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Income Tax Appellate Tribunal - Mumbai

Sai Shirdi Constructions , vs Assessee on 31 January, 2014

               IN THE INCOME TAX APPELLATE TRIBUNAL
                          "E" Bench, Mumbai

                Before Shri D. Manmohan, Vice President
               and Shri Sanjay Arora, Accountant Member

                           SA No. 26/Mum/2014
                  (Arising out of ITA No. 2822/Mum/2013)
                         (Assessment Year: 2009-10)

     M/s. Sai Shirdi Constructions        Income Tax Officer - 22(3)(4)
     429, Arenja Corner, Sector 17    Vs. Tower No. 6, Vashi Railway
     Vashi, Navi Mumbai 400705            Station Complex
     PAN - ABFFS1404C                     Vashi, Navi Mumbai 400705
               Applicant                          Respondent

                   Applicant by:      Ms. Natasha Mangat
                   Respondent by:     Shri M.L. Perumal

                   Date of Hearing:       31.01.2014
                   Date of Pronouncement: 31.01.2014

                                 ORDER

Per D. Manmohan, V.P. By this application the assessee seeks stay of collection of outstanding demand of `10,01,750/- pending disposal of the appeal and also requested for posting the appeal on out of turn basis for the reasons stated in Annexure-1 to the stay application.

2. We have heard the learned counsel for the assessee and also the learned D.R. in this regard and carefully perused the record.

3. The case of the assessee is that the assessee was following the method of estimating profit on yearly basis, on the basis of certain percentage of incremental work-in-progress. Though it had declared profit at 11.70% on the work-in-progress in the earlier year, due to changed circumstance the assessee did not offer higher rate of profit based on commercial principles whereas the AO proceeded to complete the assessment on wrong understanding of law that the assessee had to consistently show the same rate from year to year.

M/s. Sai Shirdi Constructions

4. The learned counsel for the assessee adverted our attention to the facts of the case to submit that it has a strong prima facie case on merits.

5. Having regard to the circumstances of the case we are of the view that this is a fit case for granting early hearing and as announced in the open court we direct the Registry to post the case for final hearing on 12.02.2014. Since the date is announced in the open court notice to the parties is dispensed with. Since the appeal itself is posted on out of turn basis on 12.02.2014, the Revenue is advised not to take any coercive action at least till 12.02.2014 and should avoid seeking adjournment on that date, in the interest of justice.

6. In the result, the stay application filed by the assessee firm is treated as partly allowed Order pronounced in the open court on 31st January, 2014.

                    Sd/-                                    Sd/-
               (Sanjay Arora)                          (D. Manmohan)
            Accountant Member                          Vice President

Mumbai, Dated: 31st January, 2014

Copy to:

     1.   The   Appellant
     2.   The   Respondent
     3.   The   CIT(A) - 33, Mumbai
     4.   The   CIT- 22, Mumbai City
     5.   The   DR, "E" Bench, ITAT, Mumbai

                                                         By Order

//True Copy//
                                                      Assistant Registrar
                                              ITAT, Mumbai Benches, Mumbai
n.p.