CIT v. Ansal Housing Finance & Leasing Co. Ltd.

DCIT Central Circle-2(4), Mumbai vs. Rustomjee Evershine Joint Venture, Mumbai

In the result, the appeals filed by the revenue for AY 2013-14 &

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.1349/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Dcit, Central Circle-2(4) बिधम/ Rustomjee Evershine Room No. 802, 8Th Floor, Joint Venture Vs. Prathishtha Bhavan, M. K. Global City, Narangi Road, Churchgate, Mumbai- Bypass Road, Close To 400020. Viva College, Virar (W), Virar-401303. Cross Objection No. 27/Mum/2023 Arising Out Of I.T.A. No.1349/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Rustomjee Evershine Joint बिधम/ Dcit, Central Circle-2(4) Room No. 802, 8Th Floor, Venture Vs. Global City, Narangi Prathishtha Bhavan, M. K. Bypass Road, Close To Viva Road, Churchgate, College, Virar (W), Virar- Mumbai-400020. 401303. आयकर अपील सं/ I.T.A. Nos.1824 & 1825/Mum/2022 (निर्धारण वर्ा / Assessment Years: 2016-17 & 2014-15) Dcit, Central Circle-2(4) बिधम/ Rustomjee Evershine Room No. 802, 8Th Floor, Joint Venture Vs. Prathishtha Bhavan, M. K. Global City, Narangi Road, Churchgate, Mumbai- Bypass Road, Close To 400020. Viva College, Virar (W), Virar-401303. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaaar7687M (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Naresh Kumar Revenue By: Shri P. D. Chougule (Addl. Cit) सुनवाई की तारीख / Date Of Hearing: 25/05/2023 घोषणा की तारीख /Date Of Pronouncement: 31/07/2023

…of the Hon’ble Gujarat High Court is distinguishable and not applicable in the facts/issue of the present case. However, on this issue there is a direct decision of Hon’ble Delhi High Court in the case of Ansal Housing Finance and Leasing Company reported in 354 ITR 180 (DEL) wherein it was held that the vacant units in the possession of assessee are liable to be charged under the head “Income from House Property” on the basis of its ALV. And, we note that similar issue had come up for consideration before this Tribunal in the case of DCIT Vs. M/s. Inorbit Malls Pvt. Ltd. in ITA. No.2220/Mum/2021 for AY.2017-18…

DCIT Central Circle-2(4), Mumbai vs. Rustomjee Evershine Joint Venture, Mumbai

In the result, the appeals filed by the revenue for AY 2013-14 &

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.1349/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Dcit, Central Circle-2(4) बिधम/ Rustomjee Evershine Room No. 802, 8Th Floor, Joint Venture Vs. Prathishtha Bhavan, M. K. Global City, Narangi Road, Churchgate, Mumbai- Bypass Road, Close To 400020. Viva College, Virar (W), Virar-401303. Cross Objection No. 27/Mum/2023 Arising Out Of I.T.A. No.1349/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Rustomjee Evershine Joint बिधम/ Dcit, Central Circle-2(4) Room No. 802, 8Th Floor, Venture Vs. Global City, Narangi Prathishtha Bhavan, M. K. Bypass Road, Close To Viva Road, Churchgate, College, Virar (W), Virar- Mumbai-400020. 401303. आयकर अपील सं/ I.T.A. Nos.1824 & 1825/Mum/2022 (निर्धारण वर्ा / Assessment Years: 2016-17 & 2014-15) Dcit, Central Circle-2(4) बिधम/ Rustomjee Evershine Room No. 802, 8Th Floor, Joint Venture Vs. Prathishtha Bhavan, M. K. Global City, Narangi Road, Churchgate, Mumbai- Bypass Road, Close To 400020. Viva College, Virar (W), Virar-401303. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaaar7687M (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Naresh Kumar Revenue By: Shri P. D. Chougule (Addl. Cit) सुनवाई की तारीख / Date Of Hearing: 25/05/2023 घोषणा की तारीख /Date Of Pronouncement: 31/07/2023

…of the Hon’ble Gujarat High Court is distinguishable and not applicable in the facts/issue of the present case. However, on this issue there is a direct decision of Hon’ble Delhi High Court in the case of Ansal Housing Finance and Leasing Company reported in 354 ITR 180 (DEL) wherein it was held that the vacant units in the possession of assessee are liable to be charged under the head “Income from House Property” on the basis of its ALV. And, we note that similar issue had come up for consideration before this Tribunal in the case of DCIT Vs. M/s. Inorbit Malls Pvt. Ltd. in ITA. No.2220/Mum/2021 for AY.2017-18…

DCIT Central Circel-2(4), Mumbai vs. Rustomji Evershine Joint Venture, Mumbai

In the result, the appeals filed by the revenue for AY 2013-14 &

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.1349/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Dcit, Central Circle-2(4) बिधम/ Rustomjee Evershine Room No. 802, 8Th Floor, Joint Venture Vs. Prathishtha Bhavan, M. K. Global City, Narangi Road, Churchgate, Mumbai- Bypass Road, Close To 400020. Viva College, Virar (W), Virar-401303. Cross Objection No. 27/Mum/2023 Arising Out Of I.T.A. No.1349/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Rustomjee Evershine Joint बिधम/ Dcit, Central Circle-2(4) Room No. 802, 8Th Floor, Venture Vs. Global City, Narangi Prathishtha Bhavan, M. K. Bypass Road, Close To Viva Road, Churchgate, College, Virar (W), Virar- Mumbai-400020. 401303. आयकर अपील सं/ I.T.A. Nos.1824 & 1825/Mum/2022 (निर्धारण वर्ा / Assessment Years: 2016-17 & 2014-15) Dcit, Central Circle-2(4) बिधम/ Rustomjee Evershine Room No. 802, 8Th Floor, Joint Venture Vs. Prathishtha Bhavan, M. K. Global City, Narangi Road, Churchgate, Mumbai- Bypass Road, Close To 400020. Viva College, Virar (W), Virar-401303. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaaar7687M (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Naresh Kumar Revenue By: Shri P. D. Chougule (Addl. Cit) सुनवाई की तारीख / Date Of Hearing: 25/05/2023 घोषणा की तारीख /Date Of Pronouncement: 31/07/2023

…of the Hon’ble Gujarat High Court is distinguishable and not applicable in the facts/issue of the present case. However, on this issue there is a direct decision of Hon’ble Delhi High Court in the case of Ansal Housing Finance and Leasing Company reported in 354 ITR 180 (DEL) wherein it was held that the vacant units in the possession of assessee are liable to be charged under the head “Income from House Property” on the basis of its ALV. And, we note that similar issue had come up for consideration before this Tribunal in the case of DCIT Vs. M/s. Inorbit Malls Pvt. Ltd. in ITA. No.2220/Mum/2021 for AY.2017-18…

Deputy Commissioner of Income Tax - Central Circle 2(4), Mumbai vs. Keystone Realtors Private Limited, Mumbai

In the result, appeal of the Revenue in ITA No

Bench: Shri Vikas Awasthy & Shri Gagan Goyalआअसं.1807/मुं/ 2022 एवं 1808/मुं/ 2022 ("न.व.2016-17 एवं 2017-18)

…und No.3 of appeal, the ld. Departmental Representative submits that the issue is squarely covered by the decision of Hon'ble Delhi High Court in the case of CIT vs. Ansal Housing and Construction, 389 ITR 373 and CIT vs. Ansal Housing Finance & Leasing Ltd., 354 ITR 180. She further submits that section 23 of the Act has been amended by the Finance Act, 2017 w.e.f. 01/04/2018, whereby sub-section(5) was inserted. As per the amended section relief from annual deemed rent in respect of closing stock of unsold flats where occupancy certificate is issued is only for a limited period of one year from the end of the F…

Dy CIT CC 2(4), Mumbai vs. Keystone Realtors Pvt Ltd., Mumbai

In the result, appeal of the Revenue in ITA No

Bench: Shri Vikas Awasthy & Shri Gagan Goyalआअसं.1807/मुं/ 2022 एवं 1808/मुं/ 2022 ("न.व.2016-17 एवं 2017-18)

…und No.3 of appeal, the ld. Departmental Representative submits that the issue is squarely covered by the decision of Hon'ble Delhi High Court in the case of CIT vs. Ansal Housing and Construction, 389 ITR 373 and CIT vs. Ansal Housing Finance & Leasing Ltd., 354 ITR 180. She further submits that section 23 of the Act has been amended by the Finance Act, 2017 w.e.f. 01/04/2018, whereby sub-section(5) was inserted. As per the amended section relief from annual deemed rent in respect of closing stock of unsold flats where occupancy certificate is issued is only for a limited period of one year from the end of the F…

Nahalchand Laloochand Pvt. Ltd, Mumbai vs. Dy.Comm of Income Tax, Circle 5(2) (1), Mumbai

In the result, this Appeal is partly allowed, for statistical purposes”

…ncome as was claimed by the Ld. A/R of the appellant company in this case. As rightly pointed out by the Ld. AO in page no 3 of the impugned Assessment Order dated 22.12.2019; the famous landmark cases that can be referred to, in this regard, are as under: 1. 354 ITR 180 (Delhi) in case of M/s. Ansal Housing Finance & Leasing Co. Ltd. 2. 377 ITR 165 (Bombay) in case of M/s. Sane & Doshi Enterprises 5.1.6 Now in light of entire discussion made supra from sub-para no. 5.1 to 5.1.5, it is clear that this is totally a matter of verification and which the Ld. A.O. is directed to undertake 6 ITA. No. 1661/Mum/2022 Ass…

Modern Abodes Pvt Ltd, Mumbai vs. ITO Ward 12(3)(4), Mumbai

In the result, appeal filed by the assessee is allowed

Bench: Shri Kuldip Singh, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blemodern Abodes Pvt. Ltd., V. Income Tax Officer – 12(3)(4) C/O. Gulabani & Co. Room No. 148, Aayakar Bhavan M.K. Road, Mumbai - 400020 506, 5Th Floor Shree Prasad House 35Th Road, Off. Linking Road Bandra (W), Mumbai - 400050 Pan: Aagcm1595B (Appellant) (Respondent) Assessee Represented By : Ms. Neelam Jadhav Shri Ashish Kumar Deharia Department Represented By :

…ngalows were its stock-in- trade, from which no income could be taxed under the 15 Modern Abodes Pvt. Ltd., head 'Income from house property'. Relying on judgment of the Hon'ble Delhi High Court in CIT Vs. Ansal Housing Finance and Leasing Company Ltd. (2013) 354 ITR 180 (Del), the AO computed the annual letting value of the unsold flats u/s.23 of the Income-tax Act, 1961 (hereinafter also called `the Act') at Rs.1,47,65,688/- and made addition for the same. The ld. CIT(A) echoed the addition, against which the assessee has approached the Tribunal. 3. We have heard the rival submissions through Virtual Court and…

M/S. Dhirajlal Amichand Shah & Others, Mumbai vs. Principal Commissioner of Income Tax, -27, Mumbai

In the result, the appeal of the assessee is allowed

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.997/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2017-18) M/S. Dhirajlal Amichand Pcit-27, Mumbai बिधम/ Shah & Others Room No. 401, 4Th Floor, Vs. C-06 Apmc Market I, Tower No. 6, Vashi Masala Bazar, Phase Ii, Railway Station Vashi, Navi Mumbai- Commercial Complex, 400705. Vashi, Navi Mumbai- 4000703. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aarfa4544L (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Dharan Gandhi Revenue By: Shri S. H. Usmani (Dr) सुनवाई की तारीख / Date Of Hearing: 25/11/2022 घोषणा की तारीख /Date Of Pronouncement: 03/02/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Principal Commissioner Of Income Tax-27, [Hereinafter Referred To As The “Pcit”], Mumbai Dated 10.03.2022 For Assessment Year 2017-18 Passed Under Section 263 Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”).

…3(3) of the Act dated 24.04.2019 was erroneous as well as prejudicial to the revenue. And after hearing the assessee, the Ld. PCIT after citing the decision of the Hon’ble Delhi High Court in the case of CIT Vs. Ansal Housing Finance and Leasing Company Ltd. (354 ITR 180) was pleased to hold that the assessment order of the AO to be erroneous as well as prejudicial to the revenue and directed the AO to frame fresh assessment by taxing the annual value of the property/un-sold flats forming part of the closing stock under the head “income from house property”. This impugned action of the Ld. PCIT has been assailed…

Ravi Developments, Mumbai vs. PCIT(Central), Pune, Mumbai

In the result, the appeal by the assessee is partly allowed

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

…closing stock appearing in the books of accounts of the assessee, the annual letting value of the completed stock was not added to the income of the assessee in the light of the decision of Hon’ble Delhi High Court in Ansal Housing Finance and Leasing Co Ltd 354 ITR 180. It was also alleged that no enquiries were carried out by the AO in the course of assessment proceedings on this issue. The learned PCIT also alleged that the assessee has debited the amount towards loss on the sale of car, and towards TDS interest and penalty in the profit and loss account during the year under consideration. However, these exp…

Nms Entrprises, Mumbai vs. Pr CIT -27, Mumbai

In the result, the appeal filed by the assessee is allowed

Bench: Shri Prashant Maharishi & Shir Pavan Kumar Gadalenms Enterprises Vs. Pr. Cit – 27, Shop No. 1 & 2, Plot Room No. 401, 4Th No. 9, Sector No. 34, Floor, Tower No. 6, Kamothe, Vashi Rly Stn Navi Mumbai-410209 Commercial Complex, Navi Mumbai -400703 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aahfn9167A Appellant .. Respondent Appellant By : Shri. Subodh Ratnaparkhi.Ar Respondent By : Dr. Mahesh Akhade.Cit Dr Date Of Hearing 19.01.2023 Date Of Pronouncement 25.01.2023 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Assessee Has Filed The Appeal Against The Order Of The Pr. Commissioner Of Income Tax (Pr.Cit)-27, Mumbai, Passed U/S 143(3) Of The Act. The Assessee Has Raised The Fallowing Grounds Of Appeal:

…s taxable under the head income from house property in the A.Y 2017- 18 and the AO has not considered these facts and excluded and Pr. CIT has relied on the decision of the Hon’ble Delhi HC in the case of CIT Vs. Ansal Housing Finance and Leasing Company Ltd (354 ITR 180). Finally the Pr. CIT has dealt on the provisions of Sec. 263 and explanation (2) and issued the directions to the AO as under: 6. As while making the assessment u/s 143(3) for the Assessment Year 2017-18 (Assessment order dated 09.05.2019) the AO has failed to tax the annual value of the property forming part of the closing stock, under the hea…

Prashasti Enterprises, Mumbai vs. PCIT (Central Mumbai, Mumbai

Appeal of the assessee is allowed

Bench: Shri Vikas Awasthy & Shri M. Balaganesh आअसं. 1397/मुं/ 2022 ("न.व. 2017-18) Prashasti Enterprise, 4, Bhoomi Garden, Mahavir Nagar, Kanidvali (W), Mumbai 400 067. Pan: Aabap-2414-R ...... अपीलाथ" /Appellant बनाम Vs. Principal Commissioner Of Income Tax, (Central) Mumbai -3, Room No.1901, 19Th Floor, Air India Building, Nariman Point, Mumbai 400 021 ..... ""तवाद"/Respondent अपीलाथ" "वारा/ Appellant By : Shri Mahavir Jain ""तवाद" "वारा/Respondent By : Shri Jayant Jhaveri सुनवाई क" "त"थ/ Date Of Hearing : 11/10/2022 घोषणा क" "त"थ/ Date Of Pronouncement : 06/01/2023 आदेश/ Order

…ive for the assessee further submits that the Assessing Officer has taken one of the possible view, which is duly 3 supported by the decision of Tribunal. The PCIT has followed the decision in the case of CIT vs. Ansal Housing Finance & Leasing Company Ltd., 354 ITR 180 (Del). It is a settled law that where two views are possible and the Assessing Officer has taken one of the possible view, the PCIT cannot invoke revisionary powers merely for the reason that the view taken by Assessing Officer is contrary to the view of PCIT. 4. Per contra, Shri Jayant Jhaveri representing the Department vehemently defended the…

Bhagawati Abhilsha Conventure, Mumbai vs. Principal Commissioner of Income Tax, Mumbai

In the result, appeal filed by the assessee is dismissed

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blebhagwati Abhilsha Conventure V. Pr. Cit – Mumbai – 17 A/35, Patil Bhuvan, N.S.B. Road 120, 1St Floor, Kautilya Bhavan Mulund (W), Mumbai - 400080 Avenue-3, Near Videsh Bhavan Bandra Kurla Complex Pan: Aahfb9198D Bandra(E), Mumbai – 400051 (Appellant) (Respondent) Assessee Represented By : Shri M. Subramanian Department Represented By : Dr. Mahesh Akhade

…i Housing Development Pvt. Ltd., (supra) in which the Coordinate Bench has decided the issue on notional rent of unsold closing stock of the builders in which they have considered the decision of the CIT v. Ansal Housing Finance and Leasing Company Ltd (2013) 354 ITR 180 (Del.) as well as CIT v. Neha Builder (2008) 296 ITR 661 (Guj.) and decided the issue in favour of the assessee. There they have analysed the applicability of the decision of CIT v. Ansal Housing 11 Bhagwati Abhilsha Conventure Finance and Leasing Company Ltd (supra) and decided that the decision of CIT v. Ansal Housing finance and Leasing Compa…

Sahana Builders Developers Private Limited, Mumbai vs. CIT(A) 52, Mumbai

In the result, appeal filed by assessee is partly allowed for statistical purposes

Bench: Shri Kuldip Singh & Shri Gagan Goyalm/S Sahana Builders & Developers Pvt. Ltd., 402, Plot No.54, Sagar Avenue, S.V. Road, Andheri (West), Mumbai-400058. Pan: Aahcs4782P ...... Appellant Vs. Cit(A)-52, 6Th Floor, Aayakar Bhavan, M.K. Marg, Mumbai-400020. ..... Respondent Dy.Cit-4(2), Room No. 1918, 19Th Floor, Air India Building, Nariman Point, Mumbai-400021. ..... Appellant Vs. M/S Sahana Builders & Developers Pvt. Ltd., 402, Plot No.54B, Junction Of S.V. Road & Lallubhai Park, Andheri (West), Mumbai-400058. Pan: Aahcs4782P ...... Respondent Appellant/Assessee By : Sh. Amit Bothra & Ms. Manish Chandak, Ar Respondent/Revenue By : Sh. Soumendu Kumar Dash- Sr. Dr M/S Sahana Builders & Developers Pvt. Ltd. Date Of Hearing : 14/09/2022 Date Of Pronouncement : 12/12/2022 Order Per Gagan Goyal, A.M:

…on of the Hon'ble Apex court in the case of S. G. Mercantile Corpn. (P) Ltd v/s M/s Sahana Builders & Developers Pvt. Ltd. C.I.T. AIR 1972 SC 732 and the decision of Hon'ble Delhi High Court in the case of CIT v/s Ansal Housing Finance & Leasing Company Ltd. 354 ITR 180.” 2. In ITA No. 2217/Mum/2021- the assessee has raised the following grounds of appeal: “1. THAT the learned Commissioner of Income Tax (Appeals) has erred in law as well as under the circumstances of the case in disallowing interest u/s 36(i)(iii) and/or u/s 37(1) of the Income tax Act, 1961 amounting to Rs 4,68,945/-. 2. THAT the Commissioner o…