Anita Ramdas Khutwad, Pune V. Income-tax Officer, Ward - 14(4), Pune

ITA 1421/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0822 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 05-03-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 10-09-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M K VERMA
• Assessee Lawyers: P S SHINGTE
• Section: 143(3)

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO.1421/PUN/2018 / ASSESSMENT YEAR : 2013-14 MRS. ANITA RAMDAS KHUTWAD, KOMAL NIWAS, SONARPOOL, PHURSUNGI, TAL. HAVELI, DIST. PUNE 412 308. PAN NO.ABVPK5164F. . / APPELLANT V/S THE INCOME TAX OFFICER, WARD-14(4), PUNE. . / RESPONDENT ASSESSEE BY : SHRI P.S. SHINGTE. REVENUE BY : SHRI M.K. VERMA. / ORDER PER ANIL CHATURVEDI, AM : 1. THIS APPEAL FILED BY THE ASSESSEE IS EMANATING OUT OF THE O RDER OF COMMISSIONER OF INCOME TAX (A) - 7, PUNE DATED 21.05.2018 FOR THE ASSESSMENT YEAR 2013-14. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS AN INDIVIDUAL WHO IS STATED TO BE HAVING RENTAL INCOME AND INCOME FROM OTHER SOURCES. ASSESSEE FILED HER RETURN OF INCOME FOR A.Y 2013-04 ON 19.04.2014 DECLARING TOTAL INCOME OF RS.3,34,1 79/-. THE CASE WAS SELECTED FOR SCRUTINY AND THEREAFTER THE A SSESSMENT WAS / DATE OF HEARING : 14.03.2019 / DATE OF PRONOUNCEMENT: 27.03.2019 2 ITA NO.1421/PUN/2018 FRAMED U/S 143(3) OF THE ACT VIDE ORDER DATED 21.03.201 6 DETERMINING THE TOTAL INCOME AT RS.20,40,800/-. AGGRIEVED BY THE ORDE R OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A), WHO VIDE OR DER DATED 21.05.2018 (IN APPEAL NO.PN/CIT(A)-7/WD.14(4)/10737/2016-17) GRANTED PARTIAL RELIEF TO THE ASSESSEE. AGGRIEVED BY TH E ORDER OF LD.CIT(A) ASSESSEE IS NOW APPEAL BEFORE US AND HAS RAISED THE FOLLOWING EFFECTIVE GROUND : ON THE FACT AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 7, P UNE HAS ERRED IN DISALLOWING AND ADDING BACK AN AMOUNT OF RS.9,84,46 4/- ON ACCOUNT OF INTEREST ON LOAN TAKEN FOR CONSTRUCTION OF GODOWN. 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS AO NOTIC ED THAT ASSESSEE HAD RECEIVED RENT FROM LETTING OFF OF GODOWNS W HICH WAS TREATED AS INCOME FROM BUSINESS. AO TREATED THE INCOME A S BEING INCOME FROM HOUSE PROPERTY. AO ON PERUSING THE BALANCE SHEET NOTICED THAT ASSESSEE HAD TAKEN LOANS OF APPROX 2.11 CR ORE AND HAD PAID INTEREST OF RS.19,68,928/- WHICH WAS CLAIMED AS EXPENDIT URE. HE ALSO NOTICED THAT THE BALANCE SHEET REFLECTED GODOWNS AT RS.50,22,451/- AND VALUE OF LAND PURCHASED AT RS.50,44,790/-. AO NOTED THAT ASSESSEE HAS NOT CLARIFIED ABOUT THE REASONS FOR INTERES T PAYMENT. IN THE ABSENCE OF DETAILS AO CONSIDERED 50% OF THE AMOUNT BORROWED TO HAVE BEEN UTILIZED FOR PURCHASE OF LAND AND 50% FOR CONST RUCTION OF GODOWN. HE ACCORDINGLY CONSIDERED INTEREST ELEMENT OF RS.9 ,84,464/- TO BE ATTRIBUTABLE TO THE HOUSE PROPERTY AND ACCORDINGLY DEDUCTED IT FROM THE COMPUTATION OF INCOME FROM HOUSE PROPERTY. AGGRIEVE D BY THE ORDER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A), WHO CO NFIRMED THE ORDER FOR THE REASON THAT NO DETAILS IN SUPPORT OF THE CLAIM WAS 3 ITA NO.1421/PUN/2018 SUBMITTED BY THE ASSESSEE. AGGRIEVED BY THE ORDER OF L D.CIT(A), ASSESSEE IS NOW BEFORE US. 4. BEFORE US, LD AR REITERATED THE SUBMISSIONS MADE BEFOR E LOWER AUTHORITIES AND FURTHER SUBMITTED THAT AO WAS NOT JUSTIFIE D IN ADDING BACK 50% OF THE INTEREST AMOUNT. LD DR ON THE OTHER HA ND SUPPORTED THE ORDER OF LOWER AUTHORITIES. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN THE PRESENT APPEAL IS WITH RESPECT T O DISALLOWANCE OF 50% OF INTEREST. AO AND LD.CIT(A) WHILE DECIDING THE ISSUE HAS NOTED THAT NO DETAILS ABOUT THE UTILIZATION OF BORROWED FUNDS WER E FURNISHED BY THE ASSESSEE BEFORE THEM. BEFORE US ALSO NO DETAILS AB OUT THE PURCHASE OF LAND, DATE OF ITS PURCHASE, WHEN THE GODOWN W AS CONSTRUCTED, THE AMOUNT SPENT ON CONSTRUCTION HAVE BE EN FURNISHED. IN SUCH A SITUATION, WE FIND NO REASON TO INTERFERE WITH THE O RDER OF LD.CIT(A) AND THUS THE GROUNDS OF ASSESSEE ARE DISMISSED. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON THE 27 TH DAY OF MARCH, 2019. SD/- SD/ - ( SUSHMA CHOWLA ) ( ANIL CHATURVEDI ) / JUDICIAL MEMBER ' / ACCOUNTANT MEMBER PUNE; DATED : 27 TH MARCH, 2019. YAMINI 4 ITA NO.1421/PUN/2018 #$%&'(' % / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A)-7, PUNE. PR. CIT-6, PUNE. '#$ %%&',) &', *+ / DR, ITAT, SMC PUNE; $-.// GUARD FILE. / BY ORDER // TRUE COPY // 012%3&4 / SR. PRIVATE SECRETARY ) &' , / ITAT, PUNE.