PRAFULLA RAM MARFATIA ( EXECUTOR RAM C MARFATIA), MUMBAI v. ITO 4(2)(2), MUMBAI

ITA 4708/MUM/2010 | 2006-2007
Pronouncement Date: 25-07-2011 | Result: Allowed

Appeal Details

RSA Number 470819914 RSA 2010
Assessee PAN AAUPM0102F
Bench Mumbai
Appeal Number ITA 4708/MUM/2010
Duration Of Justice 1 year(s) 1 month(s) 17 day(s)
Appellant PRAFULLA RAM MARFATIA ( EXECUTOR RAM C MARFATIA), MUMBAI
Respondent ITO 4(2)(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 25-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 25-07-2011
Date Of Final Hearing 25-07-2011
Next Hearing Date 25-07-2011
Assessment Year 2006-2007
Appeal Filed On 07-06-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH D : MUMBAI BEFORE SHRI D. MANMOHAN (VICE PRESIDENT) AND SHRI RAJENDRA SINGH (ACCOUNTANT MEMBER) ITA NO.4708/MUM/2010 ASSESSMENT YEAR : 2006-07 PRAFULLA RAM MARFATIA (EXECUTOR RAM C. MARFATIA) 821 P.J. TOWER DALA STREET FORT MUMBAI-400 023. ..( APPELLANT ) P.A. NO. (AAUPM 0102 F) VS. INCOME TAX OFFICER WARD 4(2)(2) 6 TH FLOOR AAYAKAR BHAVAN M.K. MARG MUMBAI-400 020. ..( RESPONDENT ) APPELLANT BY : SHRI R.S. CHOKSHI RESPONDENT BY : SHRI AL EXANDER CHANDY DATE OF HEARING : 25.7.2011 DATE OF PRONOUNCEMENT : 25 TH JULY 2011 O R D E R PER RAJENDRA SINGH (AM). THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 23.4.2010 OF CIT(A) FOR THE ASSESSMENT YEAR 2006-0 7. THE ASSESSEE IN THIS APPEAL HAS RAISED DISPUTES IN RELATION TO DISALLOWA NCE OF KEYMAN INSURANCE PREMIUM ADDITION ON ACCOUNT OF HOUSE PROPERTY AND DISALLOWANCE OF EXPENSES UNDER SECTION 14A. ITA NO.4708/M/10 A.Y:06-07 2 2. THE AO HAD DISALLOWED THE KEYMAN INSURANCE PREMI UM ON THE POLICIES TAKEN BY THE ASSESSEE IN THE NAME OF TWO EMPLOYEES ON THE GROUND THAT PROPOSER OF THE POLICY WAS M/S. RCM SHARES & STOCK BROKERS PVT. LTD. AND NOT THE ASSESSEE. THE BENEFIT THUS WOULD GO TO M/S . RCM SHARES & STOCK BROKERS PVT. LTD. AND THEREFORE HE DID NOT ALLOW T HE CLAIM. THE AO ALSO MADE THE ADDITION ON ACCOUNT OF HOUSE PROPERTY INCO ME. THE ASSESSEE HAD SHOWN THE ANNUAL VALUE AT RS.1225/- ON THE BASIS OF MUNICIPAL RATABLE VALUE. AO HOWEVER DETERMINED THE ALV AT RS.1 20 000/- ON T HE BASIS OF COMPARATIVE CASE IN THE SAME SOCIETY AND COMPUTED H OUSE PROPERTY ACCORDINGLY. THE AO HAD ALSO DISALLOWED EXPENSES I N RELATION TO EXEMPT INCOME UNDER SECTION 14A OF THE ACT. ALL THESE ADD ITIONS WERE DISPUTED BY THE ASSESSEE BEFORE THE CIT(A) WHO BY THE IMPUGNED ORDER HAD CONFIRMED THE ADDITIONS FOLLOWING THE DECISION TAKEN IN ASSES SMENT YEAR 2005-06. AGGRIEVED BY THE SAID DECISION THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 3. WE HAVE HEARD BOTH THE PARTIES IN THE MATTER. W E FIND THAT IDENTICAL ISSUES HAD ARISEN IN ASSESSMENT YEAR 2005-06 IN WHI CH YEAR ALSO CIT(A) HAD CONFIRMED THE ADDITIONS MADE ON ACCOUNT OF KEYMAN I NSURANCE PREMIUM HOUSE PROPERTY INCOME AND DISALLOWANCE OF EXPENSES UNDER SECTION 14A. THE TRIBUNAL VIDE ORDER DATED 31.12.2020 IN ITA NO.4274 /M/09 AND ITA NO.394/M/10 FOR ASSESSMENT YEAR 2005-06 HAD SET ASI DE THE ORDER OF CIT(A) AND RESTORED THE MATTER BACK TO HIM FOR PASS ING A FRESH ORDER AFTER NECESSARY EXAMINATION. THIS YEAR ALSO CIT(A) HAS C ONFIRMED THE ADDITION FOLLOWING THE ORDER IN ASSESSMENT YEAR 2005-06 WHIC H AS MENTIONED ABOVE ITA NO.4708/M/10 A.Y:06-07 3 HAS BEEN SET ASIDE BY THE TRIBUNAL. WE THEREFORE SET ASIDE THE ORDER OF CIT(A) IN THIS YEAR ALSO AND RESTORE THE ISSUES BAC K TO CIT(A) FOR PASSING A FRESH ORDER AFTER NECESSARY EXAMINATION IN THE LIGH T OF THE DECISION TAKEN IN ASSESSMENT YEAR 2005-06 AND AFTER ALLOWING OPPORTUN ITY OF HEARING TO THE ASSESSEE. 4. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25.7.2011. SD/- SD/- (D. MANMOHAN) (RAJENDRA SINGH) VICE PRESIDENT ACCOUNTANT MEMBER MUMBAI DATED: 25.7.2011. 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.