CRIMSON PROPERTY PVT. LTD., MUMBAI V. ITO 5(1)(3), MUMBAI

MA 519/MUM/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3457 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-11-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 16-09-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SATYA PINISETTY
• Assessee Lawyers: BHAVIN PAREKH
• Keywords: Proportionate interest
• Section: 254(2)

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL C BENCH MUMB AI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER M.A. NO. 519/MUM/2019 IN ITA NO. 2867/MUM/2016 (AY 2008-09 ) M.A. NO. 520/MUM/2019 IN ITA NO. 2859/MUM/2016 (AY 2012-13 ) CRIMSON PROPERTY PVT. LTD. 3 RD FLOOR, SUNAMA HOUSE, KEMPS CORNER, OPP. SHALIMAR HOTEL, MUMBAI- 400036. PAN: AAACC2206R VS. ITO WARD- 5(1)(3), 5 TH FLOOR, ROOM NO. 569, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400020. APPELLANT RESPONDE NT APPELLANT BY : SHRI BHAVIN PAREKH (AR) RESPONDENT BY : SHRI SATYA PINISETTY (SR. DR) DATE OF HEARING : 22.11.2019 DATE OF PRONOUNCEMEN T : 27.11.2019 ORDER UNDER SECTION 254(2)OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER; 1. THESE TWO MISCELLANEOUS APPLICATIONS (M.A.) ARE FIL ED BY THE ASSESSEE FOR SEEKING RECTIFICATION OF ALLEGED MISTAKE IN THE ORDER DATED 31.05.2019 PASSED IN ITA(S) NO. 2867 & 2859/MUM/2016 FOR ASSES SMENT YEAR 2008-09 & 2012-13 RESPECTIVELY. 2. IN THE M.A., THE APPLICANT/ASSESSEE HAS CONTENDED T HAT WHILE DECIDING APPEAL FOR ASSESSMENT YEAR 2008-09 IN ITA NO. 2867/ MUM/2016, THE ASSESSEE WAS GRANTED PARTIAL RELIEF THEREBY ALLOWIN G PROPORTIONATE INTEREST ALLOWANCE FROM 04.02.2008. IT IS FURTHER CONTENDED IN THE APPLICATION THAT THERE IS A MISTAKE APPARENT IN THE ORDER THAT DATE OF PAYMENT IS MENTIONED MA 519 & 520 MUM 2019- CRIMSON PROPERTY PVT. LTD. 2 AS 14.02.2008 INSTEAD OF 31.01.2008. IT IS PRAYED I N THE APPLICATION THAT THE DATE MENTIONED IN PARA-13 OF THE ORDER DATED 31 .05.2019 MAY BE RECTIFIED/SUBSTITUTED AS 31.01.2008 IN PLACE OF 14. 02.2008. 3. THE LD. AR OF THE ASSESSEE MADE HIS SUBMISSION ON S IMILAR LINES. THE LD. AR SUBMITS THAT THOUGH THE TRANSFER DEED/CONVEYANCE DEED OF PROPERTY WAS EXECUTED ON 31.03.2008, HOWEVER, THE NECESSARY PAYMENT FOR ACQUISITION OF PROPERTY WAS MADE ON 31.01.2008. THE REFORE, THE ASSESSEE IS ENTITLED FOR INTEREST ALLOWANCE UNDER SECTION 24 (B) FROM 31.01.2008. 4. ON THE OTHER HAND, THE LD. DR FOR THE REVENUE SUBMI TS THAT THERE IS NO MISTAKE WHICH CAN BE SAID TO BE APPARENT IN THE ORD ER DATED 31.05.2019. THE ORDER IS BASED ON THE CATEGORICAL FINDING ON TH E OBSERVATION OF THE BENCH AND ON THE SUBMISSION OF ASSESSEE WHICH IS DU LY RECORDED IN PARA- 10 OF THE ORDER THAT THE ASSESSEE CLAIMED TO HAVE M ADE THE PAYMENT OF RS. 5.28 CRORE TO VEDANT PROPERTY PVT. LTD. ON 14.02.20 08. THE ASSESSEE IS NOW SEEKING REVIEW OF THE ORDER BY CHANGING ITS STA ND, WHICH IS BEYOND THE SCOPE OF SECTION 254(2) OF THE ACT. 5. WE HAVE CONSIDERED THE SUBMISSION OF BOTH THE REPRE SENTATIVES OF THE PARTIES AND PERUSED THE CONTENTS OF M.A. APPLICATIO N AND THE ORDER DATED 31.05.2019. WE HAVE