ITO 4(3)(1), MUMBAI v. PREMSUDHA EXPORTS P.LTD, MUMBAI

ITA 4330/MUM/2012 | 2007-2008
Pronouncement Date: 28-10-2013 | Result: Dismissed

Appeal Details

RSA Number 433019914 RSA 2012
Assessee PAN AAACP1751B
Bench Mumbai
Appeal Number ITA 4330/MUM/2012
Duration Of Justice 1 year(s) 4 month(s) 3 day(s)
Appellant ITO 4(3)(1), MUMBAI
Respondent PREMSUDHA EXPORTS P.LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 28-10-2013
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 28-10-2013
Assessment Year 2007-2008
Appeal Filed On 25-06-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C MUMBAI BEFORE SHRI H L KARWA PRESIDENT & SHRI N K BILLAIYA ACCOUNTANT MEMBER ITA NO.4330/MUM/2012 FOR ASST. YEAR: 2007-08 THE ITO 4(3)(1) MUMBAI. VS. PREMSUDHA EXPORTS P. LTD. 545 PANCHRATNA OPER HOUSE MUMBAI- 400 004 PAN AAACP1751B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T D SINGH RESPONDENT BY : SHRI BIKAS KUMAR BOGI DATE OF HEARING : 28.10.2013 DATE OF PRONOUNCEMENT : 28.10.2013 O R D E R PER H L KARWA PRESIDENT : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-8 MUMBAI DATED 12.04.2012 RELATING TO A.Y. 2007-08. 2. THE SOLE GROUND RAISED BY THE REVENUE IN THIS AP PEAL READS AS UNDER: WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(APPEAL) ERRED IN DELETING THE ADDITION OF RS.35 53 536/- MADE IN RESPECT OF DETERMINING INCOME FROM HOUSE PR OPERTY U/S. 23(1)(A)/23(1)(B) BY ESTIMATING ANNUAL VALUE OF THE PROPERTY AT RS.51 00 000/- 3. AT THE TIME OF HEARING OF THE APPEAL LEARNED RE PRESENTATIVES OF BOTH THE PARTIES AGREED THAT THE ISSUE INVOLVED IN THIS APPE AL IS SQUARELY COVERED IN FAVOUR OF 2 ITA NO.4330/M/2012 AY:2007-08 THE ASSESSEE AND AGAINST THE REVENUE BY THE ORDERS PASSED IN THE ASSESSEES CASE BY THE TRIBUNAL. THE PARTICULARS OF THE ORDERS ARE AS FOLLOWS :- A) ORDER DATED 31.05.2007 PASSED IN ITA NO.6277/MUM/06 FOR A.Y. 2003-04. B) ORDER DATED 26.11.2009 PASSED IN ITA NO.6904/MUM/08 FOR A.Y. 2006-07. C) ORDER DATED 12.11.2012 PASSED IN ITA NO.7971/MUM/11 FOR A.Y. 2008-09. WHILE DECIDING THE ISSUE FOR A.Y. 2003-04 IN ITA NO .6277/MUM/06 THE TRIBUNAL VIDE ITS ORDER DATED 31.05.2007 HAS CONCLUDED AS UN DER: 18. WE HAVE CAREFULLY EXAMINED THE MATERIAL PLACED ON RECORD AND WE FIND FROM THE MEMORANDUM OF ASSOCIATION THAT THE ASSESSEE IS ENTITLED TO PURCHASE THE PROPERTY FOR ITS LET OUT A ND TO EARN RENTAL INCOME. COPIES OF RESOLUTIONS OF BOARD OF DIRECTOR S ARE ALSO PLACED BEFORE US IN BOTH THE CASES WHERE FROM IT IS EVIDEN T THAT ONE OF THE DIRECTOR WAS AUTHORIZED TO TAKE NECESSARY STEPS TO LET OUT THE PROPERTY IN QUESTION. THEY HAVE ALSO FIXED THE MONTHLY RENT AND THE SECURITY DEPOSITS OF BOTH THE PARTIES. CONSEQUENT TO THE RE SOLUTIONS THE ASSESSEE HAS APPROACHED TO VARIOUS ESTATE AND FINANC E CONSULTANTS FOR LETTING OUT THE PROPERTIES AND THE REQUEST WAS ALSO DULY ACKNOWLEDGED BY THE ESTATE AND FINANCE CONSULTANTS. THE SERIES O F CORRESPONDENCE ARE PLACED BEFORE US TO DEMONSTRATE THE EFFORTS MAD E BY THE ASSESSEE FOR LETTING OUT ITS PROPERTIES BUT UNFORTUNATELY D URING THE YEAR UNDER APPEAL ASSESSEE COULD NOT GET THE SUITABLE TENANT ON ACCOUNT OF HEFTY RENT AND SECURITY DEPOSITS. THE CORRESPONDENCE EXC HANGED BETWEEN THE ASSESSEE AND DIFFERENT PROPERTY CONSULTANTS ARE PLACED ON RECORD AT PAGE NOS. 31 TO 100. FROM THIS CORRESPONDENCE IT I S NOTICED THAT THE ASSESSEE HAS APPROACHED VARIOUS PROPERTY CONSULTANT S TO LET OUT ITS PROPERTIES AND DURING THE YEAR IT COULD NOT GET A SUITABLE TENANT. FROM A CAREFUL PERUSAL OF THESE DOCUMENTS IT HAS BECOME EVIDENT THAT DURING THE WHOLE YEAR ASSESSEE MADE ITS CONTINUOUS EFFORTS TO LET OUT THE PROPERTIES AND UNDER THESE CIRCUMSTANCES THIS PROPERTY CAN BE CALLED TO BE LET OUT PROPERTY IN TERMS OF OUR OBSER VATIONS IN FOREGOING PARAS. SINCE THE PROPERTY HAS BEEN HELD TO BE LET OUT PROPERTY ITS ANNUAL LETTING VALUE CAN ONLY BE WORKED OUT AS PER SUB-CLAUSE (C) OF SECTION 23(1) OF THE I.T.ACT. AND ACCORDING TO THIS CLAUSE THE RENT RECEIVED OR RECEIVABLE DURING THE YEAR IS NIL AND A S SUCH THE SAME BE TAKEN AS THE ANNUAL VALUE OF THE PROPERTY IN ORDER TO COMPUTE THE INCOME FROM HOUSE PROPERTY. WE THEREFORE ORDER ACCORDINGLY. FROM THE ABOVE IT IS CLEAR THAT THE TRIBUNAL HAS C ATEGORICALLY HELD THAT IN ASSESSEES CASE THE PROVISIONS OF SECTION 23(1)(C) IT ACT 196 1 ARE APPLICABLE AND THE ANNUAL 3 ITA NO.4330/M/2012 AY:2007-08 LETTING VALUE OF THE HOUSE PROPERTY WHICH REMAINED VACANT THROUGHOUT THE YEAR IS TO BE DETERMINED AS PER THE SECTION. THE TRIBUNAL FUR THER HELD THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED IN DETERMINING THE ANNUAL LETTING VALUE BY INVOKING THE PROVISIONS OF SECTION 23(1)(A)/23(1)(B) OF THE ACT. RESPECTFULLY FOLLOWING THE ORDERS OF THE TRIBUNAL PASSED IN ASSESSEES CASE FOR EARLI ER YEARS REFERRED TO ABOVE WE HOLD THAT THE CIT(A) WAS JUSTIFIED IN DELETING THE INCOM E FROM HOUSE PROPERTY DETERMINED BY THE ASSESSING OFFICER. IT IS ALSO RELEVANT TO S TATE HERE THAT WHILE ALLOWING THE APPEAL OF THE ASSESSEE THE LEARNED CIT(A) HAS FOLL OWED THE ORDERS OF THE TRIBUNAL PASSED IN ASSESSEES CASE RELATING TO A.YS 2003-04 AND 2006-07. IN VIEW OF THE ABOVE WE DO NOT SEE ANY MERIT IN TH E APPEAL PREFERRED BY THE REVENUE AND ACCORDINGLY WE DISMISS THE SAME. 4. IN THE RESULT THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH OCTOBER 2013. SD/- SD/- (N.K.BILLAIYA) (H L KARWA) ACCOUNTANT MEMBER PRESIDENT MUMBAI DT : 28TH OCTOBER 2013 SA COPY FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE C.I.T MUMBAI 4. THE CIT (A)-8 MUMBAI 5. THE DR C- BENCH ITAT MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT MUMBAI BENCHES MUMBAI