Chaitanya Infrastructure P. Ltd. v. ACIT, Cent. Cir.-1 Rajkot
[Citation -2019-LL-0920-10]

Citation 2019-LL-0920-10
Appellant Name Chaitanya Infrastructure P. Ltd.
Respondent Name ACIT, Cent. Cir.-1 Rajkot
Court ITAT-Rajkot
Relevant Act Income-tax
Date of Order 20/09/2019
Assessment Year 2010-11
Judgment View Judgment
Keyword Tags books of accounts • error in order • determination of value • value of property • actual cost • rectification application
Bot Summary: During the course of hearing, the details in tabular form exhibiting the rate adopted by the AO and confirmed by the ld. The Tribunal, in principle, agreed that the rates calculated by the assessee and adopted by the MA No.01/RJT/2019 2 CIT(A) are to be taken together and divided by two, and whatever comes out is required to be adopted by the AO. A chart submitted during the course of hearing reads as under: Floor Weighted Rate adopted by Rate adopted Average Rate per CIT per sq. Counsel for the assessee submitted that as far as the rates as directed by the Tribunal to be adopted for all the floors are concerned, there is no dispute except third floor. According to him, the Tribunal while deciding this issue took into consideration the rates of two floors i.e. second and third floor, whereas the rates of both the floors are different. The Tribunal directed the AO to adopt the rate at figure of Rs.24,000/- per sq. If the actual rate of third floor adopted by the CIT(A) at Rs.22,000/- and at book rate of assessee at Rs.10,975/- are clubbed and divided by two, then it will come to Rs.16,487/-. In view of the above facts, we are satisfied that an inadvertent error has crept in the order of the Tribunal whereby a direction for adopting rate of third floor at Rs.24,390/- is given.


IN INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE SHRI RAJPAL YADAV, HONBLE JUDICIAL MEMBER AND SHRI WASEEM AHMED HON BLE ACCOUNTANT MEMBER Misc. Application NO.01/RJT/2019 IN ITA No.109/RJT/2012 Asstt. Year 2010-11 M/s.Chaitanya Infrastructure P.Ltd. ACIT, Cent.Cir.1 First Floor, Maruti Shopping Centre Vs. Rajkot. Astron Chowk, Rajkot. (Applicant) (Responent) Assessee by Shri D.M. Rindani, AR Revenue by Shri Anil Kumar Das, DR Date of Hearing 20/09/2019 Date of Pronouncement 20/09/2019 ORDER PER RAJPAL YADAV, JUDICIAL MEMBER Present MA is directed at instance of assessee pointing out apparent error in order of Tribunal dated 27.1.2018 passed for Asstt.Years 2004-05 and 2005-06. 2. It is pleaded in application that dispute arose with regard to determination of rates required to be adopted for sale of shops and offices at different floors. During course of hearing, details in tabular form exhibiting rate adopted by AO and confirmed by ld.CIT(A) as well as weighted average rate worked out by assessee on basis of books of accounts were submitted before Tribunal. Tribunal, in principle, agreed that rates calculated by assessee and adopted by MA No.01/RJT/2019 2 CIT(A) are to be taken together and divided by two, and whatever comes out is required to be adopted by AO. chart submitted during course of hearing reads as under: Floor Weighted Rate adopted by Rate adopted Average Rate per CIT per sq.mts. by ACIT per sq.mts. sq.mts. (As per books) Ground Floor Rs.50251.77 Rs.30,042/- Rs.30,042/- First Floor Rs.29,288.33 Rs.30,042/- Rs.30,042/- Second Floor Rs.17,703.97 Rs.30,042/- Rs.30,042/- Third Floor Rs.10,975.65 Rs.22,000/- Rs.30,042/- Fourth Floor Rs.11,056.58 Rs.22,000/- Rs.30,042/- Fifth Floor Rs.11,545.41 Rs.22,000/- Rs.30,042/- 3. ld.counsel for assessee submitted that as far as rates as directed by Tribunal to be adopted for all floors are concerned, there is no dispute except third floor. According to him, Tribunal while deciding this issue took into consideration rates of two floors i.e. second and third floor, whereas rates of both floors are different. For second floor, ld.CIT(A) has adopted Rs.30,042/- per sq.meter whereas in books it was Rs.17,703/- per sq.meter. When both these rates added together then it comes to figure of roughly Rs.47,745 per sq.meter. Tribunal has divided it by two. Tribunal directed AO to adopt rate at figure of Rs.24,000/- per sq.meter. This very rate has been applied for third floor. If actual rate of third floor adopted by CIT(A) at Rs.22,000/- and at book rate of assessee at Rs.10,975/- are clubbed and divided by two, then it will come to Rs.16,487/-. In principle, finding of Tribunal is that rates determined by CIT(A) and worked out in books are to be clubbed together, and thereafter that figure would be divided by two. Whatever amounts comes out is to be applied for sale of each floor. Since there was two different rates for second and third floor, and this uniform figure directed by Tribunal resulted into contradiction. In view of above facts, we are satisfied that inadvertent error has crept in order of Tribunal whereby direction for adopting rate of third floor at Rs.24,390/- is given. MA No.01/RJT/2019 3 We rectify this order and direct AO to adopt rate of third floor at Rs.16,500/- per sq.meter. 4. With above observation, this MA is allowed. Order pronounced in Court on 20th September, 2019 at Rajkot. Sd/- Sd/- (WASEEM AHMED) (RAJPAL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Chaitanya Infrastructure P. Ltd. v. ACIT, Cent. Cir.-1 Rajkot
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