ACIT CIR 16(1), MUMBAI V. ZARINABAI BARODAWALA, MUMBAI

ITA 5498/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 0934 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 28-07-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 07-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MAHAPATRA
• Assessee Lawyers: KESHAV B BHUJLE

Judgement Text

ITA NO.5498/MUM/2009 ASSESSMENT YEAR : 2004-05 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI G BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR (ACCOUNTANT MEMBER) AND SMT. ASHA VIJAY RAGHAVAN, (JUDICIAL MEMBER) ITA NO. 5498/MUM./2009 ASSESSMENT YEAR : 2004-05 DATE OF HEARING : 28.7.2010 ASSISTANT COMMISSIONER OF INCOME TAX ...... AP PELLANT CIRCLE 16(1), MATRU MANDIR TARDEO ROAD, MUMBAI 400 009 VS. SMT. ZARINABAI BARODAWALA .. RESPONDENT C/O ZENITH TINS LIMITED KESHAVRAO KHADE, MAHALAXMI MUMBAI 400 034 AEHPB9336F APPELLANT BY : SHRI S.K. MAHAPATRA RESPONDENT BY : SHRI KESHAV B. BHUJLE O R D E R PER PRAMOD KUMAR: 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CALLED INTO QUESTION CORRECTNESS OF LD. CIT(A)S ORDER DATED 3 RD JULY 2009, FOR ASSESSMENT YEAR 2004-05. THE ASSESSING OFFICER HAS RAISED FOLLOWING GRIEVANCES:- ITA NO.5498/MUM/2009 ASSESSMENT YEAR : 2004-05 PAGE 2 OF 4 1. THE LD. CIT(A) ERRED IN ACCEPTING THE DECISION IN THE CASE OF JAMNADAS VS CIT (20 ITR 160) WHICH HOLDS THAT THE A NNUAL RETABLE VALUE WILL BE, THE MUNICIPAL VALUE. FURTHER , THE SAID DECISION NOWHERE STATES THAT IF THE STANDARD RENT I S ABSENT, THEN THE MUNICIPAL VALUATION WILL BE EXPECTED REASONABLE RENT. 2. THE LD. CIT(A) ERRED IN HOLDING THAT THE MUNICIP AL VALUE IS THE EXPECTED REASONABLE RENT AS, THE MUNICIPAL VALU ATION IS THE NOT ONLY TEST TO ASCERTAIN THE EXPECTED REASONABLE RENT. 3. THE LD. CIT(A) ERRED IN RELYING ON THE SUPREME C OURT JUDGMENTS IN THE CASE OF SHEELA KAUSHIK VS CIT (131 ITR 435) AND DEWAN DAULATBHAI KAPOOR VS NEW DELHI MUNICIPAL COMMITTEE, 122 ITR 700, AS THEY ARE NOT RELEVANT IN THE INSTANT CASE AS NO DISPUTE EXISTS AS TO THE MAXIMUM LIMIT O F EXPECTED REASONABLE RENT. 2. BOTH THE LEARNED REPRESENTATIVES AGREE THAT THE ISS UE ARISING OUT OF THE AFORESAID GROUNDS OF APPEAL RAISED BY THE ASSES SING OFFICER IS COVERED AGAINST THE REVENUE AND IN FAVOUR OF THE ASSESSEE B Y THE DECISION OF A CO- ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF PARK PAPER INDUSTRIES PVT. LTD. VS INCOME TAX OFFICER, REPORTED AS (2008) 25 SOT 40 6 (MUM.), WHEREIN, IT HAS BEEN HELD BY THE TRIBUNAL THAT THE CHARGE UNDER SECTION 22 IS NOT ON MARKET RENT, BUT IS ON ANNUAL VALUE; AND IN CASE OF PROPERTY WHICH IS NOT LET OUT, MUNICIPAL VALUE WOULD BE A PROPER YARDSTICK FO R DETERMINING ANNUAL VALUE. 3. SINCE THE ISSUE BEFORE US IS COVERED IN FAVOUR OF T HE ASSESSEE BY THE AFORESAID DECISION OF THIS TRIBUNAL, WE, RESPECTFUL LY FOLLOWING THE SAME, SET ASIDE THE ORDER OF THE LD. CIT(A) AND DISMISS THE G ROUND OF APPEAL RAISED BY THE ASSESSING OFFICER. 4. THUS, THIS GROUND OF APPEAL IS DISMISSED. ITA NO.5498/MUM/2009 ASSESSMENT YEAR : 2004-05 PAGE 3 OF 4 5. IN THE RESULT, ASSESSING OFFICERS APPEAL IS DISMIS SED. PRONOUNCED IN THE OPEN COURT TODAY ON 30 TH DAY OF JULY, 2010. SD/XX SD/XX (ASHA VIJAY RAGHAVAN) (PRAMOD KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; 30 TH DAY OF JULY, 2010. COPY FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX, MUMBAI 4. COMMISSIONER (APPEALS) , MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, G BENCH, ITAT, MU MBAI 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR PRADEEP J. CHWODHURY INCOME TAX APPELLATE TRIBUNAL SR. PRIVATE SECRETARY MUMBAI BENCHES, M UMBAI ITA NO.5498/MUM/2009 ASSESSMENT YEAR : 2004-05 PAGE 4 OF 4 DATE INITIAL 1. DRAFT DICTATED ON 28.7.2010 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 28.7.2010 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 28.7.2010 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 28.7.2010 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 28.7.2010 SR.PS/PS 6. DATE OF PRONOUNCEMENT 30.7.2010 SR.PS 7. FILE SENT TO THE BENCH CLERK 30.7.2010 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER