CIT v. Realest Builders & Services Ltd.

Hero Motocorp Ltd., New Delhi vs. Addl.CIT, Range-11, New Delhi

In the result ground No

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A. No. 6990/Del/2017 (A.Y 2013-14)

…he case of CIT vs. Neo Ploy Pack (P) Ltd. [2000] 245 ITR 492 and the Hon’ble Bombay High Court in the case of CIT vs. Gopal Purohit [2011] 336 ITR 287. 7.19 Further, the Hon’ble Supreme Court in the case of CIT vs. Realest Builders and Services Limited (2008) 307 ITR 202 held as : “In case where the department wants to tax an assessee on the ground of the liability arising in a particular year, it should always ascertain the method of accounting followed by the assessee in the past and whether change in method of accounting was warranted on the ground that profit is being underestimated under the impugned method…

Hero Motocorp Ltd., New Delhi vs. DCIT, New Delhi

In the result appeal No. 2424/Del/ 2015 filed by the revenue in assessment year 2010-11 is partly allowed

Bench: Shri R. K. Panda & Ms Suchitra Kamble

…he case of CIT vs. Neo Ploy Pack (P) Ltd. [2000] 245 ITR 492 and the Hon’ble Bombay High Court in the case of CIT vs. Gopal Purohit [2011] 336 ITR 287. 7.19 Further, the Hon’ble Supreme Court in the case of CIT vs. Realest Builders and Services Limited (2008) 307 ITR 202 held as : “In case where the department wants to tax an assessee on the ground of the liability arising in a particular year, it should always ascertain the method of 8 accounting followed by the assessee in the past and whether change in method of accounting was warranted on the ground that profit is being underestimated under the impugned meth…

DCIT, New Delhi vs. M/S. Ajay Enterprises Pvt. Ltd., New Delhi

In the result, the appeals of the assessee for A

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

…annot be disturbed by the AO unless it is proved that such method does not result into the correct taxable income. Reliance was made on the following judgments:- • CIT vs. Bilahari Investment (P) Ltd. 299 ITR 1 (SC). • CIT vs. Realest Builders & Services Ltd. 307 ITR 202 (SC). • CIT vs. Woodward governor India (P) Ltd. 312 ITR 254 (SC). 16. That the estimation of loss made by the assessee were strictly in accordance with the accepted accounting policies and the claim in respect of estimated liability cannot be rejected on surmises and conjectures for which following judgments are relied upon:- • Bharat Earth Move…

Ajay Enterprises Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee for A

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

…annot be disturbed by the AO unless it is proved that such method does not result into the correct taxable income. Reliance was made on the following judgments:- • CIT vs. Bilahari Investment (P) Ltd. 299 ITR 1 (SC). • CIT vs. Realest Builders & Services Ltd. 307 ITR 202 (SC). • CIT vs. Woodward governor India (P) Ltd. 312 ITR 254 (SC). 16. That the estimation of loss made by the assessee were strictly in accordance with the accepted accounting policies and the claim in respect of estimated liability cannot be rejected on surmises and conjectures for which following judgments are relied upon:- • Bharat Earth Move…

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

…ency, the Revenue cannot be permitted to rake up settled issues: (i) CIT v. Excel Industries: 358 ITR 295 (SC) (ii) Radhasoami Satsang v. CIT: 193 ITR 321 (SC) (iii) CIT v. Rajasthan Breweries: SLP (C) 1379/2014 (SC) (iv) CIT v. Realest Builders and Services: 307 ITR 202 (SC) (v) CIT V. Neo Polypack (P) Ltd: 245 ITR 492 (Del.) Hero MotoCorp Limited Vs. JCIT & DCIT Vs. Hero MotoCorp Ltd. ITA Nos. 1545/Del/2015 and 2424/Del/2015 (AY 2010-11) ITA No. 1609/Del/2016 and 914/Del/2016 (AY 2011-12) Page 194 of 484 (vi) CIT V. Dalmia Promoters Developers (P) Ltd: 281 ITR 346 (Del.) (vii) DIT v. Escorts Cardiac Diseases…

DCIT, New Delhi vs. M/S Lease Plan Fleet Management India Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

Bench: : Shri C.M. Garg & Shri L.P. Sahuasstt. Year : 2007-08 D.C.I.T., Circle 4(1), Vs. Lease Plan Fleet Management India Pvt. Ltd., New Delhi. 301, Ca Chambers, 2183-84/62, Naiwala, Gurudwara Road, Karol Bagh, New Delhi. [Pan: Aaacl 4751A] (Appellant) (Respondent) Appellant By : Ms. Anima Baranwal, Sr. Dr Respondent By : Sh. Ajay Vohra, Sr. Advocate & Sh. Aditya Vohra, Advocate Date Of Hearing : 06.06.2016 Date Of Pronouncement : 28.06.2016 Order Per L.P. Sahu: This Is An Appeal By The Revenue Against The Order Of Ld. Cit(A)-Vii, New Delhi Dated 25.08.2010 For The Assessment Year 2007-08 On The Following Grounds : “1. The Order Of The Learned It(A) Is Erroneous & Contrary To Facts & Law. 2. On The Fact & In The Circumstances Of The Case & In Law, The Learned Cit(Appeals) Has Erred In Deleting The Addition Of Rs.3,00,88,607/- Made By The Ao By Disallowing The Provisions Directly Debited In The Balance Sheet.

…ent method of accounting in a subsequent year unless he is able to demonstrate that there is under-estimation of profits by giving facts and figures in that regard. It was observed by the Hon'ble Supreme Court in CIT vs. Realest Builder & Services Ltd. [2008J 307 ITR 202 (SC) as under:- "7........ln cases where the Department wants to tax an assessee on the ground of the liability arising in a particular year, it should always ascertain the method of accounting followed by the assessee in the past and whether change in method of accounting was warranted on the ground that profit is being underestimated under the…

DCIT, New Delhi vs. M/S. Swatantra Land and Finance Pvt. Ltd., New Delhi

In the result, the appeal of the Department is dismissed

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaay: 2006-07

…f accounting which had been accepted by the department in assessments framed u/s 143(3) of the Act for assessment years 1998-99 and 2003-04. The Ld. AR relied on the decisions of the Hon'ble Apex Court in the case of CIT vs Realest Builders and Services Ltd. 307 ITR 202 (S.C.) and CIT vs Balahari Investment Pvt. Ltd. 299 ITR 1(S.C.) for the proposition that both the project completion method and the percentage of completion method can achieve the same result. It was submitted that neither any defect has been pointed out in the method of accounting being followed by the assessee nor has any concrete finding bee…

Swatantra Land & Finance Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal of the Department is dismissed

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaay: 2006-07

…f accounting which had been accepted by the department in assessments framed u/s 143(3) of the Act for assessment years 1998-99 and 2003-04. The Ld. AR relied on the decisions of the Hon'ble Apex Court in the case of CIT vs Realest Builders and Services Ltd. 307 ITR 202 (S.C.) and CIT vs Balahari Investment Pvt. Ltd. 299 ITR 1(S.C.) for the proposition that both the project completion method and the percentage of completion method can achieve the same result. It was submitted that neither any defect has been pointed out in the method of accounting being followed by the assessee nor has any concrete finding bee…

M/S Continental Carriers vs. Commissioner of Income Tax

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…e same has resulted in distortion of profits. He submitted that since no such findings had been recorded, the ITAT's decision was erroneous. Mr Kaushik also relied upon the decision of the Supreme Court in CIT v. Realest Builders & Services Ltd.: (2008) 307 ITR 202 SC and contended that it was incumbent upon the AO to give facts and figures to demonstrate that the method of accounting followed by the Assessee had resulted in under- estimation of profits. He also referred to the decision of the Supreme Court in CIT v. McMillan & Co.: 33 ITR 182 SC to contend that the method of accounting adopted by the A…

M/S Continental Carrier vs. Commissioner of Income Tax

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…e same has resulted in distortion of profits. He submitted that since no such findings had been recorded, the ITAT's decision was erroneous. Mr Kaushik also relied upon the decision of the Supreme Court in CIT v. Realest Builders & Services Ltd.: (2008) 307 ITR 202 SC and contended that it was incumbent upon the AO to give facts and figures to demonstrate that the method of accounting followed by the Assessee had resulted in under- estimation of profits. He also referred to the decision of the Supreme Court in CIT v. McMillan & Co.: 33 ITR 182 SC to contend that the method of accounting adopted by the A…

M/S Continental Carrier vs. Commissioner of Income Tax

…e same has resulted in distortion of profits. He submitted that since no such findings had been recorded, the ITAT's decision was erroneous. Mr Kaushik also relied upon the decision of the Supreme Court in CIT v. Realest Builders & Services Ltd.: (2008) 307 ITR 202 SC and contended that it was incumbent upon the AO to give facts and figures to demonstrate that the method of accounting followed by the Assessee had resulted in under- estimation of profits. He also referred to the decision of the Supreme Court in CIT v. McMillan & Co.: 33 ITR 182 SC to contend that the method of accounting adopted by the A…

M/S. Minda Industries Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are allowed whereas the appeal of the department is dismissed

Bench: Shri Chandra Mohan Garg & Shri Prashant Maharishi

…ount from the cost of assets to claim reduced deprecation. Placing reliance on the judgment of the Hon'ble Supreme Court in the case of CIT Vs. Woodward Governor India Pvt. Ltd reported in 312 ITR 254 [SC] and CIT Vs. Realest Builders and Services reported at 307 ITR 202 [SC], the ld. AR submitted that a system of accounting regularly followed by the assessee and accepted by the department in the earlier years should not be disturbed unless the AO finds that such system does not reflect the true and correct taxable income of the assessee. 5. The ld. AR placing reliance of the judgment of the Hon'ble High Court o…

M/S Minda Industries Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeals of the assessee are allowed whereas the appeal of the department is dismissed

Bench: Shri Chandra Mohan Garg & Shri Prashant Maharishi

…ount from the cost of assets to claim reduced deprecation. Placing reliance on the judgment of the Hon'ble Supreme Court in the case of CIT Vs. Woodward Governor India Pvt. Ltd reported in 312 ITR 254 [SC] and CIT Vs. Realest Builders and Services reported at 307 ITR 202 [SC], the ld. AR submitted that a system of accounting regularly followed by the assessee and accepted by the department in the earlier years should not be disturbed unless the AO finds that such system does not reflect the true and correct taxable income of the assessee. 5. The ld. AR placing reliance of the judgment of the Hon'ble High Court o…

ACIT, New Delhi vs. M/S Dlf Ltd., New Delhi

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

…mitted that percentage completion method is applicable only in case of constructed projects and in not in case of plot of land. For this, he relied upon the decision of Hon’ble Supreme Court in the case of Real Estate Developers and Services Limited vs. CIT – 307 ITR 202 wherein it is held that on sale of land income accrues to the seller on execution of conveyance deed in favour of buyer and not before. He stated that as the conveyance deed in these two properties is executed in the next year, hence according to this decision, it is rightly offered for taxation in the year in which conveyance deed is executed. f…