INFINITI RETAIL LTD, MUMBAI V. ITO 11(3)(4), MUMBAI

ITA 461/MUM/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2808 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2016
• Appeal Filed By: Assessee
• Bench Allotted: K
• Assessment Year: 2011-2012
• Appeal Filed On: 01-02-2016
• Court: TRIBUNAL
• Department Lawyers: SOMANATH UKKALI
• Assessee Lawyers: K K LALKALA
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER I.T.A. NO.461/M/2016 (ASSESSMENT YEAR: 2006 - 2007 ) ITO - 1(3)(2), 5 TH FLOOR, R.NO.541, AAYAKAR BHAVAN, MUMBAI 400 020. / VS. M/S. SAURABH INDUSTRIES LTD., EMPIRE HOUSE, GROUND FLOOR, A.K. NAIK MARG, FORT, MUMBAI 400 001. ./ PAN : AAFCS9949G ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI K.K. LALKALA / RESPONDENT BY : SHRI SOMANATH UKKALI, JCIT / DATE OF HEARING : 23.06.2016 / DATE OF PRONOUNCEMENT : 30.06.2016 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE REVENUE IS AGAINST THE ORDER OF THE CIT (A) - 2 MUMBAI DATED 28.10.2 014 FOR THE ASSESSMENT YEAR 2006 - 2007 . 2. THE ONLY ISSUE THAT REMAINED THE SUBJECT MATTER OF PENALTY RELATES TO PROPER HEAD OF INCOME FOR TAXING THE INCOME EARNED ON HOUSE PROPERTY. IT IS THE CASE OF THE ASSESSEE THAT SUCH INCOME SHOULD BE TAXED UNDER THE HEAD PROFIT & GAINS FROM BUSINESS OR PROFESSION WHEREAS THE REVENUE AUTHORITIES DECIDED THE SAME UNDER THE HEAD INCOME FROM HOUSE PROPERTY. ACCORDINGLY, AO LEVIED THE PENALTY U/S 271 (1)(C) OF THE ACT ON THE ABOVE SAID INCOME . 3 . BEFORE ME, LD COUNSEL FOR THE ASSESSSEE FURNISHED A STATEMEN T COMPUTING THE TAX LIABILITY OF SUCH INCOME, IF RENTAL INCOME FROM HOUSE PROPERTY IS TAXED UNDER THE HEAD PROFIT & GAINS FROM BUSINESS OR PROFESSION AND INCOME FROM HOUSE PROPERTY. IN TH AT CASE, THE TAX EFFECT COMES TO BELOW RS. 10 LAKHS. THEREFORE, THIS IS COVERED BY THE CBDT CIRCULAR NO.21/2015, DATED 10.12.2015 WHICH IS RELEVANT FOR THE PROPOSITION THAT THE APPEA LS FILED BY THE REVENUE WITH A TAX EFFECT OF RS. 10 LAKHS AND BELOW ARE TO BE EITHER DISMISSED BY THE TRIBUNAL AS NOT MAINTAINABLE OR NOT PRESSED BY THE REVENUE. 2 4. AFTER HEARING BOTH THE PARTIES, I AM OF THE OPINION, CONSIDERING THE LOW TAX EFFECT INVOL VED IN THE PRESENT CASE WHICH IS BELOW RS. 10 LAKHS, THE INSTANT APPEAL FILED BY THE REVENUE IS REQUIRED TO BE DISMISSED SINCE, THE SAME IS NOT MAINTAINABLE. I ORDER ACCORDINGLY. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH JUNE, 2016. SD/ - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER MUMBAI ; 30 .6.2016 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI