DCIT (E) 2(1), MUMBAI V. SAURASHTRA TRUST, MUMBAI

ITA 6469/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8319 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 12-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RUCHI TAMHANKAR
• Keywords: Tax effect
• Section: 12A; 13; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G, MUMBAI BEFORE SHRI PAWAN SINGH (JM) & SHRI S.RIFAUR RAHMA N(A.M.) ITA NO. 6469/MUM/2018(ASSESSMENT YEAR : 2009-10) DY.CIT(E)-2(1), MUMBAI VS SAURASHTRA TRUST, JANMA BHOOMI BHAVAN, JANMABHOOMI MARG, FORT MUMBAI-400 001 PAN : AAATS2786B APPELLANT RESPONDEDNT A PP ELLANT BY SHRI VINODKUMAR SR DR RESPONDENT BY MS. RUCHI TAMHANKAR AR DATE OF HEARING 14-01-2020 DATE OF PRONOUNCEMENT 14 -01-2020 O R D E R PER PAWAN SINGH, JM : 1. THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDE R OF CIT(A)-7, MUMBAI DATED 03-08-2018 FOR ASSESSMENT YEAR 2009-10 . THE REVENUE HAS RAISED THE FOLLOWING GROUND OF APPEAL:- 1. ''WHETHER ON THE FACTS AND IN THE CIRCUMSTANC E OF THE CASE AND IN LAW, THE TRIBUNAL WAS RIGHT IN UPHOLDING THE DECISI ON OF THE COMMISSIONER OF INCOME TAX (A) OF DIRECTING THE ASS ESSING OFFICER TO ALLOW THE DEDUCTION U/S.24 OF THE INCOME TAX ACT, 1 961, WHEREAS PROVISIONS OF SECTION 11 TO 13 CLEARLY SPEAKS OF TH E INCOME FOR DETERMINING THE TOTAL INCOME OF THE TRUST FOR QUANT IFICATION OF APPLICATION OF THE OBJECT THE TRUST? 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE IS A REGI STERED TRUST, HAVING REGISTRATION U/S 12A OF THE I.T. ACT, 1961. THE AS SESSEE FILED RETURN OF INCOME ON 30-09-2009 DECLARING INCOME OF RS.44,15,2 88/-. IN THE 2 ITA 6469/MUM/2018 RETURN OF INCOME, THE ASSESSEE HAS SHOWN RENTAL INC OME FROM TWO PROPERTIES, VIZ. RAJKOT PROPERTY OF RS.1,020/- AND MUMBAI PROPERTY OF RS.2,23,44,981/- AND SERVICE CHARGES OF RS.85,68,38 0/-. AFTER CLAIMING DEDUCTION OF MUNICIPAL AND LAND TAX OF RS. 2,95,779 /- AND STATUTORY DEDUCTION @30% OF RS.91,94,673/-, THE REMAINING AMO UNT WAS OFFERED TO TAX. THE AO TOOK A VIEW THAT PROVISIONS OF SECT ION 23 & 24 ARE NOT APPLICATION IN CASE OF TRUST AND ACCORDINGLY STATUT ORY CLAIM OF DEDUCTION OF 30% AMOUNTING TO RS.91,94,673/-WAS DIS ALLOWED. ON APPEAL BEFORE CIT(A), THE STATUTORY DEDUCTION WAS A LLOWED BY FOLLOWING THE DECISION OF THE TRIBUNAL IN THE CASE OF SRI SATHYA SAI TRUST IN ITA NO.7350/MUM/2011. THUS, AGGRIEVED BY THE DELETION OF ADDITION, THE REVENUE HAS FILED THIS APPEAL BEFORE THE TRIBUNAL. 3. AT THE OUTSET OF HEARING, THE LD.AR OF THE ASSESSEE SUBMITS THAT THE TAX EFFECT INVOLVED IN THE PRESENT APPEAL IS LESS THAN THE MONETARY LIMIT OF RS.50 LAKHS FIXED BY THE CBDT IN ITS CIRCULAR NO. 17/2019 DATED 8 TH AUGUST 2019, THEREFORE, THE APPEAL FILED BY THE REV ENUE IS NOT MAINTAINABLE. THE LD.AR OF THE ASSESSEE ALSO FURNI SHED THE WORKING OF TAX EFFECT ON DISPUTED ADDITION WHICH COMES TO RS.2 7,58,402/-. 4. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESENTAT IVE (DR) FOR THE REVENUE, AFTER GOING THROUGH THE WORKING OF TAX EFF ECT, THOUGH NOT 3 ITA 6469/MUM/2018 DISPUTED THE WORKING OF TAX EFFECT, SUBMITS THAT HE WOULD RELY UPON THE ORDER OF AO. 5. WE HAVE CONSIDERED THE SUBMISSION OF BOTH THE PARTI ES AND FIND THAT THE DISPUTED ADDITION IN THE PRESENT APPEAL WITH REGARD TO THE DEDUCTION U/S 24 IS ONLY OF RS.91,94,673/- ON WHICH THE TAX EFFEC T IS ONLY RS.27,58,402/- . THE QUANTUM OF TAX EFFECT IS NOT DISPUTED BY THE LD. DR FOR THE REVENUE. CONSIDERING THE FACT THAT TAX EFFECT INVOL VED IN THE PRESENT APPEAL IS LESS THAN THE MONETARY LIMIT OF RS. 50 LA KHS, FIXED BY THE CBDT; HENCE, THE APPEAL FILED BY THE REVENUE IS NOT MAINT AINABLE AND, THEREFORE, DISMISSED. 6. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 -01-2020 . SD/- SD/- (S.RIFAUR RAHMAN) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIALMEMBER MUMBAI, DT : 14 TH JANUARY, 2019 PK/- COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR /TRUE COPY/ BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI