Naranlala Pvt.Ltd.,, Navsari vs Department Of Income Tax

ी एन0एस0 सैनी, लेखा सद य एवं ी कुल भारत, या%यक सद य के सम& BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER आयकर अपील सं./ ITA No.1744/Ahd/2011 %नधा)रण वष)/Assessment Year: 2008-09

ACIT, M/s. Naranlala Pvt. Ltd., Navsari Circle, Vs Near Railway Station, Navsari. Navsari.

PAN : AAACN 7719 C

अपीलाथ,/ (Appellant) -.यथ,/ (Respondent)

Revenue by : Shri Nimesh Yadav, Sr. D.R. Assessee(s) by: Shri Sunil Talati, A.R.

सन ु वाई क तार ख/ Dateof Hearing : 06/04/2015 घोषणा क तार ख / Date of Pronouncement: 10/04/2015

आदे श/O R D E R

PER SHRI N.S. SAINI, ACCOUNTANT MEMBER:

This is an appeal filed by the Revenue against the order of the Commissioner of Income-Tax (Appeals), Valsad dated 31.03.2011.

2. The sole ground of appeal raised by the Revenue in this appeal is that the CIT(A) erred in deleting the addition of Rs.99,99,041/- made on account of retention money.

3. The brief facts of the case are that during the assessment proceedings the A.O. observed that the assessee has shown retention money of Rs.99,99,041/- which was excluded from the profit. The A.O. show caused the assessee. The assessee contended that the right to receive the retention money was not accrued to the assessee and hence ITA No.1744/Ahd/2011 Naranlala Pvt Ltd For AY 2008-09 2

the same was not shown in its income during the year under consideration. According to the A.O. the assessee was following Mercantile System of accounting and in Mercantile System of accounting the retention money is accrued to the assessee as soon the entries are posted in the books of account. He observed that the assessee itself in the past was showing income on the basis of entire turnover. Similar type of retention money clause was there and that the assessee has changed his method of accounting. He, therefore, brought to tax the retention money of Rs.99,99,041/-.

4. On appeal, the CIT(A) deleted the addition by observing that his predecessor in the case of the assessee itself in the earlier Assessment Years 2002-03, 2005-06 and 2006-07 vide appellate order No.CIT(A)/VLS/95/05-06 dated 14.12.2005 and that he himself in the A.Y. 2007-08 vide appellate order No.CIT(A)/VLS/238/09-10 dated 29.11.2010 has decided the issue in favour of the assessee. He, therefore, following the precedence, deleted the addition of Rs.99,99,041/-.

5. Both the parties before us agreed that the issue is now covered in favour of the assessee by the order of this Bench of the Tribunal in the case of the assessee in the A.Y. 2002-03 in ITA No.1977/Ahd/2011, order dated 27.03.2015 and in the A.Y. 2006-07 in ITA Nos.1831 & 2128/Ahd/2009 vide order dated 17.06.2011 wherein it was held as under:-

"4. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the Coordinate Bench (ITAT 'C' Bench ITA No.1744/Ahd/2011 Naranlala Pvt Ltd For AY 2008-09 3

Ahmedabad) in ITA No.1831/Ahd/2009 for AY 2006-07(supra) has given direction to the AO that reads as under:-

"8. On consideration of the facts of the case it is clear that earlier the issue was decided against the assessee by ITAT Ahmedabad Bench in the case of the assessee itself, copies of the same are filed in the paper book. The authorities below have gone by the findings given against the assessee in the earlier years and confirmed the addition on this issue. Therefore, complete facts of the case were not examined and verified including the amount if any incurred by the assessee for business purpose out of the retention amount. However, after passing of the impugned orders, there is a change on the matter in issue and the points have now been decided in favour of the assessee which is also not disputed by the learned DR. However, the authorities below have no occasion to examine the facts of the case in the light of the above decisions cited by the learned Counsel for the assessee. Both the parties agreed that the matter may be remanded to the file of the AO for reconsideration of the issue in the light of the decision delivered by the Hon'ble Punjab & Haryana High Court and the Hon'ble Supreme Court (supra). We find force in the submissions of both the parties that the matter requires reconsideration in the light of the above decisions. We accordingly, set aside the orders of the authorities below and restore this issue to the file of the AO for reconsideration of the same in the light of the above decisions cited by the learned Counsel for the assessee. The AO shall also verify the details filed by the assessee on this issue and shall pass reasoned order in accordance with law by giving reasonable sufficient opportunity of being heard to the assessee. In the result, these grounds of appeal of the assessee are allowed for statistical purposes."

4.1. Since the facts are identical to the facts of assessee's own case for AY 2006-07 and following the Tribunal order, the issue is restored back to the file of AO to decide the same in the light of the direction given by the Coordinate Bench in ITA No.1831/Ahd/2009 for AY 2006- 07(supra)."

6. Respectfully following the above quoted orders of the Tribunal in assessee's own case, we restore the issue back to the file of A.O. with the same directions as given in ITA No.1831/Ahd/2009 for A.Y. 2006- ITA No.1744/Ahd/2011 Naranlala Pvt Ltd For AY 2008-09 4

07. Thus, the ground of appeal of the Revenue is allowed for statistical purposes.

7. In the result, the appeal of the Revenue is allowed for statistical purposes.

Order pronounced in the Court on Friday, the 10th day of April, 2015 at Ahmedabad.

Sd/- Sd/- (KUL BHARAT) ( N.S. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 10/04/2015

PBN/*

आदे श क0 -%त1ल2प अ3े2षत/Copy of the Order forwarded to :

1. अपीलाथ / The Appellant

2. यथ / The Respondent.

3. संबं धत आयकर आयु!त / Concerned CIT

4. आयकर आयु!त(अपील) / The CIT(A), Ahmedabad

5. $वभागीय 'त'न ध, आयकर अपील य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad

6. गाड- फाईल / Guard file.

ु ार/ BY ORDER, आदे शानस

उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad