Asst Cit Cen Cir 20, Mumbai vs Assessee
- CitationITA No.10/Mum/2014
Ratio decidendi
The rule this decision rests on
The Tribunal, following its own earlier decision in the assessee's case for assessment years 2001-02 to 2006-07 and 2008-09, which itself followed the Reclamation Realty India case and the higher-court authorities relied upon there, holds that where the rent actually received by the assessee exceeds the Municipal Ratable Value, the annual letting value for the purpose of Section 23(1)(a) is to be taken as the actual rent received, and an addition made by reference to a higher security deposit in computing that value is not sustainable. Where the facts and circumstances of the year under appeal are the same as those of the earlier years already decided in the assessee's favour, the earlier Tribunal decision on the same issue is binding and is followed, so the revenue's appeal on the same ground is dismissed.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
सर्वश्री आय.सी.शभमव, रेखम सदस्म एवुं सश्र ु ी सष ु भम चमर्रम, न्ममयमक सदस्म BEFORE SHRI R.C.SHARMA, AM & MS. SUSHMA CHOWLA, JM आमकय अऩीर सं./ITA No.10/Mum/2014 ( नििाारण वषा / Assessment Years :2010-11) ACIT Cen Cir-20, Vs. Everest Kanto Investment & Mumbai-20 Finance Ltd., 501, Raheja Centre, Free Press Journal Marg, Nariman Point, Mumbai-400021 स्थममी रेखम सं ./ जीआइआय सं ./ PAN/GIR No. : AAACE 4794 L (अऩीरमथी /Appellant) .. (प्रत्मथी / Respondent)
यमजस्र् की ओर से /Revenue by : Shri Neil Philip यनधमवरयती की ओर से /Assessee by : Shri Shekhar Gupta
सुनर्मई की तमयीख / Date of Hearing : 04/06/2015 घोषणम की तमयीख/Date of Pronouncement 04/06/2015
आदे श / O R D E R
PER R.C.SHARMA (A.M):
This is an appeal filed by the revenue against the order CIT(A), for
the assessment year 2010-11, in the matter of order passed u/s.143(3) of
the Income Tax Act.
2. In this appeal, the revenue is aggrieved for deleting the addition
made by the AO on account of higher security deposit taken by the
assessee, while calculating the annual letting value of the property in view
of the specific provisions of Section 23(1)(a) of the Act.
3. At the outset, ld. AR placed on record order of the Tribunal in
assessee's own case wherein consistently similar addition was deleted by 2 ITA No.10/14
the Tribunal in assessment year 2001-02 to 2006-07 and 2008-09. The
precise observation of the Tribunal for the Assessment Year 2001-02 to
2006-07 was as under :-
"In our opinion, the issue involved in the present case thus is squarely covered by the decision of co-ordinate Bench of this Tribunal in the case of Reclamation Realty India P. Ltd. (supra) which in turn has relied on and followed the judgments of the Hon'ble Apex Court and jurisdictional High Court on a similar issue and respectfully following the said judicial pronouncements, we reverse the impugned order of the Ld.CIT(A) on this issue and direct the AO to adopt the rent actually received by the assessee during A.Y. 2003-04 to 2006-07 as annual value of the property being more than the Municipal Ratable Value. The additions made by the AO and confirmed by the Ld.CIT(A) on this issue are accordingly deleted allowing ground no. 2 of the assessee's appeals for A.Y. 2003-04 to 2006-07."
4. As the facts and circumstances during the year under consideration
are same and the CIT(A) has also deleted the addition by following the
above decision of the Tribunal, respectfully following the order of the
Tribunal, we do not find any infirmity in the order of CIT(A).
5. In the result, appeal of the Revenue is dismissed.
Order pronounced in the open court on this 04/06/2015.
Sd/- Sd/- (सष ु भम चमर्रम) (आय.सी.शभमव) (SUSHMA CHOWLA) (R.C.SHARMA) न्यानयक सदस्य / JUDICIAL MEMBER ऱेखा सदस्य / ACCOUNTANT MEMBER भंफ ु ई Mumbai; ददनमंक Dated 04/06/2015 प्र.कु.मभ/pkm, यन.स/ PS
आदे श की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to :
1. अऩीरमथी / The Appellant
2. प्रत्मथी / The Respondent.
3. आमकय आमक् ु त(अऩीर) / The CIT(A), Mumbai.
4. आमकय आमुक्त / CIT
5. वर्बमगीम प्रयतयनधध, आमकय अऩीरीम अधधकयण, भुंफई / DR, ITAT, Mumbai
6. गमर्व पमईर / Guard file.
3 ITA No.10/14 सत्ममवऩत प्रयत //True Copy/ आदे शािसार/ BY ORDER,
उप/सहायक पुंजीकार (Asstt. Registrar) आयकर अपीऱीय अधिकरण, भुंफई / ITAT, Mumbai
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