Charans Life Devices Pvt Ltd. v. D.C.I.T, Circle-1(2), Hyderabad
[Citation -2019-LL-0905-60]
| Citation | 2019-LL-0905-60 |
|---|---|
| Appellant Name | Charans Life Devices Pvt Ltd. |
| Respondent Name | D.C.I.T, Circle-1(2), Hyderabad |
| Court | ITAT-Hyderabad |
| Relevant Act | Income-tax |
| Date of Order | 05/09/2019 |
| Assessment Year | 2013-14 |
| Judgment | View Judgment |
| Keyword Tags | documentary evidence • business of trading • commercial property • property tax • excess claim • rent paid • residential property |
| Bot Summary: | Aggrieved, the assessee preferred an appeal before the Ld. CIT(A), who dismissed the same and the assessee is in second appeal before the Tribunal. Learned Counsel for the Assessee submitted that the properties have been let out for commercial purposes and therefore, the rent was high as compared to the rent of the property given for residential use in the locality. He has drawn my attention to the property tax receipts paid by the assessee for the relevant properties which are placed at pages 38 to 60 of the paper book and particularly page 60 of the paper book wherein the property tax for the property at Flat No.103 has been determined at Rs. 47,693/- w.e.f 01/04/2011. At page 58 59 are the property tax receipts at Rs. 51,854/- and Rs. 42,167/- for Flats No. 101 and 102 respectively and these property tax rates are applicable w.e.f 01/04/2011. I find that the assessee has brought these documents to the notice of the Ld. Revenue Authorities; but neither the A.O. nor the Ld. CIT(A) has considered these documents and they compared the rent of the properties which are given for commercial purposes with that of the rents of the residential properties in the locality. Having regard to the rival submissions and the material on record, I find that the assessee had taken three properties on rent from the Directors of the company and has paid rent allegedly as commercial properties, whereas the A.O. has compared the rent of the residential 4 properties in the locality with the rent paid by the assessee. Since the property tax receipts of the flats under consideration are filed before us and also the GHMC Notification dated 01/02/2008 which gives out the information for assessing the property tax of a residential and commercial property and these documents were not considered by the Authorities below, I deem it fit and proper to set-aside the issue to the file of the A.O. with a direction to consider these documents and if the properties have been assessed as commercial properties by the Municipal Authorities, then the A.O. shall consider the commercial rent paid during the relevant period in the said locality and decide the issue denovo in accordance with law. |