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ACIT-22(3), 3rd Floor, Tower No.6, Vashi Railway Station Complex, Vashi, Navi Mumbai. Vs. M/s Crescent Construction Company, 527, Arneja Corner, Sector-17, Vashi, Navi Mumbai-400703
June, 03rd 2015
       ,  , ,  
        IN THE INCOME TAX APPELLATE TRIBUNAL

               MUMBAI BENCHES "C",       MUMBAI

                ,   

             .  . ,  ,  
      Before Shri Joginder Singh, Judicial Member, and
           Shri N.K. Billaiya, Accountant Member


                   ITA NO.5292/Mum/2012

                  Assessment Year: 2008-09

ACIT-22(3),                          M/s Crescent Construction
3rd Floor, Tower No.6, Vashi         Company, 527, Arneja
Railway Station Complex,       /     Corner, Sector-17, Vashi,
Vashi, Navi Mumbai.                  Navi Mumbai-400703
                               Vs.
      ( /Revenue)                       (        /Assessee)

                                          P.A. No.AACFC3931A


                   ITA NO.4993/Mum/2012

                  Assessment Year: 2008-09

Crescent Construction                Commissioner of Income Tax
Company, 228, Annapurna,             (Appeals)-33, ITO Off. Tower
Sector-18, Vashi, Navi         /     No.6, Vashi Railway Station
Mumbai-400705                        Building, Vashi, Navi Mumbai.
                               Vs.
      ( /Revenue)                        (        /Assessee)

                                            P.A. No.AACFC3931A
                                    2      ITA Nos.5292 & 4993/Mum/2012
                                            M/s Crescent Construction Company



         / Revenue by               Shri Premanand J.-DR

      / Assessee by                 Shri Prakash K. Jotwani



          / Date of Hearing :                        26/05/2015

                                                     01 / 06 /2015
          /Date         of Order:




                          / O R D E R

Per Joginder Singh (Judicial Member)

      The Revenue as well as the Assessee are in cross appeal for
Assessment Year 2008-09 challenging the impugned order
dated 20.06.2012 of the ld. First Appellate Authority, Mumbai.





2.    First we shall take up appeal of the Revenue (ITA
No.5292/Mum/2012)        wherein     the    effective      ground      raised
pertains to allowing depreciation of school building, labour
huts, store building etc. the crux of arguments advanced by
Shri Premanand J. ld. DR is identical to the ground raised by
submitting that these assets were not owned by the assessee
and further the agreement with the Rajasthan Housing Board
does not mention such construction. On the other hand Shri
Prakash K. Jotwani, ld. counsel for the assessee defended the
conclusion arrived at in the impugned order.


2.1 We have considered the rival submissions and perused the
material available on record. If the observation made in the
assessment order, leading to addition made to the total income,
                                  3    ITA Nos.5292 & 4993/Mum/2012
                                        M/s Crescent Construction Company



conclusion drawn in the impugned order, material available on
record, assertions made by the ld. respective counsels, if kept in
juxtaposition and analyzed, we note that the assessee is a
partnership firm engaged in the business of civil construction
mainly with the government/semi-government organizations.
The assessee on 30.09.2008 declared income of Rs.79,44,800/-.
The   Assessing    Officer   determined     the     income       at    Rs.
1,11,52,260/-. A sum of Rs. 16,07,503/- was disallowed by the
Assessing Officer on the ground that 100% depreciation on the
school building, labour huts and store building etc. is not
available to the assessee. The assessee constructed/completed a
big project of Rajasthan Housing Board. As per the agreement
the assessee was to construct certain assets/buildings like
school, labour huts at the site to stay for labour and store
building to keep the material at site, site office building etc. The
same were handed over to the Rajasthan Government. The
assessee written of the assets by claiming 100% of depreciation.
There is no dispute that the assessee incurred expenses on
such construction like site office building, labour huts and store
building which were lateron handed over to the Rajasthan
Housing Board. These were part and partial of the project, thus,
the construction expenses has to be allowed as revenue
expenditure. The assessee preferred to do in two installment by
claiming 50% depreciation in two different assessment year
when the project was in existence. In view of these facts, we
affirm the stand of the ld. Commissioner of Income Tax
(Appeals) on this issue in granting relief with respect to claim of
                                 4    ITA Nos.5292 & 4993/Mum/2012
                                       M/s Crescent Construction Company



depreciation, thus, the appeal of the Revenue is having no
merit, consequently, the appeal is dismissed.


3.   Now we shall take up the appeal of the assessee (ITA No.
4993/Mum/2012),        wherein   confirming      the     addition          of
Rs.11,62,358, made on accrued interest on fixed deposit,
allegedly not accounted in the books of account has been
challenged. The learned Counsel for the assessee advanced his
arguments which are identical to the ground raised. On the
other hand, the learned D.R. defended the confirmation of
addition by the learned Commissioner of Income Tax (Appeals).


4.   We have considered the rival submissions and perused the
material available on record. If the observation made in the
assessment order, leading to addition made to the total income,
conclusion drawn in the impugned order, material available on
record, assertions made by the ld. respective counsels, if kept in
juxtaposition and analyzed, we find that the assessee is a
partnership firm carrying on the business of civil construction
broadly   with   the    Government    and      Semi       Government
Organisations. The Assessing Officer disallowed a sum of
Rs.11,62,358, on the ground that the accrued interest on F.Ds
was not accounted for in the books of accounts by the assessee.
We find that the bank directly credited the interest on F.Ds and
due to non-communication to the assessee at the relevant time,
could not be shown, however, the F.Ds matured in the
assessment year 2010-11 and the Bank along with interest
credited the income for which the assessee declared the same in
                                        5     ITA Nos.5292 & 4993/Mum/2012
                                               M/s Crescent Construction Company






 his profit & loss account on maturity and offered the income on
 such interest in the assessment year 2010-11. There is no loss
 to the Revenue since the interest was offered as income. Thus,
 this appeal of the assessee is allowed and the addition so made
 is deleted.


      Finally, the appeal of the Revenue is dismissed and that of
 the assessee is allowed.


      This Order was pronounced in the open court in the
presence of ld. representatives from both sides at the conclusion
of the hearing on 26th May 2015.

                   Sd/-                                            Sd/-
           (N.K. Billaiya)                              (Joginder Singh)

   / ACCOUNTANT MEMBER                        / JUDICIAL MEMBER

 Mumbai;  Dated : 01/06/2015
S.K , P.S/... / Pradeep Chowdhury
    /Copy of the Order forwarded to :
1.    / The Appellant
2.    / The Respondent.
3.     () / The CIT, Mumbai.
4.      / CIT(A)-            , Mumbai
5.    ,   ,   / DR, ITAT,
     Mumbai
6.     / Guard file.
                                                           / BY ORDER,
                //True Copy//
                                            /  (Dy./Asstt. Registrar)
                                      ,   / ITAT, Mumbai

 
 
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