INCOME TAX OFFICER, PANVEL vs. SHREE BALAJI HOME MAKERS, NEW PANVEL

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ITA 202/PUN/2024Status: DisposedITAT Pune06 May 2024AY 2013-14Bench: SHRI SATBEER SINGH GODARA (Judicial Member)4 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that no income had actually accrued to the assessee in the relevant year. Citing a Supreme Court judgment, it stated that only reasonable certainty gives rise to taxable income, which was absent in this case.

What were the facts?

The Revenue appealed against the NFAC's order which deleted an estimated addition made by the Assessing Officer. The Assessing Officer had made the addition based on the assessee's sales tax return, applying an 8% profit rate.

What were the issues?

Whether the NFAC was correct in deleting the estimated addition when no income had accrued to the assessee. The core issue is the accrual of taxable income.

Which sections of the Income-tax Act were involved?

Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE “SMC” BENCH : PUNE

Before: SHRI SATBEER SINGH GODARA

Hearing: 19.03.2024Pronounced: 06.05.2024

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “SMC” BENCH : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.A.No.202/PUN./2024 [E-APPEAL] Assessment Year 2013-2014 The Income Tax Officer, Shree Balaji Home Makers, 2nd Floor, Aayakar Unit No.1 & 2, Pushp Kalash, Bhavan, Sector-17, NEW Gate No.45/1, Village- vs. PANVEL. Shilttar, Raichur, Panvel. Maharashtra. Maharashtra. PIN – 410 206. PAN ABVFS0499M PIN-410 206. (Appellant) (Respondent) For Revenue : Shri Manish Mehta For Assessee : -None- Date of Hearing : 19.03.2024 Date of Pronouncement : 06.05.2024 ORDER PER SATBEER SINGH GODARA, J.M. :

This Revenue’s appeal for assessment year 2013-14, arises against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No.ITBA/NFAC/S/250/ 2023-24/1057227166(1), dated 19.10.2023, involving proceedings u/s.144 of the Income Tax Act, 1961 (in short “the Act”).

Case called twice. None appears at assessee’s behest. It is accordingly proceeded ex-parte.

2.

The Revenue pleads the following substantive grounds in the instant appeal :

2 ITA.No.202/PUN./2024 3 ITA.No.202/PUN./2024 3. Mr. Mehta next invited my attention to the NFAC’s detailed discussion deleting the impugned addition as under :

4.

Mr. Mehta vehemently argued in light of the Revenue’s pleadings that the Assessing Officer had rightly made the impugned estimated addition going by the assessee’s sales tax return. He highlighted the fact that the Assessing Officer had granted much a relief to the assessee in applying 8% profit rate on it’s turnover in real estate development business. I find no merit in the Revenue’s instant arguments once it has come on record that no income had actually accrued to the assessee in the relevant previous year. Faced 4 ITA.No.202/PUN./2024 with this situation, I hereby quote Chainrup Sampatram vs. CIT 1954 SCR 211 (SC) settling the law long back that only an instance of reasonable certainty give rise to accrual of taxable income in an assessee’s case, which is completely missing herein. It is made clear that there is no material at the Revenue’s behest indicating accrual income in assessee’s hands. I thus see no reason to interfere with the learned NFAC’s order. Rejected accordingly.

5.

This assessee’s appeal is dismissed in above terms.

Order pronounced in the open Court on 06.05.2024.

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