CIT Vs. ANSAL HOUSING & CONSTRUCTION LTD

JUDGEMENT

(1.) These are three appeals filed by the Revenue under Section 260A of the Income Tax Act, 1961 ("Act" for short). They relate to the assessment years 2000-01 and 2001-02. ITA No.485/2010 and 480/2010 are directed against the common order dated 12 th June, 2009 passed by the Income Tax Appellate Tribunal ("Tribunal" for short) for the assessment years 2000-01 and 2001-02 respectively in the appeals filed by the assessee against the orders passed by the CIT under Section 263 of the Act. ITA No.437/11 is an appeal filed by the assessee against the assessment framed by the Assessing Officer on 22 nd March, 2006 under Section 143(3) read with Section 263 of the Act, consequent to the order passed by the CIT under Section 263.

(2.) We may first take up the appeals filed by the Revenue against the order passed by the Tribunal on 12 th June, 2009 in the appeals filed by the assessee against the orders passed by the CIT under Section 263 of the Act. The CIT passed two separate orders for the assessment years 2000-01 and 2001-02 on the same day, that is, 24 th March, 2005.

(3.) In respect of the assessment year 2000-01, the facts are these. The assessee is engaged in the business of real estate builder and developer. It filed a return of income on 31 st November, 2000 declaring a total income of Rs.6,94,23,159/- which was scaled down to Rs.3,80,22,870/- by revised return filed on 27 th December, 2001. The Assessing Officer issued notices under Section 143(2) and 142(1) which were complied with. The assessee also produced books of accounts which were test-checked as also various particulars and documents called for in the course of the assessment proceedings. The assessment order was passed on 28 th March, 2003 under Section 143(3) on a total income of Rs.6,10,31,057/-. Two modifications were made by the Assessing Officer to the income returned. The first was an addition of Rs.2,17,73,665/- as notional annual letting value in respect of the flats remaining unsold with the assessee. The other was a disallowance of Rs.12,34,522/- under Section 80IB(10).