ACIT 19(2), MUMBAI V. REEMA ANUP KARNANI, MUMBAI

ITA 3018/MUM/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 3001 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2006-2007
• Appeal Filed On: 01-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MUKESH ADVANI
• Keywords: Notional interest
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BE NCH, MUMBAI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER / I .TA NO. 3018/MUM/2014 ( / ASSESSMENT YEAR:2006-07 THE ACIT-19(2), PIRAMAL CHAMBERS, LALBAUG, PAREL, MUMBAI-400 012 / VS. MRS. REEMA ANUP KARNANI, 301, SHALAKA BLDG., PLOT NO. 32, JUHU ROAD, SANTACRUZ (W), MUMBAI-400 054 ./ ./ PAN/GIR NO. :AABPK 4495J ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI SANJEEV KASHYAP / RESPONDENT BY: SHRI MUKESH ADVANI / DATE OF HEARING :26.10.2015 ! / DATE OF PRONOUNCEMENT :26.10.2015 '# / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST TH E ORDER OF THE LD. CIT(A)-31, MUMBAI DATED 17.2.2014 PERTAINI NG TO ASSESSMENT YEAR 2006-07. 2. THE SOLE GRIEVANCE OF THE REVENUE IS THAT THE L D. CIT(A) ERRED IN DELETING THE PENALTY U/S. 271(1)(C) OF THE ACT A MOUNTING TO RS. 11,09,210/-. ITA. NO. 3018/M/2014 2 3. THE ROOTS FOR THE LEVY OF PENALTY LIE IN THE ASS ESSMENT ORDER DATED 17.12.2008 MADE U/S. 143(3) OF THE ACT. WHIL E SCRUTINIZING THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS PURCHASED A PRO PERTY FROM ONE MR. SAMIR BHOJWANI ON 10.5.2005 AND THE ASSESSEE WA S ENTITLED TO THE LEAVE & LICENSE RENT OF RS. 44 LAKHS. SINCE TH E ASSESSEE HAS NOT SHOWN ANY RENTAL INCOME FROM THE SAID PARTY, THE AO MADE AN ADDITION OF RS. 44 LAKHS TO THE RETURNED INCOME OF THE ASSESSEE. 4. THIS ACTION OF THE AO WAS NOT ONLY CONFIRMED BY THE LD. CIT(A) BUT THE CIT(A) FURTHER MADE AN ADDITION OF RS. 1,32 ,000/- ON ACCOUNT OF NOTIONAL INTEREST EARNED ON DEPOSITS RECEIVED O N ACCOUNT OF LEAVE & LICENSE AGREEMENT. THESE ADDITIONS WERE CHALLEN GED BEFORE THE TRIBUNAL BY THE ASSESSEE AND THE TRIBUNAL VIDE ORDE R DATED 21.10.2015 IN ITA NO. 253/M/2011 HAS DELETED THE AD DITION OF RS. 44 LAKHS AND ALSO THE ADDITION OF RS. 1,32,000/-. 5. SUBLATO FUNDAMENTS CREDIT OPUS MEANING IN THE CASE THE FOUNDATION IS REMOVED, SUPER STRUCTURE FALLS. THE FOUNDATION I.E. QUANTUM ADDITION HAVE BEEN DELETED BY THE TRIBUNAL, THE SUPER STRUCTURE I.E. PENALTY FALLS. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON 26 TH OCTOBER, 2015 SD/- SD/- (AMARJIT SINGH ) (N.K. BILLAIYA) $% ' /JUDICIAL MEMBER ' / ACCOUNTANT MEMBER & ' MUMBAI; (' DATED : 26 TH OCTOBER, 2015 . % . ./ RJ , SR. PS ITA. NO. 3018/M/2014 3 !' #' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ) ( ) / THE CIT(A)- 4. ) / CIT 5. *+, %%-. , -.! , & ' / DR, ITAT, MUMBAI 6. ,/0 1 / GUARD FILE. $ / BY ORDER, * % //TRUE COPY// % / $& ' (DY./ASSTT. REGISTRAR) , & ' / ITAT, MUMBAI