DCIT CEN CIR 3(3), MUMBAI V. G N M REALTORS PRIVATE LIMITED, MUMBAI

ITA 1478/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4430 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Appeal Filed On: 08-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UDAYA B JAKKA
• Keywords: Notional interest; Tax effect
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G , MUMBAI BEFORE SHRI C.N. PRASAD , HONBLE JUDICIAL MEMBER AND SHRI N.K. PRADHAN , HONBLE ACCOUNTANT MEMBER ITA NO . 1478 /MUM/201 8 ( A.Y: 201 4 - 15) DY. COMMISSIONER OF INCOME - TAX CENTRAL C IRCLE - 3(3) ROOM NO. 1923, 19 TH FLOOR A IR INDIA BUILDING, NARIMAN POINT MUMBAI 400 021 V. M/S. G.N.M. REALTORS PVT. LTD 204, RAHEJA CENTRE FREE PRESS JOURNAL MARG 214, NARIMAN POINT MUMBAI - 400 021 PAN: AACCP7995G (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE DEPARTMENT BY : SHRI UDAYA B. JAKKA DATE OF HEARING : 27.01.2020 DATE OF PRONOUNCEMENT : 19 .0 2 .2020 O R D E R PER C.N. PRASAD (JM) THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 51 , MUMBAI [HEREINAFTER IN SHORT LD.CIT(A)] IN APPEAL NO. CIT(A) - 51/IT - 182/DCIT - 3(3)/2016 - 17 DATED 04.12.2017 FOR THE ASSESSMENT YEAR 2014 - 15 . 2 ITA NO. 1478/MUM/2018 (A.Y: 2014 - 15) M/S. G.N.M. REALTORS PVT. LTD 2. THE REVENUE HAS RAISED THE FOLLOWING GROUND IN ITS APPEAL : - 1. ' ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DIRECTING THE ASSESSING OFFICER TO DELETE THE NOTIONAL INTEREST INCOME OF .63 LAKHS ON ACCOUNT OF THE INTEREST FREE LOAN / DEPOSITS OF .3 CRORES ADVANCED BY THE ASSESSEE TO SHRI P.K. KHURANA. 3. AT THE TIME OF H EARING, LD. DR FAIRLY SUBMITTED THAT TAX EFFECT ON THE ISSUE IN THE PRESENT APPEAL IS BELOW .5 0 LAC S AND IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 IN F.NO.279/MISC.142/2007 - ITJ (PT), THE APPEAL OF THE R EVENUE IS NOT MAINTAINABLE. 4. WE HAVE H EARD THE SUBMISSIONS OF LD. DR AND PERUSED THE GROUNDS OF APPEAL IN THIS APPEAL. WE FIND THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN .50 LAKHS AND T HEREFORE THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019. HENCE THIS APPEAL IS DISMISSED. 5. IN THE RESULT, APP EAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 19 TH FEBRUARY , 2020 SD/ - SD/ - ( N.K. PRADHAN ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 19 / 0 2 / 2020 GIRIDHAR, SR.PS 3 ITA NO. 1478/MUM/2018 (A.Y: 2014 - 15) M/S. G.N.M. REALTORS PVT. LTD COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER, (ASSTT. REGISTRAR) ITAT, MUM