WILHEMSEN SHIP MANAGEMENT INDIA P. LTD, MUMBAI V. ADDL CIT 8(1), MUMBAI

MA 208/MUM/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2247 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Assessment Year: 2003-2004
• Appeal Filed On: 24-08-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MANPREET S DUGGAL
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (V I RTUAL COURT J BENCH , MUMBAI BEFORE SHRI M.BALAGANESH, AM & SHRI RAM LAL NEGI , JM MA NO.208/MUM/2020 (ARISING OUT OF ITA NO . 6203 /MUM/201 0 ) ( ASSESSMENT YEAR : 20 03 - 04 ) M/S. WILHELMSEN SHIP MANAGEMENT INDIA PVT. LTD., 31/32, 3 RD FLOOR, APPLE HERITAGE, SIR, M.V. ROAD ANDHERI (EAST), MUMBAI 400 093 VS. THE DEPUTY CIT 8(3) 2 ND FLOOR, AAYAKAR BHAVAN MUMBAI 400 020 PAN/GIR NO. AAACI1614H (APPELLANT ) .. (RESPONDENT ) REVENU E BY SHRI NISHANT THAKKAR ASSESSEE BY SHRI MANPREET S DUGGAL DATE OF HEARING 27/11 /2020 DATE OF PRONOUNCEMENT 27 /11 /2020 / O R D E R PER M. BALAGANESH (A.M) : BY VIRTUE OF THIS MISCELLANEOUS APPLICATION, THE ASSESSEE PRAYS TO SEEK MODIFICATION IN PARA 3.2 OF THE ORDER PASSED BY THIS TRIBUNAL IN ITA NO.6203/MUM/2010 FOR A.Y.2003 - 04 DATED 17/07/2020. M A NO . 208/MUM/2020 M/S. WILHELMSE N SHIP MANAGEMENT INDIA PVT. LTD , 2 2. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND THAT THE ENTIRE FACTS OF THE ISSUE IN D ISPUTE BEFORE THIS TRIBUNAL HAD BEEN DULY NARRATED IN PARA 3.1 OF THE ORDER. THIS TRIBUNAL HAD HELD IN PARA 3.2 OF ITS ORDER AS UNDER: - 3.2. WE FIND THAT SINCE, THE RENTAL INCOME WAS TAXED BY THE LD. AO UNDER THE HEAD INCOME FROM HOUSE PROPERTY AND 30% DEDUCTION TOWARDS REPAIRS WERE GIVEN UNDER THE HEAD INCOME FROM HOUSE PROPERTY, THE REGULAR REPAIRS AND MAINTENANCE OF RS.12,23,559/ - DEBITED BY THE ASSESSEE AND CLAIMED AS DEDUCTION UNDER THE HEAD INCOME FROM BUSINESS WAS DISALLOWED BY THE LD. AO IN THE ASSESSMENT. FURTHER, THE LD. AO ALSO DISALLOWED A SUM OF RS.1,40,53,158/ - ON ACCOUNT OF DEPRECIATION CLAIMED ON THE BUSINESS PREMISES. WE FIND THAT THE LD. CIT(A) HAD GRANTED 100% RELIEF WITH REGARD TO CLAIM OF DEPRECIATION BY GIVING A CATEGORICAL FIN DING THAT THE 100 SQ.FT OF PREMISES WAS UTILIZED BY THE ASSESSEE FOR ITS OWN BUSINESS FOR A PERIOD OF SEVEN MONTHS. AGAINST THAT FINDING, WE FIND THAT THE REVENUE HAS NOT PREFERRED ANY APPEAL BEFORE US. THE LD. CIT(A) HOWEVER, SUSTAINED THE DISALLOWANCE MA DE ON ACCOUNT OF REPAIRS AND MAINTENANCE BY HOLDING THAT ASSESSEE HAD ALREADY GIVEN FLAT DEDUCTION @30% OF RENTAL INCOME TOWARDS REPAIRS UNDER HEAD INCOME FROM HOUSE PROPERTY AND NO FURTHER DEDUCTION IS ELIGIBLE TO THE ASSESSEE. WE FIND THAT THE RENTAL I NCOME OFFERED BY THE ASSESSEE IN THE SUM OF RS.57,500/ - WAS ONLY IN RESPECT OF 100 SQ.FT OF PREMISES LET OUT FOR FIVE MONTHS. HENCE, THE CORRESPONDING FLAT DEDUCTION @30% TOWARDS REPAIRS UNDER THE HEAD INCOME FROM HOUSE PROPERTY WAS ALSO GIVEN ONLY FOR A PERIOD OF FIVE MONTHS. NO DEDUCTION FOR THE REMAINING 7 MONTHS HAS BEEN GIVEN, IN TERMS OF THE PROVISIONS OF SECTION 38(2) OF THE ACT. WE FIND THAT ASSESSEE IS ENTITLED FOR PROPORTIONATE DEDUCTION FOR THE REMAINING PERIOD OF SEVEN MONTHS OF THESE REPAIRS AND MAINTENANCE IN RESPECT OF 100 SQ.FT OF PROPERTY. ACCORDINGLY, THE GROUND NO.3 RAISED BY THE ASSESSEE IS PARTLY ALLOWED. 2.1. FROM THE ABOVE REPRODUCTION, IT COULD BE SEEN THAT IN THE LAST FOUR LINES, THE TRIBUNAL HAD ERRONEOUSLY STATED THAT ASSESSEE WOULD BE ENTITLED FOR PROPORTIONATE DEDUCTION FOR THE REMAINING PERIOD OF SEVEN MONTHS OF THESE REPAIRS AND MAINTENANCE IN RESPECT OF 100 SQ.FT OF PROPERTY INSTEAD M A NO . 208/MUM/2020 M/S. WILHELMSE N SHIP MANAGEMENT INDIA PVT. LTD , 3 OF 10,000 SQ.FT OF PROPERTY. THIS ADMITTEDLY WAS A TYPOGRAPHICAL ERROR WHICH HAD CREPT IN TH E ORDER OF THIS TRIBUNAL. WHEN THIS WAS POINTED OUT TO THE LD. DR, THE LD. DR FAIRLY AGREED FOR RECTIFICATION. ACCORDINGLY, THE LAST FOUR LINES OF PARA 3.2 OF THE ORDER DATED 17/07/2020 STANDS MODIFIED AS UNDER: - WE FIND THAT ASSESSEE IS ENTITLED FOR PROP ORTIONATE DEDUCTION FOR THE REMAINING PERIOD OF SEVEN MONTHS OF THESE REPAIRS AND MAINTENANCE IN RESPECT OF 10 ,00 0 SQ.FT OF PROPERTY. ACCORDINGLY, THE GROUND NO.3 RAISED BY THE ASSESSEE IS PARTLY ALLOWED. 2.2. ALL OTHER CONTENTS OF THE ORDER DATED 17/07 /2020 REMAIN UNCHANGED. 3. IN THE RESULT, MISCELLANEOUS APPLICATION PREFERRED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 27 /11 /2020 . SD/ - ( RAM LAL NEGI ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 27 / 11 / 2020 KARUNA , SR.PS M A NO . 208/MUM/2020 M/S. WILHELMSE N SHIP MANAGEMENT INDIA PVT. LTD , 4 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//