TRIVENI & C J GROUP, NAVI MUMBAI V. ITO 22(3)(4), MUMBAI

ITA 1701/MUM/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9738 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 26-07-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 10-03-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M HEMALATHA
• Section: 143(3); 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER ITA NO.1701/MUM/2017 (AY. 2010-11) TRIVENI AND C J GROUP, SHOP NO.01, PLOT NO.28, BHOOMI TOWER, SECTOR-04, KHARGHAR, NAVI MUMBAI 400 709 PAN:AAFFT1041B ...... APPELLANT VS. THE INCOME TAX OFFICER 22(3)(4), MUMBAI. .... RESP ONDENT APPELLANT BY : NONE RESPONDENT BY : MS. M. HEMALATHA DATE OF HEARING : 26/07/2017 DATE OF PRONOUNCEMENT : 31/07/2017 ORDER THE CAPTIONED APPEAL FILED BY THE ASSESSEE PER TAINING TO ASSESSMENT YEAR 2010-11 IS DIRECTED AGAINST AN ORDER PASSED BY CIT(A)-26, MUMBAI DATED 28/10/2016, WHICH IN TURN, ARISES OUT OF OR DER PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 05/03/2013. 2. IN THIS APPEAL, THE ONLY GRIEVANCE OF THE ASSES SEE IS AGAINST THE ACTION OF THE INCOME-TAX AUTHORITIES IN TREATING INDIRECT INCOME OF RS.19,50,734/- AS ASSESSABLE UNDER THE HEAD INCOME FROM OTHER SOURCE S. 2 ITA NO.1701/MUM/2017 (AY. 2010-11) 3. AT THE TIME OF HEARING, IT WAS NOTED THAT NONE APPEARED ON BEHALF OF THE ASSESSEE INSPITE OF NOTICE OF HEARING BEING I SSUED TO THE ASSESSEE BY RPAD. THEREFORE, I PROCEED TO DISPOSE-OFF THE APPE AL EX-PARTE QUA THE APPELLANT ASSESSEE AFTER HEARING THE LD. DEPARTMEN TAL REPRESENTATIVE ON MERITS IN TERMS OF RULE -24 OF INCOME TAX (APPELLAT E TRIBUNAL) RULES, 1963. 4. IN BRIEF, THE RELEVANT FACTS ARE THAT ASSESSEE FIRM IS ENGAGED IN THE BUSINESS OF BUILDER AND DEVELOPER. THE ASSESSING O FFICER NOTED THAT DURING THE YEAR UNDER CONSIDERATION ASSESSEE HAD SHOWN CLO SING CAPITAL WORK-IN- PROGRESS OF RS.6.55 CORESS, WHICH INTER-ALIA, INCLU DED A CREDIT FOR RS.19,50,734/- REPRESENTING INDIRECT INCOME. ON BE ING SHOW CAUSED, ASSESSEE EXPLAINED THAT THE SAID SUM WAS INTEREST I NCOME ON LOANS GIVEN. THE ASSESSING OFFICER NOTED THAT SUCH INCOME WAS AN ANCILLARY INCOME WHICH IS DIFFERENT FROM THE REGULAR BUSINESS AND, THEREFO RE, IT COULD NOT BE ADJUSTED AGAINST CAPITAL WORK-IN-PROGRESS. THUS, THE ASSESS ING OFFICER ASSESSED RS.19,50,734/- UNDER THE HEAD INCOME FROM OTHER SO URCES. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE CIT(A), WHERE T HE ADDITION HAS BEEN SUSTAINED. THE CIT(A) HAS NOTED THAT INSPITE OF I SSUANCE OF NOTICES ON MORE THAN ONE OCCASION THE ASSESSEE DID NOT PUT IN AN AP PEARANCE. IN THE ABSENCE OF ANY EXPLANATION FORTHCOMING, THE CIT(A) DISMISSE D THE STAND OF THE ASSESSEE. 5. BEFORE THE TRIBUNAL ALSO, THERE IS NO APPEARANCE ON BEHALF OF THE ASSESSEE INSPITE OF THE NOTICES FOR THE HEARING HAV ING BEEN SENT TO THE STATED ADDRESS BY RPAD ON MORE THAN ONE OCCASION. BE THAT AS IT MAY, THE FACTS AS NOTED BY THE ASSESSING OFFICER CLEARLY ESTABLISH TH AT ASSESSEE HAS FAILED TO 3 ITA NO.1701/MUM/2017 (AY. 2010-11) PROVE ANY NEXUS BETWEEN THE INTEREST INCOME EARNED AND THE CAPITAL WORK- IN-PROGRESS SO AS TO JUSTIFY THE REDUCTION OF CAPIT AL WORK-IN-PROGRESS BY THE IMPUGNED AMOUNT OF INTEREST INCOME. THEREFORE, ON THIS ASPECT ITSELF I AM INCLINED TO UPHOLD THE ACTION OF THE LOWER AUTHORIT IES. ACCORDINGLY, ASSESSEE HAS TO FAIL IN ITS APPEAL. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 31/07/2017 SD/- (G.S. PANNU) ACCOCUNTANT MEMBER MUMBAI, DATED 31/07/2017 VM , SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI