Sushma Bangur, Kolkata V. ITO, Ward - 38(4), Kolkata, Kolkata

ITA 1339/KOL/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78330 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2014
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 13-10-2011
• Court: TRIBUNAL
• Department Lawyers: ROBIN CHOWDHURY
• Assessee Lawyers: K A BHADURI
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH B , KOLKATA [BEFORE HONBLE SRI ABRAHAM P.GEORGE, AM & HONBL E SRI GEORGE MATHAN, JM] ITA NO.1339/KOL/2011 ASSESSMENT YEAR : 2006-07 ( APPELLANT ) (RESPONDENT) SUSHMA BANGUR -VS- I.T.O., WARD-38 (4) KOLKATA KOLKATA (PAN:AECPB 1040 D) FOR THE APPELLANT SHRI K.A.BHADURI, ADVOCATE FOR THE RESPONDENT SHRI ROBIN CHOWDHURY, JCIT, SR.DR DATE OF HEARING : 07.05.2014 DATE OF PRONOUNCEMENT : 07. 05.2014. ORDER PER SHRI GEORGE MATHAN, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. C.I.T.(A)- XXIV, KOLKATA IN APPEAL NO.512/CIT(A)-XXIV/38(4)/08-09 DA TED 25.03.2010 FOR ASSESSMENT YEAR 2006-07.. 2. THE ONLY ISSUE IN THIS APPEAL WAS AGAINST THE A CTION OF LD. CIT(A) IN CONFIRMING DISALLOWANCE OF AN AMOUNT OF RS.1,50,000/- REPRESEN TING THE RENTAL EXPENDITURE INCURRED BY ASSESSEE AND CLAIMED AGAINST THE HEAD INCOME FROM OTHER SOURCES BUT HAD BEEN DISALLOWED BY AO UNDER THE HEAD INCOME FR OM HOUSE PROPERTY. 3. SHRI K.A.BHADURI, ADVOCATE, REPRESENTED ON BEHA LF OF THE ASSESSEE AND SHRI ROBIN CHOWDHURY, JCIT(SR.DR) REPRESENTED ON BEHAL F OF THE REVENUE. 4. IT WAS SUBMITTED BY THE LD. AR THAT THE ASSESSE E HAD INCOME UNDER THE HEAD INCOME FROM HOUSE PROPERTY, INTEREST INCOME UNDER THE HEAD INCOME FROM OTHER SOURCES AND INCOME FROM LONG TERM CAPITAL GAIN. IT WAS THE SUBMISSION THAT WHILE FILING HER RETURN FOR THE ASSESSMENT YEAR THE ASSES SEE HAD CLAIMED EXPENSES ON ACCOUNT ITA.NO.1339/KOL/2011 SUSHMA BANGUR A.YR.2006-07 2 OF RENTAL EXPENDITURE AND OTHER EXPENSES AGAINST TH E HEAD INCOME FROM OTHER SOURCES. IN THE COURSE OF ASSESSMENT THE AO DISALL OWED THE EXPENDITURE ON ACCOUNT OF RENT CLAIMED UNDER THE HEAD INCOME FROM OTHER S OURCES AGAINST THE RENTAL INCOME. THE REASON GIVEN BY AO WAS THAT THE ASSESSEE WAS HA VING RENTAL INCOME AND THE ASSESSEE HAD CLAIMED RENT EXPENDITURE OF AN AMOUNT OF RS.1,50,000/- AND ASSESSEE HAD ALSO CLAIMED DEDUCTION U/S 24 OF THE IT ACT AGAINST THE HEAD INCOME FROM HOUSE PROPERTY. THE AO HELD THAT AS THE ASESSEE WAS ONLY ENTITLED TO DEDUCTION U/S 24 OF THE IT ACT AND THE EXPENDITURE ON ACCOUNT OF RENT WAS D ISALLOWED. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD NOT CLAIMED THE EXPENDITURE OF RS.1,50,000/- REPRESENTING THE RENT PAID BY THE ASSESSEE AGAINST THE RENT RECEIVED BY THE ASSESSEE. IT WAS THE SUBMISSION THAT THE RENT PAID BY THE ASSESSEE WAS C LAIMED AS EXPENDITURE UNDER THE HEAD INCOME FROM OTHER SOURCES REPRESENTING INTER EST RECEIVED FROM VARIOUS PERSONS BEING RAJ DEALERS AND DISTRIBUTORS AND RAJYAVARDHA VANIJYA PVT. LTD. ETC. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD ALSO PAID SALARY W HICH IS ALSO ALLOWED BY THE AO AGAINST THE INCOME UNDER THE HEAD INCOME FROM OTHE R SOURCES. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD FILED RECTIFICATION PETITION U/S 154 OF THE IT ACT WHICH HAD BEEN REJECTED BY THE AO ON THE GROUND THAT THERE WAS NO MISTAKE APPARENT FROM THE RECORD. IT WAS THE SUBMISSION THAT THE LD. CIT(A) HAD ALSO CONFIRMED THE ORDER OF AO HOLDING THAT THERE WAS NO MISTAKE APPARENT FROM THE RECORD. IT WAS THE SUBMISSION THAT THE ASSESSEE HAVING NOT CLAIMED THE EXPENDITURE AGAINST THE HEAD INCOME FROM HOUSE PROPERTY AND THE EXPENDITURE HAVING BEEN CLAIMED A GAINST THE HEAD INCOME FROM OTHER SOURCES AND THE AO HAVING WRONGLY DISALLOWED THE EXPENDITURE UNDER THE HEAD INCOME FROM HOUSE PROPERTY CLEARLY SHOWS THE MIST AKE APPARENT FROM THE RECORD WHICH WAS RECTIFIABLE. 5. IN REPLY THE LD. DR SUPPORTED THE ORDER OF AO AN D THE LD. CIT(A). IT WAS THE SUBMISSION THAT THE ASSESSEE HAD NOT SHOWN THAT THE RENT EXPENDITURE WAS INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF EARNING I NCOME UNDER THE HEAD INCOME FROM OTHER SOURCES. IT WAS THE SUBMISSION THAT THE ISSUE WAS A DEBATABLE ISSUE AND ORDER OF THE LD. CIT(A) WAS LIABLE TO BE CONFIRMED. ITA.NO.1339/KOL/2011 SUSHMA BANGUR A.YR.2006-07 3 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. THOUGH THE LD. DR HAS RAISED THE ISSUE THAT THE ASSESSEE HAS NOT SHOWN THAT THE RENT AL INCOME WAS WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF EARNING INCOME UNDER THE HEAD INCOME FROM OTHER SOURCES WHICH IS NOT THE CLAIM OF AO, ADMITTEDLY T HE LD. DR IN AN APPEAL, MORE SO, IN REPLY TO AN APPEAL CANNOT RAISE ANY NEW ISSUE WHICH HAS NOT BEEN RAISED BY AO. THE AO HAS ONLY DISALLOWED THE RENT PAID ON THE GROUND THAT THE ASSESSEE HAS OFFERED THE INCOME UNDER THE HEAD INCOME FROM HOUSE PROPERTY AND HAS CLAIMED DEDUCTION U/S 24 OF THE IT ACT. AT THE VERY OUTSET, THIS CLAIM TA KEN BY THE AO IS ERRONEOUS, IN SO FAR AS, THE ASSESSEE HAS NOT CLAIMED THE EXPENDITURE BE ING RENTAL EXPENDITURE AGAINST THE ASSESSEES INCOME UNDER THE INCOME FROM HOUSE PROP ERTY. THE ASSESSEE HAS CLAIMED EXPENDITURE AGAINST INCOME EARNED UNDER THE HEAD I NCOME FROM OTHER SOURCES,. THE FACT THAT THE AO HAS SHIFTED THIS EXPENDITURE FROM THE HEAD INCOME FROM OTHER SOURCES TO THE HEAD INCOME FROM HOUSE PROPERTY C LEARLY SHOWS THAT THERE IS A MISTAKE APPARENT FROM THE RECORD. FURTHER THE EXPEN DITURE HAS NOT BEEN DISBELIEVED NOR DISPROVED. IN THE CIRCUMSTANCES WE ARE OF THE V IEW THAT THE ASSESSEE IS ENTITLED TO CLAIM EXPENDITURE OF RS.1,50,000/- AS MADE AGAINST THE INCOME UNDER THE HEAD INCOME FROM OTHER SOURCES AS CLAIMED. IN THE CIRC UMSTANCES THE APPEAL OF THE ASSESSEE IS ALLOWED. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED ORDER PRONOUNCED IN THE COURT 07.05.2014. SD/- SD/- [ABRAHAM P.GEORGE] [ GEORGE MATHAN ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 07.05.2014. R.G.(.P.S.) ITA.NO.1339/KOL/2011 SUSHMA BANGUR A.YR.2006-07 4 COPY OF THE ORDER FORWARDED TO: 1. SUSHMA BANGUR, 199, CHITTARANJAN AVENUE, KOLKATA-70 0006. 2 I.T.O., WARD-38(4), KOLKATA. 3 . CIT(A)-XXIV, KOLKATA. 4. CIT - KOLKATA. 5. CIT(A)DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES