DALU VASU HIRANANDANI,MUMBAI vs. ITO(IT)-2(2)(1), MUMBAI

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ITA 1850/MUM/2024Status: DisposedITAT Mumbai23 October 2024AY 2012-135 pages
AI SummaryWithdrawn

What did the Tribunal hold?

The Tribunal accepted the assessee's request for withdrawal of the appeal. The assessee had explained that the appeal was filed erroneously as a duplicate appeal before the D Bench, while the original appeal was already being heard by the H Bench. The physical submission of documents was mistakenly treated as a separate appeal. The Tribunal found considerable cogency in the assessee's application for withdrawal. Since the assessee sought to withdraw the appeal and the revenue did not object, the Tribunal dismissed the appeal as withdrawn. No specific finding was made on the merits of the grounds raised by the assessee regarding the validity of the section 147 notice or the disallowance of standard deduction.

What were the facts?

The assessee, Dalu Vasu Hiranandani, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai Bench 'D', challenging the order dated 13.02.2024 passed by the Commissioner of Income Tax (Appeals), 56, Mumbai. The appeal pertains to Assessment Year (AY) 2012-13. The grounds of appeal raised by the assessee concerned the validity of the notice under section 147 of the Income Tax Act, 1961, and the disallowance of standard deduction on income assessed under 'Income from Other Sources' instead of 'Income from House Property'. Subsequently, the assessee filed a letter dated 29.08.2024 praying for the withdrawal of the appeal, explaining that the physical submission of documents was erroneously treated as a separate appeal, leading to its listing before the D Bench, while the case was already being heard by the H Bench under a different appeal number. The Department did not object to the withdrawal.

What were the issues?

1. Whether the notice issued under section 147 of the Income Tax Act, 1961, for AY 2012-13 is valid, given that it was allegedly based on a change of opinion by the Assessing Officer without fresh material. 2. Whether the disallowance of standard deduction under section 24(a) of the Income Tax Act, 1961, on an income of Rs. 10,63,833, which was originally offered as Income from House Property but assessed under Income from Other Sources, was erroneous, and if the CIT(A) erred in confirming the addition of Rs. 3,19,150. Assessee's contentions: - The notice under section 147 was invalid as it was based on a change of opinion and lacked fresh material. - The disallowance of standard deduction was erroneous, and the CIT(A) wrongly confirmed the additions. Revenue's contentions: - The Department, represented by the Sr. D.R., did not raise any objection to the withdrawal of the appeal.

Which sections of the Income-tax Act were involved?

Section 250,Section 147,Section 24(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “D”, MUMBAI

Before: SHRI. BR BASKARAN & SHRI. RAJ KUMAR CHAUHAN

For Respondent: Smt. Mahita Nair
Pronounced: 23.10.2024

O R D E R PER RAJ KUMAR CHAUHAN (J.M.): 1. This appeal is filed by the appellant/assessee against the order dated 13.02.2024 of Learned Commissioner of Income Tax (Appeals), 56, Mumbai [hereinafter referred to

2.

The assessee is in appeal before us and has raised following grounds:

1. Ground 1:- Validity of Notice u/s 147 of the IT Act, 1961 does not hold ground because there is no fresh material on record that the assessing officer has obtained to warrant re-opening of the assessment. The notice for re-assessment proceedings u/s 147 of the IT Act, 1961, for AY 2012-13 was merely based on change of opinion of the learned assessing officer.

2. Ground 2:- Income of Rs. 10,63,833 was assessed under the head Income from Other Sources which formed part of Income from House Property in assesses original return of income and consequently standard deduction u/s 24a of the Income Tax Act 1961, was disallowed. The learned CIT (Appeals) has erroneously confirmed the additions made by the assessing officer amounting to Rs. 3,19,150 on account of such disallowance.

3. Assessee vide its letter dated 29.08.2024 prayed for withdrawal of appeal in A.Y.2012-13. For the sake of convenience, we are reproducing the contents of the said Application as under: - 1. “Our client had preferred an Appeal before Hon'ble Income Tax Appellate Tribunal against order passed Dalu Vasu Hiranandani; A.Y. 2012-13 by the Commissioner of Income Tax (Appeals) for AY 2012-13 on the ITAT E-Portal.

2. After the appeal was preferred online, the documents were physically submitted on 12-04-2024.

3. The hearing of the case was fixed for 16-07-2024 before the Hon'ble H Bench (Appeal number ITA 1788/MUM/2024), and on request, was adjourned by the Hon'ble Bench to 23-09-2024. This information was also duly updated on the online portal.

4. However, our client recently received an email indicating that the next hearing is scheduled for 04- 09-2024 under appeal number ITA 1850/MUM/2024 at D Bench.

5.

Upon enquiry at the Office of the Hon'ble Tribunal, we were informed that the physical submissions were erroneously treated as a separate appeal and hence was fixed for hearing before the Hon'ble D Bench under appeal number ITA 1850/MUM/2024.

6. Since the said case was being heard by the Hon'ble H Bench, we request that the duplicate, appeal number ITA 1850/MUM/2024 before the Hon'ble D Bench be withdrawn.”

4.

None appeared on behalf of the assessee. We have heard the Ld. DR on behalf of the revenue. The Ld. DR has not raised any objection to the withdrawal of this appeal.

Dalu Vasu Hiranandani; A.Y. 2012-13 5. We find considerable cogency in the contents of Assessee’s application as aforesaid. Keeping in view of the facts and circumstances of the case, we accept the request of the assessee for withdrawal of the Appeal and accordingly, we dismiss the Appeal as withdrawn.

6.

In the result, appeal filed by the assessee is dismissed as withdrawn.

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