M/s. Hind Talkies, Cuttack V. ITO, Cuttack

ITA 259/CTK/2015

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7253 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 10-01-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 26-05-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO S . 259,260 & 261 /CTK/2015 ASSESSMENT YEAR S : 2007 - 08,2008 - 09 & 2009 - 10 M/S. HIND TALKIES, RANIHAT, CUTTACK. VS. ITO, WARD 2(1), CUTTACK PAN/GIR NO. AACFH 1188 A (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI SASWAT ACHARYA, AR REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 10 /01/ 2017 DATE OF PRONOUNCEMENT : 10 /01/ 2017 O R D E R THESE ARE APPEAL S FILED BY THE ASSESSEE AGAINST THE CONSOLIDATED ORDER OF CIT(A) - CUTTACK, DATED 29.12.2014 , FOR THE ASSESSMENT YEAR S 2007 - 08, 2008 - 09 & 2009 - 2010, RESPECTIVELY. 2. GROUNDS NOS.1 AND 2 COMMON TO ALL THE APPEALS ARE GENERAL IN NATURE, AND HENCE, REQUIRE NO SEPARATE ADJUDICATION. 3. GROUNDS NOS.3 & 4 OF THE APPEAL IN ITA NO.259/CTK/2015 ARE AS UNDER: 2 ITA NOS.259,260 & 261 /CTK/2015 ASSESSMENT YEARS :2007 - 08,2008 - 09 & 2009 - 10 3. FOR THAT THE LD CIT(A) WAS NOT JUSTIFIED TO RELY ON THE REMAND REPORT OF THE AO AS REGARDING THE RENT RECEIVED FROM BOMBAY SAREE SALE TO THE TUNE OF RS.3,00,000/ - AT A FLAT RATE OF RS.25,000 PER MONTH, WHEN THE RECORDS AND ACCOUNT OF THE APPELLANT REVEAL THAT THE RENT IS PAID ON PER DAY BASIS AT RS.700/ - PER DAY, AND THE TOTAL INCOME IS ACTUALLY RS.2,22,000/ - . 4. FOR THAT THE LD CIT(A) WAS NOT JUSTIFIED IN RELYING UPON THE REMAND R EPORT ARRIVING AT A WHIMSICAL FIGURE OF RS.1,80,000/ - AS PER DEPOSITION OF THE HOSTILE PARTNER MR HARISH CHAWDA, WHEN THE ACTUAL LODGE RENT WOULD ACTUALLY BE REVEALED FROM THE OCCUPANCY REGISTER. 4. GROUNDS NOS. 4 & 5 OF THE APPEAL IN ITA NO.260/CTK/2015 ARE AS UNDER: 4. FOR THAT THE LD CIT(A) WAS NOT JUSTIFIED TO RELY ON THE REMAND REPORT OF THE AO AS REGARDING THE RENT RECEIVED FROM BOMBAY SAREE SALE TO THE TUNE OF RS.2,52,000/ - AT A FLAT RATE OF RS.21,000 PER MONTH, WHEN THE RECORDS AND ACCOUNT OF THE APPELLANT REVEAL THAT THE RENT IS PAID ON PER DAY BASIS AT RS.700/ - PER DAY, AND THE TOTAL INCOME IS ACTUALLY RS.1,43,100/ - . 5 . FOR THAT THE LD CIT( A) WAS NOT JUSTIFIED IN RELYING UPON THE REMAND REPORT ARRIVING AT A WHIMSICAL FIGURE OF RS.1,80,000/ - AS PER DEPOSITION OF THE HOSTILE PARTNER MR HARISH CHAWDA, WHEN THE ACTUAL LODGE RENT WOULD ACTUALLY BE REVEALED FROM THE OCCUPANCY REGISTER. 5. GROUND S NOS.4 & 5 OF THE APPEAL IN ITA NO.261/CTK/2015 ARE AS UNDER: 4 . FOR THAT THE LD CIT(A) WAS NOT JUSTIFIED TO RELY ON THE REMAND REPORT OF THE AO AS REGARDING THE RENT RECEIVED FROM BOMBAY SAREE SALE TO THE TUNE OF RS.2,52,000/ - AT A FLAT RATE OF RS.21,00 0 PER MONTH, WHEN THE RECORDS AND ACCOUNT OF THE APPELLANT REVEAL THAT THE RENT IS PAID ON PER DAY BASIS AT RS.700/ - PER DAY, AND THE TOTAL INCOME IS ACTUALLY RS.1,51,550/ - . 3 ITA NOS.259,260 & 261 /CTK/2015 ASSESSMENT YEARS :2007 - 08,2008 - 09 & 2009 - 10 5 . FOR THAT THE LD CIT(A) WAS NOT JUSTIFIED IN RELYING UPON THE REMAND REPORT ARR IVING AT A WHIMSICAL FIGURE OF RS.1,80,000/ - AS PER DEPOSITION OF THE HOSTILE PARTNER MR HARISH CHAWDA, WHEN THE ACTUAL LODGE RENT WOULD ACTUALLY BE REVEALED FROM THE OCCUPANCY REGISTER. 6. AT THE TIME OF HEARING, LD A.R. OF THE ASSESSEE DID NOT PRESS THE ABOVE GROUNDS TAKEN IN ALL THE APPEALS AND HAS ALSO MADE ENDORSEMENT TO THIS EFFECT IN THE GROUNDS OF APPEALS APPENDED TO FORM NO.36 FILED BEFORE THE TRIBUNAL. THEREFORE, SAME ARE DISMISSED AS NOT PRESSED. 7. IN GROUND NO.3 OF THE APP EALS FOR THE ASSESSMENT YEAR 2008 - 09 AND 2009 - 2010, THE GRIEVANCE OF THE ASSESSEE IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ORDER OF THE ASSESSING OFFICER REGARDING THE RENT RECEIVED FROM THE PRIVATE MEDICAL PRACTITI ONERS BY THE ASSESSEE AT RS. 84,000/ - IN PLACE OF RS.60,000/ - SHOWN BY THE ASSESSEE. 8. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER OBSERVED THAT THE ASSESS EE IN HIS STATEMENT HAS STATED THAT IT HAS RECEIVED RENT FROM PRIVATE MEDICAL PRACTITIONERS AT RS.7000/ - PER MONTH. THEREFORE, HE ESTIMATED THE INCOME FOR THE ENTIRE YEAR AT RS.7000/ - PER MONTH AND ADDED RS.84,000/ - TO THE INCOME OF THE ASSESSEE, WHICH WA S CONFIRMED IN APPEAL BY THE LD CIT(A). 4 ITA NOS.259,260 & 261 /CTK/2015 ASSESSMENT YEARS :2007 - 08,2008 - 09 & 2009 - 10 9. BEFORE ME, LD A.R OF THE ASSESSEE HAS FILED A CERTIFICATE FROM GENERAL SECRETARY, PRIVATE MEDICAL PRACTITIONER ASSOCIATION OF INDIA DATED 1.11.2011 STATING THAT THEY HAVE PAID RENT OF RS.60,000/ - IN ASSESSMENT YEA R 2008 - 09 AND RS.60,000/ IN ASSESSMENT YEAR RS.2009 - 10 AND, THEREFORE, HE SUBMITTED THAT THE RENTAL INCOME SHOULD BE TAKEN AT RS.60,000/ - AND NOT RS.84,000/ - TAKEN BY THE ASSESSING OFFICER IN A.YS. 2008 - 09 & 2009 - 10. 10. LD D.R. ALSO AGREED TO THE ABOVE SUBMISSION OF LD A.R. OF THE ASSESSEE. 11. IN VIEW OF ABOVE, I MODIFY THE ORDER OF THE LD CIT(A) FOR BOTH THE ASSESSMENT YEARS UNDER CONSIDERATION AND DIRECT THE ASSESSING OFFICER TO TAKE INCOME FROM RENT FROM PRIVATE MEDICAL PRACTITIONER AT RS.60,000/ - FOR EACH ASSESSMENT YEAR 2008 - 09 AND 2009 - 10 AND ALLOW RELIEF OF RS.24,000/ - FOR ASSESSMENT YEAR 2008 - 09 & 2009 - 10 , RESPECTIVELY. 12. IN THE RESULT, THE APPEAL FOR THE ASSESSMENT YEAR 2007 - 08 IS DISMISSED AND THE APPEALS FOR AS SESSMENT YEARS 2008 - 09 & 2009 - 10 ARE PARTLY ALLOWED. ORDER PRONOUNCE D IN THE OPEN COURT ON 10 /01/2017 IN THE PRESENCE OF PARTIES. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 10 /01 /2017 B.K.PARIDA, SPS 5 ITA NOS.259,260 & 261 /CTK/2015 ASSESSMENT YEARS :2007 - 08,2008 - 09 & 2009 - 10 COPY OF THE ORDER FORWARDED TO : BY ORDER, ASST.REGISTRAR, ITAT, CUTTACK 1. THE APPELLANT : M/S. HIND TALKIES, RANIHAT, CUTTACK 2. THE RESPONDENT. ITO, WARD - 2(1), CUTTACK 3. THE CIT(A) CUTTACK 4. CIT , CUTTACK 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//