ITO 7(2)1, MUMBAI V. RONUK INDUSTRTIES LTD, MUMBAI

ITA 4647/MUM/2013

• Counselvise Citation: 464719914 RSA 2013
• Duration Of Justice: 1 year(s) 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2001-2002
• Appeal Filed On: 14-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR BORA

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE HONBLE S/SHRI H.L. KARWA, PRESIDENT AND B. R.BASKARAN (AM) . . , . . , ./I.T.A. NO.4647/MUM/2013 ( / ASSESSMENT YEAR : 2001-02) INCOME TAX OFFICER 7(2)1 R NO.621-A, AYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 / VS. M/S RONUK INDUSTRIES, 11-A, RAITAN, WORLI SEA FACE, ABDUL, GAFFAR KHAN ROAD, MUMBQI-400025 ( / APPELLANT) .. ( !' / RESPONDENT) ./ $% ./ PAN/GIRNO.:AAACR2625P & / APPELLANT BY : SHRI VIJAY KUMAR BORA !' ' & /RESPONDENT BY : NONE ( ) ' * + / DATE OF HEARING : 30.10.2014 ,- ' * + /DATE OF PRONOUNCEMENT : 5.11.2014. / O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER DATED 20.3.2013 PASSED BY THE LD.CIT(A)-13, MUMBAI AND IT RELATES TO THE ASSESSMENT YEAR 2001-02. 2. THE REVENUE IS AGGRIEVED BY THE DECISION OF THE LD CIT(A) IN DIRECTING THAT THE FAIR MARKET RENT (FMR) OF THE PROPERTY SHOULD BE ADOPTED AT RS.17,85,600/- AS AGAINST RS.1,13,22,659/- ASSESSE D BY AO. 3. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD . THE AO INITIATED RE- ASSESSMENT PROCEEDINGS ON THE REASONING THAT THERE IS AN ESCAPEMENT OF INCOME RELATING TO INCOME OF HOUSE PROPERTY. THE AO NOTI CED THAT THE ASSESSEE HAS RECEIVED INTEREST FREE SECURITY DEPOSIT OF RS.1,45, 86,590/-. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO CALLED FOR THE DETAI LS OF STANDARD RENT IN THE ITA NO.4647/M/2013 2 VICINITY OF THE IMPUGNED PREMISES FROM THE DVO. T HE VALUATION OFFICER DETERMINED THE ANNUAL RENTAL VALUE OF THE PROPERTY AT RS.98,64,000/-. THE AO ALSO OPINED 10% OF THE INTEREST FEE DEPOSIT REFERRE D ABOVE SHOULD BE TAKEN INTO CONSIDERATION. ACCORDINGLY, HE DETERMINED THE ANNU AL RENTAL VALUE OF THE PROPERTY AT RS.1,13,22,659/-. IN THE APPELLANT PRO CEEDINGS, THE LD. CIT(A) NOTICED THAT THE QUESTION RELATING TO ALV FOR ASSES SMENT YEARS 2003-2004 TO 2004-05 CAME TO BE RAISED BEFORE THE MUMBAI BENCH OF TRIBUNAL AND THE TRIBUNAL HAD SET ASIDE THE MATTER TO THE FILE OF AO WITH A DIRECTION TO RE-COMPUTE THE ALV. ACCORDINGLY, THE AO HAS GIVEN EFFECT TO THE DIRECTIONS OF THE TRIBUNAL BY HIS ORDER DATED 28.5.2012 WHEREIN, HE DETERMINED THE ALV OF THE PROPERTY AT RS.16,20,000/-, RS.16,99,200/- AND RS.17,85,600/- I N RESPECT OF ASSESSMENT YEARS 2002-03 TO 2004-05 RESPECTIVELY. BY CONSIDER ING THESE FACTS, THE LD. CIT(A) DIRECTED THE AO TO ADOPT ALV FOR THE YEAR U NDER CONSIDERATION AT RS.17,85,600/-. 4. AS ALREADY NOTICED THE AO HAS HIMSELF ADOPTED ALV OF THE PROPERTY FOR SUBSEQUENT YEARS AS MENTIONED IN THE PRECEDING PARA GRAPHS. IN THE YEAR UNDER CONSIDERATION, THE LD. CIT(A) HAS DETERMINED THE A LV AT RS.17,85,600/- WHICH IS IN FACT, HIGHER THAN THE ALV DETERMINED FOR THE I MMEDIATELY PRECEDING ASSESSMENT YEAR. UNDER THESE SET OF FACTS, WE DO N OT FIND ANY INFIRMITY IN THE DECISION OF THE LD. CIT(A). ACCORDINGLY, WE DISMI SS THE APPEAL FILED BY REVENUE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 5TH NOV, 2014 . ,- ( . /0 1 2 5TH NOV , 2014 - ' 6) 7 SD SD ( . . / H.L. KARWA) ( . . , / B.R. BASKARAN ) / PRESIDENT / ACCOUNTANT MEMBER / ( ) MUMBAI:5TH NOV,2014. ITA NO.4647/M/2013 3 . . ./ SRL , SR. PS ! ' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT. 3. ( <* ( ) / THE CIT(A)- CONCERNED 4. ( <* / CIT CONCERNED 5. 6. => 6 !*? , + ? , / ( ) / DR, ITAT, MUMBAI CONCERNED 6 @ ) / GUARD FILE. A ( / BY ORDER, TRUE COPY B $ (ASSTT. REGISTRAR) + ? , / ( ) /ITAT, MUMBAI