SHOBHA J REDDY, MUMBAI V. DCIT 24(2), MUMBAI

ITA 7577/MUM/2012

• Counselvise Citation: 757719914 RSA 2012
• Duration Of Justice: 2 year(s) 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-04-2015
• Appeal Filed By: Assessee
• Bench Allotted: E
• Next Hearing Date: 11-09-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 24-12-2012
• Court: TRIBUNAL
• Department Lawyers: MANJANATHA SWAMY
• Keywords: Business income

Judgement Text

. , , IN THE INCOME TAX APPELLATE TRIBUNAL E , BENCH MUMBAI . . , , BEFORE SHRI R.C.SHARMA , A M & SHRI SANJAY GARG , J M ./ ITA N O. 7577 / MUM/20 1 2 ( / ASSESSMENT YEAR : 2007 - 08 ) SMT. SHOBHA J. REDDY, 601A, MOKSH, UPPEN GOVIND NAGAR, MALAD (EAST), MUMBAI - 97 VS. DCIT - 24(2), MUMBAI ./ ./ PAN/GIR NO. : A DIPR 1288 C ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI DHARMESH SHAH /REVENUE BY : MANJANATHA SWAMY / DATE OF HEARING : 2 6 /03/2015 / DATE OF PRONOUNCEMENT 15/04 /2015 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE EX - PARTE ORDER OF CIT DATED 1 - 3 - 2012, PASSED U/S.263 , FOR THE A.Y.200 7 - 08 . 2. THERE IS A DELAY IN FILING THE APPEAL, THEREFORE, THE ASSESSEE HAS ALSO FILED CONDONATION APPLICATION EXPLA INING THE REASONS FOR DELAY. AFTER GOING THROUGH THE REASONS FOR DELAY, WE CONDONE THE DELAY IN FILING THE APPEAL , AND IN THE INTEREST OF SUBSTANTIAL CAUSE OF JUSTICE THE SAME IS HEARD ON MERIT. 3. IN THIS CASE, THE CIT HAS PASSED THE ORDER U/S.263 AFTER G IVING TWO OPPORTUNITIES TO THE ASSESSEE. IT WAS HELD BY CIT IN HIS ORDER THAT ASSESSEE HAS SHOWN T WO FIXED ASSETS IN ITS BALANCE SHEET, SINCE NO ITA NO. 7577 / 1 2 2 BUSINESS INCOME HAS BEEN DECLARED IN THE RETURN OF INCOME WITH RESPECT TO THESE TWO PROPERTIES , HE HELD THAT ON E FLAT AND INDUSTRIAL GALA IS LIABLE TO BE TAXED UNDER PROVISIONS OF SECTION 23(1) OF THE I.T. ACT. ACCORDINGLY, DIRECTED THE AO TO ADD DEEMED VALUE AT 8% OF CAPITAL COST OF HOUSE PROPERTY AS PER DECISION OF ITAT IN CASE OF TIVOLI INVESTMENT & TRADING CO. IN ASSESSEES INCOME. 4. AFTER GOING THROUGH THE ENTIRE MATERIAL ON RECORD, WE MODIFY THE ORDER OF CIT AND DIRECT THE AO TO GIVE OPPORTUNITY TO THE ASSESSEE BEFORE ADDING THE DEEMED VALUE OF CAPITAL COST OF HOUSE PROPERTY, INSOFAR THE ASSESSEE COULD NOT AV AIL ANY OPPORTUNITY BEFORE THE CIT TO SUBSTANTIATE ITS CLAIM FOR NOT INCLUDING THE DEEMED VALUE OF PROPERTY IN ITS RETURN OF INCOME. THE AO IS ACCORDINGLY DIRECTED TO PASS ORDER AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE. 5 . IN THE RESULT, APPEAL OF TH E ASSESSEE IS ALLOWED IN PART FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 15/04 / 201 5 . SD/ - SD/ - ( ) ( SANJAY GARG ) ( . . ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 15/04 /201 5 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPON DENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//