Halwasiya Development P. Limited, Lucknow V. Dy. Commissioner of Income Tax, Lucknow

ITA 24/LKW/2012

• Counselvise Citation: 2423714 RSA 2012
• Duration Of Justice: 3 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 25-02-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 18-01-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAGDISH
• Keywords: Business income; Principle of natural justice
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI S. V. MEHROTRA , ACCOUNTANT MEMBER ITA NO. 24/LKW/2012 ASSESSMENT YEAR: 2007 - 08 HALWASIYA DEVELOPMENT PVT. LTD. HALWASIYA COURT, HAZRATGANJ LUCKNOW V. THE DCIT RANGE I LUCKNOW PAN: AAACG7106B (APPELLANT) (RESPONDENT) APPELLANT BY: NONE RESPONDENT BY: SHRI. JAGDISH, CIT [ D.R. ] DATE OF HEARING: 14.05.2012 DATE OF PRONOUNCEMENT: 14.05.2012 O R D E R PER S UNIL KUMAR YADA V : THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) ON VARIOUS GROUNDS , WHICH ARE AS UNDER: - 1. THE LD. C.I.T. (APPEALS) - I, ERRED ON FACTS AND IN LAW IN UP HOLDING THE ORDER OF THE LD. ASSESSING OFFICER THAT RECEIPTS OF RS.24, 61,858 - 00 SHOULD BE ASSESSED AS 'BUSINESS INCOME' INSTEAD OF 'INCOME FROM HOUSE PROPERTY' AS SHOWN BY THE APPELLANT. 1.1 . THE LD. C.I.T. (APPEALS) DID NOT APPRECIATED THAT THE RECEIPT OF RS.24,61,858 - 00 BEING RENT OF 'INFRASTRUCTURE FACILITIES' INSTALLED I N : - 2 - : THE PROPERTY LET OUT, AND ARE INTEGRAL PART OF PROPERTY IN TOTAL WHICH IS LET OUT, AS SUCH, IT SHOULD BE ASSESSED AS 'RENTAL INCOME' 2 . THE LD. C.I.T. (APPEALS) ERRED ON FACTS AND IN LAW IN CONFORMING THE AD - HOC DISALLOWANCE OF RS.6,43,333 - 00 ON ACCOUNT OF 'TRAVELLING AND BUSINESS PROMOTION EXPENSES' INCURRED SOLELY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS, WITHOUT BRINGING OUT ANY CONTRARY EVIDENCE, THAT EXPENSES ARE NOT INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS. 3 . THE LD. C.I.T. (APPEALS) ERRED ON FACTS AND IN LAW IN CONFIRMING THE ADDITION OF RS.9,94,092 - 00 UNDER SECTION 14A OF INCOME TAX ACT, 1961 WHICH IS NOT APPLICABLE IN THE PRESENT SETS OF FACTS AND CIRCUMSTANCES. 4 . THE LD. C.I.T. (A) ERRED ON FACTS AND IN LAW IN CONFIRMIN G THE DISALLOWANCE OF RS.1,23,000 - 00 BEING RENT PAID TO HALWASIYA COURT. 5 . THE ADDITIONS UPHELD ARE HIGHLY EXCESSIVE, CONTRARY TO THE FACTS, LAW AND PRINCIPLE OF NATURAL JUSTICE WITHOUT PROVIDING SUFFICIENT OPPORTUNITY TO HAVE ITS SAY ON THE REASONS REL IED UPON BY HIM. 2 . THIS APPEAL WAS TAKEN UP FOR HEARING ON 14.5.2012 BUT NONE APPEARED ON BEHALF OF THE ASSESSEE. 3 . FROM A CAREFUL PERUSAL OF RECORD, IT IS NOTICED THAT THE NOTICE FIXING THE APPEAL FOR HEARING ON 14.5.2012 WAS RECEIVED ON BEHALF OF THE ASSESS EE ON 19.3.2012. DESPITE VALID SERVICE OF NOTICE OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE. THEREFORE, WE HAD NO OPTION BUT TO PROCEED EX - PARTE QUA THE ASSESSEE. : - 3 - : 4 . WE HAVE CAREFULLY EXAMINED THE ORDER OF THE LD. CIT(A) ON ALL THE IMPUGNED ISSUES AND WE FIND THAT THE LD. CIT(A) HAS ADJUDICATED UPON ALL THE ISSUES ON MERIT. SINCE NO DEFECT IS POINTED OUT IN THE ORDER OF THE LD. CIT(A), WE CONFIRM HIS ORDER. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COUR T ON 14.5.2012. SD/ - SD/ - [ S. V. MEHROTRA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 14.5.2012 JJ: 1405 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR