ALCHEMIE INDUSTRIES, MUMBAI V. I.T.O. WD. 23(2)(1), MUMBAI

ITA 5819/MUM/2012

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8916 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-09-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 21-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR YADAV
• Assessee Lawyers: MADAN DEDHIA
• Keywords: Business income; Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH A, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ITA NO.5819/M/2012 ASSESSMENT YEAR: 2006-07 M/S. ALCHEMIE INDUSTRIES, UDYOG KHETRA, 2 ND FLOOR, MULUND GOREGAON LINK ROAD, MULUND (W), MUMBAI-400 080 PAN: AAAFA1947L VS. INCOME TAX OFFICER, WARD-23(2)(1), MUMBAI (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI MADAN DEDHIA, A.R. REVENUE BY : SHRI RAJESH KUMAR YADAV, D.R. DATE OF HEARING : 03.08.2017 DATE OF PRONOUNCEMENT : 26.10.2017 O R D E R PER D.T. GARASIA , JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 19.06.2012 OF THE COMMISSIONER OF I NCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] R ELEVANT TO ASSESSMENT YEAR 2006-07. 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSE E IS A PARTNERSHIP FIRM HAVING A FACTORY PREMISE AT SARIGAM, VALSAD. ASSESSEE FIRM IS ENGAGED IN BUSINESS OF MANUFACTURING OF CHEMICALS, DYES, INTERMEDIATES. HOWEVER, DURING THE YEAR UNDER CONS IDERATION, THE ASSESSEE COMPANY HAS LEASED OUT THIS FACTORY ON REN T FOR ITA NO.5819/M/2012 M/S. ALCHEMIE INDUSTRIES 2 RS.6,00,000/- AND ASSESSEE HAS CLAIMED THIS INCOME AS BUSINESS INCOME AND CLAIMED THE DEPRECIATION OF RS.3,08,689/ -. THE AO DID NOT VERIFY THE EXPENSES BUT TREATED LEASE RENT OF R S.6,00,000/- AS RENT. SIMILARLY, THE FIRM HAS ALSO RECEIVED INTEREST OF R S.4,48,288/- FROM AARTI INDUSTRIES LTD. AND IT WAS ALSO TREATED AS IN COME FROM OTHER SOURCES. 3. DURING THE COURSE OF HEARING, THE LD. A.R. POINT ED OUT THAT THE ASSESSEE HAS SUBMITTED THE AGREEMENT WHEREIN IT WAS AGREED BETWEEN ASSESSEE AND ASSIGNEE COMPANY THAT ALL EXPENSES FOR UPKEEP OF PLANT WERE TO BE BORNE BY THE ASSIGNEE COMPANY DURING THE PERIOD OF AGREEMENT. ALL PERSONNEL EMPLOYED BY THE ASSESSEE FIRM WERE RETAINED ON THE ROLL OF ASSESSEE FIRM. THEREFORE, ALL THE DETAILS WERE NOT VERIFIED BY THE AO. HE SUBMITTED THAT IN RESPE CT OF THE INTEREST INCOME AO HAS NOT VERIFIED THE BOOKS OF ACCOUNT, TH EREFORE, MATTER MAY BE RESTORED. 4. LD. D.R. RELIED UPON THE ORDERS OF THE REVENUE A UTHORITIES. 5. HAVING HEARD BOTH THE PARTIES, WE ARE OF THE VIE W THAT IT REQUIRES VERIFICATION AT THE END OF AO. THEREFORE, WE RESTORE THIS ISSUE TO THE FILE OF THE AO TO DECIDE THE MATTER AF RESH, AS PER LAW. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26.10.2017. SD/- SD/- (G. MANJUNATHA) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 26.10.2017. * KISHORE, SR. P.S. ITA NO.5819/M/2012 M/S. ALCHEMIE INDUSTRIES 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.