TRADE WINGS LTD, MUMBAI V. ITO WD 2(3)(3), MUMBAI

ITA 5429/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 8298 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 06-09-2016
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH
• Assessee Lawyers: SHIR MIHIR SHAH
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO.5429/M/2016 (AY 2008 - 2009) ITA NO.5430/M/2016 (AY 2009 - 2010) M/S. TRADE WINGS LTD., 30 - K, DUBASH MARG, KALAGHODA, FORT, MUMBAI - 400001. / VS. ITO, WARD 2(3)(3), AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400020. ./ PAN : AAACT4639F ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHIR MIHIR SHAH / RESPONDENT BY : MS. BEENA SANTOSH, DR / DATE OF HEARING : 09.02.2017 / DATE OF PRONOUNCEMENT : 22 .02.2017 / O R D E R PER D. KARUNAKARA RAO, AM: THERE ARE TWO APPEALS UNDER CONSIDERATION AND THEY ARE FILED BY THE ASSESSEE FOR THE ASSESSMENT YEARS 2008 - 09 AND 2009 - 2010. SINCE, THE ISSUES RAISED IN THESE APPEALS ARE INTER - CONNECTED, THEREFORE, THEY ARE CLUBBED, HEARD COMBINEDLY AND DISPOSED OF IN THIS CONSOLIDATED ORDER. APPEAL WISE ADJUDICATI ON IS GIVEN IN THE FOLLOWING PARAS OF THIS ORDER. 2. AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE, STATING THAT IN THESE APPEALS ASSESSMENTS WERE MADE U/S 143(3) R.W.S 263 OF THE ACT, SUBMITTED THAT THERE IS NO DISPUTE ABOUT THE VALIDITY OF THE ORDER U/S 263 OF THE ACT . THEREFORE, THESE APPEALS CAN BE ADJUDICATED COMBINEDLY. NARRATING THE BRIEF FACTS OF THE CASE, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRAVEL AND OTHER RELATED ACTIVITIES. ASSESSEE FILED THE RETURN OF INCOME AS PER THE PROCEDURES AND THE IS REGULARLY ASSESSED TO TAX U/S 143(3) OF THE ACT AND THE ISSUES RAISED IN THE PRESENT APPEALS RELATES TO THE CORRECTNESS OF THE HEAD OF INCOME FOR TAXING THE RENTAL RECEIPTS ARISING FROM THE BUILDINGS. IN THE PROCEEDINGS U/S 26 3 OF THE ACT, CIT TREATED THE RENTAL RECEIPTS AS INCOME FROM OTHER SOURCES AS AGAINST INCOME FROM HOUSE PROPERTY. O RIGINALLY , AO ASSESSED THE SAME UNDER THE HEAD 2 INCOME FROM HOUSE PROPERTY IN THE REGULAR ASSESSMENT. THU S, INFORMING THE SUBSEQUENT PROCEEDINGS ON THE ORIGINAL ASSESSMENT ORDER, LD COUNSEL FOR THE ASSESSEE SUBMITTED THA T THE ITAT REMANDED THE GROUNDS . FURTHER, LD AR PRAYED FOR REMANDING THE ISSUES RAISED BY THE ASSESSEE IN THE PRESENT APPEAL TOO TO THE FILE OF THE AO FOR FRESH DECISION ON MERITS. LD AR ALSO SUBMITTED THAT THE SAID REMANDED ISSUES BY THE TRIBUNAL ON ORIGINAL APPEALS ARE NOT YET FINALISED AT THE LEVEL OF THE AO. 3. AFTER HEARING BOTH THE PARTIES AND ON PERUSAL OF THE ORDERS OF THE REVENUE AUT HORITIES AS WELL AS THE RE LEVANT MATERIAL PLACED BEFORE THE TRIBUNAL , I FIND MERIT IN THE PRAYER OF THE LD COUNSEL FOR THE ASSESSEE. ACCORDINGLY, I REMAND THE PRESENT ISSUES RAISED BY THE ASSESSEE AGAINST THE ORDER PASSED BY THE AO U/S 143(3) R.W.S 263 OF THE ACT TO THE FILE OF THE AO FOR FRESH ADJUDICATION OF THE APPEAL AFTER CONSIDERING THE DIRECTIONS OF THE TRIBUNAL IN CONNECTION WITH THE ORIGINAL ASSESSMENT ORDER. ACCORDINGLY, I ORDER. AO SHALL GRANT A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSE SSEE AS PER THE SET PRINCIPLES OF NATURAL JUSTICE. THUS, GROUNDS RAISED BY THE ASSESSEE IN BOTH THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OP EN COURT ON 2 2 N D FEBRUARY, 2017. S D / - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER MUMBAI ; 22.02.2017 . . ./ 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 . 3 //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI