M/s Maqsons Realty, Bangalore V. ACIT,

CO 37/BANG/2010

• Counselvise Citation: [2010] 122 COUNSELVISE.COM (IT) 5222 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 24 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 30-11-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 06-08-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Depreciation
• Section: 260A

Judgement Text

PAGE 4 OF 4 ITA NO.687/BANG/2010 & C.O.N O.37/BANG/2010 4 TRIBUNAL IS EXTRACTED IN THE IMPUGNED ORDER OF THE CIT(A) AT PARA 3 AND HENCE, THE SAME IS NOT REITERATED HERE. 4.8 SINCE THE FACTS FOR THE ASST. YEAR 2005-06 BEIN G IDENTICAL TO THE CONCERNED ASST. YEAR I.E. 2006-07, RESPECTFULLY FOLLOWING THE COORDINATE BENCH DECISION OF THE TRIB UNAL IN ASSESSEES OWN CASE CONCERNING ASST. YEAR 2005-06, WE DISMISS T HE GROUNDS RAISED HEREIN. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. 6. THE CROSS OBJECTION FILED BY THE ASSESSEE, BEING ONLY SUPPORTING THE ORDER OF THE CIT(A), IS DISMISSED AS INFRUCTUOUS. 7. IN THE RESULT, THE CROSS OBJECTION FILED BY THE ASSESSEE IS DISMISSED. THE ORDER PRONOUNCED ON TUESDAY, THE 30 TH DAY OF NOVEMBER, 2010 AT BANGALORE. SD/- SD/- (A MOHAN ALANKAMONY) (GEORGE GEORGE K) ACCOUNTANT MEMBER JUDICIAL MEMB ER COPY TO :- 1. THE ASSESSEE 2. THE REVENUE 3. THE CIT(A) CONCERNED. 4. THE CIT, CONCERNED. 5. THE DR 6. GF BY ORDER MSP/29/11. ASSISTANT REGISTRAR, ITAT, BANGALORE. PAGE 3 OF 4 ITA NO.687/BANG/2010 & C.O.N O.37/BANG/2010 3 4.1 AGGRIEVED BY THE ASSESSMENT SO COMPLETED, THE A SSESSEE CARRIED THE MATTER BEFORE THE FIRST APPELLATE AUTHO RITY. 4.2 IT WAS SUBMITTED BY THE ASSESSEES REPRESENTATI VE BEFORE THE CIT(A) THAT IDENTICAL ISSUE FOR THE ASST . YEAR 2005-06 WAS DECIDED IN FAVOUR OF THE ASSESSEE BY THE CIT(A) AND THE DECISION OF THE CIT(A) WAS AFFIRMED BY THE TRIBUNAL VIDE ITS ORD ER DATED 28/3/2008 (ITA NO.557/BANG/2007 AND C.O.NO.125/BANG /2007). 4.3 THE FIRST APPELLATE AUTHORITY, FOLLOWING THE TR IBUNAL ORDER DATED 28/3/2008 IN ASSESSEES OWN CASE CONCER NING ASST. YEAR 2005-06, DECIDED THE ISSUE IN FAVOUR OF ASSESSEE-FI RM. 4.4 THE REVENUE, BEING AGGRIEVED, IS IN APPEAL BEF ORE US. 4.5 THE LEARNED DR SUBMITTED THAT THE DECISION OF THE TRIBUNAL CONCERNING ASSESSEES OWN CASE FOR THE ASS T. YEAR 2005-06 HAS NOT BEEN ACCEPTED AND THE SAME HAS BEEN CARRIED IN APPEAL BEFORE THE HONBLE HIGH COURT OF KARNATAKA U/S 260A OF THE ACT. 4.6 THE LEARNED AR, ON THE OTHER HAND, SUPPORTED T HE ORDER OF THE CIT(A) AND CONTENDED THAT THE ISSUE IN QUEST ION IS SQUARELY COVERED IN ASSESSEES FAVOUR BY THE ORDER OF THE TRI BUNAL. 4.7 WE HAVE HEARD THE RIVAL SUBMISSION AND PERUSED THE MATERIAL ON RECORD. AN IDENTICAL ISSUE IN ASSESSEE S OWN CASE CONCERNING ASST. YEAR 2005-06 WAS CONSIDERED BY THE T RIBUNAL AND THE SAME WAS DECIDED IN FAVOUR OF ASSESSEE. THE RELEVA NT FINDING OF THE PAGE 2 OF 4 ITA NO.687/BANG/2010 & C.O.N O.37/BANG/2010 2 RECEIVED BY THE ASSESSEE IN LETTING OUT THE FIT OUTS AND OTHER AMENITIES IN THE PREMISES IS TO BE ASSESSED UNDER T HE HEAD BUSINESS. 3. THE ASSESSEE, IN THE CROSS OBJECTION, HAS RAISE D FIVE GROUNDS AND ALL THE GROUNDS SUPPORT THE ORDER OF TH E CIT(A). 4. THE BRIEF FACTS OF THE CASE ARE AS FOLLOWS:- THE ASSESSEE IS A FIRM CONSTITUTED BY THE DEED DAT ED 1/4/2004. THE ASSESSEE IS ENGAGED IN THE REAL ESTA TE BUSINESS. FOR THE CONCERNED ASST. YEAR, RETURN OF INCOME WAS FILE D DECLARING A TOTAL INCOME OF RS.12,40,480/-, WHICH WAS PROCESSED U/S 1 43(1) OF THE ACT. LATER, ASSESSMENT WAS SELECTED FOR SCRUTINY. IN THE RETURN OF INCOME, THE ASSESSEE HAD DISCLOSED A SUM OF RS.13,35,000/- AS RENTALS FROM PROPERTY AND RS.18 LAKHS UNDER THE HEAD BUSINESS F ROM LETTING OUT FIT OUTS IN RESPECT OF WHICH DEDUCTION TOWARDS SALARY FO R STAFF, BANK CHARGES, PARTNERS SALARY, DEPRECIATION AND SO ON WAS CLAIMED. THE ASSESSING OFFICER, FOLLOWING THE ASSESSMENT ORDER F OR 2005-06, TREATED THE INCOME OF RS.13,35,000/- SHOWN UNDER TH E HEAD HOUSE PROPERTY AND INCOME OF RS.18 LAKHS SHOWN UNDER THE HEAD BUSINESS, AS ONE FROM OTHER SOURCES TREATING BOTH THE RECEI PTS AS COMPOSITE RENTALS. IN DOING SO, THE ASSESSING OFFICER DISAL LOWED DEDUCTION OF EXPENSES CLAIMED BY THE ASSESSEE EXCEPT RS.30,000/- TOWARDS SALARY AND RS.750/- TOWARDS MISCELLANEOUS EXPENSES AND DE TERMINED THE TOTAL INCOME AT RS.31,04,250/-. PAGE 1 OF 4 ITA NO.687/BANG/2010 & C.O.N O.37/BANG/2010 1 THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH A BEFORE SHRI GEORGE GEORGE K, J.M. AND SHRI A MOHAN ALANKAMONY, A.M. ITA NO.687/BANG/2010 (ASST. YEAR 2006-07) THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-3(1), BANGALORE. - APPELLANT VS M/S MAQSONS REALTY, NO.20, B S RANOJI RAO ROAD, BASAVANAGUDI, BANGALORE. - RESPONDENT C.O.NO.37/BANG/2010 (ASST. YEAR 2006-07) (BY ASSESSEE) REVENUE BY : SMT. JACINTA ZIMIK VASHAI, ADDL. CIT ASSESSEE BY : SHRI GANESH RAO O R D E R PER GEORGE GEORGE K : THIS APPEAL BY THE REVENUE AND THE CROSS-OBJECTIO N BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF THE CIT(A)-II, BANGALORE DATED 18.1.2010. THE RELEVANT ASST. YEAR IS 2006-07. 2. THE MAIN ISSUE THAT IS RAISED IN THE REVENUES APPEAL IS WHETHER THE CIT(A) IS JUSTIFIED IN HOLDING THAT A S UM OF RS.18 LAKHS