RANJEET D. VASWANI, MUMBAI V. DCIT 12(3), MUMBAI

ITA 7231/MUM/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2528 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: D
• Assessment Year: 2006-2007
• Appeal Filed On: 04-12-2014
• Court: TRIBUNAL
• Department Lawyers: CAPT PRASAD S ARYA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & PAWAN SINGH (JM) I.T.A. NO. 7231 /MUM/ 20 1 4 (ASSESSMENT YEAR 200 6 - 0 7 ) MR. RANJEET D. VASWANI 121, MAKER CHAMBER VI NARIMAN POINT MUMBAI - 400 021. VS. DCIT12(3) 1 ST FL OOR, 137 AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. ( APPELLANT ) ( RESPONDENT ) PAN NO . AAEPV1835C ASSESSEE BY SHRI VIMAL PUNMIYA DEPARTMENT BY CAPT. PRASAD S. ARYA DATE OF HEARING 5 . 7 . 201 6 DATE OF PRONOUNCEMENT 20. 7 . 201 6 O R D E R PER B.R . BASKARAN (AM) : - THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 04 - 07 - 2014 PASSED BY LEARNED C I T (A) - 23, MUMBAI AND IT RELATES TO THE ASSESSMENT YEAR 2006 - 07. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LEARNED C I T (A) IN CONFIRMING PENALTY LEVIED U/S 271(1)(C) OF THE ACT ON THE DISALLOWANCE OF EXPENDITURE CLAIMED AGAINST RENTAL INCOME FROM DADA MANZIL PROPERTY. 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. WHILE COMPUTING INCOME FROM HOUSE PROPERTY IN RESPECT OF DA DA MANZIL PROPERTY, THE ASSESSEE CLAIMED VARIOUS EXPENSES. HOWEVER THE ASSESSING OFFICER ALLOWED ONLY THOSE EXPENSES, WHICH ARE ALLOWABLE UNDER SECTION 24 OF THE ACT. THE ASSESSEE HELD 1/3 RD SHARE IN THE PROPERTY. ACCORDINGLY THE ASSESSING OFFICER LEVIED P ENALTY ON THE ONE THIRD OF EXPENSES DISALLOWED BY HIM CONSIDERING THE SAME AS FURNISHING OF INACCURATE PARTICULARS OF INCOME. THE LEARNED C I T (A) ALSO CONFIRMED THE PENALTY. MR. RANJEET D. VASWANI 2 3. THE LEARNED A.R SUBMITTED THAT THE PENALTY LEVIED ON IDENTICAL ADDITION MAD E IT IN THE HANDS OF ANOTHER CO - OWNER MRS.VIMLA VASWANI HAS BEEN DELETED BY THE COORDINATE BENCH OF TRIBUNAL IN THE ORDER PASSED IN ITA. NO. 2608/MUM/08 DATED 29 TH OF JANUARY 2010. THE LEARNED AR FURTHER SUBMITTED THAT THE CLAIM MADE BY THE ASSESSEE, WHICH IS NOT SUSTAINABLE IN LAW, WOULD NOT GIVE RISE TO FINALITY UNDER SECTION 271 (ONE) (C) OF THE ACT. 4. ON THE CONTRARY, THE LEARNED DR PLACED RELIANCE ON THE ORDER PASSED BY LEARNED CIT(A). 5. HAVING HEARD RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT T HE THERE IS MERIT IN THE SUBMISSIONS MADE BY THE LEARNED AR. HIS CONTENTIONS ARE GETTING SUPPORT FROM THE DECISION RENDERED BY HONOURABLE SUPREME COURT IN THE CASE OF RELIANCE PETRO PRODUCTS (321 ITR 158), WHEREIN THE HONBLE APEX COURT HAS HELD THAT THE DEDUCTIONS CLAIMED, WHICH ARE NOT SUSTAINABLE IN LAW, WOULD NOT GIVE RISE TO A CASE OF FURNISHING OF INACCURATE PARTICULARS OF INCOME. ACCORDINGLY WE SET ASIDE THE ORDER PASSED BY LEARNED CIT(A) AND DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY LEVI ED ON THE EXPENSES DISALLOWED IN RESPECT OF DADA MANZIL PROPERTY. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 20 .7.2016 SD/ - SD/ - (PAWAN SINGH) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 20 / 7 / 20 1 6 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT MR. RANJEET D. VASWANI 3 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI PS