Case: Income Tax Officer Vs Ms. Sheela Bhagwandas Nichlani and Mr. Bhagwandas A. Nichlani. ITAT (Income Tax Appellate Tribunal)
| Judges | N.V. Vasudevan, J.M. and Rajenra Singh, A.M. |
| Issue | Income Tax Act |
| Judgement Date | March 12, 2010 |
| Court | ITAT (Income Tax Appellate Tribunal) |
Order:
Rajenra Singh, A.M., (In The ITAT Mumbai 'B' Bench)
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These appeals by the Revenue are directed against different orders dated 29.11.2007 and 28.12.2008 of CIT (A) for assessment year 2004-05 in cases of the assessees under reference. As the issues raised in these appeals are connected, these are being disposed of by single consolidated order for the sake of convenience.
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We first take-up the appeal of the Revenue in case of Ms Sheela Bhagwandas Nichlani in ITA No 889/Mum/2008. The revenue in this appeal has raised disputes on two different grounds.
2.1 The first dispute is regarding deduction claimed on account of compensation paid to Ramesh Nichlani while computing the capital gain from sale of property. The assessee who was in the business of financing had also declared capital gain on account of sale of property. The assessee had received Rs 2,77,50,000 from sale of 50% share of property at Khar. While computing the capital, the assessee had also claimed deduction of Rs 25 lakhs on account of payment to the tenant Shri Ramesh Nichlani and Rs 24,95,000/- to the tenant Smt Prabhavati Shetty in addition to other expenses like brokerage etc. The Assessing Officer allowed the deduction on account of payment to Smt Prabhavati Shetty as the latter had produced copy of Ration Card and Electricity Bill to prove the tenancy. Ramesh Nichlani, however, could not produce tenancy agreement on the ground that the same had been submitted to the Small Causes Court at Bandra. He also could not produce any rent receipt etc. Assessing Officer, therefore, disallowed the claim of deduction of Rs 25 lakhs on this account.
2.1.1 In appeal, the assessee submitted a very old agreement dated 16.9.1969 between the landlord of Khar Property and Shri Ramesh B Nichlani which showed that Shri Ramesh Nichlani was a tenant. As per the said agreement, the licensee had allowed Mr. Nichlani who used and occupied the said flat on leave and license basis for a period of 11 months commencing from 15.9.1959 @ Rs 400 per month. The assessee also submitted that Mr. Nichlani had sublet the premises to M/s Ralhan Production and subletting was clear from the fact that Mr Nichlani had filed case in the Small Causes Court at Bandra which passed an Eviction Order on 10.1.2003. The assessee also filed a copy of Registered Deed of the partnership firm M/s Prem Raj & Co dated 28.02.1973 in which Khar Property was mentioned as address. The assessee argued that only because...
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