The ACIT, Circle-3,, Surat v. M/s. S.Suryadarshan Construction, Surat

ITA 4003/AHD/2007 | 2004-2005
Pronouncement Date: 21-05-2010 | Result: Dismissed

Appeal Details

RSA Number 400320514 RSA 2007
Assessee PAN AASFS4639P
Bench Ahmedabad
Appeal Number ITA 4003/AHD/2007
Duration Of Justice 2 year(s) 6 month(s) 19 day(s)
Appellant The ACIT, Circle-3,, Surat
Respondent M/s. S.Suryadarshan Construction, Surat
Appeal Type Income Tax Appeal
Pronouncement Date 21-05-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 21-05-2010
Date Of Final Hearing 19-05-2010
Next Hearing Date 19-05-2010
Assessment Year 2004-2005
Appeal Filed On 02-11-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL : D BENCH : AHMEDABAD CAMP AT SURAT (BEFORE HONBLE SHRI T.K. SHARMA J.M. & HONBLE SH RI D.C. AGRAWAL A.M.) I.T.A. NO. 4003/AHD./2007 ASSESSMENT YEAR : 2004-2005 ASSISTANT COMMISSIONER OF INCOME TAX -VS.- M/S . SURYADARSHAN CONSTRUCTION SURAT CIRCLE-3 SURAT (PAN : AASFS 4639 P) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SANJEEV KASHY AP SR. D.R. RESPONDENT BY : SHRI RASESH SHAH O R D E R PER SHRI T.K. SHARMA JUDICIAL MEMBER : THIS APPEAL FILED BY THE REVENUE IS AGAINST THE OR DER DATED 29.08.2007 OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-II SURAT DELET ING THE ADDITION OF RS.84 78 006/- ON ACCOUNT OF SUPPRESSION OF SALE PRICE ON SALE OF ROW HOUSE FLATS AND SHOPS FOR THE ASSESSMENT YEAR 2004-05. 2. BRIEFLY STATED THE FACTS ARE THAT THE ASSESSEE I S A FIRM ENGAGED IN THE BUSINESS OF CONSTRUCTION OF RESIDENTIAL-CUM-COMMERCIAL BUILDING S. FOR THE ASSESSMENT YEAR UNDER APPEAL IT FILED THE RETURN OF INCOME DECLARING TOTAL INCOME A T RS.6 25 316/- ON 01.09.2004. THE ASSESSING OFFICER FRAMED THE ASSESSMENT UNDER SECTION 143(3) ON 26.12.2006 WHEREIN HE ASSESSED THE TOTAL INCOME AT RS.91 03 320/- AFTER MAKING THE ADDITION OF RS.84 78 006/- ON ACCOUNT OF SUPPRESSION OF SALE PRICE ON SALE OF 20 ROW HOUSES 10 FLATS AN D 11 SHOPS. 3. ON 26.02.2003 THERE WAS A SURVEY UNDER SECTION 133A AT THE BUSINESS PREMISES OF THE ASSESSEE. DURING THE COURSE OF SURVEY A STATEMENT OF SHRI PURSHOTTAMBHAI RUPANI A PARTNER OF THE FIRM WAS RECORDED IN WHICH A VOLUNTARY DISCLOS URE OF INCOME OF RS.22 99 000/- WAS MADE BY THE ASSESSEE-FIRM. DURING THE RELEVANT FINANCIAL YE AR THE ASSESSEE HAS SHOWN GROSS RECEIPTS OF RS.1 13 87 000/- FROM THE SALE OF 20 ROW HOUSES 10 FLATS AND 11 SHOPS. 2 ITA NO. 4003/AHD/200 7 4. THE FACTS OF THE CASE THAT LED TO MAKING THE ADD ITION OF RS.84 78 006/- ON ACCOUNT OF SUPPRESSION OF SALE PRICE ON SALE OF 20 ROW HOUSES 10 FLATS AND 11 SHOPS FOR THE ASSESSMENT YEAR UNDER CONSIDERATION IS BASED ON FINDINGS ENQUIRIES AND INVESTIGATION RECORDED IN THE ASSESSMENT ORDER OF THE PRECEDING ASSESSMENT YEAR I.E. ASSESSM ENT YEAR 2003-04. DURING THE COURSE OF ASSESSMENT PROCEEDINGS FOR PRECEDING ASSESSMENT YEA R THE ASSESSING OFFICER FOUND THAT THE ROW HOUSES CONSTRUCTED IN JAHANGIRPURA AREA WITH PROPER APPROACH ROAD AND GOOD SURROUNDINGS WERE SOLD OUT ONLY @ 400/- PER SQ.FT. WHICH WAS APPARENT LY FALSE BECAUSE OF THE REASON THAT THIS SELLING PRICE WAS SHOWN BY THE ASSESSEE AFTER INCLUDING THE SELLING PRICE OF THE PLOT OF LAND ON WHICH SUCH ROW HOUSES WERE CONSTRUCTED. ACCORDING TO ASS ESSING OFFICER THIS FALSITY OF THE CLAIM OF THE ASSESSEE WAS PROVED BY REFERRING TO THE NORMAL SELLING PRICE OF THAT AREA WHICH RANGED FROM RS.700/- PER SQ.FT. TO RS.900/- PER SQ.FT. AND MORE . THE A.O. MADE SOME LOCAL ENQUIRIES THROUGH INSPECTOR AND HELD THAT THERE WAS A CLEAR-CUT SUPPR ESSION OF SELLING PRICE. THE AO ADOPTED SALE PRICE OF ROW HOUSE AT RS.638/- PER SQ.FT. AND WORKE D OUT THE SALE CONSIDERATION AT RS.1 64 60 400/-. ON THE SAME FASHION SALE CONSIDE RATION FOR SALE OF 2547 SQ.FT. OF FLATS AND 2790 SQ.FT. OF SHOPS HAS BEEN WORKED OUT AT RS.34 05 00 6/- ON AVERAGE BASIS BECAUSE SALE CONSIDERATION AND PROFIT MARGIN IN SALE OF SHOPS IS NORMALLY MUCH MORE THAN PROFIT ON SALE OF ROW HOUSES FLATS AND SHOPS SOLD DURING THE YEAR WO RKED OUT TO RS.1 98 65 406/-. AFTER DEDUCTING THE SALE CONSIDERATION OF RS.1 13 87 000/- THE ASS ESSING OFFICER MADE TOTAL ADDITION OF RS.84 78 006/- ON ACCOUNT OF ALLEGED SUPPRESSION OF SALE OF ROW HOUSES FLATS AND SHOPS. 5. ON APPEAL IN THE IMPUGNED ORDER DATED 29.08.200 7 THE LD. CIT(A) DELETED THE ADDITION OF RS.84 78 006/- RELYING ON HIS OWN DECISION DATED 17.05.2007 FOR THE ASSESSMENT YEAR 2003-04 IN ASSESSEES OWN CASE BECAUSE THE FACTS FOR THE TW O YEARS ARE ABSOLUTELY IDENTICAL. AGGRIEVED BY THE ORDER OF LD. CIT(A) THE REVENUE IS IN APPEAL B EFORE THE TRIBUNAL. 6. AT THE TIME OF HEARING ON BEHALF OF REVENUE SHR I SANJEEV KASHYAP SR. D.R. APPEARED AND FAIRLY ADMITTED THAT THE FACTS FOR THE ASSESSME NT YEAR UNDER APPEAL IS IDENTICAL WITH THAT OF ASSESSMENT YEAR 2003-04. THE LD. D.R. SUBMITTED THA T THIS APPEAL WAS FILED BECAUSE AN APPEAL WAS ALSO FILED BY THE DEPARTMENT AGAINST THE ORDER DATED 12.07.2007 OF LD. CIT(A)-1 SURAT FOR THE ASSESSMENT YEAR 2003-04. 3 ITA NO. 4003/AHD/200 7 7. AS AGAINST THIS SHRI RAJESH SHAH LD. COUNSEL A PPEARING ON BEHALF OF ASSESSEE PRODUCED THE DECISION DATED 12.02.2010 OF ITAT D BENCH A HMEDABAD IN ITA NO. 3147/AHD/2007 FOR THE ASSESSMENT YEAR 2003-04 IN ASSESSEES OWN CASE WHEREIN THE APPEAL OF THE REVENUE AGAINST THE ORDER DATED 12.07.2007 OF LD. CIT(A)-I SURAT FOR THE ASSESSMENT YEAR 2003-04 IS DISMISSED. HE SUBMITTED THAT NOW THE MATTER IS SQUARELY COVERE D BY THE DECISION OF ITAT IN ITA NO. 3147/AHD/2007 (SUPRA) THEREFORE THE VIEW TAKEN BY THE LD. CIT(A) BE UPHELD. 8. AFTER HEARING BOTH THE SIDES WE HAVE CAREFULLY GONE THROUGH THE ORDERS OF AUTHORITIES BELOW AND PERUSED THE MATERIAL PLACED BEFORE US. IT IS PERTINENT TO NOTE THAT THE FACTS OF ASSESSEES CASE FOR THE ASSESSMENT YEAR UNDER APPEAL ARE IDENT ICAL WITH THAT OF THE ASSESSMENT YEAR 2003-04 WHEREIN THE ADDITION ON ACCOUNT OF SUPPRESSION OF S ALES AMOUNTING TO RS.79 29 600/- WAS MADE WHICH WAS DELETED BY THE LD. CIT(A). THE APPEAL OF THE REVENUE AGAINST THE SAID ORDER HAS ALREADY BEEN REJECTED BY THE ITAT D BENCH VIDE O RDER DATED 12.02.2010 IN ITA NO. 3147/AHD/2007 (SUPRA). WE THEREFORE FOLLOWING THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2003-04 (SUPRA) HOLD THAT THE LD. CIT(A) IS LEGALLY AND FACTUALLY CORRECT IN DELETING THE ADDITION OF RS.84 78 006/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF SUPPRESSION OF SALE PRICE ON SALE OF ROW HOUSES FL ATS AND SHOPS. WE THEREFORE INCLINE TO UPHOLD THE ORDER OF LD. CIT(A). 9. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ORDER WAS PRONOUNCED IN THE COURT ON 21.05.2010 . SD/- SD/- (D.C. AGRAWAL) (T.K. SHARMA ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 21 / 05 /2010 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEE (2) THE DEPARTMENT. 3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R. ITAT AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT AHMEDABAD LAHA/SR.P.S.