PRITI NIMISH PATEL, MUMBAI V. DCIT - CC-25, MUMBAI

ITA 3070/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2299 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 21-05-2015
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP
• Assessee Lawyers: AARTI DESHMUKH
• Keywords: Business income

Judgement Text

, . . , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER ./ ITA NO. 3 070 / MUM/20 1 5 ( / ASSESSMENT YEAR : 20 11 - 2012 ) PRITI NIMISH PA TEL, SHARDA, 51, HATKESH SOCIETY, 7 TH FLOOR, JUHU SCHEME, VILE PARLE, MUMBAI - 400049 VS. DCIT - CC - 25, MUMBAI - 20 ./ ./ PAN/GIR NO. : A A Q PS 2319 Q ( / APPELLANT ) .. ( / RESPONDENT ) /AS SESSEE BY : MS.AARTI DESHMUKH & MS.HEENA MEHTA /REVENUE BY : SHRI NEIL PHILIP / DATE OF HEARING : 14 /0 7 /2016 / DATE OF PRONOUNCEMENT 27 / 0 7 /201 6 / O R D E R TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), MUMBAI, FOR THE ASSESSMENT YEAR 20 11 - 2012 . 2. THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO ASSESSING RENTAL INCOME OF RS.29,04,000/ - OFFERED UNDER THE HEAD INCOME FROM HOUSE PROPERTY , AS BUSINESS INCOME. 3 . RIVAL CONTENTIONS H AVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT CONSEQUENT TO CLOSURE OF BUSINESS, THE ASSESSEE HAS GIVEN ITS PROPERTY ON RENT AND WAS IN RECEIPT OF LICENCE FEE INCOME OF RS.29,04,000/ - , WHICH WAS OFFERED AS INCOME FROM HOUSE PROPERTY. DURING TH E COURSE OF ASSESSMENT THE AO OBSERVED THAT SIMILAR INCOME WAS ASSESSED AS BUSINESS INCOME IN THE ASSESSMENT YEAR 2009 - 2010, BUT THE ASSESSEE HAS NOT FILED ANY APPEAL AGAINST THAT ORDER, ACCORDINGLY HE ITA NO. 3070 /1 5 2 TREATED THE INCOME FROM HOUSE PROPERTY AS BUSINESS INC OME. BY THE IMPUGNED ORDER CIT(A) CONFIRMED THE ACTION OF AO, AGAINST WHICH ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. I DO NOT FIND ANY MERIT IN THE ORDERS OF LOWER AUTHORITIES, INSOFAR AS THE ISSUE IS DIRECTLY COVERED BY THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF SHAMBHU INVESTMENTS PVT. LTD.,263 ITR 143, WHEREIN IT WAS HELD THAT INCOME REALISED BY OWNER BY WAY OF RENTAL INCOME FROM A BUILDING IS ASSESSABLE UNDER THE HEAD INCOME FROM HOUSE PROPERTY. MERELY BECAUSE IN THE ASSESSMENT YEAR 2009 - 1 0, THE ASSESSEE HAS NOT FILED ANY APPEAL AGAINST THE TREATMENT OF INCOME OFFERED UNDER THE HEAD INCOME FROM HOUSE PROPERTY AS BUSINESS INCOME , WILL NOT PRECLUDE THE ASSESSEE TO PUT A RIGHTFUL CLAIM OF ITS INCOME WHICH IS DULY COVERED BY THE DECISION OF HON BLE SUPREME COURT IN THE CASE OF SHAMBHU INVESTMENTS (SUPRA). ACCORDINGLY, THE AO IS DIRECTED TO COMPUTE THE INCOME UNDER THE HEAD INCOME FROM HOUSE PROPERTY AND ALLOW NECESSARY DEDUCTION U/S.24 OF THE I.T.ACT. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 27/07 / 201 6 . SD/ - ( R.C.SHARMA ) / ACCOUNTANT MEMBER MUMBAI ; DATED 270 7/ 201 6 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / TH E CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI ITA NO. 3070 /1 5 3 / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//