MALVIKABEN SANJIVBHAI TAKTWALA , MUMBAI V. ACIT 2(3)(1), MUMBAI

ITA 6336/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1386 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 05-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KUMAR PADMA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI VIKAS AWASTHY, JM ITA NO. 6336/MUM/2018 ( ASSESSMENT YEAR: 2010-11) MALVIKABEN SANJIVBHAI TAKTAWALA, H-801, ONE NORTH, NEAR MAGARPATTA TOWNSHIP, HADAPSAR, PUNE-411028. VS. A.C.I.T.-2(3)(1), ROOM NO. 552, 5 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400020. PAN/GIR NO.AACPT 4306 J (APPELLANT ) .. (RESPONDENT ) ASSESSEE BY SHRI HIMANSHU GANDHI (AR) REVENUE BY SHRI KUMAR PADMAPANI BORA (SR.DR) DATE OF HEARING 03/12/2019 DATE OF PRONOUNCEMENT 12/12/2019 / O R D E R PER: R.C. SHARMA, A.M. THIS IS THE APPEAL FILED BY THE ASSESSEE AGAINST T HE ORDER OF THE LD. CIT(A)-6, MUMBAI DATED 21/08/2018 FOR THE A.Y. 2010 -11 IN THE MATTER OF ORDER PASSED U/S 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). 2. THE GRIEVANCE OF THE ASSESSEE RELATES TO DECLINI NG CLAIM OF DEDUCTION U/S 24(A) OF THE ACT IN RESPECT OF INCOME FROM HOUSE PROPERTY AND ALSO FOR ADDING A SUM OF RS. 3,65,117/- IN RESP ECT OF PAYMENT MADE BY CREDIT CARD. ITA NO. 6336/MUM/2018 MALVIKABEN SANJIVBHAI TAKTAWALA VS ACIT 2 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS A WIDOW LADY HAVING INCOME FROM PROPERTY AND INTEREST INCOME. FOR THE A.Y. UNDER CONSIDERATI ON, THE A.O. REOPENED THE ASSESSMENT ON THE GROUND THAT THE ASSESSEE HAD MADE PAYMENT OF RS. 3,65,117/- AGAINST CREDIT CARD. IN REPLY TO NOT ICE ISSUED U/S 148, THE ASSESSEE FILED HER RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 7,37,722/- AS UNDER: INCOME GROSS NET INCOME RENT INCOME UNDER HOUSE PROPERTY LESS: 30% STANDARD DEDUCTION 611250 (183375) 427875 INTEREST INCOME 309847 309847 TOTAL INCOME 737722 4. HOWEVER, THE A.O. IGNORED THE RETURN OF INCOME A ND ADDED THE ENTIRE RENTAL INCOME OF RS. 6,11,250/- AND INTEREST INCOME OF RS. 2,97,291/- AS REPORTED IN AIR REPORT (26AS), AS INC OME FROM OTHER SOURCES AND DENIED THE DEDUCTION U/S 24(A) AGAINST THE HOUSE PROPERTY INCOME. 5. FROM THE RECORD WE FOUND THAT EVEN IN 26AS AND A IR REPORT ALSO RECEIPTS WERE REPORTED AS FROM RENT. ACCORDINGLY, T HE ASSESSEE IS ELIGIBLE FOR DEDUCTION U/S 24(A) OF THE ACT IN RESPECT OF ST ANDARD DEDUCTION AGAINST THE INCOME FROM HOUSE PROPERTY, THEREFORE, WE DIRECT THE A.O. TO ALLOW STANDARD DEDUCTION OF RS. 1,83,375/- TO THE A SSESSEE AND TO ASSESS INCOME FROM RENT UNDER THE HEAD INCOME FROM HOUSE PROPERTY. FROM THE RECORD WE ALSO FOUND THAT IN THE A.Y. 2011-12 A LSO RENTAL INCOME WAS ITA NO. 6336/MUM/2018 MALVIKABEN SANJIVBHAI TAKTAWALA VS ACIT 3 OFFERED FROM THE VERY SAME PROPERTY AND THE A.O. HA S ALLOWED STANDARD DEDUCTION U/S 24(A) OF THE ACT. ACCORDINGLY, WE DIR ECT THE A.O. TO ALLOW STANDARD DEDUCTION TO THE ASSESSEE. SO FAR AS THE I NTEREST INCOME IS CONCERNED, THE A.O. WAS CORRECT IN ASSESSING THE SA ME AS INCOME FROM OTHER SOURCES. 6. THE A.O. ALSO MADE ADDITION IN RESPECT OF CREDIT CARD PAYMENT OF RS. 3,65,117/-. FROM THE RECORD WE FOUND THAT THE A SSESSEE HAS DECLARED FOLLOWING INCOME DURING THE EARLIER AND CURRENT YEA RS: A.Y. GROSS TOTAL INCOME 2008-09 17,88,209 2009-10 21,44,466 2010-11 7,37,772 TOTAL 46,70,477 IT IS CLEAR THAT DURING THE YEAR UNDER CONSIDERATIO N, THE ASSESSEE HAD SHOWN INCOME OF RS. 7,37,772/- AND THE TOTAL INCOME FOR THE LAST THREE YEARS AS SHOWN BY THE ASSESSEE WORKS OUT TO BE RS.4 6,70,477/-. THUS, THE INCOME DECLARED BY THE ASSESSEE IS SUFFICIENT T O TAKE CARE OF CREDIT CARD PAYMENT. CONSIDERING TOTALITY OF FACTS AND CIR CUMSTANCES OF THE CASE, WE DIRECT THE A.O. TO ALLOW CREDIT CARD PAYME NT OF RS. 3,50,000/-. WE DIRECT ACCORDINGLY. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH DECEMBER, 2019. SD/- (VIKAS AWASTHY) SD/- (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED 12/12/2019 ITA NO. 6336/MUM/2018 MALVIKABEN SANJIVBHAI TAKTAWALA VS ACIT 4 *RANJAN COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//