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Income Tax Appellate Tribunal, “SMC”, BENCH
Before: SHRI R.C.SHARMA, AM & SHRI VIKAS AWASTHY, JM
IN THE INCOME TAX APPELLATE TRIBUNAL “SMC”, BENCH MUMBAI
BEFORE SHRI R.C.SHARMA, AM & SHRI VIKAS AWASTHY, JM
ITA No. 6336/Mum/2018 (Assessment Year: 2010-11) Malvikaben Sanjivbhai Vs. A.C.I.T.-2(3)(1), Room No. 552, 5th Floor, Taktawala, H-801, One North, Near Aayakar Bhavan, M.K. Road, Magarpatta Township, Mumbai-400020. Hadapsar, Pune-411028. PAN/GIR No.AACPT 4306 J (Appellant) .. (Respondent)
Assessee by Shri Himanshu Gandhi (AR) Revenue by Shri Kumar Padmapani Bora (Sr.DR) Date of Hearing 03/12/2019 Date of Pronouncement 12/12/2019 आदेश / O R D E R
PER: R.C. SHARMA, A.M. This is the appeal filed by the assessee against the order of the ld.
CIT(A)-6, Mumbai dated 21/08/2018 for the A.Y. 2010-11 in the matter
of order passed U/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short, the Act).
The grievance of the assessee relates to declining claim of
deduction U/s 24(a) of the Act in respect of income from house property
and also for adding a sum of Rs. 3,65,117/- in respect of payment made
by credit card.
2 ITA No. 6336/Mum/2018 Malvikaben Sanjivbhai Taktawala Vs ACIT 3. Rival contentions have been heard and record perused. Facts in
brief are that the assessee is a widow lady having income from property
and interest income. For the A.Y. under consideration, the A.O. reopened
the assessment on the ground that the assessee had made payment of
Rs. 3,65,117/- against credit card. In reply to notice issued U/s 148, the
assessee filed her return of income declaring total income of Rs.
7,37,722/- as under:
Income Gross Net Income Rent Income under House Property 611250 Less: 30% Standard Deduction (183375) 427875 Interest Income 309847 309847 Total Income 737722 4. However, the A.O. ignored the return of income and added the
entire rental income of Rs. 6,11,250/- and interest income of Rs.
2,97,291/- as reported in AIR Report (26AS), as income from other
sources and denied the deduction U/s 24(a) against the house property
income.
From the record we found that even in 26AS and AIR report also
receipts were reported as from rent. Accordingly, the assessee is eligible
for deduction U/s 24(a) of the Act in respect of standard deduction
against the income from house property, therefore, we direct the A.O. to
allow standard deduction of Rs. 1,83,375/- to the assessee and to assess
income from rent under the head “income from house property”. From
the record we also found that in the A.Y. 2011-12 also rental income was
3 ITA No. 6336/Mum/2018 Malvikaben Sanjivbhai Taktawala Vs ACIT offered from the very same property and the A.O. has allowed standard
deduction u/s 24(a) of the Act. Accordingly, we direct the A.O. to allow
standard deduction to the assessee. So far as the interest income is
concerned, the A.O. was correct in assessing the same as “income from
other sources”.
The A.O. also made addition in respect of credit card payment of
Rs. 3,65,117/-. From the record we found that the assessee has declared
following income during the earlier and current years:
A.Y. Gross Total Income 2008-09 17,88,209 2009-10 21,44,466 2010-11 7,37,772 Total 46,70,477 It is clear that during the year under consideration, the assessee had
shown income of Rs. 7,37,772/- and the total income for the last three
years as shown by the assessee works out to be Rs.46,70,477/-. Thus,
the income declared by the assessee is sufficient to take care of credit
card payment. Considering totality of facts and circumstances of the
case, we direct the A.O. to allow credit card payment of Rs. 3,50,000/-.
We direct accordingly.
In the result, appeal of the assessee is allowed in part. Order pronounced in the open court on 12th December, 2019.
Sd/- Sd/- (VIKAS AWASTHY) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated 12/12/2019
4 ITA No. 6336/Mum/2018 Malvikaben Sanjivbhai Taktawala Vs ACIT *Ranjan 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. स�या�पत ��त //True Copy// BY ORDER,
(Asstt. Registrar) ITAT, Mumbai