HUSSEIN ISMAIL DAWOODANI, MUMBAI V. ASST CIT 15(2), MUMBAI

ITA 2491/MUM/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3751 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 21-01-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 02-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT KUMAR SINGH
• Keywords: Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH H, MUMBAI BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.2491/M/2013 ASSESSMENT YEAR: 2008-09 SHRI HUSSEIN ISMAIL DAWOODANI, 161, BARA IMAM ROAD, NULL BAZAR, MUMBAI 400 003 PAN: AAHPD7242E VS. ASSISTANT COMMISSIONER OF INCOME TAX, 15(2), MATRU MANDIR, MUMBAI - 400007 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI PRAKASH PANDIT, A.R. REVENUE BY : SHRI AMIT KUMAR SINGH, D.R. DATE OF HEARING : 15.03.2016 DATE OF PRONOUNCEMENT : 15.03.2016 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 29.01.2013 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2008-09. 2. THE ASSESSEE HAS TAKEN AS MANY AS 7 GROUNDS OF A PPEAL. AT THE OUTSET, THE LD. A.R. OF THE ASSESSEE HAS STATED THAT AS PER THE INSTRUCTIONS OF HIS CLIENT, HE DOES NOT PRESS GROUND NOS.1 TO 3. GROUND NOS.1 TO 3 ARE THEREFORE DISMISSED AS NOT PRESSED. 3. VIDE GROUND NO.4 TO 7 OF THE APPEAL, THE ASSESSE E HAS AGITATED THE DISALLOWANCE OF INTEREST PAID ON HOUSING LOAN UNDER SECTION 24(B) OF THE ACT. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE AO) NOTED THAT BESIDES A SELF OCCUPIED HOUSE , THE ASSESSEE ALSO OWNING A FLAT IN BANDRA (W), MUMBAI. THE AO, THEREFORE, TRE ATED THE SAID PROPERTY AS ITA NO.2491/M/2013 SHRI HUSSEIN ISMAIL DAWOODANI 2 DEEMED TO BE LET OUT AND ESTIMATED THE ANNUAL RENTA L VALUE OF THE PROPERTY AT RS.2,68,923/- AND AFTER ALLOWING STANDARD DEDUCTION AT THE RATE OF 30%, THE AO TAXED THE NET PROPERTY INCOME OF RS.1,88,246/-. 4. IN APPEAL BEFORE THE LD. CIT(A), THE ASSESSEE CO NTENDED THAT THE ASSESSEE WAS JOINT OWNER OF THE FLAT IN QUESTION AL ONG WITH HIS SON MR. AHMED HUSSEIN DAWOODANI. THE PROPERTY WAS PURCHASED BY T AKING LOAN FROM CITY BANK OF RS.28.75 LAKHS ON WHICH INTEREST OF RS.6801 98/- WAS PAID. IT WAS FURTHER CONTENDED THAT OUT OF THIS INTEREST AMOUNT, 50% WAS PAYABLE BY THE ASSESSEE. THE ASSESSEE, THEREFORE, CLAIMED THAT 50 % OF INTEREST WAS DESERVED TO BE ALLOWED UNDER SECTION 24(B) OF THE ACT. 5. THE LD. CIT(A), HOWEVER, OBSERVED THAT THE ASSES SEE HAD NOT FURNISHED SUFFICIENT EVIDENCE TO SHOW THAT THE INTEREST COST WAS BORNE BY THE ASSESSEE. HE, THEREFORE, DISALLOWED THE CLAIM OF THE ASSESSEE . THE LD. A.R. OF THE ASSESSEE HAS INVITED OUR ATTENTION TO THE APPLICATI ON DATED 29.02.16 UNDER RULE 29 FOR ADDITIONAL EVIDENCE. THE LD. A.R. THROUGH T HIS APPLICATION HAS SOUGHT TO PRODUCE CERTAIN DOCUMENTS SUCH AS CERTIFICATE FROM CITY BANK CONFIRMING THAT THE LOAN WAS SANCTIONED IN THE JOINT NAME I.E. IN T HE NAME OF ASSESSEE AND IN THE NAME OF HIS SON, COPY OF ACKNOWLEDGEMENT OF INCOME TAX RETURN FOR A.Y. 2008-09, 2009-10 AND 2010-11 ALONG WITH DETAILS OF COMPUTATION OF INCOME OF MR. AHMED HUSSEIN DAWOODANI, COPY OF INTEREST CERTI FICATE ISSUED BY CITY BANK AND COPY OF ASSESSMENT ORDER, COPY OF ASSESSME NT ORDER IN THE CASE OF HIS SON MR. AHMED HUSSEIN DAWOODANI AND OTHER RELEVANT DOCUMENTS. THE LD. A.R. HAS SUBMITTED THAT THESE DOCUMENTS WERE NOT AV AILABLE WITH THE ASSESSEE DURING THE ASSESSMENT PROCEEDINGS. EVEN THE AO HAS ALSO NOT CALLED FOR THESE DOCUMENTS. CONSIDERING THE ABOVE REQUEST OF THE AS SESSEE AND THE NATURE OF DOCUMENTS WHICH ARE IN THE SHAPE OF BANK CERTIFICAT ES, COPIES OF ACKNOWLEDGEMENT/INCOME TAX RETURNS ETC., WE ARE OF THE VIEW THAT INTEREST OF JUSTICE WILL BE WELL SERVED IF THE SAID DOCUMENTS A RE ALLOWED TO BE PRODUCED AS ADDITIONAL EVIDENCE BY THE ASSESSEE. WE ACCORDINGL Y SET ASIDE THE IMPUGNED ITA NO.2491/M/2013 SHRI HUSSEIN ISMAIL DAWOODANI 3 ORDER AND RESTORE THE MATTER TO THE FILE OF THE AO WITH OPPORTUNITY TO THE ASSESSEE TO PRODUCE THE ADDITIONAL EVIDENCES BEFORE THE AO AND DIRECT THAT THE AO WILL DECIDE THE ISSUE RELATING TO THE DEDUCTION/ DISALLOWANCE UNDER SECTION 24(B) AFTER CONSIDERING THE EVIDENCES FILED BY THE ASSESSEE. NEEDLESS TO SAY THAT THE AO WILL GIVE PROPER OPPORTUNITY TO THE ASS ESSEE TO PRESENT HIS CASE. 6. WITH THE ABOVE OBSERVATION, THE APPEAL OF THE AS SESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 15.03.2016. SD/- SD/- (RAJESH KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 15.03.2016. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.