Principal Commission Of Income Tax vs M/S Bhomiyaji Land And Finance Co.

Rohit Arya, J

This appeal by the Revenue under section 260A of the Income Tax Act, 1961 (for short, 'the Act'), is directed against the common order passed for various assessment years dated 31/01/2018. However, the instant appeal relates to the assessment year 2008-09 vide ITA No.142/Ind/2013 (M/s Bhomiyaji Land & Finance Co., Vs. ITO, Dewas) and ITA No.137/Ind/2013 (DCIt-1(1) Ujjain Vs. M/s Bhoomiyaji Land & Finance Co.) for the assessment year 2008-09 against the order of the Income Tax Appellate Tribunal, Bench at Indore The appeal filed by the Revenue has been partly allowed.

Facts relevant and necessary for disposal of this appeal lie in narrow compass: The Assessee - firm, namely; M/s Bhomiyaji Land and Finance Co., is engaged in the business of development, plotting and construction of the houses (for short, 'the Assessee'). The assessee has filed income tax return and also revised return for the year 2008-09 on 30/09/2008 declaring the total income of Rs.2,12,277/-. However, in the revised return, the payment of self assessment tax of Rs.69,000/- had been shown as 'advance tax' in the original return of the income. Thereafter, the assessment was competed under section 143(3) of the Act on 29/12/2010 making additions and the total income was assessed as Rs.68,53,834/-. The Assessee has preferred an appeal before the Commissioner of Income Tax (Appeals), Ujjain beilng appeal No.U-314/10-11 and the same was partly allowed vide order dated 13/12/2012. The CIT(A) deleted the addition of net profits of Rs.10,86,557/- as well as the deletion of addition of Rs.39,71,000/- from the total addition of Rs.45,13,000/- as income of the assessee.

Aggrieved by the aforesaid order, both the Assessee and the Revenue have preferred aforesaid appeals before the Income Tax Appellate Tribunal, Bench at Indore.

The IT Appellate Tribunal while dealing with the appeal preferred by the Revenue against the aforesaid deletion concluded in paragraphs 28 and 29 of the order in the context of deletion of Rs.39,71,000/-; portions of advance amount repaid by the assessee on the premise that the Assessing Officer could not bring anything material on record to prove that the assessee has not made repayment to the customers. Besides, during remand proceedings before the Assessing Officer, the customers have confirmed to have received back the amount. On such factual conclusions, the IT Appellate Tribunal has maintained the order of the CIT(A) deleting the said amount of Rs.39,71,000/- as against the addition of Rs.45,13,000/- made by the assessee. As regards the deletion of Rs.10,86,557/-, the IT Appellate Tribunal has not agreed with the finding of the CIT(A) as detailed in paragraph 33 of the order and concluded that the Assessing Officer has rightly applied addition of net profits at the rate of 8% per annum on the total sale of assessee. Consequently, set aside the finding of the CIT(A) and confirmed the addition of Rs.10,86,557/-.

Having perused the orders passed by the Assessing Officer, CIT(A) and the IT Appellate Tribunal, we are of the considered view that the IT Appellate Tribunal did not commit any error of law and fact while disallowing the addition of Rs.39,71,000/- as against the addition of Rs.45,13,000/- made by the assessee. The entire gamut of matter is in realm of facts. No question of law, muchless, substantial question of law arises warranting interference under section 260A of the Act.

The appeal sans merit and is hereby dismissed.