Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: TDS :: articles on VAT and GST in India :: VAT RATES :: due date for vat payment :: ACCOUNTING STANDARD :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: form 3cd :: list of goods taxed at 4% :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
From the Courts »
  Vatsala Shenoy vs. JCIT (Supreme Court)
  Vatsala Shenoy vs. JCIT (Supreme Court)
 M.K.Overseas Pvt. Ltd. Vs. Pr.Commissioner Of Income Tax-06
 Arshia Ahmed Qureshi Vs. Pr. Commissioner Of Income Tax-21
 CHAUDHARY SKIN TRADING COMPANY Vs. PR. COMMISSIONER OF INCOME TAX-21
  Sushila Devi vs. CIT (Delhi High Court)
  Vatsala Shenoy vs. JCIT (Supreme Court)
 Deputy Director Of Income Tax Vs. Virage Logic International
 Commissioner Of Income Tax-3 International Taxation Vs. Virage Logic International India
 Pr. Commissioner Of Income Tax-06 Vs. Moderate Leasing And Capital Services Pvt. Ltd.
 ITO vs. Vikram A. Pradhan (ITAT Mumbai)

M/s.Sagar Associates Darshanam, Opp.Gulmohar Society Gotri, Baroda-390 021 Vs. 1. The Income Tax Officer Ward-2(2) Baroda
November, 29th 2013
             ,  Û ,
             ,    ,  
            IN THE INCOME TAX APPELLATE TRIBUNAL
                    "B" BENCH, AHMEDABAD

           BEFORE SHRI D.K. TYAGI, JUDICIAL MEMBER And
            SHRI A.K. GARODIA, ACCOUNTANT MEMBER

1.   ./I.T.A.         No.460/Ahd/2013 - [ [/A.Y.2005-06
2.           ./I.T.A. No.461/Ahd/2013 - [ [/A.Y.2005-06


    1.M/s.Sagar Associates             /        1. The Income Tax Officer
     Darshanam,                         Vs.        Ward-2(2)
     Opp.Gulmohar Society                          Baroda
     Gotri, Baroda-390 021
     PAN: AALFM5191K

   2.M/s.Sagar Builders                         2. The Asst.CIT
    A-2,Sevashram Society                          Circle-3
    Jyoti Ashram                                   Baroda
    Ellora Park
    Baroda-390 023
    PAN: AAKFM 6146P
      ( /Appellants)                    ..           (×/Respondents)

           Assessee(s) by    :
                                              Shri Mukund Bakshi
           Revenue by        :
                                             Shri P.L.Kureel, Sr.DR

             / Date of Hearing      : 03/09/2013
             /Date of Pronouncement : 26/11/2013



                                     / O R D E R

PER SHRI A.K.GARODIA ACCOUNTANT MEMBER :


      Both these appeals are assessees' appeals which are directed against two
separate orders of ld.CIT (A)-V Baroda both dated 21/11/2012 in respect of two
different Assessees, i.e. M/s.Sagar Associates and M/s.Sagar Builders for
Asst.Year 2005-06.          Since the issue involved is common and identical, both
                                                   ITA Nos.460 & 461/Adh/29013
                                                  M/s.Sagar Associates vs. ITO &
                                        M/s.Sagar Builders vs. ACIT (respectively)
                                                              Asst.Year - 2005-06
                                     -2-

these appeals were heard together and are being disposed of by way of this
consolidated order for the sake of convenience.

2.    Grounds raised by the assessee are identical in both the cases, except
difference in amount and, hence, we reproduce the grounds of appeal from the
appeal of the assessee in the case of M/s.Sagar Associates, i.e. ITA
No.460/Ahd/2013. The grounds are as under:-
      All the grounds of appeal in this appeal are mutually exclusive and
      without prejudice to each other.

       1. The Ld.CIT (A)-V, Baroda has erred in law and in facts in holding
      that the appellant is not a Builder and Developer, who is not assuming
      the entrepreneurial risk and that the business undertaken by it is in the
      nature of a Works Contractor.




       2.   The Ld.CIT(A)-V, Baroda has erred in law and in facts in holding
      that appellant, though developing and building residential houses cannot
      be said to have fulfilled the conditions for the claim of deduction
      u/s.80IB(10) as in sale of the houses, the appellant has executed the sale
      deed of the incomplete house and that the execution of construction
      agreement for construction of the incomplete house would render the
      appellant ineligible for the claim of deduction u/s.80IB(10) and that such
      act would tantamount to undertaking the business as a Works Contractor
      and that the profit from such business is ineligible for the claim of the
      deduction u/s.80IB(10).

       3. The Ld.CIT(A)-V, Baroda has erred in law and in facts in denying to
      the appellant the claim of deduction u/s.80IB(10) amounting to Rs.83,185
      despite the appellant having fulfilled all the conditions for such claim
      including that of the development and building of housing projects. The
      appellant may please be allowed the claim as made.

