M/s Bhagyasai Constructions, Visakhapatnam v. The ACIT, Circle-3(1), Visakhapatnam

ITA 190/VIZ/2011 | 2006-2007
Pronouncement Date: 15-07-2011 | Result: Allowed

Appeal Details

RSA Number 19025314 RSA 2011
Assessee PAN AADFB8017H
Bench Visakhapatnam
Appeal Number ITA 190/VIZ/2011
Duration Of Justice 2 month(s) 6 day(s)
Appellant M/s Bhagyasai Constructions, Visakhapatnam
Respondent The ACIT, Circle-3(1), Visakhapatnam
Appeal Type Income Tax Appeal
Pronouncement Date 15-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 15-07-2011
Assessment Year 2006-2007
Appeal Filed On 09-05-2011
Judgment Text
ITA NO.190/VIZAG/2011 BHAGYASAI CONSTNS. VSKP PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO.190/VIZAG/2011 ASSESSMENT YEAR: 2006-07 M/S. BHAGYASAI CONSTRUCTIONS VISAKHAPATNAM ACIT CIRCLE-3(1) VISAKHAPATNAM (APPELLANT) PAN NO: AADFB 8017H VS. (RESPONDENT) APPELLANT BY: SHRI K.K. VISWESWARA RAO ADVOCATE RESPONDENT BY: SHRI TH.L. PETER CIT(DR) ORDER PER SHRI B. R. BASKARAN ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 23.2.2011 PASSED BY LEARNED CIT-I VISAKHAPATNAM UN DER SECTION 263 OF THE ACT AND IT RELATES TO THE ASSESSMENT YEAR 2006- 07. THE ASSESSEE IS ASSAILING THE DECISION OF LEARNED CIT IN INVOKING T HE REVISION PROCEEDING UNDER SECTION 263 OF THE ACT. 2. THE FACTS RELATING TO THE CASE ARE STATED IN BR IEF. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CONSTRUCTION OF APARTMEN TS. THE ASSESSMENT FOR THE YEAR UNDER CONSIDERATION WAS COMPLETED UNDER SE CTION 143(3) OF THE ACT BY DETERMINING THE TOTAL INCOME AT RS.18 21 130/-. THE LEARNED CIT NOTICED THAT THE ASSESSEE HAD FILED ITS RETURN OF I NCOME ORIGINALLY ON 31.10.2006 DECLARING TAXABLE INCOME OF RS.23 98 680 /-. LATER THE ASSESSEE FILED A REVISED RETURN ALONG WITH A REVISED COMPUTA TION OF INCOME DECLARING A TOTAL INCOME OF RS.11 64 390/-. THE SAID REVISED RETURN WAS FILED ON 14.11.2008 I.E. BEYOND THE TIME PERMISSIBLE FOR FI LING THE REVISED RETURN. THE ASSESSING OFFICER ACCEPTED THE REVISED RETURN A ND COMPLETED THE ITA NO.190/VIZAG/2011 BHAGYASAI CONSTNS. VSKP PAGE 2 OF 3 ASSESSMENT BY MAKING SOME ADDITIONS. HENCE THE LEA RNED CIT TOOK THE VIEW THAT THE ACTION OF THE ASSESSING OFFICER IN AC TING UPON THE REVISED RETURN WHICH HAS RESULTED IN REDUCTION OF TOTAL INC OME IS ERRONEOUS AND PREJUDICIAL TO INTERESTS OF THE REVENUE. HOWEVER IN THE REVISION PROCEEDINGS NONE APPEARED ON BEHALF OF THE ASSESSE E BEFORE LEARNED CIT. HENCE THE LEARNED CIT IN AN EX-PARTE ORDER SET AS IDE THE ASSESSMENT AND DIRECTED THE ASSESSING OFFICER TO REDO THE ASSESSME NT DE-NOVO. AGGRIEVED BY THE ORDER OF LEARNED CIT THE ASSESSEE IS IN APP EAL BEFORE US. 3. AT THE TIME OF HEARING THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAD BEEN FOLLOWING PRO JECT COMPLETION METHOD FOR OFFERING INCOME. HOWEVER DURING THE C OURSE OF ASSESSMENT PROCEEDING RELATING TO THE IMMEDIATELY PRECEDING YE AR I.E. ASSESSMENT YEAR 2005-06 THE ASSESSING OFFICER CHOSE TO TAX THE INC OME OF THE ASSESSEE UNDER PERCENTAGE COMPLETION METHOD AND ACCORDINGL Y A PORTION OF INCOME THAT HAD BEEN OFFERED IN THE IMPUGNED ASSESSMENT YE AR 2006-07 CAME TO BE TAXED IN THE ASSESSMENT YEAR 2005-06 ITSELF. TH E SAID ACTION OF THE ASSESSING OFFICER HAS COMPELLED THE ASSESSEE TO FIL E A REVISED RETURN OF INCOME FOR THE ASSESSMENT YEAR 2006-07 IN ORDER TO REDUCE THE PORTION OF INCOME THAT WAS TAXED IN THE ASSESSMENT YEAR 2005-0 6. ACCORDINGLY HE SUBMITTED THAT THERE IS NO ERROR IN THE ORDER OF TH E ASSESSING OFFICER AS THE IMPUGNED INCOME CANNOT BE SUBJECTED TO DOUBLE TAXAT ION. 4. HOWEVER THE LEARNED D.R SUBMITTED THAT THE FACTS NARRATED BY THE LEARNED A.R ARE NOT BORNE OUT OF RECORD AND HENCE T HEY REQUIRE NECESSARY VERIFICATION. HE FURTHER SUBMITTED THAT THE ASSESS EE HAS FAILED TO APPEAR BEFORE LEARNED CIT AND HENCE THE LEARNED CIT COULD NOT HAVE BEEN APPRISED OF ALL THESE FACTS. 5. AFTER HEARING RIVAL CONTENTIONS WE ARE OF T HE VIEW THAT THE ISSUE SHOULD BE SET ASIDE TO THE FILE OF LEARNED CIT AS THE ASSESSEE HAS FAILED TO ITA NO.190/VIZAG/2011 BHAGYASAI CONSTNS. VSKP PAGE 3 OF 3 APPEAR BEFORE HIM. FURTHER THE FACTS NARRATED BY T HE LEARNED A.R ALSO REQUIRE NECESSARY VERIFICATION AND THE SAME MAY HAV E A BEARING ON THE DECISION OF LEARNED CIT. ACCORDINGLY WE SET ASID E THE ORDER OF LEARNED CIT AND RESTORE THE ISSUE BACK TO HIS FILE IN ORDER TO ENABLE HIM TO ADJUDICATE THE ISSUE AFRESH AFTER CONSIDERING THE E XPLANATIONS OF THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO FURNISH ALL THE DETAILS AND INFORMATION THAT MAY BE CALLED FOR BY LEARNED CIT. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. . PRONOUNCED IN THE OPEN COURT ON 15.7.2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 15 TH JULY 2011. COPY TO 1 M/S. BHAGYASAI CONSTRUCTIONS C/O MURTHY ASSOCIAT ES CHARTERED ACCOUNTANTS FLAT NO.102 LAKSHMI APARTMENTS FACOR LAYOUT WALTAIR UPLANDS VISAKHAPATNAM-530 003 2 ACIT CIRCLE-3(1) VISAKHAPATNAM 3 4. THE CIT VISAKHAPATNAM THE CIT(A) VISAKHAPATNAM 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM