MR. NAGANI MOHD. YUSUF A., MUMBAI V. DCIT CIRCLE 19(1), MUMBAI

ITA 1408/MUM/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 84113 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 01-09-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 17-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAWAN KU MAR BEERLA
• Assessee Lawyers: K GOPAL
• Keywords: Opportunity of being heard; Deemed to accrue or arise in india; Cost of acquisition
• Section: 143(3)

Judgement Text

G IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI BEFORE S HRI R.C. SHARMA , ACCOUNTANT MEMBER & SHRI VIVEK VARMA , J UDICIAL MEMBER I.T.A. NO. 1408 /MUM/20 1 1 ( ASSESS MENT YEAR : 20 0 7 - 20 0 8 MR. NAGANI MOHD. YUSUF A., 531, M.K. MARG. BLDG., LINKING ROAD, KHAR (W), M UMBAI 400 0 52 . VS. DCIT CIRCLE 19(1), MUMBAI . PAN : ABUPN9335Q ( APPELLANT ) .. ( RE SPONDENT ) A PPELLANT BY SHRI K. GOPAL R E SPONDENT BY : SHRI PAWAN KUMAR BEERLA DATE OF HEARING : 12 - 11 - 2014 / DATE OF PRONOUNCEMENT : 12 - 11 - 2014 [ O R D E R PER R.C. S HARMA , A .M . : THIS IS AN APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE EX PARTE ORDER OF LD. CIT(A) - 30 , MUMBAI DATED 24 - 12 - 2010 FOR THE A.Y. 200 7 - 0 8 IN THE MATTER OF ORDER PASSED U/S 143(3) OF THE INCOME TAX ACT, 1961 . 2. IT WAS CONTENDED BY THE LD. COUNSEL FOR THE ASSESSEE THAT WITHOUT GIVING OPPORTUNITY TO THE ASSESSEE, THE LD. CIT(A) HAS CONFIRMED THE ADDITION ON ACCOUNT OF DEEMED INCOME FROM HOUSE PROPERTY. FROM THE RECORD S WE FOUND THAT THE ASSESSEE WAS HAVING VARIOUS HOUSE PROPERTIES , THE DETAILS OF WHICH WAS FURNISHED TO THE A.O. WITH REGARD TO COST OF ACQUISITION WHICH WORKS OUT TO BE RS. 5,34,54,384/ - . THE A.O. HAS APPLIED THE RATE OF 8.5% ON SUCH INVESTMENT AND COMPUTED THE ANNUAL LETTING VALUE (ALV) AT RS. 45,43,623/ - . ITA 14 08 / M/ 1 1 2 AFTER GIVING DEDUCTION ON ACCOUNT OF REPAIRS AND MAINTENANCE AT RS. 13,63,087, THE A.O. HAS COMPUTED THE NET DEEMED RENT AT RS. 31,80,536/ - . THE METHOD OF COMPUTATION ON DEEMED RENT IS NOT CORRECT. AS PER THE PROVISIONS OF SECTION 23 OF THE ACT, THE ANN UAL LETTING VALUE IS THE REASONABLE AMOUNT WHICH IS EXPECTED WHEN LET OUT FROM YEAR TO YEAR . THE ANNUAL VALUE CANNOT EXCEED STANDARD RENT WHICH IS BASED ON THE COST OF THE PROPERTY FROM TIME TO TIME. THE ALV HAS TO BE DETERMINED ON THE BASIS OF (I) STAND ARD RENT DETERMINED IN ACCORDANCE WITH RENT CONTROL ACT OR AT ANNUAL MUNICIPAL VALUE IF AVAILABLE. IF THE ACTUAL RENT RECEIVED OR RECEIVABLE IS MORE THAN THE STANDARD RENT OR ANNUAL MUNICIPAL VALUE, THE ACTUAL RENT IS TO BE TAKEN. 3. IN VIEW OF THE ABOVE AND KEEPING IN VIEW THE FACT THAT, THE A.O. IS NOT CORRECTLY COMPUTED THE ANNUAL VALUE AS PER THE PROVISIONS OF THE ACT AND THE LD. CIT(A) WITHOUT GIVING OPPORTUNITY TO THE ASS ESSEE HAS PASSED EX PARTE ORDER, I IN THE INTEREST OF JUSTICE, WE RESTORE THIS I SSUE BACK TO THE FILE OF THE A.O. FOR DECIDING THE SAME AFRESH AS PER LAW, AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 12 T H NOVEMBER, 2014 . 12 /11/2014 SD/ - SD/ - ( VIVEK VARMA ) ( R.C. SHARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 12 /11/2014 RK , SR. PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. ITA 14 08 / M/ 1 1 3 3. / THE CIT(A) 30 , MUMBAI 4. / CIT - CITY - 19 , MUMBAI 5. / DR, ITAT, MUMBA I G BENCH 6. GUARD FILE . / BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) / ITAT, MUMBAI