SONEGA TRADES & INVESTMENTS P.LTD, MUMBAI V. ITO 2(3)(2), MUMBAI

ITA 4286/MUM/2013

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0677 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 27-06-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 29-05-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V JUSTIN LD
• Keywords: Business income; Opportunity of being heard
• Section: 143(3)

Judgement Text

ITA.NO.4286/MUM/2013 SONEGA TRADES & INVESTMENTS PRIVATE LIMITED ASSESSMENT YEAR-2008-09 IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI . . , , BEFORE SHRI D.T. GARASIA, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.4286/MUM/2013 ( / ASSESSMENT YEAR: 2008-09) SONEGA TRADES & INVESTMENTS PRIVATE LIMITED NANAVATI MAHALAYA,18 HOMI MODI STREET, FORT MUMBAI-400 023 / VS. INCOME TAX OFFICER 2(3)(2) AAYAKAR BHAVAN, M.K.ROAD MUMBAI-400 020 ! ./ ./PAN/GIR NO. AAECS-9988-G ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) A SSESSEE BY : NONE RE VENUE BY : V.JUSTIN, LD. DR / DATE OF HEARING : 20/12/2017 / DATE OF PRONOUNCEMENT : 17/01/2018 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2008-09 CONTEST THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX (APPEALS)-6 [CIT(A)], MUMBAI, APPEAL NO. CIT(A)-6/IT-200/2010-11 DATED 30/03/2013 THE ASSESSMENT FOR IMPUGNED AY WAS FRAMED BY LD. INCOME TAX OFFICER 2(3)(2), MUMBAI [AO] U/S 143(3) OF THE INCOME TAX ITA.NO.4286/MUM/2013 SONEGA TRADES & INVESTMENTS PRIVATE LIMITED ASSESSMENT YEAR-2008-09 2 ACT, 1961 ON 10/12/2010. NONE HAS APPEARED FOR ASSESSEE DESPITE NOTICE AND NO ADJOURNMENT APPLICATION IS ON RECORD. SINCE ADEQUATE OPPORTUNITY OF BEING HEARD HAS ALREADY BEEN PROVIDE D TO THE ASSESSEE ON VARIOUS OCCASIONS AS PER ORDER SHEET ENTRIES, WE PROCEED TO DISPOSE- OFF THE SAME ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AFTER HEARING LD. DEPARTMENTAL REPRESENTATIVE [DR]. THE A SSESSEE HAS RAISED THE FOLLOWING EFFECTIVE GROUNDS OF APPEAL:- 1. THE COMMISSIONER OF INCOME TAX (APPEALS)-6, MUMBAI [HEREINAFTER REFERRED TO AS THE CIT(A) ERRED IN HOLDING THAT THE INCOME TAX OFF ICER-2(3)(2), MUMBAI[HEREINAFTER REFERRED TO AS ITO] WAS RIGHT IN TREATING THE APPEL LANTS INCOME FROM INTEREST AND OTHER INCOME OF RS.3,45,407/- AS INCOME FROM OTHER SOURCES. THE APPELLANTS SUBMIT THAT THE ABOVE INCOME IS TAXABLE AS INCOME F ROM BUSINESS AND THE ITO BE GIVEN SUITABLE DIRECTION IN THE MATTER. 2. THE CIT(A) ERRED IN HOLDING THAT THE ITO WAS RI GHT IN DISALLOWING MAINTENANCE CHARGES OF RS.3,72,000/- IN COMPUTING THE INCOME UN DER THE HEAD INCOME FROM HOUSE PROPERTY ON THE GROUND THAT THE SAID AMOUNT WAS NOT DEDUCTIBLE UNDER SECTION 24 OF THE ACT. THE APPELLANTS SUBMITS THAT THEIR CLAIMS ELIGIBLE FOR DEDUCTION AND THE ITO BE GIVEN SUITABLE DIRECTIONS IN THE MAT TER. 2.1 FACTS LEADING TO THE SAME ARE THAT THE ASSESSEE BEING RESIDENT CORPORATE ASSESSEE ENGAGED IN THE BUSINESS OF WAREHOUSING AND LETTING OUT OF HOUSE PROPERTY WAS ASSESSED AT LOSS OF RS.12,53,864/- AFTER CERTAIN ADDITIONS / ADJUSTMENTS AS AGAINST RETURNED LOSS OF RS.36,89,118/- FILED BY THE ASSESSEE ON 30/09/2008. 