ACIT CEN CIR 2, MUMBAI V. YUSUF K HAMIED, MUMBAI

ITA 6051/MUM/2013

• Counselvise Citation: 605119914 RSA 2013
• Duration Of Justice: 1 year(s) 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 13-07-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 15-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S T BIDARI SR
• Assessee Lawyers: GIRISH BAPAT
• Keywords: Salary income
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH ES , G MUMBAI . , , , BEFORE SHRI D.KARUNAKARA RAO , A CCOUNTANT MEMBER AND SHRI AMIT SH UKLA , J UDICIAL M EMBER ITA NO. 6051 /MUM/201 3 ASSE S SMENT YEAR - 2009 - 10 A.C.I.T. CENTRAL CIRCLE - 2, R. NO.904, PRATISTHA BHAVAN, MARINE LINES, MUMBAI - 400020 / VS. SHRI YUSUF K HAMIED, WINDSOR VILLA, WEST FIELD ESTATE, 63, BHULABHAI DESAI ROAD, MUMBAI - 4000 28 ./ PAN : AAAPH4039K ( / REVENUE ) .. ( / RESPONDENT ) / REVENUE BY : SHRI S.T. BIDARI (SR. AR) - DR / RESPONDENT BY : SHRI GIRISH BAPAT / DATE OF HEARING : 13/07 /201 5 / DATE OF PRONOUNCEMENT : 13 /07/2015 / ORDER PER AMIT SHUKLA , J.M. THE AFORESAID APPEAL FILED BY THE REVENUE AGAINST IMPUGNED ORDER DATED 22/07/2013 PASSED BY CIT(A) - 36 , MUMBAI, FO R THE QUANTUM OF ASSESSMENT PASSED U/S 143(3) OF THE ACT FOR 2 ITA NO. 6051/MUM/2013 . YUSUF K. HAMIED . ASSESSMENT YEAR 2009 - 10 . THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEA L. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF R S.1,27,62,032/ - WITHOUT APPRECIATING THE DIFFERENCE BETWEEN THE MARKET RENT AND THE RENT ACTUALLY PAID BY THE ASSESSEE IS A PERQUISITE WITHIN THE MEANING OF SECTION 17(2)(II) OR A BENEFIT WITHIN THE MEANING OF SECTION 2(24)(IV).' 2. ON THE FACTS AND IN T HE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN APPRECIATING THE FACT THAT THE ASSESSEE HAS BEEN RESIDING IN THE BUNGALOW BY PAYING A MEAGER RENT IN HIS CAPACITY AS A CHAIRMAN BECAUSE OF THE EXISTENCE OF EMPLOYER - EMPLOYEE RELATION AND NOT AS A PROTECTED TENANT.' 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN ALLOWING RELIEF TO THE ASSESSEE WITHOUT APPRECIATING THE REALITY AFTER LIFTING CORPORATE VEIL, IN THE CASE OF THE ASSESSEE.' 2. AT THE OUTSET , THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE RAISED BY THE REVENUE STAND S COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2009 - 10 BY THE ORDER DATED 21/01/2015 IN ITA NO.5319/MUM/ 2012. THIS ORDER HAS BEEN FURTHER FOLLOWED BY THE TRIBUNAL IN THE APPEAL FOR THE ASSESSMENT YEAR 2009 - 08 ALSO IN ITA NO. 3770/MUM/2011 BY THE ORDER DATED 04/06/2015. THE RELEVANT FACTS ARE THAT THE ASSESSEE IS AN INDIVIDUAL HAVING INCOME FROM SALARY A S CHA IRMAN AND MANAGING DIRECTOR OF M/S CIPLA LTD. THE ASSESSEE IS RESIDING IN A PROPERTY OWNED BY M/S CIPTAL LTD. BY PAYING A RENT OF ` .1,670 . ACCORDING TO THE AO, IF THE PROPERTY WOULD FETCH A RENT WHICH IS MUCH HIGHER THAN THE RENT PAID BY THE 3 ITA NO. 6051/MUM/2013 . YUSUF K. HAMIED . ASSESSEE, THER EFORE, THE ASSESSEE DERIVED BENEFIT U/S 17(2) OF THE ACT AND ACCORDINGLY, HE CALCULATED THE PERQUISITE AT ` . 1,27,62,032/ - . THIS HAS BEEN DELETED BY THE CIT(A) AFTER DETAILED DISCUSSION AND ALSO ON THE GROUND THAT THE SIMILAR ISSUE HAS BEEN DECIDED BY THE CIT(A) FOR THE ASSESSMENT YEARS 2008 - 09 AND 2009 - 10. THE TRIBUNAL HAS ALSO DECIDED THIS ISSUE AFTER DETAILED DISCUSSION IN ASSESSMENT YEAR 2009 - 10 CONFIRMING THE ORDER OF THE CIT(A). FOLLOWING THE SAME ORDER, THE TRIBUNAL IN AY 2008 - 09 HAS ALSO DECIDED TH E ISSUE AGAINST THE REVENUE. THUS, RESPECTFULLY FOLLOWING THE JUDICIAL PR ECEDENCE, WE ALSO HOLD THAT THERE IS NO MERITS IN THE GROUND RAISED BY REVENUE AND THE ORDER OF THE CIT(A) IS CONFIRMED. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 / 07 / 201 5 . 13 / 07 / 2015 , SD/ - SD/ - D.KARUNAKARA RAO AMIT SHUKLA ( ACCOUNTANT MEMBER ) ( JUDICIAL MEMBER ) MUMBAI , DATED: 13/07/2015 SHEKHAR , P.S. / 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 ) / GUAR D FILE / TRUE COPY / BY ORDER / / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI