Yamsani Madhusudhan Rao, Hyderabad V. The DCIT Circle - 1, Warangal

ITA 1274/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3317 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 08-03-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 04-10-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M H NAIK
• Assessee Lawyers: RAVI SESHAGIRI RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.1272/HYD/2010 : ASSESSMENT YEAR 2002- 03 ITA NO.1273/HYD/2010 : ASSESSMENT YEAR 2003- 04 ITA NO.1274/HYD/2010 : ASSESSMENT YEAR 2004- 05 SHRI YAMSANI MADHUSUDAN RAO, HANUMAKONDA. (PAN AAKPY 6521 G) VS ASST. COMMISSIONER OF INCOME-TAX, CIRCLE 1, WARANGAL (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAVI SESHAGIRI RA O RESPONDENT BY : SHRI M.H.NAIK O R D E R PER G.C.GUPTA, VICE PRESIDENT: THESE THREE APPEALS BY THE ASSESSEE FOR THE ASSES SMENT YEARS 2002-03, 2003-04 AND 2004-05 ARE DIRECTED AGA INST A COMMON ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS). S INCE IDENTICAL ISSUE IS INVOLVED IN THESE THREE APPEALS, THESE ARE BEING DISPOSED OFF WITH THIS CONSOLIDATED ORDER. 2. IDENTICAL GROUNDS OF APPEAL OF THE ASSESSEE I N THESE THREE APPEALS ARE AS UNDER- 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) IS ERRONEOUS AND CONTRARY TO THE FACT S OF THE CASE. 2. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) OUGHT TO HAVE APPRECIATED THAT INCOME DERIVED FROM HOUSE RENT IS RIGHTLY ASSESSABLE IN THE HANDS OF TH E APPELLANTS WIFE SMT. USHA RANI. ITA NO.1272-1274/HYD/2010 SHRI YAMSANI MADHUSUDAN RAO, HANUMAKONDA. 2 3. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) OUGHT TO HAVE SEEN THAT APPELLANTS WIFE SMT.USHA R ANI IS THE OWNER OF THE HOUSE PROPERTY AND RENTAL INCOM E DERIVED THERE FROM IS RIGHTLY TO BE ASSESSED IN HER HANDS. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE WIFE OF THE ASSESSEE-APPELLANT, SMT. USHA RANI WAS THE REAL OWNER OF THE HOUSE PROPERTY AND THEREFORE RENTAL INCOME DER IVED THEREFROM SHOULD HAVE BEEN ASSESSED IN HER HANDS ONLY. HE SUB MITTED THAT IDENTICAL ISSUE FOR THE EARLIER ASSESSMENT YEAR 200 1-02 IS PENDING BEFORE THE CIT(A) AND THEREFORE, THE MATTER MAY BE RESTORED TO THE FILE OF THE CIT(A) TO DECIDE THE SAME AFRESH ALONGW ITH THE ISSUE FOR THE EARLIER ASSESSMENT YEAR 2001-02. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS NO OBJECTION TO THE REQUEST OF THE LEARNED COUNSEL FOR THE ASSESSEE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE F IND THAT BOTH THE PARTIES BEFORE US HAVE SUBMITTED THAT IDE NTICAL ISSUE OF ASSESSSABILITY OF RENTAL INCOME FROM HOUSE PROPERTY -WHETHER ASSESSABLE IN THE HANDS OF THE WIFE OF THE ASSESSEE -APPELLANT, SMT. USHA RANI- IS PENDING FOR THE EARLIER ASSESSMENT YE AR BEFORE THE CIT(A). IN THESE FACTS, WE ARE OF THE VIEW THAT IT SHALL BE IN THE FITNESS OF THINGS TO SET ASIDE THE ISSUE IN THE GRO UNDS OF APPEAL OF THE ASSESSEE FOR ALL THE THREE ASSESSMENT YEARS IN APPE AL BEFORE US TO THE FILE OF THE CIT(A), WITH A DIRECTION TO DECIDE THE IDENTICAL ISSUE IN THE EARLIER ASSESSMENT YEAR, VIZ. 2001-02 AND ALSO THE ISSUE INVOLVED IN THE ASSESSMENT YEARS 2002-03 TO 2004-05 IN ACCORDA NCE WITH LAW, AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE PARTIES. WE DIRECT ACCORDINGLY. ITA NO.1272-1274/HYD/2010 SHRI YAMSANI MADHUSUDAN RAO, HANUMAKONDA. 3 6. IN THE RESULT, ALL THE THREE APPEALS OF THE AS SESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 20-5-2011 SD/- SD/- (CHANDRA POOJARI) ( G.C. G UPTA) ACCOUNTANT MEMBER VICE PRESIDENT DATED 20TH MAY, 2011 COPY FORWARDED TO: 1. SHRI YAMSANI MADHUSUDAN RAO (HANUMAKONDA) C/O. SHR I S.RAMA RAO, D.NO.102, SHIRYA'S ELEGANCE, NO.3-6-643, STREE T NO.9, HIMAYATNAGAR, HYDERABAD 500029 2. ASST. COMMISSIONER OF INCOME-TAX, CIRCLE 1, WA RANGAL 3. CIT (A), VIJAYAWADA . 4. COMMISSIONER OF INCOME - TAX , VIJAYAWADA. 5. THE D.R., ITAT, HYDERABAD. B.V.S.