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

Vijay Enterprises, Mumbai vs. DCIT 30(3), Mumbai

In the result the ground No

Bench: Shri Pawan Singh, Jm & Shri Rajesh Kumar, Am

…IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JM AND SHRI RAJESH KUMAR, AM ITA No.5550/Mum/2016 Assessment Year 2012-13 Vijay Enterprises Vs. DCIT - 30(3), C-13 6th Floor, Pratyakshakar Bhavan, Ground Floor, Eesha Kripa, Brahman Sabha Bandra Kurla Complex, Bandra Lane, Malad-(W) (E), Mumbai-400 051. Mumbai-400 064. PAN :AAAFV 2622 D (Appellant) .. (Respondent) Appellant by Shri Rajesh Kumar C. Gandhi Respondent by Shri Rajeev Gubgotra & Shri D.G. Pansari Sr DR’s Date of Hearing 26/04/2019 Date of Pronouncement 30/04 /2019 O R D E R Per Pawan Singh , Judicial Member: 1. This…

Haware Engineers & Builders P. Ltd, Navi Mumbai vs. DCIT CC-4(2), Mumbai

The appeal of the assessee is allowed in terms of our aforesaid observations

Bench: Shri Shamim Yahya & Shri Ravish Soodita Nos.282 & 283/Mum/2018 (Assessment Years: 2013 -14 & 2014 - 15) Haware Engineers & Builders Pvt. Ltd. Acit, Central Circle-4(2) 413/416 Vardhaman Market, Air India Building, 19Th Floor, Vs. Sector-17, Dbc, Vashi, Nariman Point, Navi Mumbai- 400 705 Mumbai – 400 021 Pan – Aaach2577C (Appellant) (Respondent)

…the unsold stock of completed flats/shops lying in the inventory. In the backdrop of the aforesaid facts, the A.O drawing support from the judgment of the Hon‟ble High Court of Delhi in the case of CIT Vs. Ansal Housing Financing & Leasing Company Ltd. (2013) 354 ITR 180 (Del) called upon the assessee to explain as to why the „Annual Lettable Value‟ (for short „ALV‟) of the unsold stock of completed units lying vacant with it may not be brought to tax under the head “Income from house property”. The explanation of the assessee that as the said units were held by it as stock-in-trade of its business of a real esta…

Kanakia Spaces Private Limited, Mumbai vs. Assistant Commissioner of Income Tax-Central Circle 4(1), Mumbai

In the result the grounds of appeal raised by the revenue are allowed for

Bench: Shri G.S. Pannu, Vice- & Shri Pawan Singh

…IN THE INCOME-TAX APPELLATE TRIBUNAL “H” BENCH MUMBAI BEFORE SHRI G.S. PANNU, VICE-PRESIDENT AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 7289/Mum/2017 (Assessment Year 2014-15) M/s Kanakia Spaces Pvt. Ltd., DCIT Central Circle-4(1) 215 Atrium, 10th Floor, Air India Building, Near Marriot Courtyard Hotel, 19th Floor, Nariman Point, Andheri-Kurla Road, Mumbai-21. Vs. Andheri (E), Mumbai-400093. PAN: AAACK2629J Appellant Respondent ITA No. 210/Mum/2018 (Assessment Year 2014-15) DCIT Central Circle-4(1) M/s Kanakia Spaces Pvt. Ltd., 215 Atrium, 10th Floor, Air India Building, 19th Floor, Nariman Point, Near Marrio…

M/S.3Nn Corporation, Mumbai vs. Pr.CIT-27, Mumbai

In the result, the appeal of assessee is allowed

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

…s/ shops completed and pending as unsold closing stock attracts ALV under section 23(1)(a) of the Act. According to PCIT, the issue is covered by the decision of Hon’ble Delhi High Court in the case of CIT vs. Ansal Housing Financing & Leasing Co. Ltd. [2013] 354 ITR 180 (Delhi). On this basis, the PCIT issued show cause notice and the relevant reads as under: - 3 “….2. On verification of the records for AY 2013- 14 it is seen that you have one residential project situated at Gram Panchayat Rahanal, Taluka Bhiwwandi, Distt. Thane. The Building, A, B and C was completed on 25.10.2012 as per the certificate obtain…

Makewaves Sea Resort Pvt. Ltd., Mumbai vs. DCIT Cent. Cir. 4(1), Mumbai

In the result, both the appeals filed by the assessee for assessment years 2013-14 and 2014-15 are allowed

Bench: Shri Rajesh Kumar (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2013-2014 Assessment Year: 2014-2015 Makewaves Sea Resort Pvt. Ltd., The Deputy Commissioner Of Construction House, ‘B’, 2Nd Floor, Income Tax, Central Circle – 4(1), 623, Linking Road, Khar (W), 19Th Floor, Air India Bldg., Mumbai - 400052 Vs. Nariman Point, Mumbai - 400021 Pan: Aaacm0673J (Appellant) (Respondent) Assessee By : Shri Sanjay B. Sawant (Ar) Revenue By : Shri D.G. Pansari (Dr) Date Of Hearing: 13/02/2019 Date Of Pronouncement: 20/03/2019

…e inventory under finished goods. Since, the stock of finished goods consisted of one flat of value amounting to Rs. 21,97,058/-, the AO relying on the decision of the Hon’ble Delhi High Court in the case of Ansal Housing Finance & Leasing Company Ltd. (2013) 354 ITR 180 held that the Annual Letting Value (ALV) of the said unsold unit is assessable as income from house property and asked the assessee to furnish its ALV. However, assessee did not provide the same. Accordingly, AO following the decision of the Hon’ble Allahabad High Court in the case of Radha Devi Dalmia 4 Taxmann 183, determined the value of the p…

Chamber Construction Private Limited, Mumbai vs. Deputy Commissioner of Income Tax Central Circle-3(3), Mumbai

In the result, both the appeals of assessee are allowed

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

…aracter of the stock and no income derived therefrom, whatever, income from business cannot be held as income from house property. Similarly, the opposite view is taken by Hon’ble Delhi High Court in the case of CIT v. Ansal Housing and Construction Ltd (2013)354 ITR 180 (Del). The learned Counsel for the assessee stated that the Tribunal particularly in the case of Chamber Construction Pvt. Ltd. vs. DCIT in ITA No. 4418/Mum/2017 ITAs No. 6901 & 6902/Mum/2017 vide order dated 30.11.2018 (in assessee’s own case for AY 2012-13) has considered this issue vide Para 7 to 10 as under: - “7. We have heard the authori…

Chamber Construction Private Limited, Mumbai vs. Deputy Commissioner of Income Tax Central Circle-3(3), Mumbai

In the result, both the appeals of assessee are allowed

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

…aracter of the stock and no income derived therefrom, whatever, income from business cannot be held as income from house property. Similarly, the opposite view is taken by Hon’ble Delhi High Court in the case of CIT v. Ansal Housing and Construction Ltd (2013)354 ITR 180 (Del). The learned Counsel for the assessee stated that the Tribunal particularly in the case of Chamber Construction Pvt. Ltd. vs. DCIT in ITA No. 4418/Mum/2017 ITAs No. 6901 & 6902/Mum/2017 vide order dated 30.11.2018 (in assessee’s own case for AY 2012-13) has considered this issue vide Para 7 to 10 as under: - “7. We have heard the authori…

DCIT Cen Cir 4(1) Cen RG 4, Mumbai vs. Oberoi Realty Ltd, Mumbai

Bench: Shri Sandeep Gosain () & Shri N.K. Pradhan () Assessment Year: 2012-13 Oberoi Realty Limited, The Deputy Commerz, 3Rd Floor, Vs. Commissioner Of Income International Business Tax, Central Circle-4(1), Park, Oberoi Garden City, Room No. 1916, Air Off Western Express India Building, Nariman Highway, Goregaon (East), Point, Mumbai-400021. Mumbai-400063. Pan No. Aabck0235H Appellant Respondent Assessment Year: 2012-13 The Deputy Commissioner Oberoi Realty Limited, Of Income Tax, Central Vs. Commerz, 3Rd Floor, Circle-4(1), Room No. International Business 1916, Air India Building, Park, Oberoi Garden Nariman Point, Mumbai- City, Off Western 400021. Express Highway, Goregaon (East), Mumbai-400063. Pan No. Aabck0235H Appellant Respondent Assessment Year: 2013-14 Oberoi Realty Limited, The Deputy Commerz, 3Rd Floor, Vs. Commissioner Of Income International Business Tax, Central Circle-4(1), Park, Oberoi Garden City, Room No. 1916, Air Off Western Express India Building, Nariman Highway, Goregaon (East), Point, Mumbai-400021. Mumbai-400063. Oberoi Realty Ltd. Pan No. Aabck0235H Appellant Respondent Assessment Year: 2013-14 The Deputy Commissioner Oberoi Realty Limited, Of Income Tax, Central Vs. Commerz, 3Rd Floor, Circle-4(1), Room No. International Business 1916, Air India Building, Park, Oberoi Garden Nariman Point, Mumbai- City, Off Western 400021. Express Highway, Goregaon (East), Mumbai-400063. Pan No. Aabck0235H Appellant Respondent

…provisions of section 22 of the Act. In the balance sheet under the head “inventories” the assessee has shown finished goods in the nature of apartments/flats of Rs.9,13,47,158/-. The AO following the decision in Ansal Housing Finance & Leasing Co. Ltd. (2013)354 ITR 180 (Del) computed the income from house property assessable in the hands of the assessee for Oberoi Realty Ltd. the year in respect of such property at Rs.44,76,011/-, after allowing deduction of Rs.19,18,290/- u/s 24(a) of the Act. In appeal, the CIT(A) also following the above decisions confirmed the disallowance made by the AO. 10. Before us, the…

Oberoi Realty Ltd, Mumbai vs. ACIT Cen Cr 4(1) Cr 4, Mumbai

Bench: Shri Sandeep Gosain () & Shri N.K. Pradhan () Assessment Year: 2012-13 Oberoi Realty Limited, The Deputy Commerz, 3Rd Floor, Vs. Commissioner Of Income International Business Tax, Central Circle-4(1), Park, Oberoi Garden City, Room No. 1916, Air Off Western Express India Building, Nariman Highway, Goregaon (East), Point, Mumbai-400021. Mumbai-400063. Pan No. Aabck0235H Appellant Respondent Assessment Year: 2012-13 The Deputy Commissioner Oberoi Realty Limited, Of Income Tax, Central Vs. Commerz, 3Rd Floor, Circle-4(1), Room No. International Business 1916, Air India Building, Park, Oberoi Garden Nariman Point, Mumbai- City, Off Western 400021. Express Highway, Goregaon (East), Mumbai-400063. Pan No. Aabck0235H Appellant Respondent Assessment Year: 2013-14 Oberoi Realty Limited, The Deputy Commerz, 3Rd Floor, Vs. Commissioner Of Income International Business Tax, Central Circle-4(1), Park, Oberoi Garden City, Room No. 1916, Air Off Western Express India Building, Nariman Highway, Goregaon (East), Point, Mumbai-400021. Mumbai-400063. Oberoi Realty Ltd. Pan No. Aabck0235H Appellant Respondent Assessment Year: 2013-14 The Deputy Commissioner Oberoi Realty Limited, Of Income Tax, Central Vs. Commerz, 3Rd Floor, Circle-4(1), Room No. International Business 1916, Air India Building, Park, Oberoi Garden Nariman Point, Mumbai- City, Off Western 400021. Express Highway, Goregaon (East), Mumbai-400063. Pan No. Aabck0235H Appellant Respondent

…provisions of section 22 of the Act. In the balance sheet under the head “inventories” the assessee has shown finished goods in the nature of apartments/flats of Rs.9,13,47,158/-. The AO following the decision in Ansal Housing Finance & Leasing Co. Ltd. (2013)354 ITR 180 (Del) computed the income from house property assessable in the hands of the assessee for Oberoi Realty Ltd. the year in respect of such property at Rs.44,76,011/-, after allowing deduction of Rs.19,18,290/- u/s 24(a) of the Act. In appeal, the CIT(A) also following the above decisions confirmed the disallowance made by the AO. 10. Before us, the…

Shree Swami Samartha Developers, Mumbai vs. Principal Commissioner of Income Tax - Ward - 21, Mumbai

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

Bench: Shri B.R. Baskaran (Am) & Shri Ravish Sood(Jm)

…However, in the instant case, the Ld Pr. CIT did not make any such investigation/enquiry. He further submitted that the Ld Pr. CIT has referred to the decision rendered by Hon’ble Delhi High Court in the case of Ansal Housing Finance & Leasing Co. Ltd (2013)(354 ITR 180). He submitted that the said decision is applicable only to flats held as stock in trade. In support of all his submissions, the Ld A.R placed his reliance on the following case laws:- (a) CIT vs. Gabriel India Ltd (203 ITR 108)(Bom) (b) The CIT vs. M/s Fine Jewellery (India) Ltd (IT Appeal No.296 of 2013) (c) Grindlays Bank Ltd vs. ITO (1978)(11…

Vijay Grihnirman P. Ltd, Mumbai vs. DCIT CC 3(1), Mumbai

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

Bench: Shri Saktijit Dey & Shri Manoj Kumar Aggarwalm/S. Vijay Grihniramn P. Ltd. Dcit. Central Circle-3(1) 201, Marine Chambers Mumbai Vs. 43, New Marine Lines Mumbai 400020 Pan – Aaacv2806N Appellant Respondent

…IN THE INCOME TAX APPELLATE TRIBUNAL "F" Bench, Mumbai Before Shri Saktijit Dey, Judicial Member and Shri Manoj Kumar Aggarwal, Accountant Member M/s. Vijay Grihniramn P. Ltd. DCIT. Central Circle-3(1) 201, Marine Chambers Mumbai Vs. 43, New Marine Lines Mumbai 400020 PAN – AAACV2806N Appellant Respondent Appellant by: Shri Mani Jain & Shri Prateek Jain Respondent by: Shri Rajeev Gubgotra Date of Hearing: 08.08.2018 Date of Pronouncement: 31.10.2018 O R D E R Per Saktijit Dey, JM Aforesaid appeal by the assessee is directed against the order of the learned Commissioner of Income Tax (Appeals)-51, Mumbai dat…

Kanakia Spaces P. Ltd, Mumbai vs. ACIT Cen Cir 4(1), Mumbai

In the result, the appeal is partly allowed

Bench: Shri C.N. Prasad () & Shri N.K. Pradhan () Assessment Year: 2012-13 M/S Kanakia Spaces Pvt. Acit, Central Circle- Ltd. 215 Atrium, 10Th Floor, 4(1), Air India Vs. Near Marriot Courtyard Building, 19Th Floor, Hotel, Andheri-Kurla Road, Nariman Point, Andheri (E), Mumbai- Mumbai. 400093. Pan No. Aaack2629J Appellant Respondent Assessee By : Mr. Anuj Kisnadwala, Ar Revenue By : Mr. Manoj Kumar Singh, Dr Date Of Hearing : 07/08/2018 Date Of Pronouncement : 31/10/2018

…s etc. in support of its claim that the same is sold in near future. However, the AO was not convinced with the above explanation of the appellant and relying on the decision in the case of Ansal Housing M/s Kanakia Spaces 3 Finance & Leasing Co. Ltd. (2013) 354 ITR 180 (Del), worked out the ALV at Rs.2,21,53,896/- as the ALV of unsold flats/units and added sum of Rs.1,55,07,727/- under the head ‘Income from House Property’ after giving deduction @ 30% u/s 24(a) of the Act. 4. Aggrieved by the order of the AO the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) relied on the decision in Ansal Housi…

Haware Engineers & Builders P.Ltd, Navi Mumbai vs. DCIT Cen Cir 4(2), Mumbai

The appeal stands allowed in terms of our above order

Bench: Shri Manoj Kumar Aggarwal, Am & Shri Ravish Sood, Jm

…projects being carried out by the assessee during impugned AY. The cost of construction of these units was reflected as Rs.14.39 Crores. The Ld. AO, in terms of judgment of Hon’ble Delhi High Court rendered in CIT Vs. Ansal Housing Finance & Leasing Co. Ltd. [354 ITR 180], opined that notional rental value of the said units was chargeable under the head Income from House Property. The assessee defended its stand vide reply dated 19/03/2015. However, not convinced, Ld. AO computed ITA.No.7155/Mum/2016 Haware Engineers & Builders Pvt.Ltd Assessment Year-2012-13 notional rental value of these units @8.5% of cost of…