ITO 2(2)(4), MUMBAI V. PHOTOGRAVURS (INDIA) P.LTD, MUMBAI

ITA 5199/MUM/2012

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6652 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 08-04-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 16-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: JITENDRA SINGH

Judgement Text

C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI .. , . . . . BEFORE SHRI P.M. JAGTAP, AM AND DR. S.T.M. PAVALAN, JM ./ I.T.A. NO.5199/ MUM/2012 ( / ASSESSMENT YEAR : 2009-2010 INCOME TAX OFFICER 2(2)(4), ROOM NO. 542, 5 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 20. / VS. M/S PHOTOGRAVURS (INDIA) PVT. LTD., 21, SETH CHAMBERS, DR. V.B. GANDHI MARG, FORT, MUMBAI 400 023. ./ PAN :AAACP4088L ( % / APPELLANT ) .. ( &'% / RESPONDENT ) A PPELLANT BY SHRI SANJEEV JAIN R E SPONDENT BY : SHRI JITENDRA SINGH * / DATE OF HEARING : 08-04-2014 * / DATE OF PRONOUNCEMENT : 11-04-2014 [ / O R D E R PER P.M. JAGTAP, A.M . : .. , THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A) - 5, MUMBAI DATED 12-06-2012 ON THE FOLLOWING GROUNDS :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE D. CIT(A) ERRED IN ALLOWING ASSESSEES APPEAL WITHOUT ADJUDICATING THE DETAILED EVIDENCES GATHERED BY THE A.O. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW THE D. CIT(A) ERRED IN DIRECTING THE AO TO COMPUTE THE 9IN COME FROM HOUSE PROPERTY ON THE BASIS OF MUNICIPAL VALUE EVEN THOUGH THE PRE VAILS MARKET VALUE IN THAT AREA WAS MUCH HIGHER. ITA 5199/M/12 2 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WH ICH IS ENGAGED IN THE BUSINESS OF CHROMIUM PLATING ON TEXTILES, EMBOSSING ROLLERS, MIRROR, ROLLERS, MACHINERY PARTS ETC. THE RETURN OF INCOME FOR THE Y EAR UNDER CONSIDERATION WAS FILED BY IT ON 29-9-2009 DECLARING TOTAL INCOME AT NIL. IN THE SAID RETURN, INCOME FROM HOUSE PROPERTY WAS DECLARED BY THE ASSE SSEE AT RS. 30,310/- IN RESPECT OF RENTAL INCOME RECEIVED FOR THE PART OF I TS FACTORY BUILDING GIVEN ON COMMERCIAL LEASE. DURING THE COURSE OF ASSESSMENT P ROCEEDING, IT WAS NOTICED BY THE A.O. THAT IN THE ASSESSMENT ORDERS PASSED IN THE CASE OF ASSESSEE FOR A.Y. 2007-08 AND 2008-09 THE PREVAILING MARKET RENT OF THE FACTORY BUILDING OF THE ASSESSEE GIVEN ON COMMERCIAL LEASE WAS COMPU TED AT RS. 2,25,00,000/- AND THE SAME WAS ADOPTED AS ANNUAL LETTING VALUE (A LV) IN ACCORDANCE WITH THE PROVISIONS OF SECTION 23(1)(A) OF THE ACT. FOL LOWING THIS STAND TAKEN IN THE IMMEDIATELY PRECEDING TWO YEARS I.E. ASSESSMENT YEA RS 2007-08 AND 2008-09, THE A.O. ADOPTED THE ALV OF THE PORTION OF THE ASSE SSEES FACTORY BUILDING GIVEN ON COMMERCIAL LEASE AT RS. 2,25,00,000/- AND AFTER ALLOWING THE STANDARD DEDUCTION AT 30%, THE INCOME FROM HOUSE PR OPERTY WAS COMPUTED BY HIM AT RS. 1,57,50,000/- AS AGAINST RS. 30,130/- DECLARED BY THE ASSESSEE. ON APPEAL, THE LD. CIT(A) DELETED THE AD DITION MADE BY THE A.O. ON ACCOUNT OF HOUSE PROPERTY INCOME OF THE ASSESSEE FO LLOWING THE ORDER OF THE TRIBUNAL DTD. 27-4-2011 PASSED IN ASSESSEES OWN CA SE FOR A.Y. 2007-08 IN ITA NO. 1813/MUM/2011. HE ALSO TOOK NOTE OF THE FA CT THAT A SIMILAR ISSUE WAS DECIDED BY HIS PREDECESSOR IN ASSESSEES OWN CA SE FOR A.Y. 2008-09. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE REVEN UE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES A ND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS AGREED BY THE LD. REPRESENTATIVES OF BOTH THE SIDES, THE SOLITARY ISSUE INVOLVED IN THIS APPEAL OF THE REVENUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE D ECISION OF THE TRIBUNAL RENDERED IN ASSESSEES OWN CASE FOR A.Y. 2007-08 VI DE ITS ORDER DTD. 27-04- ITA 5199/M/12 3 2011 PASSED IN ITA NO. 1813/MUM/2011. A COPY OF TH E SAID ORDER IS ALSO PLACED ON RECORD BEFORE US AND PERUSAL OF THE SAME SHOWS THAT A SIMILAR ISSUE HAS BEEN DECIDED BY THE TRIBUNAL UPHOLDING THE ALV OF THE PROPERTY DECLARED BY THE ASSESSEE ON THE BASIS OF RENT ACTUALLY RECEI VED FOLLOWING THE DECISION OF CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF D CIT VS. RECLAMATION REALTY INDIA PVT. LTD. (ITA NO. 114/MUM/07 FOR A.Y. 2004-0 5 AND OTHERS ORDER DTD. 26-11-2010) WHEREIN A SIMILAR ISSUE WAS CONSIDERED AND DECIDED BY THE TRIBUNAL AFTER TAKING INTO CONSIDERATION ALL THE RE LEVANT ASPECTS OF THE MATTER AS WELL AS JUDICIAL PRONOUNCEMENTS. THE TRIBUNAL A LSO TOOK NOTE OF THE FACT THAT THE MUNICIPAL VALUATION OF THE PORTION OF THE FACTORY BUILDING OF THE ASSESSEE GIVEN ON LEASE WAS LESS THAN THE RENT ACTU ALLY RECEIVED BY THE ASSESSEE. RESPECTFULLY FOLLOWING THE SAID DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2007- 08, WE UPHOLD THE IMPUGNED ORDER OF THE LD. CIT(A) GIVING RELIEF TO T HE ASSESSEE ON THIS ISSUE AND DISMISS THE APPEAL FILED BY THE REVENUE. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH APRIL, 2014. . * 0 1 11-04-2014 * SD/- SD/- - (DR. S.T.M. PAVALAN) (P.M. JAGTAP ) JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; 1 DATED 1150452014 [ .../ RK , SR. PS ITA 5199/M/12 4 ' #%& '& / COPY OF THE ORDER FORWARDED TO : 1. % / THE APPELLANT 2. &'% / THE RESPONDENT. 3. 9 () / THE CIT(A)5 MUMBAI. 4. 9 / CIT 2 MUMBAI 5. < &> , > , / DR, ITAT, MUMBAI C BENCH 6. @ / GUARD FILE. / BY ORDER, '< & //TRUE COPY// / ( DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI