JAIPRAKASH SHARMA, MUMBAI V. ITO 24(2)(3), MUMBAI

ITA 4233/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4462 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2016
• Appeal Filed By: Assessee
• Bench Allotted: J
• Assessment Year: 2004-2005
• Appeal Filed On: 13-06-2014
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

, , J, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES J, MUMBAI , , , BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.4233/MUM/2014 ASSESSMENT YEAR: 2004-05 JAIPRAKASH N. SHARMA, D-203, VEENA NAGAR, S.V. ROAD, MALAD (W), MUMBAI-400064 / VS. ITO 24(2)(3), MUMBAI- (APPELLANT) (REVENUE) P.A. NO. ACRPS2600R APPELLANT BY SHRI MANI SH AGARWAL (A R) REVENUE BY SHRI JEEVAN LAL LAVIDIYA (D R) / DATE OF HEARING : 16/12/2015 / DATE OF ORDER: 6/01/2016 / O R D E R PER ASHWANI TANEJA (ACCOUNTANT MEMBER): THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-3 4, MUMBAI {(IN SHORT CIT(A)}, DATED 14.03.2014 FOR T HE ASSESSMENT YEAR 2004-05, PASSED AGAINST THE ASSESSM ENT JAIPRAKASH SHARMA 2 ORDER PASSED BY THE ASSESSING OFFICER (IN SHORT AO ) U/S 143(3) R.W.S. 147 OF THE ACT. 2. DURING THE COURSE OF HEARING, ARGUMENTS WERE MADE BY SHRI MANISH AGARWAL, AUTHORISED REPRESENTATIVE (AR) ON B EHALF OF THE ASSESSEE AND BY SHRI JEEVAN LAL LAVIDIYA, DEPAR TMENTAL REPRESENTATIVE (DR) ON BEHALF OF THE REVENUE. 3. IN THIS APPEAL, SOLITARY GROUND RAISED BY THE ASS ESSEE IS WITH RESPECT TO ADDITION OF RS.1,76,400/- MADE BY T HE AO ON ACCOUNT OF NOTIONAL INCOME UNDER THE HEAD INCOME F ROM HOUSE PROPERTY, DISREGARDING THE SUBMISSIONS OF TH E ASSESSEE. 3.1. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT WA S NOTED BY THE AO THAT ASSESSEE WAS OWNER OF VARIOUS PROPERTIES, BUT WITH RESPECT TO SOME OF THE PROPERT IES, THE ASSESSEE HAS NOT SHOWN ANY RENTAL INCOME. THE ASSES SEE SUBMITTED THAT THESE PROPERTIES WERE USED FOR THE P URPOSE OF BUSINESS OF THE ASSESSEE. IT WAS ALSO SUBMITTED THA T SOME OF THESE PROPERTIES WERE GIVEN BY THE ASSESSEE TO ITS EMPLOYEES, AND THUS, THESE WERE USED FOR THE PURPOSE OF THE BU SINESS, AND THEREFORE, ANNUAL RENTAL VALUE OF THESE PROPERT IES WAS NOT TAXABLE UNDER THE HEAD INCOME FROM HOUSE PROPERTY ON NOTIONAL BASIS. BUT WITHOUT GOING INTO VERIFICATION OF THE FACTS STATED BY THE ASSESSEE, THE AO DISBELIEVED THE CONT ENTIONS OF THE ASSESSEE AND MADE ADDITION IN THE ASSESSMENT OR DER BY MAKING ESTIMATE OF THE DEEMED RENT COMPUTED AS PER PROVISIONS OF SECTION 23(1)(A) OF THE ACT. JAIPRAKASH SHARMA 3 3.2. BEING AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFO RE THE LD. CIT(A), WHEREIN SUBMISSIONS MADE BEFORE THE AO WERE REITERATED. BUT LD. CIT(A) REJECTED THE GROUNDS OF THE ASSESSEE WITHOUT DISCUSSING ANY FACTS OR ISSUES INVOLVED. 3.3. THE BRIEF ORDER OF LD. CIT(A) ON THIS ISSUE IS REP RODUCED AS UNDER: THE EXPLANATION OFFERED BY APPELLANT FOR GROUND NO .2 IS NOT CONVINCING. THE ADDITION MADE ON THIS GROUND IS SUSTAINED. 3.4. FROM THE ABOVE, IT IS NOTED THAT THE ORDER OF LD. CIT(A) IS CRYPTIC AND NON-SPEAKING AT ALL. NO DISCUSSION HAS BEEN MADE BY THE LD. CIT(A) WITH RESPECT TO THE AUTHENTICITY OR OTHERWISE OF THE SUBMISSIONS OF THE ASSESSEE AND THE FACTS NA RRATED BEFORE THE AO AND LD. CIT(A). IN OUR OPINION, JUSTI CE HAS NOT BEEN DONE TO THIS CASE. THE FACTS HAVE NOT BEEN PRO PERLY ANALYSED BY EITHER OF THE LOWER AUTHORITIES, THEREF ORE, IN ALL FAIRNESS AND TO MEET THE ENDS OF JUSTICE, WE SEND T HIS ISSUE BACK TO THE FILE OF THE AO. THE AO SHALL GIVE ADEQU ATE OPPORTUNITY OF HEARING TO THE ASSESSEE, AND SHALL D ECIDE THIS ISSUE AFRESH AFTER TAKING INTO ACCOUNT, ALL THE DET AILS AND DOCUMENTARY EVIDENCES AS MAY BE SUBMITTED BY THE AS SESSEE, AS PER LAW AND FACTS. THUS, GROUNDS RAISED BY THE A SSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. JAIPRAKASH SHARMA 4 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH JANUARY, 2016. SD/- (SANJAY GARG ) SD/- (ASHWANI TANEJA) ! / JUDICIAL MEMBER ' ! / ACCOUNTANT MEMBER MUMBAI; ' DATED :6/01/2016 CTX? P.S/. .. #$%&'(')% / COPY OF THE ORDER FORWARDED TO : 1. $ %& / THE APPELLANT 2. '(%& / THE RESPONDENT. 3. ) ) * ( $ ) / THE CIT, MUMBAI. 4. ) ) * / CIT(A)- , MUMBAI 5. -. ' /0 , ) $ /01 , / DR, ITAT, MUMBAI 6. 2 3 / GUARD FILE. / BY ORDER, ( -$ ' //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI