Sri Ranjan Roy Choudhury,L/H of Nora Roy Choudhury (Decd.), Kolkata v. DCIT, Circle - 30, Kolkata

ITA 1783/KOL/2009 | 2004-2005
Pronouncement Date: 09-04-2010

Appeal Details

RSA Number 178323514 RSA 2009
Assessee PAN EYEAR1971A
Bench Kolkata
Appeal Number ITA 1783/KOL/2009
Duration Of Justice 5 month(s) 17 day(s)
Appellant Sri Ranjan Roy Choudhury,L/H of Nora Roy Choudhury (Decd.), Kolkata
Respondent DCIT, Circle - 30, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 09-04-2010
Appeal Filed By Assessee
Bench Allotted A
Tribunal Order Date 09-04-2010
Date Of Final Hearing 04-03-2010
Next Hearing Date 04-03-2010
Assessment Year 2004-2005
Appeal Filed On 23-10-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : KOLKATA [BEFORE HONBLE SRI D. K. TYAGI JM & HONBLE SRI C . D. RAO AM] I.T.A. NO. 1783/KOL/2009 ASSESSMENT YEAR : 2004-05 RANJAN ROY CHOWDHURY L/R OF -VS- DEPUTY COMMISS IONER OF INCOME-TAX NORA ROY CHOWDHURY (DECD.) CIRCLE-30 KOLKATA. (APPELLANT) (RESPONDENT) APPELLANT BY : R. C. JHAWAR RESPONDENT BY : SMT. JYOTI KUMARI O R D E R PER D. K. TYAGI JM: THE APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AG AINST THE ORDER OF THE LD. CIT(A) KOLKATA DATED 30.07.2009 FOR ASSESSMENT YEA R 2004-05 ON THE FOLLOWING GROUNDS : 1. THAT THE LD. CIT(APPEALS)-XXXVI ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN PASSING THE ORDER UNDER APPEAL. 2. THAT THE LD. CIT(APPEAL) ERRED IN CONFIRMING THE DISALLOWANCE OF RS.1 11 970/- BEING THE EXPENDITURE INCURRED BY YOUR APPELLANT TO EARN TAXABLE INCOME UNDER THE HEAD CAPITAL GAIN WITHOUT GOING THROUGH THE FACTS OF THE CASE. 3. THAT THE LD. CIT(APPEALS) ERRED IN CONFIRMING TH E ADDITION OF RS.70 000/- UNDER THE HEAD INCOME FROM HOUSE PROPERTY MADE BY THE ASSESSI NG OFFICER ON ESTIMATE BASIS WITHOUT LOOKING TO THE FACTS OF THE CASE. 4. THAT YOUR APPELLANT CRAVES LEAVE TO ADDUCE FURTH ER GROUND OR GROUNDS AT THE TIME OF HEARING OF THIS APPEAL. 2. GROUND NOS. 1 AND 4 ARE GENERAL IN NATURE AND DO NOT REQUIRE ANY ADJUDICATION. 3. GROUND NO. 2 RELATES TO DISALLOWANCE OF EXPENSES OF RS.1 11 970/- U/S. 14A OF THE I. T. ACT. THE BRIEF FACTS ARE THAT THE ASSESSE E IS A LADY AGED AROUND 78 YEARS OLD . DURING THE YEAR UNDER APPEAL SHE EARNED EXEMPT INC OME OF RS.57 86 565/- COMPRISING DIVIDEND INCOME OF RS.54 22 666/- AND INTEREST ON RELIEF BOND AMOUNTING TO RS.3 63 899/-. SHE ALSO HAD OTHER TAXABLE INCOME A MOUNTING TO RS.73 73 802/-. TO MAINTAIN HER DAY TO DAY AFFAIRS SHE HAD HIRED A CA R ON RENTAL ON WHICH SHE SPENT RS.1 20 000/- DURING THE YEAR. SHE ALSO PAID A SAL ARY OF RS.85 910/- TO HER STAFF AND INCURRED TELEPHONE EXPENSES OF RS.4984/- AND MISC. EXPENSES AMOUNTING TO RS.19 421/- THUS DURING THE WHOLE YEAR SHE SPENT A SUM OF RS. 2 30 315/-. WHILE FILING HER 2 INCOME-TAX RETURN SHE CLAIMED ONLY 50% OF THESE EXP ENSES RELATABLE TO HER TAXABLE INCOME. HOWEVER THE AO ALLOWED ONLY THE EXPENSES OF RS.3552/- THUS DISALLOWED THE EXPENSES TO THE EXTENT OF RS.1 11 970/- OUT OF CLAM ED EXPENSES OF RS.1 15 157/-. THIS ACTION OF THE AO WAS CONFIRMED IN APPEAL BY THE LD. CIT(A). 4. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF THE MATERIAL AVAILABLE ON RECORD WE FIND THAT THE AO HIMSELF HA S CALCULATED THAT THE EXPENDITURE INCURRED FOR EARNING INCOME OTHER THAN EXEMPT COMES TO RS.1 23 812/- WHICH IS CLEAR FROM THE FOLLOWING OBSERVATION BY HIM IN HIS ASSESS MENT ORDER : :(I) TOTAL EXPENDITURE OF RS.2 30 515/- + 365 I.E . RS. 2 30 880/- (II) LONG TERM CAPITAL GAIN RS.14 81 407 (III) SHORT TERM CAPITAL GAINS RS.57 25 750 RS.7 2 07 157/- (IV) INCOME FROM OTHER SOURCES RS.62 32 431 TOTAL RS.1 34 39 588 EXPENDITURE CONSIDERED AS RELATED TO ABOVE CAPITAL GAINS : (RS.2 30 880 X 72 07 157)/1 34 39 588 = RS. 1 23 812/- IN VIEW OF THE ABOVE THE AO SHOULD HAVE ALLOWED E XPENSES CLAIMED OF RS.1 15 157/- (I.E. 50% OF THE AMOUNT OF RS.2 30 31 5/-) AS IT IS LESS THAN RS.1 23 812/-. THEREFORE THE ADDITION MADE BY THE AO AND SUSTAINE D BY THE LD. CIT(A) IS HEREBY DELETED. THIS GROUND OF APPEAL OF THE ASSESSEE IS A LLOWED. 5. GROUND NO. 3 RELATES TO CONFIRMING THE ADDITION OF RS.70 000/- UNDER THE HEAD INCOME FROM HOUSE PROPERTY. THE AO ESTIMATED THE A NNUAL VALUE OF SELF OCCUPIED PROPERTY ON THE BASIS OF ANNUAL VALUE OF THE PROPER TY TAKEN BY THE MUNICIPAL CORPORATION VALUATION IN THE YEAR 1971 AT RS.2850/- AFTER ALLOWING STANDARD DEDUCTION OF 30% HE ARRIVED AT THE VALUE OF RS.70 000/-. IN APPEAL THE LD. CIT(A) CONFIRMED THE ACTION OF THE AO AND THE ASSESSEE IS IN APPEAL BEFO RE US. 6. AT THE TIME OF HEARING BEFORE US THE LD. COUNSE L FOR THE ASSESSEE WHILE REITERATING HIS SAME SUBMISSIONS AS SUBMITTED BEFORE THE LOWER AUTHORITIES FURTHER SUBMITTED THAT THE AO WAS NOT JUSTIFIED IN ESTIMATING THE ANNUAL V ALUE OF THE PROPERTY AT RS. 1 00 000/- ON THE BASIS OF MUNICIPAL VALUATION DONE 35 YEARS A GO I.E. IN THE YEAR 1971 WHILE THE PRESENT VALUATION IS ALSO AVAILABLE. ACCORDING TO M UNICIPAL CORPORATION VALUATION THE ANNUAL VALUE OF THE PROPERTY IS ONLY RS.16 114/- DU RING THE YEAR 2003-04 RELEVANT TO 3 ASSESSMENT YEAR 2004-05 WHICH IS AVAILABLE AT PAGE 10 OF THE PAPER BOOK FILED BY THE ASSESSEE. HE THEREFORE PRAYED THAT THE ANNUAL VA LUE OF THE PROPERTY CHARGEABLE TO TAX BE TAKEN AT RS.16 114/- AND THE ADDITION MAY ACCORD INGLY BE REDUCED. 7. ON THE OTHER HAND THE LD. DR RELIED ON THE ORDE RS OF THE LOWER AUTHORITIES. 8. AFTER HEARING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIAL AVAILABLE ON RECORD WE ARE OF THE CONSIDERED OPINION THAT THE CONTENTIO N OF THE ASSESSEE REQUIRES VERIFICATION AT THE END OF THE AO. THEREFORE THE MATTER IS RES TORED BACK TO THE FILE OF THE AO FOR FRESH CONSIDERATION AND IF THE CONTENTION OF THE AS SESSEE IS FOUND CORRECT CORRESPONDING RELIEF SHOULD BE GIVEN. THIS GROUND OF APPEAL OF T HE ASSESSEE IS THEREFORE ALLOWED FOR STATISTICAL PURPOSES. 9. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. 10. ORDER IS PRONOUNCED IN THE OPEN COURT ON 9.4.20 10 SD/- SD/- (C. D. RAO) (D. K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 9TH APRIL 2010 COPY TO : 1. RANJAN ROY CHOUDHURY L/R OF NORA ROY CHOUDHURY (DE CD.) . C. JHAWAR & CO. 7A BENTINCK STREET 2 ND FLOOR R. NO. 202 KOLKATA-1. 2. DCIT CIRCLE-30 KOLKATA. 3. CIT(A) KOLKATA. 4. CIT KOLKATA. 5. D.R. ITAT KOLKATA. TRUE COPY BY ORDER DEPUTY REGISTRAR JD.(SR.P.S.) I.T.AT. KOLKATA