Ms Rajkumari Kejriwal, Kolkata v. ITO, Ward-30(3), Kolkata, Kolkata

ITA 1357/KOL/2012 | 2006-2007
Pronouncement Date: 26-11-2014

Appeal Details

RSA Number 135723514 RSA 2012
Assessee PAN AGPPK2187D
Bench Kolkata
Appeal Number ITA 1357/KOL/2012
Duration Of Justice 2 year(s) 2 month(s) 4 day(s)
Appellant Ms Rajkumari Kejriwal, Kolkata
Respondent ITO, Ward-30(3), Kolkata, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 26-11-2014
Appeal Filed By Assessee
Bench Allotted SMC
Tribunal Order Date 26-11-2014
Date Of Final Hearing 01-08-2014
Next Hearing Date 01-08-2014
Assessment Year 2006-2007
Appeal Filed On 21-09-2012
Judgment Text
SM C IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH: KOLKATA ( ) BEFORE ) [BEFORE SHRI MAHAVIR SINGH JM] / I.T.A NO. 1 357 /KOL/20 1 2 / ASSESSMENT YEAR : 20 0 6 - 0 7 M/S. RAJKUMARI KEJRIWAL VS. INCOME - TAX OFFICER WD - 30(3) KOLKATA (PAN:AGPPK2187D) ( /APPELLANT ) ( / RESPONDENT ) DATE OF HEARING: 2 4 . 11 .201 4 DATE OF PRONOUNCEMENT: 26 . 1 1 .201 4 FOR THE APPELLANT : N O N E FOR THE RESPONDENT : SHRI K. K. TRIPATHI JCIT SR. DR / ORDER THIS APPEAL BY ASSESSEE IS ARI SING OUT OF ORDER OF CIT(A) - XIV KOLKATA IN APPEAL NO. 303/CIT(A) - XIV/08 - 09 DATED 23 . 0 7 .2012. ASSESSMENT WAS FRAMED BY ITO WARD - 30(3) KOLKATA U/S. 143(3) OF THE INCOME - TAX ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR ASSESSMENT YEAR 200 6 - 0 7 VIDE HIS ORDER DATED 2 6 .12.20 0 8 . 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGAINST THE ORDER OF CIT(A) CONFIRMING THE ACTION OF AO IN TREATING THE RENTAL INCOME FROM THE HEAD OF PROFITS AND GAINS OF BUSINESS OR PROFESSION TO INCOME FROM HOUSE PROPERTY AND CONSEQUENTIAL ASSESSMENT M ADE . FOR THIS ASSESSEE HAS RAISED FOLLOWING GROUND NOS. 2 TO 5: 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) ERRED IN CONFIRMING THE ORDER OF THE A.O. REFUSING TO TREAT THE SOURCES OF INCOME LIKE KMC TAX AND MAINTENANCE CHARGES (R ECEIVABLE) AS BUSINESS INCOME AND THE CORRESPONDING EXPENSES INCURRED BY THE APPELLANT AS BUSINESS EXPENSES. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) ERRED IN CONFIRMING THE ORDER OF THE A.O. REFUSING TO ALLOW THE VARIOUS EXPE NSES AS CLAIMED IN THE ACCOUNTS AS BUSINESS EXPENSES. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) ERRED IN NEGLECTING TO TAKE INTO ACCOUNT THE FACT THAT IN THE ASSESSMENT OF THE HUSBAND OF THE APPELLANT VIZ. SHRI SUDARSHAN KUMAR KEJRIWAL FOR THE IMMEDIATELY FOLLOWING YEAR I.E. A.Y. 2007 - 08 THE SAME A.O. HAD HIMSELF ALLOWED THE CLAIM ABOUT TREATMENT OF THE INCOME AND EXPENSES OF THE SAME NATURE UNDER THE HEAD BUSINESS INCOME . 5.WITHOUT ANY PREJUDICE TO THE ABOVE GROUNDS ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED CIT(A) SHOULD HAVE AT LEAST CONSIDERED THE INCOME AND EXPENSES AS 2 ITA NO.1 3 5 7 /K/2012 M/S. RAJKUMARI KEJRIWAL AY 200 6 - 0 7 ABOVE UNDER THE HEAD INCOME FROM OTHER SOURCES AND THUS SHOULD HAVE ALLOWED THE EXPENSES CLAIMED IN THAT MANNER SEPARATELY. 3. I HAVE HEARD SUBMISSIONS OF LD. SR. DR AND HAVE GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IS OWNER OF ONE FLAT NO. 45 JHOWTALA ROAD KOLKATA - 700 019 HAVING SUPER BUILT UP AREA OF 1824 SFT. THIS FLAT WAS LET OUT TO HCL INFO SYSTEM PVT. LTD. VIDE AGREEMENT DATED 01.10.1989. ACCORDING TO AGREEMENT THE TENANT WAS TO PAY A RENT OF RS.9/ - PER SQ. FT. PER MONTH AND MAINTENANCE CHARGES OF RS.0.40 PAISE PER SQ. FT. PER MONTH. THE TENANT HAS ALSO TO BEAR KMC TAXES AND OTHER TAXES. THE ASSESSEE DECLARED ITS INCOME FROM RENT I.E. RENT RECEIVED @ RS. 9/ - PER SFT. A T RS.3 84 744/ - UNDER THE HEAD INCOME FROM HOUSE PROPERTY. BUT DECLARED THE MAINTENANCE CHARGES AND KMC TAX PAID BY TENANT AND RECEIVED BY ASSESSEE AS PROFITS AND GAINS OF BUSINESS OR PROFESSION . THE AO TREATED THESE MAINTENANCE CHARGES AND KMC TAXES AS INCOME FROM RENT AND ASSESSED THE SAME AS INCOME FROM HOUSE PROPERTY. THE AO ALLOWED CONSEQUENTIAL DEDUCTIONS. AGGRIEVED ASSESSEE PREFERRED APPEA L BEFORE CIT(A) WHO FOLLOWING THE DECISION IN THE CASE OF HER HUSBAND NAMELY SHRI SUDARSHAN KUMAR KEJRIWAL IN APPEAL NO.302/CIT(A) - XIV/08 - 09 CONFIRMED THE ACTION OF AO BY OBSERVING IN PARA 3 AS UNDER: 3. I HAVE CAREFULLY CONSIDERED THE ASSESSMENT ORDER AND THE SUBMISSION OF THE APPELLANT. THE FACTS OF THIS ARE IDENTICAL TO THE FACTS OF THE C ASE OF SUDARSHAN KUMAR KEJRIWAL IN APPEAL NO. 302/CIT(A) - XIV/08 - 09 FOR THE ASSESSMENT YEAR 2006 - 07. THE SUBMISSIONS MADE BY THE APPELLANT IN THIS CASE AND THE REASO NS FOR MAKING THE ADDITIONS ARE ALSO IDENTICAL TO THAT IN THE AFORESAID CASE. HENCE FOLLOWING THE APPELLATE ORDER DATED 23.07.2012 IN THE CASE OF S UDARSHAN KUMAR KEJRIWAL IN APPEAL NO. 302/CIT(A) - XIV/08 - 09 THE GROUND NO.1 TO 4 ARE DISMISSED. 4. I HAVE GONE THROUGH THE FACTS AND FOUND THAT THE ASSESSEE HAS RENTED OUT FLAT NO. 45 JHOWTALA ROAD KOLKATA - 700 019 AND DECLARED RENT RECEIVED AS RENTAL INCOME BUT MAINTENANCE CHARGES AND KMC TAXES OF THIS FLAT W AS DECLARED AS BUSINESS INCOME. I FIND THA T THE MAINTENANCE CHARGES AND KMC TAXES ARE INEXTRICABLY LINKED WITH RENTAL INCOME AND IT CANNOT BE TREATED AS BUSINESS INCOME. HENCE I FIND NO REASON TO INTERFERE IN THE ORDER OF CIT(A) AND THE SAME IS HEREBY UPHELD. APPEAL OF ASSESSEE IS DISMISSED. 3 . IN THE RESULT APPEAL OF ASSESSEE IS DISMISSED. 4 . ORDER IS PRONOUNCED IN THE OPEN COURT ON 2 6 . 1 1 . 2 0 1 4 S D / - (MAHAVIR SINGH) JUDICIAL MEMBER DATED : 2 6 T H NOVEMBER 201 4 JD.(SR.P.S.) 3 ITA NO.1 3 5 7 /K/2012 M/S. RAJKUMARI KEJRIWAL AY 200 6 - 0 7 - COPY OF THE ORDER FORWARDED TO: 1 . / A PPELLANT M/S. RAJKUMARI KEJRIWAL 45 JHOWTOLA ROAD KOLKATA - 19 . 2 / RESPONDENT ITO WARD - 30(3) KOLKATA . 3 . ( )/ THE CIT(A) KOLKATA 4. 5. / A CIT KOLKATA / DR KOLKATA BENCHES KOLKATA / TRUE COPY / BY ORDER /ASSTT. REGISTRAR .