ITO 9(2)(4), MUMBAI v. PELICAN INVESTMENT P.LTD, MUMBAI

ITA 4371/MUM/2012 | 2009-2010
Pronouncement Date: 30-10-2013 | Result: Dismissed

Appeal Details

RSA Number 437119914 RSA 2012
Assessee PAN AAACP7857K
Bench Mumbai
Appeal Number ITA 4371/MUM/2012
Duration Of Justice 1 year(s) 4 month(s) 3 day(s)
Appellant ITO 9(2)(4), MUMBAI
Respondent PELICAN INVESTMENT P.LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 30-10-2013
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 30-10-2013
Date Of Final Hearing 30-10-2013
Next Hearing Date 30-10-2013
Assessment Year 2009-2010
Appeal Filed On 27-06-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH MUMBAI BEFORE SHRI H.L.KARWA PRESIDENT & SHRI N.K.BILLAIYA AM ITA N O. 437 1 / MUM/ 20 1 2 ( ASSESSMENT YEAR : 20 0 9 - 20 10 ) ITO 9(2)(4) MUMBAI - 400 020 VS. M/S PELICAN INVESTMENT PVT. LTD. 1 SANTOS HOUSE ROAD NO.3 SAHAR VILLAGE VILE PARLE (E) MUMBAI - 99 PAN/GIR NO. : A A A C P 7857 K ( APPELLANT ) .. ( RESPONDENT ) /REVENUE BY : SHRI SANJEEV JAIN /ASSESSEE BY : NONE DATE OF HEARING : TH DATE OF PRONOUNCEMENT : 30 TH OCTOBER 2013 O R D E R PER N.K.BILLAIYA AM : THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE CIT(A) - 20 MUMBAI DATED 11 - 4 - 2012 PERTAINING TO ASSESSMENT YEAR 20 0 9 - 20 10 . 2 . THE REVENUE HAS RAISED FOLLOWING THREE SUBSTANTI VE GROUNDS OF APPEAL : - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 84 04 557/ - REGARDING RENT AND COMPENSATION RECEIVED FROM SUB - LEASED PROPERTY AND OFFERED AS BUSINESS INCOME WHIL E AO COMPUTED THE SAME AS INCOME FROM HOUSE PROPERTY AS DISCUSSED BY THE A.O IN THE ASSESSMENT ORDER. ITA NO. 437 1 / 1 2 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS.7 85 330 / - REGARDING DISALLOWANCE O F INTEREST ON SHOP DEPOSITS. THE LD.CIT (A) HAS FOLLOWED THE DECISION OF CIT(A) - IX AND HON'BLE ITAT MUMBAI IN ASSESSEE'S OWN CASE FOR AY 1990 - 91 TO 1992 - 93 AND 2002 - 03 AND ALLOWED THE APPEAL OF ASSESSEE. THE SAME ISSUE WAS INVOLVED IN AY 2003 - 04 2004 - 05 AND 2005 - 06 WHERE THE ITAT GRANTED RELIEF TO THE ASSESSEE. HOWEVER THE DEPARTMENT DID NOT ACCEPT SAME AND APPEAL U / S 260A WAS FILED FOR ALL THESE AYS ON THIS ISSUE. 3. ON THE FACTS AND IN CIRCUMSTANCES THE CASE AND IN LAW THE LD. CIT(A) ERRED I N ALLO W ING EXPENSES OF RS.21 15 725/ - AS BUSINESS EXPENDITURE WITHOUT APPRECIATING THAT A.O HAD COMPUTED THE INCOME UNDER THE HEAD 'INCOME FROM HOUSE PROPERTY' BASED ON THE HON'BLE SUPREME COURT'S DECISION IN CIT VS SHAMBHU INVESTMENT P. LTD. 263 ITR 143. 