       4.    You appellant craves the liberty to add, alter, amend or delete any
      or all of the above ground(s) of appeal.
                                                    ITA Nos.460 & 461/Adh/29013
                                                   M/s.Sagar Associates vs. ITO &
                                         M/s.Sagar Builders vs. ACIT (respectively)
                                                               Asst.Year - 2005-06
                                       -3-

2.1.   In the case of other appeal, i.e. M/s.Sagar Builders in ITA
No.461/Ahd/2013, the amount of deduction claimed by the assessee is
Rs.6,45,908/-.



3.     It was agreed by both the sides that, in both the appeals, the claim of the
assessee(s) regarding deduction u/s.80-IB(10) of the Act was disallowed by
ld.CIT(A) on this basis that the assessee sold the plot separately and completed
the construction work separately and, therefore, not eligible for deduction
u/s.80-IB(10) of the Act.



4.     Learned AR of the assesse submitted that the issue involved in these two
appeals is squarely covered in favour of the assessee by the following tribunal
decisions:-
Sl.No(s)      Decision in the case of....         Reported in....
1.            DCIT vs. SMR Builders (P.)Ltd.      (2012)24 Taxman.com
                                                  194 (Hyd.)
2.            M/s.Vardhman      Builders      and ITA No.559/Ind/2010
              Developers vs. ITO                  dated 09/05/2012
3.            Raghava Estates Vs. Dy.CIT          ITA     Nos.248   &
                                                  49/Vizag/2009 dated
                                                  04/08/2011



5.     At the time of hearing of these appeals, it was pointed out by the Bench to
both the sides that in the similar facts, one more appeal was heard by the ITAT
"C" Bench Ahmedabad in the case of Satsang Developers vs. ACIT in ITA
No.1011/Ahd/2012 for AY 2008-09 and one of the Members, i.e. Accountant
                                                    ITA Nos.460 & 461/Adh/29013
                                                   M/s.Sagar Associates vs. ITO &
                                         M/s.Sagar Builders vs. ACIT (respectively)
                                                               Asst.Year - 2005-06
                                       -4-

Member is common and, therefore, the issue will be decided on similar line as
per the decision in that case. Both the sides agreed to this proposition.


5.1    As per the recent Tribunal order rendered in the case of Satsang
Developers (supra), this issue was decided by the Tribunal in favour of the
assessee by following the Tribunal decisions:
Sl.No(s)     Decision in the case of....          Reported in....
1.           DCIT vs. SMR Builders (P.)Ltd.       (2012)24 Taxman.com
                                                  194 (Hyd.)
2.           M/s.Vardhman      Builders       and ITA No.559/Ind/2010
             Developers vs. ITO                   dated 09/05/2012
3.           Raghava Estates Vs. Dy.CIT           ITA     Nos.248   &
                                                  49/Vizag/2009 dated
                                                  04/08/2011

5.2.   Before us in the present two appeals also, reliance was placed on these
tribunal decisions only. Respectfully following the Tribunal decision in the case
of Satsang Developers (supra) and other Tribunal decisions which were
followed by the Tribunal in that case and cited before us also, we decide the
issue in the present two appeals also in favour of the assessee.
6.     In the result, both the appeals of the assessees are allowed.





Order pronounced in open court on the date mentioned on caption page.
             Sd/-                                               Sd/-
       (D.K. TYAGI)                                     (A. K. GARODIA)
     JUDICIAL MEMBER                                  ACCOUNTANT MEMBER

Ahmedabad;       Dated      26/11/2013
.., .../T.C. NAIR, Sr. PS                          Order pronounced on 26/11/13
                                                     Sd/-                Sd/-
                                                    AM                   JM
                                                    (AC)                (DKT)
                                                                      ITA Nos.460 & 461/Adh/29013
                                                                     M/s.Sagar Associates vs. ITO &
                                                           M/s.Sagar Builders vs. ACIT (respectively)
                                                                                 Asst.Year - 2005-06
                                                        -5-


    /
      Copy of the Order forwarded to :
1.          / The Appellant
2.         × / The Respondent.
3.            / Concerned CIT
4.          () / The CIT(A)-v, Baroda
5.          ,   ,  / DR, ITAT, Ahmedabad

6.         [  / Guard file.
                                                                                              / BY ORDER,

                     ×  //True Copy//

                                                                        /  (Dy./Asstt.Registrar)
                                                                        /
                                                                 ,  / ITAT, Ahmedabad
                                                                 ,
      1.    Date of dictation ......28.10.13 (dictation-pad 5-pages attached with the file)
      2.    Date on which the typed draft is placed before the Dictating Member ............30.10.13/7.11.13
      3.    Date on which the approved draft comes to the Sr.P.S./P.S.................
      4.    Date on which the fair order is placed before the Dictating Member for
            pronouncement......
      5.    Date on which fair order placed before Other Member............
      6.    Date on which the fair order comes back to the Sr.P.S./P.S.......26.11.13
      7.    Date on which the file goes to the Bench Clerk.....................26.11.13
      8.    Date on which the file goes to the Head Clerk..........................................
      9.    The date on which the file goes to the Assistant Registrar for signature
            on the order..........................
     10.    Date of Dispatch of the Order..................

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions