Suruchi Saree Mandir 95-Parijat, Marine Drive, Mumbai-400002 Vs ITO 14(1)-3, Earnest House, Mumbai.
March, 26th 2014
INCOME TAX APPELLATE TRIBUNAL,MUMBAI - `H' BENCH.
[ ^ Û], È, Û
Before S/Sh. Rajendra,Accountant Member & Amit Shukla,Judicial Member
/.ITA No.1118/Mum/2011,[ [/Assessment Year-2007-08
Suruchi Saree Mandir ITO 14(1)-3,
95-Parijat, Marine Drive, Earnest House,
Mumbai-400002 Vs Mumbai.
(/ Appellant) (× / Respondent)
[ / Assessee by : None
/ Revenue by : Shri Pitamber Das
/ Date of Hearing : 19-03-2014
/ Date of Pronouncement : 19-03-2014
, 1961 ( 1 ) 254 Û[
Order u/s.254(1)of the Income-tax Act,1961(Act)
Per Rajendra,AM Û] :
Challenging the order dt.28.12.2010 of the CIT(A)-25,Mumbai,assessee has raised following
Grounds of Appeal:
On the facts and in the circumstances of the case and in law, the Commissioner of Income Tax (Appeals);
1) Erred in confirming the action of the assessing officer by confirming addition to short term capital
gain under section 50C of the Act without considering the fact that the Section 50C of the act, does
not apply to depreciable assets and relying only on stamp valuation without putting on record any
positive evidence of higher sale consideration.
2) On a proper interpretation of section 48, 50 and 50C of the Income Tax Act, 1961, was the
Assessing Officer right in law in applying section 50C to capital assets covered by section 50
(depreciable assets) and in computing the capital gains on the sale of depreciable assets by adopting
the Stamp Duty valuation?
3) erred in confirming the disallowances of Rs. 2,78,752/- on account of interest bearing fund
diverted to non business purpose out of interest expenses of Rs. 731,048/- without appreciating the
fact that the learned Assessing Officer has not established any nexus between interest bearing funds
utilized for interest free funds loans & advances;
The Appellant craves, to consider each of the above grounds of appeal without prejudice to each other and
craves leave to add, alter, delete or modify all or any of the above grounds of appeal.
2.Assessee-firm, dealing in purchase and sales of Sarees,filed its return of income on 24.09.2007
declaring total income at Rs. 1.12 lacs.AO finalised the assessment,on 20.12.209,u/s. 143(3) of
the Act,determining the income of the assessee at Rs.6.24 lacs.During the assessment proceedings
AO found that the assessee had shown Short Term Capital Gains (STCG) on sale of flat at Rs.
2 ITA No. 1118/Mum/2011 Suruchi Saree Mandir.
3.36 lacs.Invoking the provisions of section 50C(3) of the Act, he recalculated the capital gains.
AO also found that assessee had debited Rs. 7.31 lacs under the head `Interest Expense'.He made
addition of Rs.2.78 lacs to the income of the assessee, as he was of the opinion that interest
bearing funds were diverted for non business purposes.
3.Assessee preferred an appeal before the First Appellate Authority (FAA). After considering the
submissions of the assessee he dismissed the appeal filed by it. Matter was fixed for hearing from
time to time. On 23.01.2014 nobody appeared on behalf of the assessee. A hearing notice was sent
by registered post to the address given by the assessee in form no.36.It was mentioned in the
notice that case will be heard on 19.03.2014. Notice was received by the assessee on 03.02.2014.
During the course of hearing before us, nobody appeared on behalf of the assessee nor was any
letter filed for adjourning the case.
4. We have perused the material available on the record. We find that FAA has passed a reasoned
order dealing all the issues raised by the assessee-firm.Therefore, confirming his orders,we decide
ground no. 1 and 2 against the assessee.
As a result,appeal filed by the assessee stands dismissed.
Order pronounced in the open court on 19th March, 2014.
Û 19 ekpZ, 2014
( È/Amit Shukla) (Û]/Rajendra)
Û /JUDICIAL MEMBER /ACCOUNTANT MEMBER
/Mumbai,/Date: 19th March,2014.
/Copy of the Order forwarded to :
1. Assessee / 2. Respondent /×
3. The concerned CIT(A)/ ,4.The concerned CIT /
5. DR "H" Bench, ITAT, Mumbai / ,p ,..Û.
6. Guard File/[
× //True Copy//
/ BY ORDER,
/ Dy./Asst. Registrar
, /ITAT, Mumbai