENCE IS INSERTED AT PARA NO. 42 OF THE ORDER NAMELY; 42. . . . . . . . THE ASSESSING OFFICER SHALL ENSURE NO RECEIPT IS TAXED TWICE. ACCORDINGLY, GROUND NO. 6 IS ALLOWED FOR STATISTICAL PURPOSE. THUS, THE SECOND RECTIFICATION IS ALLOWED TOO. 4 . IN THE RESULT, BOTH THE MISCELLANEOUS APPLICATIONS ARE ALLOWED. ORDER PRONOUNCED ON THIS 26 TH DAY OF J UNE, 202 0 . SD/ - SD/ - ( PARTHA SARATHI CHAUDHURY ) ( D. KARUNAKARA RAO ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 26 TH JUNE, 20 20 . RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CI T(A) - 1 , THANE. 4. THE CIT(CENTRAL), PUNE . 5 . , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. / BY ORDER, // TRUE COPY // PRIVATE SECRETARY , / ITAT, PUNE.