SUMMAIYA ENTERPRISES, MUMBAI V. ITO WD 24(2)(2), MUMBAI

ITA 1566/MUM/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 92856 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2015
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Next Hearing Date: 01-07-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 06-03-2014
• Court: TRIBUNAL
• Department Lawyers: NEELIMA V NADKARNI
• Keywords: Business income
• Section: 143(3); 80IB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER I.T.A. NO.1566/M/2014 (AY:2004 - 2005 ) M/S. SUMMAIYA ENTERPRISES, HUMARA PARK, SURVEY NO.273, PATHANWADI, MALAD (E), MUMBAI 400 097. / VS. ITO WARD 24(2)(3), BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI - 51. ./ PAN : AAGFS8814E ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : NONE / RESPONDENT BY : MS. NEELIMA V. NADKARNI, DR / DATE OF HEARING : 01.07.2015 / DATE OF PRONOUNCEMENT : 01.07.2015 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL IS FILED BY THE ASSESSEE ON 6.3.2014 IS AGAINST THE ORDER OF THE CIT (A) - 34, MUMBAI DATED 9.12.2013 FOR THE ASSESSMENT YEAR 2004 - 05. IN THIS APPEAL, ASSESSEE RAISED THE FOLLOWING GROUNDS WHICH READ AS UNDER: 1. THE LD CIT (A) HAS ERRED IN CONFIRMING THE ORDER OF THE LD INCOME TAX OFFICER WHEREIN HE HAD REJECTED THE CLAIMS OF THE APPELLANT U/S 80IB(10) FOR REVERSAL OF INTEREST OF RS.4,54,286/ - CLAIMED IN THE EARLIER YEAR AND ALSO REVERSAL OF MUNICIPAL TAXES OF RS. 55,796/ - CLAIMED IN THE EARLIER YEAR. 2. THE LD CIT (A) FAILED TO APPRECIATE THAT THE EXPENSES REVERSAL IS FROM THE SAME PROJECT AND AS SUCH THE DEDUCTION U/S 80IB(10) SHOULD HAVE BEEN ALLOWED. 2. BRIEFLY STATED RELEVANT FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN OF INCOME DECLARING THE TOTAL INCOME OF RS. 8,61,307/ - . ASSESSMENT WAS COMPLETED U/S 143(3) R.W.S 147 OF THE ACT AND THE ASSESSED INCOME WAS DETERMINED AT RS. 13,71,389/ - . IN THE ASSESSMENT, AO MADE CERTAIN ADDITIONS BY DISALLOWING RS. 4,54,286/ - U/S 80IB(10) OF THE ACT AND RS.55,796/ - ON ACCOUNT OF PROPERTY TAX REFUND CLAIMED BY THE ASSESSEE. AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. 2 3. DURING THE PROCEEDINGS BEFORE THE FIRST APPELLATE AUTHORITY, AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, CIT (A) DISMISSED THE APPEAL OF THE ASSESSEE. AGAIN AGGRIEVED WITH THE SAID DECISION OF THE CIT (A), ASSESSEE FILED THE PRESENT APPEAL BEFO RE THE TRIBUNAL BY RAISING THE ABOVE MENTIONED GROUNDS. 4. DURING THE PROCEEDINGS BEFORE THE TRIBUNAL, NONE APPEARED TO REPRESENT THE CASE OF THE ASSESSEE DESPITE THE ISSUE OF NOTICE ON 27.5.2015 AND AGAIN ON 10.6.2015 POSTING THE CASE ON 1.7.2015. THEREF ORE, WITH THE HELP OF THE LD DR FOR THE REVENUE, I PROCEED TO ADJUDICATE THE APPEAL ON MERITS. LD DR NARRATED THE ABOVE MENTIONED FACTS OF THE CASE. FROM THE FACTS, I FIND THE ISSUE RELATING TO THE CLAIM OF DEDUCTION U/S 80IB(10) OF THE ACT IN RESPECT OF THE INTEREST AND MUNICIPAL TAXES CREDITED TO THE P & L ACCOUNT STATED TO BE REVERSAL INTEREST, AND THE CLAIM OF THE ASSESSEE PRIMA FACIE ARE NOT ALLOWABLE. NOTHING IS BROUGHT ON TO THE RECORDS TO SUGGEST THAT THE INTEREST RECEIPTS AND MUNICIPAL TAXES IN QUESTION ARE BUSINESS RECEIPTS ELIGIBLE FOR DEDUCTION U/S 80IB (10) OF THE ACT. I FIND PARA 3.3 OF THE CIT (A)S ORDER IS RELEVANT IN THIS REGARD AND THE SAME IS EXTRACTED AS UNDER: 3.3. I HAVE CONSIDERED THE SUBMISSIONS MADE BY THE APPELLANT AND THE IM PUGNED ASSESSMENT ORDER ON THIS ISSUE. I DO NOT FIND ANY FORCE IN THE ARGUMENTS OF THE APPELLANT AS THE INTEREST INCOME AND PROPERTY TAX REFUND INCOMES ARE NOT DERIVED FROM THE BUSINESS OF CONSTRUCTION ACTIVITIES AND THE SAME ARE NOT ALLOWABLE DEDUCTION U /S 80IB. IN VIEW OF THIS, THE ASSESSING OFFICERS ORDER IS CONFIRMED ON THESE GROUNDS. 5. FROM THE ABOVE, IT IS EVIDENT THAT THE INTEREST INCOME AND THE PROPERTY TAX REFUND CANNOT BE CONSIDERED AS BUSINESS RECEIPTS ELIGIBLE FOR DEDUCTION ON THE GIVEN FACTS OF THIS CASE. ACCORDINGLY, I CONFIRM THE ORDER OF THE CIT (A) AND DISMISSED THE APPEAL OF THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST JULY, 2015. SD/ - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER MUMBAI ; 1.7 .2015 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 3 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI