ITO 7(2)-2, MUMBAI V. SAIDARSHAN BUSINESS CENTRE P. LTD, MUMBAI

ITA 5555/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 55701 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2007-2008
• Appeal Filed On: 08-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARTHA SARATHI NAIK
• Keywords: Business expenditure

Judgement Text

1 ITA 5555/ M/2010 M/S SAIDARSHAN BUSINESS CENTRES PVT. LTD. IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E BEFORE SHRI R.K. PANDA, A.M. AND SHRI V. DURGA RAO, J.M. ITA NO. 5555/MUM/2010 ASSESSMENT YEAR 2007-08 INCOME TAX OFFICER WARD 7(2)(2), MUMBAI. VS. M/S SAIDARSHAN BUSINESS CENTRES PVT. LTD., 405-408, NAVBHARAT ESTATE B-WING, ZAKARIA BUNDER RD.,SEWRI (WEST), MUMBAI 400 015. PAN AAACS 5801J APPELLANT RESPONDENT APPELLANT BY SHRI PARTHASARATHI N AIK RESPONDENT BY SHRI VIJAY MEHTA DATE OF HEARING 29.09.2011 DATE OF PRONOUNCEMENT ORDER PER R.K. PANDA A.M. THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER DT. 19.3.2010 OF THE CIT(A)- 13, MUMBAI RELATING TO A.Y . 2007-08. 2. THE GROUNDS RAISED BY THE REVENUE READ AS UNDER: - 1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE CIT(A) ERRED IN LAW IN ALLOWING EXPENSES UNDER VARI OUS HEADS WHICH ARE NOT ALLOWABLE UNDER SECTION 24 AGAINST INCOME FROM HOUS E PROPERTY. 2) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD.CIT(A) ERRED IN LAW IN ALLOWING EXPENSES AMOUNTI NG TO RS.7,35,029/- UNDER VARIOUS HEADS WHICH ARE DISPROPORTIONATE AND WHAT C ANNOT BE ATTRIBUTED TO EARN THE INCOME ASSESSED UNDER INCOME FROM HOUSE P ROPERTY. 2 ITA 5555/ M/2010 M/S SAIDARSHAN BUSINESS CENTRES PVT. LTD. `3) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD.CIT(A) ERRED IN DIRECTING THE A.O. TO ALLOW INTE REST EXPENDITURE INCURRED FOR EARNING SUCH INCOME. 4) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD.CIT(A) ERRED IN DIRECTING THE A.O. TO ALLOW EXPE NDITURE WHICH WAS CLAIMED AS BUSINESS EXPENDITURE WITHOUT APPRECIATING THE FA CT THAT THE CIT(A) HIMSELF HAS HELD THAT BUSINESS CENTRE RECEIPT IS AN INCOME FROM HOUSE PROPERTY AS HELD BY THE A.O. 5) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD.CIT(A) ERRED IN DIRECTING THE A.O. TO ADJUST THE INTEREST EXPENSES AGAINST INTEREST RECEIVED WHEN THE ASSESSEE COULD NOT PROVE THE NEXUS OF EXPENSES AGAINST INTEREST INCOME. 3. AFTER HEARING BOTH THE SIDES WE FIND THE GROUNDS RAISED BY THE REVENUE IN THIS APPEAL ARE IDENTICAL TO GROUNDS OF APPEAL IN ITA NO. 5070/MUM/2009 FOR A.Y. 2006-07. WE HAVE ALREADY DE CIDED THE ISSUE AND THE GROUNDS RAISED BY THE REVENUE HAVE BEEN DISMISS ED VIDE OUR ORDER OF EVEN DATE. FOLLOWING THE SAME RATIO, THE GROUNDS R AISED BY THE REVENUE ARE DISMISSED. 4. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED ON 31.10.2011. SD/- SD/- (V. DURGA RAO) (R.K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED 31.10.2011. RK 3 ITA 5555/ M/2010 M/S SAIDARSHAN BUSINESS CENTRES PVT. LTD. COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 13, MUMBAI 4. THE CIT 7, MUMBAI 5. THE DR BENCH, E 6. MASTER FILE // TUE COPY// BY ORDER DY/ASSTT. REGISTRAR ITAT, MUMBAI 4 ITA 5555/ M/2010 M/S SAIDARSHAN BUSINESS CENTRES PVT. LTD. DATE INITIALS 1 DRAFT DICTATED ON 28.10.11 SR. PS 2 DRAFT PLACED BEFORE THE AUTHOR 28.10,.11 SR. PS 3 DRAFT PLACED BEFORE THE SECOND MEMBER 4 APPROVED DRAFT COMES TO THE SR. PS SR. PS 5 KEPT FOR PRONOUNCEMENT ON SR. PS 6 FILE SENT TO THE BENCH CLERK SR. PS 7 DATE ON WHICH FILE GOES TO THE HEAD CLERK 8 DATE ON WHICH FILE GOES TO THE AR 9 DATE OF DISPATCH OF ORDER