Meetaben Prafulbhai Mandlia, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-2(3)(1), RAJKOT-GUJARAT

ITA 118/RJT/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0246 (ITAT-RAJKOT)
• Duration Of Justice: 2 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 13-04-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE SHRI RAJPAL YADAV, HONBLE JUDICIAL MEMBER AND SHRI WASEEM AHMED HONBLE ACCOUNTANT MEMBER ITA NO.118/RJT/2017 / ASSTT. YEAR: 2012-13 MEETABEN PRAFJULBHAI MANDLIA SHRI VALLABH, STR.NO.8 L-87, GUJ. HOUSING BOARD AMINMARG RAJKOT VS. ITO, WARD - 2(3)(1) RAJKOT. ( APPLICANT ) ( RESPONENT ) ASSESSEE BY : WRITTEN SUBMISSIONS REVENUE BY : SHRI ANIL KUMAR DAS, DR / DATE OF HEARING : 19/09/2019 / DATE OF PRONOUNCEMENT: 03/10/2019 )*+/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST O RDER OF LD.CIT(A)-2, RAJKOT DATED 2.1.2017 PASSED FOR THE ASSTT.YEAR 201 2-13. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE T IME OF HEARING. THEREFORE, WE PROCEED TO DISPOSE OF APPEAL EX PARTE QUA ASSESSEE-APPELLANT AFTER HEARING THE LD.DR AND CONSIDERING THE MATERIA L AVAILABLE ON RECORD. 3. GROUNDS OF APPEAL TAKEN BY THE ASSESSEE ARE NOT IN CONSONANCE WITH RULE 8 OF THE INCOME TAX (APPELLATE TRIBUNAL) RULES , 1963 - THEY ARE DESCRIPTIVE AND ARGUMENTATIVE IN NATURE. IN BRIEF , SOLE GRIEVANCE OF THE ITA NO.118/RJT/2017 2 ASSESSEE IS THAT THE LD.CIT(A) HAS ERRED IN CONFIRM ING ADDITION OF RS.3,57,379/- TO THE TOTAL INCOME OF THE ASSESSEE. 4. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND HAVING RENTAL INCOME FROM HOUSE PROPERTY. SHE HAS FILED R ETURN OF INCOME ON 21.10.2013 DECLARING TOTAL INCOME AT RS.5,79,010/-. IN THE SCRUTINY ASSESSMENT IT WAS REVEALED TO THE AO THAT THE ASSES SEE HAS CLAIMED INTEREST ON BORROWED CAPITAL UNDER SECTION 24(B) AT RS.3,57,379 /-. THE SAME WAS ADDED BY THE AO TO THE INCOME OF THE ASSESSEE ON THE GROU ND THAT THE ASSESSEES REPRESENTATIVE DURING THE ASSESSMENT PROCEEDINGS AG REED FOR THE ADDITION AS THE CLAIM WAS WRONGLY MADE UNDER SECTION 24(B) OF T HE ACT. APPEAL BY THE ASSESSEE BEFORE THE LD.FIRST APPELLATE AUTHORITY DI D NOT SUCCEED. THE ASSESSEE IS NOW BEFORE THE TRIBUNAL. 5. BEFORE US, THE ASSESSEE FILED WRITTEN SUBMISSION S PLEADING INTERALIA THAT THE ASSESSEE IS SHOWING RENTAL INCOME AND INCOME FR OM OTHER SOURCE. SHE HAS EARNED INTEREST INCOME OF RS.1,95,722/- FROM FIXED DEPOSIT, WHICH IS ASSESSED TO TAX. THE ASSESSEE HAS TAKEN OVERDRAFT LOAN FROM THE BANK, AND PAID AN INTEREST OF RS.3,57,378/-, AND THEREFORE, ATLEAST N ETTING OF THE INTEREST INCOME BE ALLOWED, AND THE BALANCE AMOUNT BE DISALLOWED. ON THE OTHER HAND, THE LD.DR RELIED ON THE ORDERS OF THE REVENUE AUTHORITI ES. 6. WE HAVE HEARD THE LD.DR AND GONE THROUGH THE WRI TTEN SUBMISSIONS FILED BY THE ASSESSEE. WE FIND THAT THE REVENUE HA S MADE ADDITION ON THE GROUND THAT REPRESENTATIVE OF THE ASSESSEE HAS AGRE ED FOR THE IMPUGNED ADDITION AS THE SAME WAS WRONGLY CLAIMED. SO FAR A S CLAIM OF DEDUCTION UNDER SECTION 24(B) IS CONCERNED, THE SAME IS ADMIT TED TO BE INADMISSIBLE. ALTERNATIVE PLEADING OF THE ASSESSEE BEFORE US IS T HAT, AT THE MOST, NETTING OF THE INTEREST INCOME BE ALLOWED, AND THE BALANCE AMO UNT BE DISALLOWED. BUT SUCH CLAIM HAS TO BE DECIDED UNDER THE PROVISIONS O F SECTION 57(III). THE ITA NO.118/RJT/2017 3 REQUIREMENT UNDER THIS PROVISION IS THAT THE ASSESS EE HAS TO SHOW A NEXUS BETWEEN INCURRING OF THE INTEREST EXPENDITURE AND E ARNING OF INTEREST INCOME, AND THAT SUCH BORROWED FUND WAS UTILIZED FOR THE PU RPOSE OF EARNING OF INCOME. THEY ARE ABSENT HERE. THERE IS NOTHING BE FORE US TO DEVIATE FROM THE FINDING TAKEN BY THE REVENUE AUTHORITIES. AS SUCH, THEIR ORDERS ON THIS ISSUE DO NOT CALL FOR ANY INTERFERENCE FROM OUR END. GRO UNDS OF APPEAL ARE ACCORDINGLY REJECTED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE COURT ON 3 RD OCTOBER, 2019 AT AHMEDABAD. SD/- SD/- (WASEEM AHMED ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER