Manish Prakash Mutha vs. DCIT, Circle 1

Parties Involved

Facts Summary

The appellant, Manish Prakash Mutha, is an individual and proprietor of M/s. Mutha Constructions, engaged in the business of Builders & Developers. He filed his Return of Income for A.Y. 2013-14 on 31.03.2015, declaring total income at Rs.44,91,066/- which included business loss of Rs.23,64,724/- and short-term capital gains of Rs.69,55,790/-. The appellant's case was selected for scrutiny under CASS and notice U/s 143(2) was issued on 31.08.2015. Subsequently, notice u/s 142(1) was issued to submit the preliminary documents. The appellant submitted the copy of return of income, computation of income, Tax audit Report, and other details called for during the assessment proceedings. During the year, he was engaged in the construction of a building on a plot of land situated at Shahad, Kalyan (West). The project was commenced in Feb 2009 and was divided into two parts: Sai Dham and Sai Icon. The construction of Sai Dham was completed in FY-2012-13, while the construction related to the project SAI ICON was completed up to the plinth level only in the year under consideration.…

Legal Issues

• 1. Whether the learned Commissioner of Income Tax (Appeal) erred in passing the order u/s 250 of the Income Tax Act without appreciating the statement of Fact & Grounds of appeal filed by the appellant while filing an appeal before CIT(A).
• 2. Whether the learned assessing officer erred in estimating and allocating certain expenses on the basis of total construction cost incurred till 31.03.2013 in respect of both the projects whereas the Sai Icon project was stand still after High court order and no construction activity was carried out.
• 3. Whether the learned Assessing officer erred in disallowing Rs 13,15,431/- and Rs. 16,97,430/- on account of expenses claimed against the 'Sai Dham Project' completed during the year presuming that certain expenses could have been incurred for other project i.e., 'Sai Icon' which was under construction and carried forward as CWIP on the estimated basis.

Judgment Outcome

Decided in favour of Assessee.

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