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TMI Blog2015 (1) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... e and it includes the expenditure of ₹ 31,150/- on account of leveling of new store compound. In our considered opinion, such an expenditure is purely temporary in nature. The second item is of ₹ 25,000/- on account of fixing of shed. As per the bill, labour charges is paid on account of fixing of nut bolt for a shed using old materials. In our considered opinion, this is also temporary in nature. The third item is dismantling of old shed of ₹ 46,000/-. This item, in our considered opinion is allowable in full as Revenue expenditure. The 4th item is expenses of ₹ 1,05,300/- on account of earth filling. In our considered opinion, this expenditure is also allowable as Revenue expenditure in full. The next item is of ₹ 50,000/- incurred on account of cost of shifting of old store. In our considered opinion, this expenditure is also allowable as Revenue expenditure. The last item is of ₹ 9,750/- on account of labour charges for doing misc. work. In our considered opinion, as per above discussion, the entire expenses incurred by the assessee is allowable in full in the present year and hence, we delete these disallowances. - Decided in favour of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to double taxation only on rectification of mistake by the learned A.O. 2. It was submitted by Learned A.R. of the assessee that if prior period expenses are to be disallowed in the present year then prior period incomes should also be excluded in the present year. He further submitted that in fact, the prior period income at ₹ 9,44,601/- is higher to prior period expenses of ₹ 9,11,259 and there is net prior period income of ₹ 33,342/- , which was included by the assessee in the computation of income and hence, no addition is justified on this account. 3. Learned D.R. of the Revenue supported the orders of the authorities below. 4. We have considered the rival submissions. In our considered opinion, the addition made by the Assessing Officer is not justified because prior period income reported by the assessee at ₹ 9,44,601/- is more than prior period expenses of ₹ 9,11,259/-. The Assessing Officer has wrongly made addition of ₹ 18,52,518/- by adding both the amount of prior period income and expenditure and excluding net prior period income of ₹ 33,342/- offered to tax by the assessee. Even if the entire amount of prior period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have considered the rival submissions. We find that it is noted by the Assessing Officer in the assessment order that no details of construction of temporary structure were filed by the assessee and on this basis, he disallowed the claim of the assessee. Now we find that in the paper book, the details are available on page No. 46 of the paper book and along with this, photocopy of relevant bills are also available on pages 48 to 54 of the paper book. As per the details available on page No. 46 of the paper book, out of total expenses of ₹ 4,16,228/-, the amount of ₹ 3,85,150/- is on the basis of six bills and the remaining amount of ₹ 31,078/- is on the basis of various small bills, each of less than ₹ 3,000/-. Hence, we feel it proper to examine these six bills, which constitute the majority of the expenses of ₹ 3,85,150/-. 9. The first item is of ₹ 1,52,100/-, being cost of boundary wall and leveling charges. As per the detail, the boundary wall is of barbed wire and it includes the expenditure of ₹ 31,150/- on account of leveling of new store compound. In our considered opinion, such an expenditure is purely temporary in nature. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the basis of such reports profit/centage can be estimated month-wise what to talk of annuals. Failure of the assessee to account for such profit is therefore clearly deliberate, in order to suppress its income and is therefore liable to be deleted. 16. It was submitted by Learned A.R. of the assessee that the relevant circular dated 27/02/97 is available on pages 73 74 of the paper book as per which, centage is allowable @12.5%. He also submitted that in the earlier years also, the assessee was following same method of accounting and it was accepted by the Revenue. He also submitted that in fact, in assessment year 2005-06, the addition was made by the Assessing Officer and confirmed by CIT(A) but when the assessee carried the matter in appeal before the Tribunal, the Tribunal allowed relief to the assessee as per the Tribunal order dated 29/01/2010 in I.T.A. No.646/Lkw/06, copy of which is available on pages 93 to 100 of the paper book. He also placed reliance on the following judicial pronouncements in support of this contention that as per Rule of consistency, if matter is decided in favour of the assessee in earlier years, the same cannot be challenged in the subseque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tage completion method of accounting, he should have accounted for centage receivable on WIP also. The Assessing Officer has noted that the assessee has shown WIP of ₹ 890.29 crores and no evidence has been produced before him to establish that centage has been charged thereon. The case of the Assessing Officer is that the assessee is following percentage completion method of account but the same was not followed in true sense because the assessee has not accounted for centage in respect of WIP. Therefore, in our considered opinion, the Tribunal decision in the case of Hariom Builders (supra), cannot be made applicable in the present case. So far the Tribunal decision in assessee s own case for assessment year 2005-06 is concerned, in the absence of facts and disputes of that year, we cannot compare the facts of this year with the facts of that year and therefore, it cannot be said that the present issue is covered by this Tribunal order. 19. Regarding the reliance of the Learned A.R. of the assessee on various judicial pronouncements in support of this contention that as per the principle of consistency, no contrary view should be taken in the present year, we would like ..... X X X X Extracts X X X X X X X X Extracts X X X X
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