ADDL CIT 19(3), MUMBAI V. VAISHNAV S PURI (HUF), MUMBAI

ITA 4996/MUM/2009

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 55642 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Next Hearing Date: 19-10-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 01-09-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: SHANTAM BOSE
• Keywords: Notional interest
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH F,MUMBAI BEFORE SHRI R.S. SYAL (AM) & SHRI V. DURGA RAO (JM ) I.T.A.NO.4996/MUM/2009 (A.Y. 2006-07) ADDL. COMMR. OF INCOME-TAX-19(3), R.NO.305, 3 RD FLOOR, PIRAMAL CHAMBER, PAREL, MUMBAI-400 012. VS. VAISHNAV S. PURI (HUF), (PROP: KAKS INTERNATIONAL), NCL BLDG., 8 TH FLOOR, BANDRA KURLA COMPLEX, BANDRA (E),MUMBAI-400 050. PAN: AACHP9479P APPELLANT RESPONDENT APPELLANT BY SHRI SHANTAM BOSE. RESPONDENT BY SHRI P ARAS SAVLA. DATE OF HEARING 19 - 10 - 2011 DATE OF PRONOUNCEMENT 25 - 10 - 2011 O R D E R PER R.S. SYAL, AM : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) 17-06-2009 IN RELATION TO ASSESSMENT YEAR 2006-07. 2. THE FIRST GROUND IS AGAINST TREATING THE INCOME FROM RUNNING OF BUSINESS CENTRE UNDER THE HEAD PROFITS AND GAINS OF BUSINES S OR PROFESSION INSTEAD OF INCOME UNDER THE HEAD INCOME FROM HOUSE PROPERTY. IT IS NOTICED THAT THE LD. CIT(A) DECIDED THIS ISSUE IN ASSESSEES FAVOUR BY R ELYING ON THE VIEW TAKEN BY HIS PREDECESSOR IN THE EARLIER YEARS. THE LD. A.R. HAS PLACED ON RECORD A COPY OF THE ORDER PASSED BY THE TRIBUNAL IN THE IMMEDIATELY THR EE PRECEDING ASSESSMENT ITA NO.4996/MUM/2009 VAISHNAV S. PURI (HUF) 2 YEARS IN ITA NOS.7046/MUM/2006, 4382/MUM/2007 & 474 7/MUM/2008. VIDE THIS ORDER DATED 12-01-2011, THE TRIBUNAL HAS DECIDED T HIS ISSUE AGAINST THE ASSESSEE. IN VIEW OF NO DISTINGUISHING FEATURES IN THE FACTS OF THE INSTANT YEAR VIS- A-VIS THOSE DECIDED BY THE TRIBUNAL IN THE ASSESSEE S OWN CASE FOR THE IMMEDIATELY THREE PRECEDING ASSESSMENT YEARS, WE VA CATE THE FINDING GIVEN BY THE LD. CIT(A) ON THIS ISSUE AND HOLD THAT THE INCO ME FROM BUSINESS CENTRE BE TREATED AS FALLING UNDER THE HEAD INCOME FROM HOUS E PROPERTY. 3. GROUND NO. 2 IS AGAINST INCREASE IN THE ANNUAL L ETTING VALUE TOWARDS NOTIONAL INTEREST ON SECURITY DEPOSIT. HERE AGAIN, BOTH THE SIDES ARE IN AGREEMENT THAT THE FACTS AND CIRCUMSTANCES OF THIS GROUND AR E SIMILAR TO THOSE ALREADY CONSIDERED AND DECIDED BY THE TRIBUNAL IN THE AFORE NOTED ORDER. IT IS SEEN FROM THE SAID ORDER THAT THE TRIBUNAL WAS PLEASED TO DEC IDE THIS ISSUE IN ASSESSEES FAVOUR IN EARLIER YEARS. RESPECTFULLY FOLLOWING THE PRECEDENTS, WE UPHOLD THE IMPUGNED ORDER ON THIS SCORE. 4. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED ON THE 25TH DAY OF OCTOBER , 2011. SD/- SD/- (V. DURGA RAO) (R.S. SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 25TH OCTOBER , 2011. NG: COPY TO : 1.DEPARTMENT. 2.ASSESSEE. 3 CIT(A)-XIX,MUMBAI. 4 CIT,CITY-19,MUMBAI. 5.DR,F BENCH,MUMBAI. ITA NO.4996/MUM/2009 VAISHNAV S. PURI (HUF) 3 6.MASTER FILE. (TRUE COPY) BY ORDER, ASST.REGISTRAR, ITAT, MUMBAI. ITA NO.4996/MUM/2009 VAISHNAV S. PURI (HUF) 4 DETAILS DATE INITIALS DESIGN ATION 1 . DRAFT DICTATED ON 1 9 - 1 0 - 1 1 SR.PS/ 2 . DRAFT PLACED BEFORE AUTHOR 20 - 1 0 - 1 1 SR.PS/ 3 . DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 . DRAFT DISCUSSED /APPROVED BY SECOND MEMBER JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/ 6. KEPT FOR PRONOUNCEMENT ON SR.PS/ 7. FILE SENT TO THE BENCH CLERK SR.PS/ 8 . DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9 . DATE O N WHICH FILE GOES TO THE AR 10. DATE OF DISPATCH OF ORDER *