DHARMIK EXIM, P. TD, MUMBAI v. ITO RG 9(1)(3), MUMBAI

ITA 2969/MUM/2011 | 2007-2008
Pronouncement Date: 07-10-2013 | Result: Partly Allowed

Appeal Details

RSA Number 296919914 RSA 2011
Assessee PAN AAACD3656N
Bench Mumbai
Appeal Number ITA 2969/MUM/2011
Duration Of Justice 2 year(s) 5 month(s) 22 day(s)
Appellant DHARMIK EXIM, P. TD, MUMBAI
Respondent ITO RG 9(1)(3), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 07-10-2013
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted D
Tribunal Order Date 07-10-2013
Date Of Final Hearing 20-06-2013
Next Hearing Date 20-06-2013
Assessment Year 2007-2008
Appeal Filed On 15-04-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH MUMBAI . . . ! ' # BEFORE SHRI I.P. BANSAL JM AND RAJENDRA AM ./ I.T.A. NO. 2969/MUM/2011 ( $ $ $ $ % % % % / ASSESSMENT YEARS : 2007-08 M/S. DHARMIK EXIM PVT. LTD. 106 RUBY INDUSTRIAL ESTATE CHINCHOLI BUNDER ROAD EXTN. OFF LINK ROAD MALAD (W) MUMBAI 400021 $ $ $ $ / VS. THE INCOME TAX OFFICER 9(1)(3) MUMBAI. & ' ./ ' ./ PAN/GIR NO. : AAACD 3656N ( &( / APPELLANT ) .. ( )*&( / RESPONDENT ) &( + / APPELLANT BY: SHRI PANKAJ R. TOPRANI )*&( + / RESPONDENT BY : SHRI SANJEEV JAIN $ -' / DATE OF HEARING : 07/10/2013 ./% -' / DATE OF PRONOUNCEMENT : 07/10/2013 0 / O R D E R PER I.P.BANSAL J.M: THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS D IRECTED AGAINST THE ORDER PASSED BY LD. CIT(A)-29 MUMBAI DATED 21/02/2011 FO R THE ASSESSMENT YEAR 2007-08. THE GROUND OF APPEAL READ AS UNDER: 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL ) HAS ERRED IN DISALLOWING GODOWN RENT INCOME AMOUNTING TO RS..6 80 000/-AND TREATING THE SAME AS INCOME FROM OTHER SOURCES INSTEAD OF INCOME FROM HOUSE PR OPERTY AND THUS DENYING DEDUCTION U/S.24. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL) HAS ERRED IN DISALLOWING STAMPING CHARGES AMOUNTING TO RS. 1850/-. ./ I.T.A. NO. 2969/MUM/2011 ( $ $ $ $ % % % % / ASSESSMENT YEARS : 2007-08 2 2. IT MAY BE MENTIONED HERE THAT GROUND NO.2 BEC AUSE OF THE SMALLNESS OF AMOUNT WAS NOT PRESSED BY LD. AR HENCE THE SAME I S DISMISSED AS NOT PRESSED. 3. APROPOS GROUND NO.1 DURING THE COURSE OF ASSESS MENT PROCEEDINGS THE AO ISSUE SHOW CAUSE LETTER TO THE ASSESSEE ASKING IT T O FURNISH THE DETAILS OF RENT CREDITED TO PROFIT AND LOSS ACCOUNT AMOUNTING TO R S.6 80 000/-. THE ASSESSEE FILED DETAILS VIDE LETTER DATED 19/12/2009. APART FROM FILING THE DETAILS IT WAS NOT EXPLAINED THAT WHY THE SAID AMOUNT WAS ASSESSABLE A S BUSINESS INCOME. IN ABSENCE OF EXPLANATION OF THE ASSESSEE THE SAID AMO UNT WAS ASSESSED BY THE AO AS INCOME FROM OTHER SOURCES. FOR THE FIRST TIME THE ASSESSEE RAISED A FRESH PLEA BEFORE LD. CIT(A) THAT THE AMOUNT OF RS.6 80 000/- COULD NOT BE ASSESSED AS INCOME FROM OTHER SOURCES IT WAS SUBMITTED THAT THE GODOWN WHICH WERE NOT REQUIRED BY THE ASSESSEE FOR ITS BUSINESS WERE RENT ED TO OTHERS. FROM THE RECORD IT IS CLEAR THAT THE ASSESSEE WAS NO LONGER CARRYIN G OUT BUSINESS OPERATIONS AND NO BUSINESS ACTIVITIES ARE BEING CARRIED OUT. THAT BEING SO THE INCOME DERIVED BY THE ASSESSEE FROM RENT COULD BE ASSESSED ONLY UNDER THE HEAD INCOME FROM HOUSE PROPERTY. HOWEVER LD. CIT(A) DID NOT ACCE PT SUCH SUBMISSION AND HAS CONFIRMED THE ACTION OF AO TO ASSESS THE SAME UNDE R THE HEAD INCOME FROM OTHER SOURCES. 4. AFTER NARRATING THE FACT IT WAS SUBMITTED BY LD. AR THAT SINCE THIS ISSUE WAS NOT RAISED BEFORE AO IT WOULD BE APPROPRIATE T O SEND THIS ISSUE TO THE FILE OF AO FOR RE-ADJUDICATION AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF HEARING. 5. ON THE OTHER HAND LD. DR RELIED UPON THE ORDER PASSED BY LD. CIT(A). 6. WE HAVE HEARD BOTH THE PARTIES AND THEIR CONTEN TIONS HAVE CAREFULLY BEEN CONSIDERED. AFTER CAREFUL CONSIDERATION OF THE SU BMISSIONS OF LD. AR WE ARE OF THE OPINION THAT THE MATTER RELATING TO GROUND NO.1 SHOULD BE RESTORED BACK TO THE FILE OF AO FOR RE-ADJUDICATION AS PER LAW AFTE R GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF HEARING. WE DIRECT ACCOR DINGLY. FOR STATISTICAL PURPOSES GROUND NO.1 IS TREATED AS ALLOWED. ./ I.T.A. NO. 2969/MUM/2011 ( $ $ $ $ % % % % / ASSESSMENT YEARS : 2007-08 3 7. IN THE RESULT THE APPEAL IS PARTLY ALLOWED FOR STATISTICAL PURPOSES IN THE MANNER AFORESAID. ORDER PRONOUNCED IN THE OPEN COURT ON 07/10/2013 . 0 ./% ' 1 2$3 07/10//2013 / 4 SD/- SD/- ! (RAJENDRA) . . (I.P.BANSAL) ' /ACCOUNTANT MEMBER /JUDICIAL MEMBER MUMBAI; 2$ DATED 07/10/2013 . $ . .VM SR. PS 0 0 0 0 )-56 )-56 )-56 )-56 7 6%- 7 6%- 7 6%- 7 6%- / COPY OF THE ORDER FORWARDED TO : 1. &( / THE APPELLANT 2. )*&( / THE RESPONDENT. 3. 8 ( ) / THE CIT(A)- 4. 8 / CIT 5. 694 )-$ / DR ITAT MUMBAI 6. 4: ; / GUARD FILE. 0$ 0$ 0$ 0$ / BY ORDER *6- )- //TRUE COPY// < << < / = = = = (DY./ASSTT. REGISTRAR) / ITAT MUMBAI