MAYASHREE PROPERTIES & LEASING P. LTD, BHIWANDI V. ASST CIT CIR 1, KALYAN

ITA 7734/MUM/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2667 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 04-01-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 28-12-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RANDHIR GUPTA
• Keywords: Business income; Business expenditure
• Section: 143(3); 263

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI R.C. SHARMA(AM) AND SHRI SANDEEP GOSAIN (JM) ITA NO. 7734/MUM/2012 ASSESSMENT YEAR: 2007-08 MAYASHREE PROPERTIES VS. ASST CIT CIR 1 & LEASING P. LTD. RANI MANSION MURBAD RD 400 GUPTA COMPOUND, KALYAN - 421301 ANJUR PHATA, BHIWANDI 400305 PAN NO. AACCM3082H (APPELLANT) (RESPONDENT) APPELLANT BY : SH. K. GOPAL RESPONDENT BY : SHRI. RANDHIR GUPTA DATE OF HEARING : 25/07/201 6 DATE OF PRONOUNCEMENT : 25/07/2016 O R D ER PER SANDEEP GOSAIN, JM : THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT-II, THANE DT. 29/03/2012, ON THE GROUND MENTION ED HEREIN BELOW ; THE LD. ACIT HAS MADE THE FOLLOWING ADDITIONS TOT H E RETURNED INCOME, DURING COURSE OF FRESH ASSESSMENT U/S 143 R.W.S 263 OF THE INCOME TAX ACT. A. REVISION U/S 263 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, LEARNED CIT HAS ERRED IN REVISING THE ORIGINAL ASSESSMENT ORDER U/S 263. B. TREATMENT OF RENTAL INCOME AS INCOME FROM HOUSE PROPERTY 2 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LE ARNED ACIT HAS ERRED IN BY TREATING THE SUM OF RS. 29,43,405/- AS INCOME FROM HOUSE PRO PERTY AS AGAINST THE ASSESSEES CLAIM OF TREATING THE SAME AS BUSINESS INCOME. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LE ARNED ACIT HAS ERRED IN NOT APPRECIATING THE FACT ASSESSEE IS IN COMPOSITE BUS INESS OF LETTING OUT OF GODOWNS ALONG WITH RENDERING OF ALLIED SERVICES RELATED TO IT. 4. THE LEARNED ACIT HAS ERRED IN DISALLOWING GENERA L PURPOSES BUSINESS EXPENDITURE AMOUNTING RS. 14,23,492/- TO THE RETURNED INCOME. C. DISALLOWANCE OF SALES TAX PAYMENT 5. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. ACIT HAS ERRED IN DISALLOWING SUM OF RS. 15,06,135/-, BEING SUM PAID TOWARDS SALES TAX (INCLUDING INTEREST ON DELAYED PAYMENT)U/S 43B(A) 2. TODAY WHEN THE CASE WAS FIXED FOR ARGUMENT, THE LD. AR APPEARING ON BEHALF OF ASSESSEE MOVED AN APPLICATION FOR WITHDRA WAL OF APPEAL. THE CONTENTS OF SAME ARE REPRODUCED HEREIN BELOW: 1. THE ABOVE MENTIONED APPEAL IS FILED AGAINST THE ORDER DATED 25/09/2012 PASSED BY ASSISTANT COMMISSIONER OF INCOME TAX, CIR CLE-1, KALYAN UNDER SECTION 143(3) R.W.S 263 OF THE ACT. WE HAVE APPROACHED AN ADVOCATE TO APPEAR IN THE ABOVE MENTIONED APPEAL. 2. DURING THE COURSE OF PREPARATION OF THE APPEAL, OUR COUNSEL HAS ADVISED US THAT WE HAVE WRONGLY FILED THE PRESENT APPEAL BEFOR E THE HONBLE APPELLATE TRIBUNAL INSTEAD OF FILING THE SAME BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS). 3. AS WE ARE NOT FAMILIAR WITH THE INCOME TAX PROCE EDINGS AND OUR EARLIER TAX CONSULTANT HAS ABRUPTLY LEFT US, WE ACCEPT OUR MIST AKE IN FILING THE PRESENT APPEAL BEFORE THE HONBLE APPELLANT TRIBUNAL INSTEAD OF FI LING THE SAME BEFORE LD. COMMISSIONER OF INCOME TAX (APPEALS). 4. IN VIEW OF THE ABOVE, WE REQUEST THE HONBLE BEN CH TO ALLOW US TO WITHDRAW THE ABOVEMENTIONED APPEAL WITH THE LIBERTY TO FILE AN APPEAL BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS) AS PER THE PRO VISIONS OF INCOME TAX ACT, 1961 AND OBLIGE. 3 3. AFTER CONSIDERING THE CONTENTS OF THE APPLICATIO N WE ALLOW THE ASSESSEE TO WITHDRAW THE APPEAL THEREFORE THE APPEAL FILED BY T HE ASSESSEE IS DISMISSED AS WITHDRAWN. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 JULY, 20 16. SD/- SD/- (R.C. SHARMA) (SANDE EP GOSAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED: 25/07/2016 / 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 AG (ON TOUR)