TaxTMI 
TaxTMI 
2018 (11) TMI 948
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.... CIT(A) has erred in deleting the addition of Rs. 1,55,00,000/- received by the assessee on a/c of professional fees u/s 194 J of the I.T. Act for rendering the services to M/s. A.A. Estate Private Limited during the year which clearly indicates the facts that the assessee is only a service provider. By adopting project completion method the assessee is not showing profit in a particular year thereby postponing the tax liability which is incorrect on the part of the assessee. The assessment for the impugned Assessment Year [AY] was framed by Ld. Income Tax Officer- 14 (3)(2) , Mumbai [AO] u/s 143(3) on 06/03/2015 wherein the income of the assessee was assessed at Rs. 81.19 Lacs after certain adjustments as against Nil return filed by the a....
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....impugned additions by following the orders of its predecessor for AYs 2006-07 to 2010-11 as confirmed by the Tribunal by observing as under:- 4.3 I have considered the facts of the case and the appellant's submissions. It is seen that identical issue has been considered and decided in favour of the appellant by my Id. predecessors in the appeals for A.Y.s 2006-07 to 2011-12. In the appeal for A.Y. 2006-07, my Id. predecessor had observed and held as under: "Thus as per MOU, M/s. A.A. Estate P. Ltd. was the builders and developers who obtained the services of the appellant for works as mentioned above. In other words, the appellant was not acting as a builder and developer but was only rendering professional and technical services in....
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....s also upheld by the Hon'ble ITAT in its order dated 18.12.2015 in ITA No.7579/M/2011 wherein it has been held as under: "8. We have considered the rival contentions and have also gone through the records. We find that the id. CIT(A) has passed a very detailed and elaborative order wherein after verification of the records it has been pointed out that the amount received by the assessee was including the expenditure incurred by the assessee which was paid by M/s. A.A. Estate Pvt. Ltd. The amount paid to the assessee has not been claimed by the M/s. A.A. Estate Pvt. Ltd. as expenditure but has only been shown as work in progress. So there was a consistency in the accounts of both the payer and the payee. The services rendered by the as....
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.... order of the Ld. CIT(A) and the same is accordingly upheld. 9. In the result, the appeal of the Revenue is dismissed. Since the issue involved in all the other appeals is also identical, hence in view of our observations made above all the above captioned appeals of the Revenue are hereby dismissed." Facts and circumstances of the issue in the instant appeal being identical with that of the earlier years, respectfully following the decision of my Id. predecessors and the Hon'ble ITAT, the appellant's grounds of appeal are allowed. Aggrieved, the revenue is in further appeal before us. 4. The Ld. Senior Counsel appearing for Assessee, Shri F.B.Andhyarujina, at the outset, submitted that the issue stood squarely covered in asse....
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....books of accounts. It has also been submitted that profits / losses arising from the projects have been charged to Profit & Loss Account in the year of completion of the project. Per Contra, Ld. Departmental Representative [DR], Shri D.G.Pansari although supported the stand of Ld. AO but could not bring on records any contrary judgment. 5. We have carefully heard the rival submissions and perused relevant material on record. The nature of the transactions as explained by Ld. Sr. Counsel is not in dispute since similar facts have been noted by the Tribunal in earlier years. Upon perusal of impugned order, we find that first appellate authority has provided relief to the assessee by relying on the order of this Tribunal for AYs 2006-07 to 20....