M/s. Rasna Processors Pvt.Ltd., Ahmedabad V. The Jt.CWT,(OSD)Circle-5, Ahmedabad

CO 55/AHD/2012

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 7120 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 03-05-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 03-05-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 17-02-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD C BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT ME MBER W.T.A. NO.8/AHD/2011(BY DEPARTMENT) A. Y. 2005-06 JT. COMMISSIONER OF WEALTH TAX (OSD) CIRCLE-5 AHMEDABAD APPELLANT VS. M/S RASNA PORCESSORS PVT. LTD. PAN AACR0886Q RESPONDENT WITH C.O. NO.55/AHD/2012(BY ASSESSEE) (ARISING OUT OF W.T.A. NO.8/AHD/2011) M/S RASNA PORCESSORS PVT. LTD. PAN AACR0886Q APPELLANT VS. JT. COMMISSIONER OF WEALTH TAX (OSD) CIRCLE-5 AHMEDABAD RESPONDENT DEPARTMENT BY :SHRI S.K. GUPTA, CIT- D.R. ASSESSEE BY :SHRI HITESH P. SHAH, ADVOCATE ---------------- DATE OF HEARING : 03.05.2012 DATE OF PRONOUNCEMENT : 03 .05.2012 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER THE APPEAL FILED BY THE REVENUE AND THE C.O. FILED BY THE ASSESSEE HAVE BEEN FILED AGAINST THE ORDER OF LD. CWT(A)-XI, AHMEDABAD. WTA NO.8/AHD/2011 , A.Y. 2005-06 WITH C.O. NO.55/AHD/2012 2 2. THE REVENUE, BEING AGGRIEVED BY THE ACTION OF L D. CWT(A) IN HOLDING THAT ALL RENT YIELDING PROPERTIES ARE COMME RCIAL PROPERTIES AND HENCE, ARE EXEMPT U/S 2(EA)(5) OF THE W.T. ACT, 1957, IS B EFORE US. 3. THE BRIEF FACTS OF THE CASE ARE THAT DURING THE ASSESSMENT PROCEEDING THE A.O., ON PERUSAL OF INCOME TAX RECOR DS FOUND THAT THE ASSESSEE COMPANY RECEIVED RENTAL INCOME OF RS.2,02,72,308/- DURING THE YEAR UNDER APPEAL. THE ASSESSEE HAS ALSO TAKEN UNSECURED LOAN OF RS.13,96,43,968/-. THE A.O., THEREFORE, DETERMINED THAT NET TAXABLE WE ALTH OF THE ASSESSEE AS UNDER:- VALUATION OF IMMOVABLE PROPERTY AS PER SCHEDULE 111(3) MAINTAINABLE RENT X12.5(2,02,72,308X12.5 25,34,03,850 LESS UNSECURED LOANS 13,96,43,968 BASIC EXEMPTION 15,00,000 14,11,42,968 NET TAXABLE WEALTH 11,22,59,882 4. AGGRIEVED BY THIS ORDER THE ASSESSEE WENT IN A PPEAL BEFORE THE FIRST APPELLATE AUTHORITY AND LD. CWT(A) AFTER TAKI NG INTO CONSIDERATION THE SUBMISSIONS OF THE ASSESSEE ALLOWED THE APPEAL OF T HE ASSESSEE BY HOLDING THAT RENT YIELDING PROPERTIES ARE COMMERCIAL PROPER TIES AND ACCORDINGLY ARE EXEMPT U/S 2 (EA)(5) OF THE W.T. ACT. 5. AGGRIEVED BY THIS ORDER NOW THE REVENUE IS IN A PPEAL BEFORE US. AT THE TIME OF HEARING LD. D.R. RELIED ON THE ORDER OF LD. A.O. WHILE LD. COUNSEL OF THE ASSESSEE RELIED ON THE ORDER OF LD. CWT(A). 6. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD WE FIND THAT IN THIS CASE THE A.O. HAS DETERMINED THE NEXT TAXAB LE WEALTH OF THE ASSESSEE AT RS.11,22,59,882/-. LD. CWT(A) HAS GIVEN RELIEF TO THE ASSESSEE BY GIVING A WTA NO.8/AHD/2011 , A.Y. 2005-06 WITH C.O. NO.55/AHD/2012 3 CATEGORICAL FINDING THAT SINCE THE PROPERTY UNDER Q UESTION WAS COMMERCIAL, THE SAME WAS EXEMPT FROM WEALTH TAX AS PER THE EXPRESS PROVISIONS OF SECTION 2(EA)(5) OF THE W.T. ACT. SINCE THIS FINDING OF TH E LD. CWT(A) HAS REMAINED UNCONTROVERTED BY THE REVENUE AT THE TIME OF HEARIN G BEFORE US, WE FEEL NO NEED TO INTERFERE WITH THE ORDER PASSED BY LD. CWT( A) AND THE SAME IS HEREBY UPHELD. ACCORDINGLY, THIS GROUND OF REVENUE IS DIS MISSED. 7. AT THE TIME OF HEARING THE C.O. FILED BY ASSESS EE WAS WITHDRAWN AND THE SAME WAS DISMISSED AS WITHDRAWN. 8. IN THE RESULT, BOTH, THE APPEAL FILED BY THE RE VENUE AS WELL AS THE C.O. FILED BY THE ASSESSEE ARE HEREBY DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 03 /05/2012 . SD/ SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER JU DICIAL MEMBER TRUE COPY N.K. CHAUDHARY, SR. P.S. - 03 /05/2012 / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. !' / CONCERNED CIT 4. !' - / CIT (A) 5. #$% , & , / DR, ITAT, AHMEDABAD 6. %'( )* / GUARD FILE. BY ORDER/ , + / , & ,