Dr. Ajay Sharma, Gurgaon V. Addl. CIT, New Delhi

ITA 174/DEL/2014

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2782 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 05-01-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 09-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K K JAISWAL
• Keywords: Depreciation
• Section: 32

Judgement Text

1 ITA NO . 174/DEL/2014 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: A NEW DELHI BEFORE SHRI R. S. SYAL, ACCOUNTANT MEMBER AND SMT SUCHITRA KAMBLE , JUDICIAL MEMBER I.T.A .NO.- 174/DEL/2014 (ASSESSMENT YEA R-2009-10) AJAY SHARMA SHEETLA HOSPITAL, NEAR DSD COLLEGE, NEW RAILWAY ROAD GURGAON ACXPS5227N (APPELLANT) VS ADDL. CIT CIRCLE-37(1) NEW DELHI (RESPONDENT) APPELLANT BY SH. SANDEEP KUMAR, C.A RESPONDENT BY SH. K. K. JAISWAL, DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 01/03/2013 PASSED BY LD. CIT (A)-XXVIII, NEW DELHI. 2. THE GROUNDS OF APPEAL ARE AS FOLLOWS:- 1. LD. ASSESSING OFFICER HAS PASSED ASSESSMENT OR DER WHICH IS ERRONEOUS, IS AGAINST THE PROVISIONS OF INCOME T AX ACT, 1961 AND IS ALSO AGAINST FACTS AND CIRCUMSTANCES OF THE CASE, THEREFORE IS ILLEGAL AND BAD IN LAW. DATE OF HEARING 05.01.2016 DATE OF PRONOUNCEMENT 07.01.2016 2 ITA NO . 174/DEL/2014 2. THE LOWER AUTHORITIES HAVE GROSSLY ERRED IN NOT ALLOWING THE DEDUCTION U/S 24 OF THE INCOME TAX ACT, 1961 FO R RS.6,10,225/- AS INTEREST PAID ON HOUSING LOAN WHIL E CALCULATING THE INCOME FROM HOUSE PROPERTY ON NOTIO NAL BASIS WHICH IS AGAINST FACTS AND CIRCUMSTANCES OF T HE CASE AND PROVISIONS OF THE INCOME TAX ACT, 1961. 3. THE LOWER AUTHORITIES HAVE GROSSLY ERRED IN NOT ALLOWING CLAIM OF DEPRECIATION U/S 32 OF THE INCOME TAX ACT, 1961 FOR RS.48,244/- ON THE EQUIPMENT GIVEN ON HIRE TO S HEETLA HOSPITAL AND EYE INSTITUTE PRIVATE LTD WHICH IS AGA INST FACTS AND CIRCUMSTANCES OF THE CASE AND PROVISIONS OF THE INCOME TAX ACT, 1961. 3. THE ASSESSEE HAS PURCHASED A NEW FLAT NO. 1905-A DURING THE YEAR WHICH COULD NOT BE OCCUPIED AS ASSESSEE WANTED TO SHIFT IN THIS FLAT AFTER HOLI FESTIVAL. THE SAME WAS NOT GI VEN ON RENT AS ASSESSEE PLANNED TO SHIFT IN THE NEW FLAT AND WANTE D TO SELL THE OLD FLAT IN WHICH HE WAS RESIDING. ASSESSING OFFICER H AS CALCULATED NOTIONAL RENT OF THE NEW FLAT FOR 7 MONTHS AND ADDE D BACK RS.2,08,250/- AS INCOME FROM HOUSE PROPERTY. ASSES SING OFFICER CALLED FOR ALL DOCUMENTS TO ASCERTAIN SOURCE OF THE NEW FLAT. THE DOCUMENTARY PROOF FILED WITH ASSESSING OFFICER BY T HE ASSESSEE THAT ASSESSEE TOOK LOAN FOR PURCHASING NEW FLAT AND PAID INTEREST OF RS.6,10,225/-. BANK CERTIFICATE IN THIS RESPECT WA S DULY PLACED IN THE FILE OF LD. ASSESSING OFFICER. 3. THE ASSESSEE HAD GIVEN ITS EQUIPMENTS ON HIRE TO SHEETLA HOSPITAL AND EYE INSTITUTE PVT. LTD IN YEAR 1999-20 00 AND SINCE THEN HAS BEEN RECEIVING RENTAL ON THESE EQUIPMENTS. HE HAS BEEN CLAIMING DEDUCTION OF DEPRECIATION FROM YEAR TO YEA R. DURING THIS 3 ITA NO . 174/DEL/2014 YEAR ALSO THE ASSESSEE CLAIMED DEPRECIATION ON THE WDV VALUE OF THE PREVIOUS YEAR. ASSESSING OFFICER HAS DISALLOWED NO T THIS CLAIM. 4. THE GROUND AGAINST DISALLOWANCE OF INTEREST RS. 6,10,225/- ON HOUSING LOAN. THE AASSESSEE HAS TWO HOUSES AND BOT H WERE SELF OCCUPIED. THE ASSESSEE HAS NOT SHOWN ANY INCOME FR OM THE SECOND HOUSE. THE ASSESSING OFFICER HAS CALCULATED DEEMED LETTABLE VALUE FOR THE SECOND PROPERTY AS TAXABLE INCOME. THE ASS ESSEE HAS NOT MADE ANY CLAIM FOR DEDUCTION OF INTEREST ON LOAN FR OM THE SAID PROPERTY. ACCORDINGLY, THE ASSESSING OFFICER HAS N OT ENTERTAINED ANY SUCH ISSUE IN THE ORDER OF ASSESSMENT. 5. THE AR SUBMITTED THAT AS THE PROPERTY IS LET OUT PROPERTY AND THERE WAS NO SHOW CAUSE NOTICE AS RELATED TO INTERE ST PAID TO RS. 6,10,225/- FOR THE SAID PROPERTY SITUATED AT BEVERL Y PARK, GURGAON, THEREFORE, THE SAME SHOULD HAVE NOT BEEN ADDED BY T HE ASSESSING OFFICER. 6. THE DR SUBMITTED THAT THERE IS ONLY ADDITION OF 2,08,215/- AND ABOUT THE INTEREST THE ASSESSEE HAS NOT CONTEST ED THE SAME BEFORE THE ASSESSING OFFICER AS WELL AS BEFORE THE LD. CIT (A). 7. WE HAVE PERUSED ALL THE RECORDS AND HEARD BOTH T HE PARTIES. IT IS FOUND THAT THE ASSESSING OFFICER HAS NOT LOOKED INTO THE ASPECT OF WHETHER THE INTEREST OF RS.6,10,225/- PAID BY THE A SSESSEE WAS FOR THE PROPERTY SITUATED AT BEVERLY PARK, GURGAON. TH US, THE ASSESSING OFFICER IS DIRECTED TO VERIFY THE SAME AN D IF THE SAME IS PAID ACCORDINGLY THE DEDUCTION MAY BE ALLOWED TO TH E ASSESSEE. AS 4 ITA NO . 174/DEL/2014 RELATES TO THE ISSUE OF DEPRECIATION THE ASSESSEE W AS CONTINUOUSLY CLAIMING THE SAME SINCE 1991 AND THERE IS NO REASON STATED BY THE ASSESSING OFFICER AS WELL AS BY THE LD. CIT (A) THA T THESE EQUIPMENTS DO NOT BELONG TO THE ASSESSEE. THEREFOR E, GROUND NO. 2 IS REMANDED BACK TO THE ASSESSING OFFICER AND GROUN D NO. 3 IS ALLOWED IN FAVOUR OF THE ASSESSEE. THE GROUND NO. 1 AND 4 ARE GENERAL IN NATURE HENCE DISMISSED. 8. IN RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 07 TH OF JANUARY 2016. SD/- SD/- (R.S. SYAL) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 07/01/2016 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT R EGISTRAR ITAT NEW DELHI 5 ITA NO . 174/DEL/2014 DATE 1. DRAFT DICTATED ON .05.01.2016 PS 2. DRAFT PLACED BEFORE AUTHOR .05.01.2016 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER .2016 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 06.01.2016 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 07.01.2016 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. 6 ITA NO . 174/DEL/2014