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Income Tax Appellate Tribunal - Pune

Shoppers Orbit Apartments, Pune vs Income-Tax Officer - 7(4),, Pune on 26 July, 2022

     IN THE INCOME TAX APPELLATE TRIBUNAL
              PUNE BENCH "SMC", PUNE
        BEFORE SHRI S. S. GODARA, JUDICIAL MEMBER

                   आयकर अपील सं. / ITA No.330/PUN/2021
                   िनधारण वष / Assessment Year: 2017-18

     Shoppers Orbit Apartments,       Vs. ITO, Ward-7(4), Pune.
     S. No.44, Alandi Road,
     Vishrantwadi,
     Pune- 411015.
     PAN : AAITS3785P
             Appellant                              Respondent

     Assessee by                  :    Shri Suhas Bora
     Revenue by                   :    Shri M. G. Jasnani

     Date of hearing              :    26.07.2022
     Date of pronouncement        :    26.07.2022

                            आदेश / ORDER

PER S. S. GODARA, JM:

This assessee's appeal for assessment year 2017-18 arises against the National Faceless Appeal Centre, Delhi's order dated 24.06.2021 passed in case no.ITBA/NFAC/S/250/2021- 22/1033651984(1) involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short "the Act".

Heard both the parties. Case files perused.

2. It transpires during the course of hearing that the assessee's sole substantive grievance challenges correctness of both the learned lower authorities' action assessing its interest income of 2 ITA No.330/PUN/2021 Rs.1,57,786/- derived from fixed deposits made in M/s Vijaya Bank as income from other sources thereby declining its "mutuality" plea.

3. Learned counsel vehemently reiterated the assessee's stand. He strongly argued that both the learned lower authorities have erred in law and on facts in denying mutuality benefit to the assessee in light of the tribunal's decision in Swarn Jayanti Rail Nagar Flat Owners Association vs. ITO in ITA Nos.2008 to 2010/Del/2018 dated 28.11.2018 after considering hon'ble apex court's landmark decision in Bangalore Club vs. CIT (2013) 5 SCC 509 (SC). I find no merit in the assessee's argument as the jurisdictional bench of the tribunal in ACIT vs. M/s. Poona Club Ltd. ITA No.1481/PUN/2016 dated 26.09.2018 holds that such an interest income fails the mutuality tests on ground of fixed deposits made in a nationalized bank. I therefore go by the foregoing latter judicial precedent to reject the assessee's instant sole substantive ground. Ordered accordingly.

4. This assessee's appeal is dismissed in above terms.

Order pronounced on this 26th day of July, 2022.

Sd/-

(S. S. GODARA) JUDICIAL MEMBER पुणे / Pune; दनांक / Dated : 26th July, 2022. Sujeet (DOC) 3 ITA No.330/PUN/2021 आदेश क ितिलिप अ ेिषत / Copy of the Order forwarded to :

1. अपीलाथ / The Appellant.
2. यथ / The Respondent.
3. The CIT(A)-NFAC, Delhi.
4. The Pr. CIT concerned.
5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, "SMC" बच, पुणे / DR, ITAT, "SMC" Bench, Pune.
6. गाड फ़ाइल / Guard File.

आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.