3 . S O FAR AS GRIEVANCE RAISED VIDE GROUND NO.1 IS CONCERNED THE CIT(A) HAS FOLLOWED THE DECISION OF ITS PREDECESSOR IN ASSESSEES OWN CASE OF A.Y.2003 - 04 2004 - 05 & 2005 - 06 WHICH HAVE BEEN CONFIRMED BY THE TRIBUNAL. 3.1 WE HAVE CAREFULLY PERUSED THE GRIEVAN CE OF THE REVENUE. WE FIND THAT THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2003 - 04 IN ITA NO.5134/M/2007 FOR A.Y. 2004 - 05 IN ITA NO.1611/M/2008 AND FOR A.Y. 2005 - 06 IN ITA NO.4730/M/2008 HAS HELD THAT THE RENT AND COMPENSATION RECEIVED BY THE ASSESSEE IS TO BE TAXED AS INCOME FROM BUSINESS. SINCE THE CIT(A) HAS FOLLOWED THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE (SUPRA) THEREFORE WE DO NOT FIND ANY MERIT IN THIS GRIEVANCE OF THE REVENUE. GROUND NO.1 IS ACCORDINGLY DISMISSED. 4 . GROUND NO. 2 RELATES TO DELETION OF THE ADDITION OF RS. 7 85 330/ - REGARDING DISALLOWANCE OF INTEREST ON SHOPS DEPOSITS. ITA NO. 437 1 / 1 2 3 4.1 THE CIT(A) HAS CONSIDERED THIS ISSUE IN PARA 4 OF PAGE 2 OF HIS ORDER AND IN PARA S 4.1 & 4.2 HAS FOLLOWED THE DECISION OF THE TRIBUNAL IN ASS ESSEES OWN CASE FOR EARLIER ASSESSMENT YEAR. 4.2 WE FIND THAT THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2003 - 04 IN ITA NO. 5134/M/2003 HAS CONSIDERED THE SIMILAR ISSUE IN PARA 5 AT PAGE 3 OF ITS ORDER AND IN PARA 7 HAS HELD THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARLIER YEAR IN ITA NO.5415/B/94 DATED 27 - 5 - 2002 . A S THE CIT(A) HAS FOLLOWED THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR EARLIER ASSESSMENT YEAR HENCE WE DO NOT FIND ANY REASON TO INTERFERE WITH THE FINDINGS OF THE CIT(A). GROUND NO. 2 IS ACCORDINGLY DISMISSED. 5 . THE THIRD GRIEVANCE OF THE REVENUE RELATES TO DELETION OF THE ADDITION AT RS. 21 15 725/ - . 5.1 THIS ISSUE HAS BEEN CONSIDERED BY THE CIT(A) IN PARA 6.1 AND 6.2 OF HIS ORDER WHEREIN THE CIT(A) HAS FOLLOWED THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR EARLIER ASSESSMENT YEAR. 5.2 WE FIND THAT THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.YS. 2003 - 04 2004 - 05 & 2005 - 06 HAS DECIDED THIS I SSUE IN FAVOUR OF THE ASSESSEE VIDE ITA NO S . 5134/M/2007 1611/M/2008 AND 4730/M/2008 RESPECTIVELY. AS THE CIT(A) HAS FOLLOWED THE FINDINGS OF THE TRIBUNAL IN ASSESSEES OWN CASE THEREFORE NO INTERFERENCE IS CALLED FOR. G ROUND NO. 3 IS ACCORDINGLY DISMIS SED. ITA NO. 437 1 / 1 2 4 6 . RESULTANTLY THE APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 30/10 / 2013 . SD/ - ( ) ( H.L.KARWA ) SD/ - ( ) ( N.K.BILLAIYA ) / PRESIDENT / ACCOUNTANT MEMBER MUMBAI ; DATED : 30/10/ 2013 /PKM PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) MUMBAI. 4. / CIT 5. / DR ITAT MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER ( ASSTT. REGISTRAR) / ITAT MUMBAI