ALSO CAREFULLY GONE THROUGH THE RECORD OF THE CASE. WE HAVE NOTED THAT WHILE MAKING SUBMISSION ON 30.04 .2019, THE LD. AR OF THE ASSESSEE CLAIMED THAT ASSESSEE MADE PAYMENT OF RS. 5.28 CRORE TO VEDANT PROPERTIES PVT. LTD. ON 14.02.2008, WHICH IS DULY RECORDED IN MA 519 & 520 MUM 2019- CRIMSON PROPERTY PVT. LTD. 3 PARA-10 OF THE ORDER, WHICH IS BASED ON THE SUBMISS ION OF LD. AR OF THE ASSESSEE. AFTER ACCEPTING THE SUBMISSION OF ASSESSE E, WE HAVE ALLOWED THE INTEREST ALLOWANCE UNDER SECTION 24(B) FROM 14.02.2 008. THE ASSESSEE IS NOW SEEKING THE REVIEW OF THE ORDER, WHICH IS BEYON D THE SCOPE OF SECTION 254(2) OF THE ACT. HENCE, WE DO NOT FIND ANY MERIT IN THE APPLICATION FILED BY THE ASSESSEE AND THE SAME IS DISMISSED. M.A NO. 520/MUM/2019 FOR AY 2012-13 6. IN THIS M.A., THE ASSESSEE HAS STATED THAT THE APPE AL OF ASSESSEE FOR A.Y. 2012-13 WAS DISMISSED VIDE ORDER DATED 31.05.2019 H OLDING THAT THE ASSESSEE FAILED TO DISCLOSE THE DATE OF ACQUISITION OF DIFFERENT SHARE OF DHANWATAY HOUSE IN EARLIER ASSESSMENT YEARS AND THA T IN ABSENCE OF DOCUMENTARY EVIDENCE FOR CAPITALIZATION OF INTEREST FOR A.Y. 2010-11 & 2011-12. IT IS STATED BY THE ASSESSEE THAT THEY HAV E FILED DOCUMENTARY EVIDENCE VIDE PAPER BOOK DATED 04.01.2019 FILED IN TAPAL ON 07.01.2019. THE COPY OF APPLICATION ALONG WITH THE ANNEXED DOCU MENT IS ALSO FILED ALONG WITH THIS MISCELLANEOUS APPLICATION. 7. AT THE TIME OF HEARING OF MISCELLANEOUS APPLICATION , NO SUBMISSION WAS MADE BY LD. AR OF THE ASSESSEE. CONSEQUENT UPON AS NO SUBMISSION WAS MADE BY LD. AR OF THE ASSESSEE; THE LD. DR HAS NO O CCASION TO CONTROVERT THE SUBMISSION OF ASSESSEE. 8. WE HAVE CONSIDERED THE CONTENTS OF MISCELLANEOUS AP PLICATION AND THE ORDER PASSED ON 31.05.2019. PERUSAL OF ORDER DATED 31.05.2019 REVEALS MA 519 & 520 MUM 2019- CRIMSON PROPERTY PVT. LTD. 4 THAT THE LD. AR OF THE ASSESSEE WHILE MAKING HIS SU BMISSION STATED THAT NO INTEREST WAS CAPITALIZED IN THE A.Y. 2009-10 & 2010 -11 AS INITIALLY THE PROPERTY WAS ACQUIRED FROM INTEREST FREE FUND. IT W AS POINTED OUT THAT POINT IN DISPUTE BETWEEN ASSESSEE AND ASSESSING OFF ICER WAS WITH REGARD TO AMOUNT OF INTEREST CAPITALIZED PERTAINING TO THE PROPERTY SOLD DURING THE YEAR. THE BENCH AFTER CONSIDERING THE CONTENTION OF THE ASSESSEE GAVE CATEGORICAL FINDING BASED ON THE SUBMISSION AND THE MATERIAL AVAILABLE ON RECORD. THE MATERIAL/SUBMISSION OF PAPER BOOK, FILE D ALONG WITH THE MISCELLANEOUS APPLICATION IS ALREADY ON RECORD OF A PPEAL FOLDER. THE ASSESSEE IS NOW SEEKING THE REVIEW OF ORDER WHICH I S BEYOND THE SCOPE OF THE APPLICATION UNDER SECTION 254(2), HENCE, THE AP PLICATION FILED BY ASSESSEE IS DEVOID OF MERIT AND IS DISMISSED. 9. IN THE RESULT, BOTH THE M.AS FILED BY ASSESSEE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27.11.2019. SD/- SD/- SHAMIM YAHYA PAWAN SINGH ACCOUNTANT MEMBER JUD ICIAL MEMBER MUMBAI, DATE: 27.11.2019 SK COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE 2. RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. DR C BENCH, ITAT, MUMBAI 6. GUARD FILE B Y ORDER, DY./ASST. REGISTRAR ITAT, MUMBAI