ARICIA REALTORS, MUMBAI V. ACIT - 29 (1), MUMBAI

ITA 7122/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4053 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 11-12-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R KAVITHA
• Keywords: Capital expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI G.MANJUNATHA, ACCOUNTANT MEMBER ITA NO.7122/MUM/2018(A.Y.2014-15) M/S.ARICIA REALTORS, 1501,15 TH FLOOR, B-WING, 02 COMMERCIAL COMPLEX, OPP.ASHA NAGAR, MULUND(W), MUMBAI 400 080 PAN: AAPFA 4366G ...... APPELLANT VS. THE ACIT 29(1), C-10, 1 ST , FLOOR,ROOM NO.108, PRATYAKSHAKAR BHAVAN, BKC, BANDRA (E), MUMBAI 400 051 ..... RESPONDENT APPELLANT BY : NONE RESPONDENT BY : MS. R.KAVITHA DATE OF HEARING : 18/02/2020 DATE OF PRONOUNCEMENT : 20/02/2020 ORDER PER VIKAS AWASTHY, JM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX(APPEALS)-39, MUMBAI (IN SHORT CIT(A)) DATED 11/07/2018 FOR THE ASSESSMENT YEAR 2014-15. 2. NOTICE OF APPEAL WAS SENT TO THE ASSESSEE THROUG H RPAD. THE ACKNOWLEDGEMENT CARD AVAILABLE ON RECORD SHOWS THAT THE NOTICE WAS DULY 2 ITA NO.7122/MUM/2018(A.Y.2014-15) SERVED. DESPITE SERVICE OF NOTICE NEITHER THE ASSE SSEE NOR ANY AUTHORIZED REPRESENTATIVE OF THE ASSESSEE WAS PRESENT IN THE COURT. IT SEEMS THAT THE ASSESSEE IS NOT KEEN TO DEFEND ITS APPEAL. UNDER S UCH CIRCUMSTANCES WE ARE CONSTRAINED TO TAKE UP THE APPEAL FOR ADJUDICATION WITH THE ASSISTANCE OF LD. DEPARTMENTAL REPRESENTATIVE AND THE MATERIAL AVAILA BLE ON RECORD. 3. THE BRIEF FACTS OF THE CASE AS EMANATING FROM TH E RECORDS ARE: DURING ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER MADE ADDITIONS/DISALLOWANCE ON FOLLOWING COUNTS. (1) DISALLOWANCE OF CAPITAL EXPENDITURE - RS. 9,05,392/- (CLAIMED AS REVENUE BY THE ASSESSEE ) (2) DISALLOWANCE OF SITE EXPENSES - RS. 1,23,010/- (3) DISALLOWANCE OF EXCESS INTEREST PAID TO PARTNE RS - RS. 3,36,855/- (4) DISALLOWANCE OF PROFESSION FEE - RS. 29,60,000/- 4. AGGRIEVED AGAINST THE ASSESSMENT ORDER DATED 30/ 12/2016, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) VIDE IM PUGNED ORDER ACCEPTED ASSESSEES CLAIM QUA DISALLOWANCE OF PROFESSIONAL F EE AND DELETED THE ADDITION. HOWEVER, THE CIT(A) UPHELD THE FINDINGS OF THE AS SESSING OFFICER IN RESPECT OF DISALLOWANCE OF INTEREST PAID TO PARTNERS AND DISAL LOWANCE OF CAPITAL EXPENDITURE AND SITE EXPENSES. THE ASSESSEE IN PRE SENT APPEAL HAS ASSAILED THE FINDINGS OF CIT(A) IN CONFIRMING THE ADDITIONS. 5. MS. R.KAVITHA, REPRESENTING THE DEPARTMENT VEHEM ENTLY DEFENDED THE IMPUGNED ORDER AND PRAYED FOR DISMISSING THE APPEAL OF ASSESSEE. 6. WE HAVE HEARD THE SUBMISSIONS MADE BY LD. DEPART MENTAL REPRESENTATIVE AND HAVE EXAMINED THE ORDERS OF AUTH ORITIES BELOW. NO MATERIAL IS AVAILABLE BEFORE US TO CONTROVERT THE FINDINGS OF CIT(A). IN THE 3 ITA NO.7122/MUM/2018(A.Y.2014-15) ABSENCE OF ANY CONTRARY MATERIAL, WE DO NOT FIND AN Y INFIRMITY IN THE IMPUGNED ORDER AND HENCE, THE SAME IS CONFIRMED. ACCORDINGL Y, THE APPEAL OF THE ASSESSEE IS DISMISSED BEING DEVOID OF ANY MERIT. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY THE 20 TH DAY OF FEBRUARY, 2020. SD/- SD/- (G.MANJUNATHA) (VIKAS AWASTHY) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 20/02/2020 VM , SR. PS(O/S) COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI