TERENCE FERREIRA LEGAL HEIR OF LATE FRANCIS JOSEPH FERREIRA, MUMBAI v. ACIT 19(3), MUMBAI

ITA 737/MUM/2014 | 2006-2007
Pronouncement Date: 31-07-2015 | Result: Partly Allowed

Appeal Details

RSA Number 73719914 RSA 2014
Assessee PAN AAEPF5111F
Bench Mumbai
Appeal Number ITA 737/MUM/2014
Duration Of Justice 1 year(s) 6 month(s)
Appellant TERENCE FERREIRA LEGAL HEIR OF LATE FRANCIS JOSEPH FERREIRA, MUMBAI
Respondent ACIT 19(3), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2015
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted C
Tribunal Order Date 31-07-2015
Assessment Year 2006-2007
Appeal Filed On 31-01-2014
Judgment Text
TERENCE FERREIRA LEGAL HEIR OF LATE FRANCIS JOSEPH FERR EIRA ITA 737 /M/20 1 4 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C MUMBAI . BEFORE SHRI D KARUNAKARA RAO ACCOUNTANT MEMBER AND SHRI AMIT SHUK LA JUDICIAL MEMBER ITA NO. : 737 /MUM/20 1 4 (ASSESSMENT YEAR S : 200 6 - 0 7 ) TERENCE FERREIRA LEGAL HEIR OF LATE FRANCIS JOSEPH FERREIRA FLAT NO. 9 2 ND FLOOR PLOT NO. 17 - A ST MARTIN ROAD BANDRA (WEST) MUMBAI - 400 050 .: PAN : AA EPF 5111 F VS ACIT - 19(3) PIRAMAL CHAMBERS PAREL LAL BAGH MUMBAI - 400 012 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJESH S SHAH RESPONDENT BY : SHRI UDAYA BHASKAR JAKKE /DAT E OF HEARING : 1 3 - 0 7 - 2015 / DATE OF PRONOUNCEMENT : 31 - 07 - 2015 ORDER PER AMIT SHUKLA J.M. : TH E AFORESAID APPEAL HA S BEEN FILED BY THE ASSESSEE AGAINST IMPUGNED ORDER DATED 20.1 1.2013 PASSED BY CIT(A) - 30 MUMBAI FOR THE QUA NTUM OF ASSESSMENT PASSED U/S 143( 3 ) FOR THE ASSESSMENT YEAR 200 6 - 0 7 ON THE FOLLOWING GROUNDS OF APPEAL: 1 . ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) ERRED IN NOT ALLOWING COST OF INFLATION INDEX ON THE BASIS OF DATE OF ACQUI SITION AS ON 01.04.1981 SINCE THE DATE OF ACQUISITION IS TO BE TAKEN AS THAT OF ORIGINAL OWNER WHERE THE PROPERTY HAS BEEN ACQUIRED ON THE BASIS OF WILL. THE APPELLANT ACQUIRED THE PROPERTY FROM HIS FATHER. 2 . ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF BROKERAGE PAID OF RS. 42 000/ - THOUGH THE SAID AMOUNT HAS BEEN ALLOWED IN OTHER CO - OWNERS. THE EXPENDITURE WAS INCURRED FOR SALE OF PREMISES. TERENCE FERREIRA LEGAL HEIR OF LATE FRANCIS JOSEPH FERR EIRA ITA 737 /M/20 1 4 2 2. SO FAR AS THE ISSUE RAISED IN GROUND NO. 1 THAT THE DATE OF ACQUISITION AS ON 01.04.1981 SHOULD BE TAKEN AS THAT OF ORIGINAL OWNER WHERE THE PROPERTY HAS BEEN ACQUIRED ON THE BASIS OF WILL FROM HIS L ATE FATHER THE LD. COUNSEL SUBMITTED THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSES S EE BY THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS MANUJLA J SHAH REPORTED IN 355 ITR 474. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND ON PERUSAL OF MATERIAL ON RECORD IT IS SEEN THAT T HE ASSESSEE AND HIS FAMILY MEMBERS WERE CO - OWNERS OF A PIECE OF LAND IN VILLAGE VALANI MALAD TALUKA BORIVALI MUMBAI WHICH WAS ACQUIRED BY THEM FROM THEIR LATE FATHER (WHO DIED IN THE YEAR 1976) B HIM PRIOR TO 01.04.1981. THE SAID LAND WAS SOLD FOR RS. 1 26 00 000/ - ON 31.12.2005. THE ASSESSEE BEING 1/6 TH OWNER OF THE PROPERTY RECEIVED THE AMOUNT OF RS. 21 LAKHS. HOWEVER THE ASSESSING OFFICER NOTED THAT THE STAMP VALUATION AUTHORITIES HAD VALUED THE LAND AT RS. 25 44 64 000/ - . THE ASSESSING OFFICER APPLIED THE PROVISION OF SECTION 50C AND DETERMINED THE S ALE VALUE AS PER STAMP DUTY VALUATION. IN THE APPELLATE PROCEEDINGS AFTER CONSIDERING THE DVOS REPORT THE VALUE OF THE SAID LAND WAS DETERMINED AT RS. 2 99 82 656/ - AND LATER ON WAS SUBJECTED TO CERTAIN MODIFICATION. REGARDING COST OF ACQUISITION WE FIN D THAT LD. CIT(A) HAS NOT GIVEN ANY FINDING AT ALL . ACCORDINGLY WE DIRECT THE ASSESSING OFFICER TO APPLY PRINCIPLE/ RATIO LAID DOWN BY HONBLE BOMBAY HIGH COURT IN THE CASE OF MANJULA J SHAH ( SUPRA ) FOR THE PURPOSE OF DETERMINING THE COST OF ACQUISITION AND GRANT RELIEF. ACCORDINGLY THE GROUND NO.1 IS TREATED AS ALLOWED. 4. IN GROUND NO.2 THE ASSE S SEE HAS CHALLENGED THE ALLOWABILITY OF BROKERAGE EXPENSES OF RS. 42 000/ - WHICH HAS BEEN DISMISSED BY THE CIT(A) ON THE GROUND THAT NO DETAILS HAVE BEEN FURN ISHED WITH REGARD TO THE ALLOWABILITY OF SUCH BROKERAGE IN THE ASSESSMENT TERENCE FERREIRA LEGAL HEIR OF LATE FRANCIS JOSEPH FERR EIRA ITA 737 /M/20 1 4 3 ORDERS OF THE OTHER CO - OWNERS. THIS FACT HAS NOT BEEN REBUTTED BEFORE US THEREFORE THE SAID GROUND IS TREATED AS DISMISSED. 5 . IN THE RESULT APPEAL OF THE ASSESSEE IS PARTLY ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JU LY 2015. SD/ - SD/ - ( . ) ( ) ( D KARUNAKARA RAO ) ( AMIT SHUKLA ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI DATE: 31 ST JU LY 2015 / COPY TO: - 1 ) / THE APPELLANT. 2 ) / THE RESPONDENT. 3) THE CIT (A) - 30 MUMBAI 4 ) THE CIT 1 9 MUMBAI . 5 ) / THE D.R. C BENCH MUMBAI. 6 ) COPY TO GUARD FILE. / BY ORDER / / TRUE COPY / / / DY. / ASSTT. REGISTRAR I.T.A.T. MUMBAI * . . *CHAVAN SR.PS