FINE TRADE EXPORTS LTD., MUMBAI V. DCIT - 6(3)(1), MUMBAI

ITA 5230/MUM/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0060 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 19-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO . 5230/MUM./2016 ( ASSESSMENT YEAR : 20 12 13 ) FINE TRADE EXPORTS LTD. 3, NARAYAN BUILDING 23, L.N. ROAD, MUMBAI 400 014 PAN AAACF9257F . APPELLANT V/S DY. COMMISSIONER OF INCOME TAX CIRCLE 6(3)(1), MUMBAI . RESPONDENT ASSESSEE BY : S HRI MALAV P. SHETH REVENUE BY : MS. POOJA SWAROOP DATE OF HEARING 21 .02.2018 DATE OF ORDER 28.02.2018 O R D E R PER SAKTIJIT DEY, J.M. T HIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 23 RD MAY 2016 , PASSED BY THE LEARNED COMMISSIONER (APPEALS) 12 , MUMBAI, FOR THE ASSESSMENT YEAR 20 12 13 . 2 . THE ONLY EFFECTIVE GROUND RAISED BY THE ASSESSEE READS AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED COMMISSIONER (APPEALS) ERRED IN CONFIRMING THE DISALLOWANCE OF MUNICIPAL TAX TO THE EXTENT OF ` 4,11,870 OUT OF TOTAL CLAIM OF ` 30,76,440 UNDER THE HEAD INCOME FROM HOUSE PROPERTY HOLDING THAT IN THE APPELLATE ORDER PASSED FOR A.Y. 2011 12, THE IDENTICAL CLAIM OF MUNICIPAL TAX WAS DISMISSED AND THE ASSESSING OFFICERS ADDITION WAS CONFIRMED. DISA LLOWANCE 2 FINE TRADE EXPORTS LTD. MADE OF ` 4,11,870 BEING IN THE NATURE OF MUNICIPAL TAX, WITHOUT CONSIDERING THE MERITS OF THE CASE, IS BAD IN LAW AND NEEDS TO BE CANCELLED. 3 . BRIEF FACTS ARE, THE ASSESSEE A COMPANY FILED ITS RETURN OF INCOME ON 26 TH SEPTEMBER 2012, DECLARING I NCOME OF ` 1,00,99,480. DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICING THAT THE ASSESSEE HAS CLAIMED DEDUCTION OF AN AMOUNT OF ` 30,76,440, TOWARDS PROPERTY TAX CALLED UPON THE ASSESSEE TO FURNISH NECESSARY DETAILS. FROM THE DETAILS FURN ISHED BY THE ASSESSEE, THE ASSESSING OFFICER FOUND THAT THE ACTUAL AMOUNT OF PROPERTY TAX PAID TO MCGM WAS ` 26,64,570 AND THE BALANCE AMOUNT OF ` 4,11,870, WAS PAID TO ASHAPURA DEVELOPE RS TOWARDS MAINTENANCE CHARGES. B EING OF THE VIEW THAT MAINTENANCE CHARGES AMOUNTING TO ` 4,11,870, CANNOT BE ALLOWED AS A DEDUCTION WHILE COMPUTING INCOME FROM HOUSE PROPERTY , THE ASSESSING OFFICER DISALLOWED THE SAME AND ADDED BACK TO THE INCOME OF THE ASSESSEE. BEING AGGRIEVED OF SUCH DISALLOWANCE, THOUGH, THE ASSESSEE FILED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY, HOWEVER, THE LEARNED COMMISSIONER (APPEALS) FOLLOWING HIS ORDER PASSED IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2011 12, SUSTAINED THE DISALLOWANCE. 4 . WE HAVE HEARD R IVAL SUBMISSIONS AND PERUSED MATERIAL ON RECORD. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED, IN ASSESSMENT YEAR 3 FINE TRADE EXPORTS LTD. 2011 12, WHILE DECIDING IDENTICAL ISSUE ARISING IN THE APPEAL FILED BY THE ASSESSEE THE TRIBUNAL HAS RESTORED THE ISSUE TO THE ASSESSING OF FICER FOR DECIDING AFRESH AFTER FURTHER VERIFICATION. HE SUBMITTED, SIMILAR DIRECTIONS MAY BE GIVEN IN THIS ASSESSMENT YEAR AS WELL. 5 . LEARNED DEPARTMENTAL REPRESENTATIVE HAS NO OBJECTION IF THE ISSUE IS RESTORED TO THE ASSESSING OFFICER FOR DECIDING AFRESH . 6 . HAVING CONSIDERED THE AFORESAID SUBMISSIONS OF THE PARTIES AND KEEPING IN VIEW THE DECISION OF THE CO ORDINATE BENCH WHILE DECIDING IDENTICAL ISSUE IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2011 12 IN ITA NO.5127/MUM./2015, DATED 27 TH OCTOBER 2017, WE RESTORE THE ISSUE TO THE ASSESSING OFFICER FOR DECIDING AFRESH AFTER VERIFYING ASSESSEES CLAIM WITH REFERENCE TO THE EVIDENCE BROUGHT ON RECORD. OF COURSE, THE ASSESSING OFFICER MUST AFFORD REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE BEFORE DECI DING THE ISSUE. 7 . IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28.02.2018 SD/ - RAJESH KUMAR ACCOUNTANT MEMBER SD/ - SAKTIJIT DEY JUDICIAL MEMBER MUMBAI, DATED: 28.02.2018 4 FINE TRADE EXPORTS LTD. COPY OF THE ORDER FORWARDED TO : ( 1 ) THE ASSESSEE; ( 2 ) THE REVENUE; ( 3 ) THE CIT(A); ( 4 ) THE CIT, MUMBAI CITY CONCERNED; ( 5 ) THE DR, ITAT, MUMBAI; ( 6 ) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY (ASSTT. REGISTRAR/SR.P.S) ITAT, MUMBAI