The ACIT, Circle-1(1), Visakhapatnam v. M/s Premier Engineering Syndicate, Visakhapatnam

ITA 538/VIZ/2009 | 2006-2007
Pronouncement Date: 19-10-2010 | Result: Dismissed

Appeal Details

RSA Number 53825314 RSA 2009
Assessee PAN AAEFP5673L
Bench Visakhapatnam
Appeal Number ITA 538/VIZ/2009
Duration Of Justice 10 month(s) 9 day(s)
Appellant The ACIT, Circle-1(1), Visakhapatnam
Respondent M/s Premier Engineering Syndicate, Visakhapatnam
Appeal Type Income Tax Appeal
Pronouncement Date 19-10-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 19-10-2010
Date Of Final Hearing 07-10-2010
Next Hearing Date 07-10-2010
Assessment Year 2006-2007
Appeal Filed On 10-12-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO. 538 /VIZAG/ 20 09 ASSESSMENT YEAR : 2006 - 07 ACIT CIRCLE - 1(1) VISAKHAPATNAM M/S. PREMIER ENGINEERING SYNDICATE VISAKHAPATNAM (APPELLANT) VS. (RESPONDENT) PAN NO.AAEFP 5673L APPELLANT BY: SHRI T.L. PETER DR RESPONDENT BY: SHRI G.V.N. HARI CA ORDER PER SHRI S.K. YADAV JUDICIAL MEMBER : - THIS APPEAL IS PR EFERRED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) ON A SOLITARY GROUND THAT CIT(A) OUGHT TO HAVE CONFIRMED THE DISALLOWANCE MADE BY THE A.O. U/S 80IB OF THE I.T. ACT FOR NON - FURNISHING THE COMPLETION CERTIFICATE FROM THE LOCAL AUTHORITIES AS REQUIRED BY THE PROVISION OF SECTION 80IB SUB - SECTION 10 CLAUSE (A) EXPLANATION 2 OF THE I.T. ACT. 2. DURING THE COURSE OF HEARING THE LD. D.R. HAS ALSO MADE A REQUEST FOR THE ADMISSION OF THE ADDITIONAL GROUND. THE ADDITIONAL GROUND RAISED THEREIN IS THAT THE LD. CIT(A) ERRED IN ACCEPTING ENDORSEMENT CERTIFICATE PRODUCED BY THE ASSESSEE FOR COMPLETION OF THE PROJECT UNDER RTI ACT AND THE LD. CIT(A) OUGHT NOT TO HAVE ACCEPTED THE ADDITIONAL EVIDENCE OBTAINED UNDER RTI ACT AS SUFFICIENT EVIDENCE. 3. WE HAVE C AREFULLY EXAMINED THE ADDITIONAL GROUNDS AND THE ORIGINAL GROUNDS RAISED BY THE REVENUE AND WE DO NOT FIND MUCH DIFFERENCE THE REIN. WE HOWEVER ADMIT THIS ADDITIONAL GROUND AND WILL DISPOSE IT OF F ALONG WITH THE ORIGINAL MAIN GROUNDS. THEREFORE THE CONT ROVERSY IN THESE APPEALS ARE WITH REGARD TO THE ADMISSION OF A CERTIFICATE GIVEN BY THE MUNICIPAL CORPORATION WITH REGARD TO THE COMPLETION OF THE PROJECT. 2 4 . THE FACTS BORNE OUT FROM THE RECORD ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CONSTRU CTION OF SALE OF PLOTS AND CLAIMED DEDUCTION U/S 80IB(10) ON THE HOUSING PROJECT UNDERTAKEN IN RAJAHMUNDRY WHICH WAS DENIED BY THE A.O. ON THE GROUND THAT COMPLETION CERTIFICATE OF THE HOUSING PROJECT AS REQUIRED U/S 80IB (10)(A) EXPLANATION (II) OF THE IN COME TAX ACT 1961 WAS NOT FURNISHED WHICH IS ONE OF THE CONDITION TO CLAIM DEDUCTION. DURING THE COURSE OF APPEAL LATE PROCEEDINGS BEFORE THE CIT(A) THE ASSESSEE HAS FILED A COMPLETION CERTIFICATE DATED 13.7.2009 ISSUED BY THE MUNICIPAL CORPORATION RAJA HMUNDRY AND ENDORSED BY THE D.C. MUNICIPAL CORPORATION WHEREIN THE DATE OF COMPLETION OF THE CONSTRUCTION WAS STATED TO BE AS BEFORE 31.3.2006 . S INCE THE NEW EVIDENCE WAS FILED BEFORE THE CIT(A) IT WAS CONFRONTED TO THE A.O. AND THE A.O. DID NOT RAISE ANY DISPUTE . RELYING UPON THE CERTIFICATE THE CIT(A) HAS CONCLUDED THAT PROJECT WAS COMPLETED BEFORE 31.3.200 6 AND THE ASSESSEE IS ENTITLED FOR DEDUCTION U/S 80I B (10) OF THE INCOME TAX ACT 1961 . 5 . NOW THE REVENUE IS BEFORE US WITH THE SUBMISSION THAT THE CERTIFICATE FILED BY THE ASSESSEE BEFORE THE CIT(A) SHOULD NOT HAVE BEEN ADMITTED AS IT WAS OBTAINED UNDER THE RTI ACT. 6 . THE LD. COUNSEL FOR THE ASSESSEE ON THE OTHER HAND HAS INVITED OUR ATTENTION TO THE INFORMATION RECEIVED BY HIM UNDER THE RTI AC T AND ALSO THE CERTIFICATE OF THE ADDITIONAL COMMISSIONER IN SUPPORT OF HIS CONTENTION THAT PROJECT WAS COMPLETED BEFORE 31.3.2006. UNDISPUTEDLY THIS DOCUMENT WAS NOT FILED BEFORE THE A.O. AS IT WAS OBTAINED AFTER THE ASSESSMENT PROCEEDINGS. THE ASSESSME NT ORDER WAS PASSED ON 30.12.2008 AND THIS INFORMATION WAS OBTAINED VIDE THEIR LETTER DATED 13.7.2009. THIS INFORMATION WAS FURNISHED BEFORE THE CIT(A) AND THE CIT(A) CONFRONTED THE SAME TO THE ASSESSING OFFICER. THEREFORE THE CIT(A) HAS RIGHTLY CONCLUD ED THAT THE PROJECT WAS COMPLETED BEFORE 31.3.2006. 7 . HAVING HEARD THE RIVAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF THE RECORD WE FIND THAT THE SOLE CONTROVERSY REVOLVES AROUND AN ISSUE ; WHE THER 3 THE INFORMATION OBTAINED UNDER RTI ACT CAN BE UTILIZED AS A PROOF OF COMPLETION OF THE PROJECT ? 8 . FROM A CAREFUL PERUSAL OF THIS INFORMATION SUPPLIED TO THE ASSESSEE UNDER RTI ACT WE FIND THAT THIS INFORMATION WAS COUNTERSIGNED BY THE DEPUTY COMMISSIONER OF MUNICIPAL CORPORATION RAJAHMUNDRY B ESIDES THE S IGNATURE OF ASSISTANT PUBLIC INFORMATION OFFICER AND PUBLIC INFORMATION OFFICER MUNICIPAL CORPORATION RAJAHMUNDRY. THEREFORE THE VERACITY OF THIS DOCUMENT CANNOT BE DOUBTED. IN THIS DOCUMENT IT HAS BEEN CATEGORICALLY STATED THAT THE PROJECT WAS COMPL ETED BEFORE 31.3.2006. THIS DOCUMENT WAS CONFRONTED TO THE ASSESSING OFFICER BY THE CIT(A) DURING THE COURSE OF APPELLATE PROCEEDINGS BUT THE ASSESSING OFFICER COULD NOT BRING ANYTHING ON RECORD TO FALSIFY THIS INFORMATION GIVEN UNDER RTI ACT . H E HAS NOT RATHER BROUGHT ANY EVIDENCE ON RECORD TO DISPUTE THIS CONTENTION OF THE ASSESSEE. THEREFORE THE CIT(A) HAS RIGHTLY RELIED UPON THIS DOCUMENT WHILE CONCLUDING THAT THE PROJECT WAS COMPLETED BEFORE 31.3.2006. THEREFORE WE DO NOT FIND ANY INFIRMITY IN TH E ORDER OF THE CIT(A) WHO HAS RIGHTLY ALLOWED DEDUCTION U/S 80IB(10) OF THE I.T. ACT 1961. ACCORDINGLY THE ORDER OF THE CIT(A) IS CONFIRMED. 9 . IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 19.10 .20 10 SD/ - SD/ - (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM DATED 19 TH OCTOBER 20 10 4 COPY TO 1 THE ACIT CIRCLE - 1(1) VISAKHAPATNAM 2 M/S. PREMIER ENGINEERING SYNDICATE 48 - 8 - 17 DWARAKANAGAR VISKAHAPATNAM 3 THE CI T VISAKHAPATNAM 4 THE CIT (A) VISAKHAPATNAM 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE T RIBUNAL VISAKHAPATNAM