TaxTMI 
TaxTMI 
TaxTMI 
2011 (3) TMI 906
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....revised return, the assessee declared gross rental income of Rs.8,10,928/- for seven months although such revised return of income was not filed in time and therefore, the Assessing Officer treated it as nonest. It is the claim of the assessee that rent for the period of four months from December, 2005 to March, 2006 has been transferred to M/s P.J. Associates by cheque dated 8.6.2006. It was also claimed by the assessee that the property in question was sold by the assessee to M/s P.J. Associates and as per the mutual understanding, the rent for the last four months was transferred to the buyer because purchase advance of Rs.47 lakhs was received by the assessee from that party on 29.12.2005 and because of this reason, the assessee had declared rental income for seven months only up to November, 2005 in the revised return and the same was declared wrongly for five months in the original return of income. The Assessing Officer was not satisfied and he held that no sale agreement was effected before the end of the financial year and therefore, the entire rent of Rs.12,74,316/- is assessable in the hands of the assessee and he did the same. Being aggrieved, the assessee carried the m....
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....eted in that year also u/s 143(3) of the Act. He submitted a copy of the assessment order passed by the Assessing Officer in assessment year 2007-08 on 26.11.2009 in support of this contention. It is submitted by him that when the Assessing Officer has accepted the claim of the assessee in the next year, there is no reason for not accepting the same in the present year. Reliance is placed on the judgment of Hon'ble Punjab and Haryana High Court rendered in the case of CIT v. Reita Biscuits Co. Pvt. Ltd. as reported in 309 ITR 154. It is submitted that it was held by the Hon'ble Punjab and Haryana High Court in this case that in view of principle of consistency, once the issue on the merit has been decided against the revenue on the same issue during the subsequent assessment year, Their Lordships do not deem it appropriate to take a different view on a technical reason in the earlier year. 6. Reliance was also placed on the judgment of Hon'ble Apex Court rendered in the case of CIT v. Poddar Cement Pvt. Ltd. as reported in 226 ITR 625. Reliance was also placed on the judgment of Hon'ble Bombay high Court rendered in the case of Pallonjee M. Mistry v. CIT as reported in 178 ....
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....t year, whether this claim of the assessee deserves to be accepted or not is to be decided by us. When we examine the facts of the present case in its entirety. We find that this is admitted position that capital gain on sale of this property was declared by the assessee in the next year and hence, as per the assessee also, ownership of the property was with the assessee in this year and hence, if we apply the legal position strictly, rental income for the period from December, 2005 to March, 2006 is also taxable in the hands of this assessee only but we find that three other aspects are also very much important. One aspect is the tax impact. As per the tax impact of the impugned addition of Rs.4,63,388/- in the present year, it is worked out by the assessee at Rs.1,09,184/- after deducting 30% as per the provisions of section 24 of the Act and the tax was determined at Rs.97,312/- @ 30% of Rs.3,24,372/- and after making addition of surcharge and education cess, total tax payable is of Rs.1,09,184/-. It is the submission of the Ld AR of the assessee that in case, we decide this issue in favour of the assessee, the Assessing Officer may be directed to disallow credit of TDS from the....
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....ort term capital gain will be on the full amount of Rs.4,63,388/-. If we consider these factors, we feel that the revenue is not gainer by rejecting the treatment given by the assessee and various consequential orders are to be passed i.e. in the case of the assessee in next year and also in the hands of the buyer for the present year because rent income cannot be assessed in the hands of both i.e, the present assessee and the buyer to whom rent is transferred by this assessee but one aspect is not clear as to whether that assessee has included this amount in his taxable income or not because as per the certificate on page No.3-4 of the paper book, that party is certifying that they have received the net amount of Rs.572806/- and did not claim TDS credit but there is no mention that they had included this amount in taxable income as per the return of income filed. Hence, we find that if this amount has been declared as income by that party, than the same should not be added in the hands of this present assessee to avoid multiple consequential rectifications without any tax gain to the revenue and also because the revenue has accepted this claim in next year and as per the decision ....
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.... 20.12.2005 to 31.3.2006. The Assessing Officer held that this interest payment is not allowable against interest income on FDRs and other parties assessable under the head income from other sources and therefore, the Assessing Officer rejected the claim for reduction of interest payment of Rs.2,51,507/- from the interest income. Being aggrieved the assessee carried the matter in appeal before Ld CIT (A). Ld CIT(A) has held that the assessee has earned interest from bank to the extent of Rs.29,166/- because the same amount was lying in the Savings Bank A/c and on this basis, Ld CIT(A) allowed deduction to the assessee to the extent of Rs.29,166/- and confirmed the balance disallowance. Now, the assessee is in further appeal before us. 11. It is submitted by the Ld AR of the assessee that on page No.17 of the paper book is a certificate from Bank of India as per which, the assessee has earned interest income of Rs.86,741/- from that bank during 1.4.2005 to 31.3.2006. It is also submitted that the bank statement from 3.12.2005 to 31.3.2006 of the same bank is available on page No.18-19 of the paper book as per which, there is credit entry of Rs.1 crore in this bank account of....