GROWMORE LEASING & INVESTMENT LTD, MUMBAI V. ACIT CC 31, MUMBAI

ITA 1310/MUM/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 3045 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 06-10-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 27-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P DANIEL
• Section: 234B; 115JB

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL G BE NCH, MUMBAI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER / I .T.A. NOS.1310 & 1311/MUM/2014 ( / ASSESSMENT YEARS:2002-03 & 2006-07 M/S. GROWMORE LEASING & INVESTMENTS LTD., 32, MADHULI, DR. ANNIE BESANT ROAD, MUMBAI-400 018 / VS. THE ACIT, CC-31, AAYAKAR BHAVAN, MUMBAI-400 020 / I .T.A. NO.1312/MUM/2014 ( / ASSESSMENT YEARS:2008-09 M/S. GROWMORE RESEARCH & ASSET MANAGEMENT LTD., 32, MADHULI, DR. ANNIE BESANT ROAD, MUMBAI-400 018 / VS. THE ACIT, CC-31, MUMBAI-400 020 ./ ./ PAN/GIR NO. : AAACG 4397D ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI DHAVAL SHAH / RESPONDENT BY: DR. P. DANIEL / DATE OF HEARING : 06.10.2015 ! / DATE OF PRONOUNCEMENT :16 .10.2015 '# / O R D E R PER N.K. BILLAIYA, AM: THESE THREE APPEALS BY THE ASSESSEE ARE PREFERRED A GAINST THREE DIFFERENT ORDERS OF THE LD. CIT(A)-40, MUMBAI PERTA INING TO ASSESSMENT YEARS 2002-03, 2006-07 & 2008-09. THE GR IEVANCE OF THE ASSESSEE IS SAME IN ALL THE CAPTIONED APPEALS THERE FORE THEY WERE ITA. NOS.1310 TO 1312/M/2014 2 HEARD TOGETHER AND DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. 2. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSE SSEE STATED THAT HE IS NOT PRESSING GROUND NO. 1 IN ALL THE CAPTION ED APPEALS, THE SAME IS DISMISSED AS NOT PRESSED. 3. THE ISSUES RAISED VIDE GROUND NO. 2 ARE IDENTICA L IN ALL THE CAPTIONED APPEALS THOUGH QUANTUM MAY DEFER AND IT R ELATES TO THE DISALLOWANCE OF INTEREST EXPENDITURE. 4. THE LD. COUNSEL FOR THE ASSESSEE BROUGHT TO OUR NOTICE THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEARS 2007-08, 2009-10 AND 2010-11 IN ITA NOS. 5135, 5136 /M/2012 AND 2151 /M/2013. IT IS THE SAY OF THE LD. COUNSEL THA T ON IDENTICAL SET OF FACTS, THE TRIBUNAL HAS RESTORED THE ISSUE TO THE F ILE OF THE LD. CIT(A) FOR FRESH CONSIDERATION AS PER THE DIRECTIONS OF TH E TRIBUNAL. 6. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY CONCE DED TO THIS. 7. WE HAVE CAREFULLY GONE THROUGH THE ORDER OF THE TRIBUNAL (SUPRA). THE TRIBUNAL AT PARA 5 & 6 OF ITS ORDER H AS HELD AS UNDER: WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTHOR ITIES BELOW. WHILE DISPOSING THE GROUND RELATING TO THE D ISALLOWANCE OF INTEREST, WE FIND THAT THE LD. CIT(A) HAS FOLLOWED THE FINDINGS GIVEN IN THE CASE OF EMINENT HOLDINGS PVT. LTD. WE FIND THAT THE TRIBUNAL IN THE CASE OF EMINENT HOLDINGS IN ITA NOS . 2139, 2140 AND 2141/MUM/2013 HAVE FOLLOWED THE DECISION OF THE TRIBUNAL GIVEN IN COMMON GROUP CASE OF HITESH S. MEHTA AT PA RA 2.3 OF THE ORDER AND RESTORED THE MATTER TO THE FILE OF THE LD . CIT(A) FOR FRESH ADJUDICATION. RESPECTFULLY FOLLOWING THE FINDINGS OF THE CO ORDINATE BENCH, WE RESTORE THIS ISSUE TO THE FILES OF THE LD. CIT(A) FOR FRESH ADJUDICATION AFTER GIVING REASONABLE OPPO RTUNITY OF BEING HEARD TO THE ASSESSEE. ITA. NOS.1310 TO 1312/M/2014 3 BEFORE CLOSING THIS ISSUE, THE LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT THE LD. CIT(A) HAS HELD THAT THE I SSUE OF INTEREST EXPENDITURE IS PENDING BEFORE THE HONBLE SPECIAL C OURT. IT IS THE SAY OF THE LD. COUNSEL THAT THE PROCEEDINGS IN WHIC H THE SAID ISSUE OF INTEREST WAS ISSUED BY THE CUSTODIAN HAVE BEEN A LREADY CONCLUDED WHICH FACT HAS ALREADY BEEN RECORDED BY T HE LD. CIT(A) IN THE IMPUGNED ORDER. WE, THEREFORE, DIRECT THE L D. CIT(A) TO CONSIDER THIS FACT WHILE DECIDING THE ISSUE AFRESH. THE LD. CIT(A) MAY ALSO DIRECT FOR THE TAXING OF INCOME IN THE HAN DS OF THE RECIPIENT (FAMILY MEMBERS) IN ACCORDANCE WITH THE M ETHOD OF ACCOUNTING FOLLOWED BY THEM AND AS PER THE PROVISIO NS OF THE LAW. GROUND NO. 4 IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. RESPECTFULLY FOLLOWING THE DECISION OF THE CO-ORDI NATE BENCH, WE RESTORE THIS ISSUE TO THE FILE OF THE LD. CIT(A) . THE LD. CIT(A) IS DIRECTED TO DECIDE THE ISSUE AFRESH IN THE LIGHT OF THE DIRECTIONS GIVEN HEREINABOVE. GROUND NO. 2 OF THE CAPTIONED APPEALS IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. 8. THE NEXT GRIEVANCE RELATES TO THE CHARGING OF IN TEREST U/S. 234A, 234B AND 234C OF THE ACT. THE LEVY OF INTEREST IS MANDATORY THOUGH CONSEQUENTIAL. WE, ACCORDINGLY DIRECT THE AO TO LE VY INTEREST AS PER THE PROVISIONS OF THE LAW. ITA NO. 1312/M/2014- A.Y. 2008-09 9. THE ADDITIONAL GRIEVANCE OF THE ASSESSEE RELATES TO THE CALCULATION OF BOOK PROFIT U/S. 115JB OF THE ACT. 10. IN OUR CONSIDERED OPINION, THIS GROUND IS CONSE QUENTIAL TO OUR DECISION GIVEN FOR GROUND NO. 2 (SUPRA). THIS GROU ND IS ACCORDINGLY DISPOSED OF. 11. GROUND NO. 3 OF ITA NO. 1312/M/2014 IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ITA. NOS.1310 TO 1312/M/2014 4 12. FOR SIMILAR REASON GROUND NO. 5 IS ALSO RESTORE D TO THE FILE OF THE AO TO BE DECIDED IN THE LIGHT OF THE FINDINGS G IVEN FOR GROUND NO. 2 & 3 (SUPRA). 13. IN THE RESULT, THE CAPTIONED APPEALS ARE TREATE D AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH OCTOBER, 2015 SD/- SD/- (SANJAY GARG ) (N.K. BILLAIYA) $% ' /JUDICIAL MEMBER ' / ACCOUNTANT MEMBER & ' MUMBAI; (' DATED : 16 TH OCTOBER, 2015 . % . ./ RJ , SR. PS !' #' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ) ( ) / THE CIT(A)- 4. ) / CIT 5. *+, %%-. , -.! , & ' / DR, ITAT, MUMBAI 6. ,/0 1 / GUARD FILE. $ / BY ORDER, * % //TRUE COPY// % / $& ' (DY./ASSTT. REGISTRAR) , & ' / ITAT, MUMBAI