Case Number: ITA 170/DEL/2019
Appellant: Priapus Developers P.Ltd, New Delhi
Respondent: ACIT, Circle-20(1), New Delhi
Assessment Year: 2015-16
Result: 2015-16
Case Filed On: 2019-01-10
Order Type: Final Tribunal Order
Date of Order: 2019-03-12
Pronounced On: 2019-03-12
Case Conclusion and Judgment: The appeal filed by Priapus Developers P.Ltd against the impugned order dated 05.12.2018, passed by the Ld. CIT(Appeals)-7, New Delhi was heard and decided by the Income Tax Appellate Tribunal, Delhi Bench ‘F’. The judges, Shri Amit Shukla, Judicial Member, and Shri L.P. Sahu, Accountant Member, delivered the order. The primary issues contested were the assessment under section 143(3)/ Rectification order under section 154 of the Act wherein the income under normal provisions was assessed higher than the returned income, and the book profit for MAT purposes was also significantly adjusted.
After detailed hearings and considerations, the tribunal noted several discrepancies in the treatment of revaluation reserves and the application of various sections such as 115JB and section 49(2) of the Act. The tribunal identified errors in the application of tax provisions by the lower authorities, leading to adjustments in the book profits and MAT calculations that were not justified under the law. The decisions cited by the lower authorities were not found applicable to the facts of the case. Consequently, the tribunal overturned the order of the lower authorities, providing relief to Priapus Developers P.Ltd.
The tribunal’s decision emphasizes the necessity of strict adherence to the legal provisions when making assessments and highlights the tribunal’s role in ensuring justice by correcting misapplications of the law by the assessing officers.
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