2.2 DURING ASSESSMENT PROCEEDINGS, IT WAS NOTED THA T THE ASSESSEE CLAIMED DEDUCTION OF RS.3.72 LACS AS MUNICIPAL TAXES AND OTHER CHARGES U/S 24 AGAINST RENTAL INCOME EARNED BY THE ASSESSE E. THE SAID CHARGES COMPRISED-OFF OF RS.0.72 LACS BEING MONTHLY MAINTENANCE CHARGES AND RS.3 LACS BEING LICENSE FEES PAID BY THE ASSESSEE TO SOCIETY AS LEAVE AND LICENSE FEES FOR THE FLAT OWNED BY THE ASSESSEE. ITA.NO.4286/MUM/2013 SONEGA TRADES & INVESTMENTS PRIVATE LIMITED ASSESSMENT YEAR-2008-09 3 SINCE THE SAME DID NOT COME WITHIN THE AMBIT OF ALL OWABLE DEDUCTION, THE SAME WERE DISALLOWED. 2.3 THE SECOND ISSUE UNDER APPEAL IS HEAD UNDER WHI CH CERTAIN INTEREST & MISC. INCOME EARNED BY THE ASSESSEE WOUL D BE ASSESSABLE TO TAX. THE ASSESSEE EARNED INTEREST OF RS.2.97 LACS F ROM CAPITAL GAINS BONDS ISSUED BY NHAI AND OFFERED THE SAME AS BUSINESS INCOME. SIMILARLY, CERTAIN OTHER MISC. INCOMES AGGREGATING TO RS.48,407/- WAS CLAIMED AS BUSINESS INCOME. ALL THESE INCOMES, IN THE OPINION OF LD. AO, WERE ASSESSABLE UNDER THE HEAD INCOME FROM OTHER SOURCES. 3. AGGRIEVED, THE ASSESSEE CONTESTED THE SAME WITHO UT ANY SUCCESS BEFORE LD.CIT(A) VIDE IMPUGNED ORDER DATED 30/03/20 13 WHERE THE STAND OF LD. AO WAS CONFIRMED. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. THE LD. DR PLACED RELIANCE ON THE STAND OF LOWER AUTHORITIES. 4. WE HAVE CAREFULLY PERUSED THE MATERIAL ON RECORD . WE DO NOT FIND ANY SUBSTANCE IN ASSESSEES APPEAL. THE ASSESSEE CO ULD NOT CLAIM ANY EXPENDITURE FROM INCOME FROM HOUSE PROPERTY OUTSIDE THE AMBIT OF SECTION 24. THE EXPENDITURE AS CLAIMED BY THE ASSES SEE WAS NOT COVERED BY THE STATUTORY PROVISIONS AND HENCE NOT A LLOWABLE. THE INTEREST INCOME WAS EARNED FROM CAPITAL GAINS BONDS WHICH WAS RIGHTLY ASSESSED AS INCOME FROM OTHER SOURCES. SIMILARLY, THE ASSESSEE FAILED TO SHOW THAT MISC. INCOMES AGGREGATING TO RS.48,407 /- WERE, IN ANY WAY, RELATED TO ASSESSEES BUSINESS AND THEREFORE, RIGHT LY BEEN ASSESSED AS INCOME FROM OTHER SOURCES. 5. RESULTANTLY, THE ASSESSEES APPEAL STANDS DISMIS SED. ITA.NO.4286/MUM/2013 SONEGA TRADES & INVESTMENTS PRIVATE LIMITED ASSESSMENT YEAR-2008-09 4 ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH JANUARY,2018 SD/- SD/- (D.T. GARASIA) (MANOJ KUMAR AGGARW AL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 17.01.2018 SR.PS:- THIRUMALESH ! / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. + ( ) / THE CIT(A) 4. + / CIT CONCERNED 5. $&- , - , / DR, ITAT, MUMBAI 6. . / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI