ITO 12(3)(4), MUMBAI V. BAKULESH C. SHAH, MUMBAI

ITA 3646/MUM/2008

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100604 (ITAT-MUMBAI)
• Duration Of Justice: 7 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-02-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 23-05-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR SONIDR
• Section: 54F

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.3646 //MUM/2008 ASSESSMENT YEAR: 2003-04 INCOME TAX OFFICER-12(3)(4) ROOM NO.123 AAYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 / VS. SHRI BAKULESH CHOTALAL SHETH, 125, NAGINDAS MASTER RAOD, FORT, MUMBAI-400023 ( / REVENUE) ( '#$ /ASSESSEE) P.A. NO. AAHPS8113P / REVENUE BY SHRI VIJAY KUMAR SONI-DR '#$ / ASSESSEE BY SHRI DILIP DIWAN % & ' ( / DATE OF HEARING : 12/08/2015 ' ( / DATE OF ORDER: 26/08/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 24/03/2008 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI, FOR ASSESSMENT YEAR 2003-04. THE ONLY GROUND AGITATED B Y THE SHRI BAKULESH CHOTALAL SHETH ITA NO.3646/MUM/2008 2 REVENUE PERTAINS TO DIRECTING THE ASSESSING OFFICER TO ALLOW DEDUCTION U/S 54F OF THE INCOME TAX ACT, 1961 (HERE INAFTER THE ACT), AMOUNTING TO RS.14,07,734/-, SPEND BY THE LET ASSESSEE ON ALLEGED IMPROVEMENT OF THE RESIDENTIAL HOUSE SO PURCHASED. 2. DURING HEARING OF THIS APPEAL, THE CRUX OF ARGU MENT ADVANCED BY SHRI VIJAY KUMAR SONI, LD. DR, IS THAT RELIEF WAS GRANTED TO THE ASSESSEE WITHOUT APPRECIATING THE FA CT THAT THE ASSESSEE INCURRED EXPENDITURE ON PURCHASE OF AIR CO NDITIONER, CEILING FANS, DECORATIVE ELECTRICAL FITTINGS, VARIO US ADDITIONS AND ALTERATION FOR MAKING THE HOUSE COMFORTABLE AND FURTHER RELYING UPON THE DECISION OF THE TRIBUNAL IN THE CA SE OF SALEEM FAZELBHOY VS DCIT (9 SOT 601). ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE, SHRI DILIP DIWAN, STRONGLY DEFENDED THE IMPUGNED ORDER. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS , IN BRIEF, ARE THAT THE ASSESSEE PURCHASED A RESIDENTIAL HOUSE WITHIN THE SPECIFIED PERIOD. THE TRANSFER OF ORIGINAL ASSE T TOOK PLACE ON 22/09/2002 AND THE ASSESSEE PURCHASES A RESIDENT IAL FLATS AT MALABAR HILL FOR RS.1,74,00,000/- VIDE AN AGREEMENT DATED 15/10/2002. THE ASSESSEE FURTHER SPEND RS.14,07,734/- FOR THE IMPROVEMENT OF THE HOUSE AND WORKED CONTINUED TILL 23/05/2003. IT IS SEEN THAT THE EXPENDITURE/IMPROVEMENT WAS MADE FOR MAKING THE HOU SE FOR LIVABLE CONDITION. THE IMPROVEMENT WAS MADE BY THE ASSESSEE WITHIN THE PERIOD ALLOWABLE U/S 54F OF THE ACT. THE SHRI BAKULESH CHOTALAL SHETH ITA NO.3646/MUM/2008 3 RATIO LAID DOWN IN CIT VS S. UDAY KUMAR 345 ITR 389 (KARNATAKA) SUPPORTS OUR VIEW. THUS, WE FIND NO IN FIRMITY IN THE CONCLUSION DRAWN BY THE LD. COMMISSIONER OF INC OME TAX (APPEALS). IT IS AFFIRMED. FINALLY, THE APPEAL OF THE REVENUE IS DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 12/08/2015. SD/ - (ASHWANI TANEJA) SD/ - (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER % & MUMBAI; ) DATED : 26/08/2015 F{X~{T? P.S/. . . %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. +,- / THE APPELLANT 2. ./,- / THE RESPONDENT. 3. 0 0 % 1 ( + ) / THE CIT, MUMBAI. 4. 0 0 % 1 / CIT(A)- , MUMBAI 5. 34 .' , 0 +( ' 5 , % & / DR, ITAT, MUMBAI 6. 6# 7& / GUARD FILE. / BY ORDER, /3+ . //TRUE COPY// / (DY./ASSTT. REGISTRAR) , % & / ITAT, MUMBAI