DHANO BHULCHAND VASWANI, MUMBAI V. ACIT 12(3), MUMBAI

ITA 7166/MUM/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0355 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 06-12-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAM TIWARI LD DR
• Assessee Lawyers: VIMAL PUNMIYA LD
• Section: 143(3); 147

Judgement Text

ITA.NO.7166/MUM/2016 DHANO BHULCHAND VASWANI ASSESSMENT YEAR- 2007-08 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM I.T.A. NO.7166/MUM/2016 ( ASSESSMENT YEAR: 2007-08) DHANO BHULCHAND VASWANI 121, MAKER CHAMBERS, VI, 12 TH FLOOR, NARIMAN POINT MUMBAI 400 021 VS. ASSISTA NT COMMISSIONER OF INCOME TAX-17(1) MUMBAI ! ' PAN/GIR NO. AAEPV-1833-E ( !# APPELLANT ) : ( $%!# RESPONDENT ) ASSESSEE BY : VIMAL PUNMIYA, LD.AR REVENUE BY : RAM TIWARI, LD. DR & DATE OF HEARING : 23/07/2018 '() / DATE OF PRONOUNCEMENT : 12/09/2018 O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2007-08 CONTEST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)-28 [CIT(A)], MUMBAI, APPEAL NO.CIT(A)-28/IT-62/AC-12(3)/2013-14 DATED 02/09/2016 BY RAISING SEVERAL GROUNDS OF APPEAL OUT OF WHICH T HE ITA.NO.7166/MUM/2016 DHANO BHULCHAND VASWANI ASSESSMENT YEAR- 2007-08 2 GROUNDS OF APPEAL AS PRESSED BEFORE US ARE GROUND N UMBERS 3 TO 5 WHICH READS AS UNDER:- 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND L AW, THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF THE INCOME OF AOP, M/S. VASWANI TRUST AND M/S. VASWANI CHAMBERS WITHOUT CONSIDERING THE EXPLANATION SUBMIT TED BY THE APPELLANT. THE LD. CIT(A) FAILED TO APPRECIATE AND OUGHT TO HAVE HELD THAT THE ASSESSEE IS OFFERING THE INCOME ON ACTUAL RECEIPT BASIS AND SAME SHOULD NOT BE ADDED AS INCOME. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND L AW, THE LD. CIT(A) ERRED IN CONFIRMING AND NOT TAKING THE INCOME AS ASSESSED BY RESPECTIVE ASSESSING OFFICER OF THE AOP NAMELY M/S VASWANI CHAMBER AND M/S. VASWANI TRUST. AS PER THE ORDER DATED 20/03/2013 OF VASWANI CHAMBER AND AS PER ORDE R DATED 18/03/13 OF VASWANI TRUST. 5. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND L AW, THE LD. CIT(A) ERRED IN CONFIRMING AND FAILED TO APPRECIATE AND OUGHT TO HA VE HELD THAT THE ASSESSED INCOME OF RESPECTIVE AOP TO BE ADDED AS SHARE OF INCOME OF RESPECTIVE AOP TO BE ADDED AS SHARE OF INCOME OF RESPECTIVE AOP. THE APPELLANT IS AGGRIEVED ABOUT CONFIRMING THE ASSESSMENT OF RENTAL INCOME ON ACCRUAL BASIS. THE ASSESSEE WAS SUBJECTED TO REASSESSMENT PROCEEDI NGS U/S 143(3) READ WITH SECTION 147 ON 14/03/2013 WHEREIN IT HAS BEEN SADDLED WITH ADDITIONAL INCOME OF RS.7.48 LACS TOWARDS HIS SHARE IN RENTAL INCOME EARNED BY TWO ASSOCIATION OF PERSONS [AOP], THE DETAILS OF WHICH ARE AS FOLLOWS:- NO. AOP RENTAL INCOME OFFERED TO TAX BY AOP (RS.) RENTAL INCOME AS PER INCOME & EXPENDITURE ACCOUNT (RS.) % OF ASSESSEES SHARE ASSESSEES SHARE (RS.) 1. VASWANI CHAMBERS 6,13,17,783/- 6,91,03,171/- 12. 5% 86,37,896/- 2. VASWANI TRUST 1,60,90,424/- 1,80,17,621/- 5% 9,00 ,881/- TOTAL 95,38,777/- NET INCOME AFTER STATUTORY DEDUCTION OF 30% U/S 24 66,77,144/- INCOME ALREADY ASSESSED U/S 143(3) 59,28,471/- DIFFERENCE AS ADDED TO THE INCOME OF THE ASSESSEE 7,48,673/ - ITA.NO.7166/MUM/2016 DHANO BHULCHAND VASWANI ASSESSMENT YEAR- 2007-08 3 THE SAME, UPON CONFIRMATION BY LD. FIRST APPELLATE AUTHORITY, IS BEING AGITATED BEFORE US. 2. THE ONLY CONTENTIONS AS RAISED BEFORE US BY LD. AUHTORIZED REPRESENTATIVE FOR ASSESSEE [AR], SHRI VIMAL PUNMIYA, IS WITH REGARD TO ADOPTION OF CORRECT FIGURES AS DETERMINED IN THE QU ANTUM ASSESSMENT ORDERS OF THE RESPECTIVE AOPS. THE LD. DR SUBMITTED THAT THE MATTER WAS FACTUAL ONE. 3. WE HAVE CAREFULLY HEARD THE SUBMISSIONS AND PERU SED RELEVANT MATERIAL ON RECORD INCLUDING QUANTUM RE-ASSESSMENT ORDERS DATED 20/03/2013 & 18/03/2013 PASSED IN THE CASE OF THE T WO AOPS . UPON PERUSAL, WE FIND THAT THE ASSESSEES SHARE IN THOSE AOPS HAS BEEN DETERMINED AT RS.7,37,964/- & RS.58,15,110/- RESPEC TIVELY, THE AGGREGATE OF WHICH COMES TO RS.65,53,074/-. SINCE A N AMOUNT OF RS.59,28,471/- HAS ALREADY BEEN ASSESSED IN THE HAN DS OF THE ASSESSEE U/S 143(3), THE IMPUGNED ADDITIONS STAND RESTRICTED TO RS.6,24,603/-.THE ORDER OF LOWER AUTHORITIES STAND MODIFIED TO THAT E XTENT. 4. THE APPEAL STAND PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH SEPTEMBER, 2018. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER *& MUMBAI; DATED : 12.09.2018 SR.PS:-THIRUMALESH ITA.NO.7166/MUM/2016 DHANO BHULCHAND VASWANI ASSESSMENT YEAR- 2007-08 4 ! COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. / THE CIT(A) 4. / CIT CONCERNED 5. + ,$ - -) *& / DR, ITAT, MUMBAI 6. , ./0 & GUARD FILE ' / BY ORDER, # '$% (DY./ASSTT.REGISTRAR) *& / ITAT, MUMBAI