RAMESHCHANDRA KANTILAL ZAVERI, MUMBAI v. ITO 12(2)(1), MUMBAI

ITA 3893/MUM/2010 | 2005-2006
Pronouncement Date: 28-07-2011 | Result: Dismissed

Appeal Details

RSA Number 389319914 RSA 2010
Assessee PAN AACPJ3865A
Bench Mumbai
Appeal Number ITA 3893/MUM/2010
Duration Of Justice 1 year(s) 2 month(s) 15 day(s)
Appellant RAMESHCHANDRA KANTILAL ZAVERI, MUMBAI
Respondent ITO 12(2)(1), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 28-07-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 28-07-2011
Assessment Year 2005-2006
Appeal Filed On 13-05-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH D : MUMBAI BEFORE SHRI R.V. EASWAR (PRESIDENT) AND SHRI RAJENDRA SINGH (ACCOUNTANT MEMBER) ITA NO.3893/MUM/2010 ASSESSMENT YEAR : 2005-06 RAMESHCHANDRA KANTILAL ZAVERI 80 NEELAM BUILDING FLAT NO.14 NETAJI SUBHASH ROAD MARINE DRIVE MUMBAI-400 002. ..( APPELLANT ) P.A. NO. (AACPJ 3865 A) VS. INCOME TAX OFFICER AAYAKAR BHAVAN M.K. ROAD MUMBAI-400 020. ..( RESPONDENT ) APPELLANT BY : SHRI A.R. SHAH RESPONDENT BY : DR. B. SENTHIL KUMAR DATE OF HEARING : 28.07.2011 DATE OF PRONOUNCEMENT : 28 TH JULY 2011 O R D E R PER RAJENDRA SINGH (AM). THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 30.3.2010 OF CIT FOR THE ASSESSMENT YEAR 2005-06. THE ONLY DISPUTE RAISED BY THE ASSESSEE IN THIS APPEAL IS REGARDING VALIDIT Y OF THE ORDER PASSED BY THE CIT UNDER SECTION 263 OF THE INCOME TAX ACT. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT T HE ASSESSEE IN THE RETURN OF INCOME HAD CLAIMED INTEREST OF RS .10.00 LACS AS BUSINESS INCOME. THE ASSESSEE HAD ALSO SHOWN LONG TERM CAPITAL GAIN FROM SALE OF PROPERTY AT ITA NO.3893/MUM/10 A.Y:05-06 2 RS.12 37 500/- WHICH WAS REVISED TO LOSS OF RS.14 4 5 028/- IN THE REVISED RETURN. FURTHER THE ASSESSEE OWNED TWO PROPERTIES BUT NO INCOME HAD BEEN SHOWN AS LAND PROPERTY INCOME. THE CLAIMS OF THE A SSESSEE HAD BEEN ACCEPTED BY THE AO IN THE ASSESSMENT ORDER PASSED U NDER SECTION 143(3) ON 31.3.2005. SUBSEQUENTLY CIT EXAMINED THE RECORDS A ND NOTED THAT THERE WAS NO BUSINESS ACTIVITY FOR THE LAST FEW YEARS AND THE ONLY INCOME WAS INTEREST FROM LOANS. HE WAS THEREFORE OF THE VIEW T HAT INTEREST INCOME SHOULD HAVE BEEN ASSESSED AS INCOME FROM OTHER SOUR CES. BUT THE AO HAD ACCEPTED THE SAME AS BUSINESS INCOME WITHOUT ANY EX AMINATION. IN RELATION TO CAPITAL GAIN CIT NOTED THAT THE PROPERTY HAD BE EN ACQUIRED BY THE ASSESSEE ON CONVERSION OF TENANCY RIGHTS FOR WHICH NO CONSIDERATION HAD BEEN PAID AND THEREFORE TAKING THE COST OF ACQUISI TION AT RS.13 65 525/- WAS NOT CORRECT. MOREOVER THE DATE OF OWNERSHIP WAS A LSO INCORRECTLY TAKEN. IN RELATION TO THE TWO PROPERTIES OWNED BY THE ASSESSE E THE ASSESSEE HAD CLAIMED THAT ONE PROPERTY WAS SELF OCCUPIED AND THE OTHER ONE WAS USED FOR BUSINESS PURPOSES BUT THERE WAS NO EVIDENCE TO SUBS TANTIATE THE CLAIM. BESIDES THIS CIT FURTHER NOTED THAT CLAIM OF ASSES SEE FOR CARRYING FORWARD OF LONG TERM CAPITAL GAIN WAS ALSO NOT CORRECT AS THER E WAS NO LOSS IF THE CAPITAL WAS COMPUTED CORRECTLY. THE AO HAD COMPLETED ASSES SMENT IN A SLIP SHOD MANNER WITHOUT ANY EXAMINATION/ENQUIRY. CIT THERE FORE SET ASIDE THE ASSESSMENT AS BEING ERRONEOUS AND PREJUDICIAL TO TH E INTEREST OF REVENUE AND DIRECTED THE AO TO PASS A FRESH ORDER AFTER NECESSA RY VERIFICATION. AGGRIEVED BY THE SAID DECISION THE ASSESSEE IS IN APPEAL BEF ORE THE TRIBUNAL. ITA NO.3893/MUM/10 A.Y:05-06 3 3. AT THE TIME OF HEARING OF THE APPEAL THE LD. AR FOR THE ASSESSEE FILED LETTER DATED 27.7.2011 IN WHICH IT WAS REQUESTED TH AT THE ASSESSEE MAY BE ALLOWED TO WITHDRAW THE APPEAL. THE LD. DR APPEARI NG FOR THE REVENUE HAD NO OBJECTION IN THE MATTER. WE THEREFORE DISMISS THE APPEAL AS WITHDRAWN. 4. IN THE RESULT APPEAL OF THE ASSESSEE STANDS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28.7.2011. SD/- SD/ - (R.V. EASWAR) (RAJENDRA SINGH) PRESIDENT ACCOUNTANT MEMBER MUMBAI DATED: 28.7.2011. JV. COPY TO: THE APPELLANT THE RESPONDENT THE CIT CONCERNED MUMBAI THE CIT(A) CONCERNED MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR ITAT MUMBAI.