DCIT, New Delhi V. Sh. Moni Kumar Subba, New Delhi

ITA 1591/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8307 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 04-04-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 18-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJNA SENIOR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH E EE E : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND MS. SUCHITRA KAMBLE MS. SUCHITRA KAMBLE MS. SUCHITRA KAMBLE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 1591/DEL/2013 1591/DEL/2013 1591/DEL/2013 1591/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2008 2008 2008 2008 - -- - 09 0909 09 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -4, 4,4, 4, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. SHRI MONI KUMAR SUBBA, SHRI MONI KUMAR SUBBA, SHRI MONI KUMAR SUBBA, SHRI MONI KUMAR SUBBA, SUBBA FARM HOUSE, SUBBA FARM HOUSE, SUBBA FARM HOUSE, SUBBA FARM HOUSE, 118, VILLAGE SULTANPUR, 118, VILLAGE SULTANPUR, 118, VILLAGE SULTANPUR, 118, VILLAGE SULTANPUR, MEHRAULI MEHRAULI MEHRAULI MEHRAULI- -- -GURGAON ROAD, GURGAON ROAD, GURGAON ROAD, GURGAON ROAD, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AASPS1484J. PAN : AASPS1484J. PAN : AASPS1484J. PAN : AASPS1484J. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P. DAM KANUNJNA, SENIOR DR. RESPONDENT BY : SHRI R.S. SINGHVI , CA. DATE OF HEARING : 04.04.2016 04.04.2016 04.04.2016 04.04.2016 DATE OF PRONOUNCEMENT : 05.04.2016 05.04.2016 05.04.2016 05.04.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2008-09 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXXIII , NEW DELHI DATED 21 ST DECEMBER, 2012. 2. THE REVENUE HAS RAISED VARIOUS GROUNDS IN THIS A PPEAL. HOWEVER, THEY ARE ALL AGAINST THE ADDITION MADE BY THE ASSESSING OFFICER TO THE ANNUAL LETTING VALUE ON ACCOUNT OF N OTIONAL INTEREST ON INTEREST FREE SECURITY RECEIVED BY THE ASSESSEE. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED THE MATERIAL PLACED BEFORE US. WE FIND THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF HON'BL E JURISDICTIONAL HIGH COURT IN ASSESSEES OWN CASE. WE FIND THAT IN THE EARLIER YEARS ALSO, SIMILAR ADDITIONS WERE MADE BY THE ASSESSING OFFICE R WHICH WERE ITA-1591/DEL/2013 2 DELETED BY THE ITAT. THE REVENUE HAD FILED THE APP EAL BEFORE HON'BLE JURISDICTIONAL HIGH COURT WHICH DISMISSED THE REVEN UES APPEAL WITH THE FOLLOWING FINDING :- THE OPERATIVE WORDS IN SECTION 23(1)(A) OF THE ACT ARE THE SUM FOR WHICH THE PROPERTY MIGHT REASONABLY BE EXPE CTED TO BE LET FROM YEAR TO YEAR.. THESE WORDS PROVIDE A SPECIFIC DIRECTION TO THE REVENUE FOR DETERMINING T HE FAIR RENT. THE ASSESSING OFFICER, HAVING REGARD TO THIS PROVISION IS EXPECTED TO MAKE AN INQUIRY AS TO WHAT WOULD BE THE POSSIBLE RENT THAT THE PROPERTY MIGHT FETCH. THUS, IF HE FINDS THAT THE ACTUAL RENT RECEIVED IS LESS THAN TH E FAIR/MARKET RENT BECAUSE THE ASSESSEE HAS RECEIVED AN ABNORMALLY HIGH INTEREST-FREE SECURITY DEPOSIT AND BECAUSE OF THAT, THE ACTUAL RENT RECEIVED IS LESS THAN THE RENT WHICH THE PROPERTY MIGHT FETCH, HE CAN UNDERTAKE NECESSAR Y EXERCISE IN THAT BEHALF. HOWEVER, THE NOTIONAL INT EREST ON THE INTEREST-FREE SECURITY CANNOT BE TAKEN AS THE DETERMINATIVE FACTOR TO ARRIVE AT A FAIR RENT. THE PROVISIONS OF SECTION 23(1)(A) DO NOT MANDATE THIS. IN A TAXI NG STATUTE IT WOULD BE UNSAFE FOR THE COURT TO GO BEYOND THE L ETTER OF THE LAW AND TRY TO READ INTO THE PROVISION MORE THA N WHAT IS ALREADY PROVIDED FOR. 4. THE DECISION OF HON'BLE JURISDICTIONAL HIGH COUR T IS REPORTED IN [2011] 333 ITR 38 (DEL) TITLED AS CIT VS. MONI KUMA R SUBBA. SINCE THE ISSUE IS SQUARELY COVERED BY THE DECISION OF HON'BL E JURISDICTIONAL HIGH COURT IN FAVOUR OF THE ASSESSEE, RESPECTFULLY FOLLO WING THE ABOVE DECISION, WE FIND NO INFIRMITY IN THE ORDER OF LEAR NED CIT(A). THE SAME IS SUSTAINED AND REVENUES APPEAL IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 05.04.2016 . SD/- SD/- (SUCHITRA KAMBLE (SUCHITRA KAMBLE (SUCHITRA KAMBLE (SUCHITRA KAMBLE ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-1591/DEL/2013 3 COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -4, NEW DELHI. 4, NEW DELHI. 4, NEW DELHI. 4, NEW DELHI. 2. RESPONDENT : SHRI MONI KUMAR SUBBA, SHRI MONI KUMAR SUBBA, SHRI MONI KUMAR SUBBA, SHRI MONI KUMAR SUBBA, SUBBA FARM HOUSE, 118, VILLAGE SULTANPUR, SUBBA FARM HOUSE, 118, VILLAGE SULTANPUR, SUBBA FARM HOUSE, 118, VILLAGE SULTANPUR, SUBBA FARM HOUSE, 118, VILLAGE SULTANPUR, MEHRAULI MEHRAULI MEHRAULI MEHRAULI- -- -GURGAON ROAD, NEW DELHI. GURGAON ROAD, NEW DELHI. GURGAON ROAD, NEW DELHI. GURGAON ROAD, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR