Southern Estates Pvt. Ltd., Kolkata V. ACIT, Central Circle - III, Kolkata, Kolkata

ITA 719/KOL/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78288 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2014
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 10-05-2011
• Court: TRIBUNAL
• Department Lawyers: VIKASH KUMAR AGARWAL
• Assessee Lawyers: V N PUROHIT
• Keywords: Corroborative evidences
• Section: 143(3)

Judgement Text

, A , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA () BEFORE , /AND . . . . ' '' ''# '#'# '#, $% ) [BEFORE SHRI MAHAVIR SINGH, JM & SHRI ABRAHAM P. GEORGE, AM] & & & & / I.T.A NO. 719/KOL/2011 '( )* '( )* '( )* '( )*/ // / ASSESSMENT YEAR: 2007-08 SOUTHERN ESTATES PVT. LTD. VS. ASSISTANT COMMISS IONER OF INCOME-TAX (PAN: AADCS7603M) CENTRAL CIRCLE-III, KOLKATA (,- /APPELLANT ) (./,-/ RESPONDENT ) DATE OF HEARING: 11.04.2014 DATE OF PRONOUNCEMENT: 11.04.2014 FOR THE APPELLANT: SHRI V. N. PUROHIT, CA FOR THE RESPONDENT: SHRI VIKASH KUMAR AGARWAL, J CIT, SR. DR $0 / ORDER PER SHRI MAHAVIR SINGH, JM: THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A), CENTRAL-I, KOLKATA IN APPEAL NO. 390/CC-III/CIT(A),C-I/09-19 DATED 29.03.2011. ASSESSMENT WAS FRAMED BY DCIT, CENTRAL CIRCLE-III, KOLKATA U/S. 143(3) OF THE INCO ME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEARS 2007-08 VIDE HIS OR DER DATED 04.12.2009. 2. THE ONLY ISSUE IN THIS APPEAL OF THE ASSESSEE IS AS REGARDS TO THE ADDITION OF ELECTRICITY CHARGES INCURRED FOR COMMON SPACE IS TO BE CONSIDER ED OR NOT FOR ARRIVING AT ALV OF THE PROPERTY. FOR THIS, ASSESSEE HAS RAISED FOLLOWING GROUND NO.1: 1. THAT THE LD. COMMISSIONER HAS ERRED IN REJECTIN G THE ASSESSEES GROUND THAT ELECTRICITY CHARGES INCURRED FROM COMMON SPACE IS T O BE CONSIDRED AT THE TIME OF ARRIVING AT ANNUAL RENT OF PROPERTY FOR CONSIDERING HOUSE PROPERTY INCOME. 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO DISALLOWED THE CLAIM OF DEDUCTION OF ELECTRICITY CHARGES AT RS.1,09,000/-. THE ASSES SEE COMPANY EARNS INCOME BY LETTING OUT LEASED PROPERTY. TO EARN RENTAL INCOME ASSESSEE HAS INCURRED ELECTRICITY CHARGES FOR COMMON AREAS, BUT THE AO MADE DISALLOWANCE. AGGRIEVED, AS SESSEE PREFERRED APPEAL BEFORE CIT(A), WHO DISCUSSED THE ISSUE BUT CONFIRMED THE ADDITION BY STATING THAT HOWEVER REGARDING THE CLAIM OF ELECTRICITY CHARGES THE ASSESSEE HAS FAILE D TO FURNISH ANY SUPPORTING EVIDENCE TO PROVE 2 ITA NO. 719/K/2011 SOUTHERN ESTATES PVT. LTD. AY:2007-08 THAT THE ASSESSEE WAS CONTRACTUALLY OBLIGED TO BEAR THE EXPENDITURE UNDER THE RENT AGREEMENT OR OTHERWISE. 4. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE STAT ED THAT HE IS READY TO PRODUCE THE EVIDENCE BEFORE THE CIT(A). HENCE, ONE MORE OPPORT UNITY BE PROVIDED. AS THE SR. DR HAS NOT OBJECTED TO THE SETTING ASIDE OF THIS ISSUE TO THE FILE OF CIT(A), WE DIRECT THE CIT(A) TO ADJUDICATE THE ISSUE AFTER ALLOWING REASONABLE OPPO RTUNITY OF BEING HEARD TO ASSESEE. THE ASSESSEE CAN FILE EVIDENCE BEFORE CIT(A) TO PROVE I TS CASE. APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 6. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- . . . . ' '' ''# '#'# '# , $% , (ABRAHAM P. GEORGE) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 11 TH APRIL, 2014 12 '3' 4 JD.(SR.P.S.) $0 5 . 6$ )7- COPY OF THE ORDER FORWARDED TO: 1 . ,- / APPELLANT- SOUTHERN ESTATES PVT. LTD., C/O V. N. P UROHIT & CO., CHARTERED ACCOUNTANTS, 32B, GANESH CHANDRA AVE NUE, 2 ND FLOOR, KOLKATA-700 013. 2 ./,- / RESPONDENT ACIT, CENTRAL CIRCLE-III, KOLKATA. 3 . 0' ( )/ THE CIT(A), KOLKATA 4. 5. 0' / CIT KOLKATA <= .' / DR, KOLKATA BENCHES, KOLKATA / ./ TRUE COPY, $0'>/ BY ORDER, ' /ASSTT. REGISTRAR .