BABA SAI FILMS, MUMBAI V. PR. CIT-16, MUMBAI

ITA 1618/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9719 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 1997-1998
• Appeal Filed On: 29-06-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R AHUL RAMAN
• Keywords: Unexplained cash credit; Business income; Opportunity of being heard; Principle of natural justice; Opportunity of cross examination; Set aside
• Section: 143(3); 142(1); 143(2); 254(2); 13; 147; 131; 68; 148; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI M BALA GANESH, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NOS. 1618 & 1619/MUM/2020 (A.Y: 1997-98 & 1998-99) BABA SAI FILMS, I.J. NAAZ CINEMA LAMINATION ROAD, MUMBAI 400004. VS. PR. CIT - 16 RM NO. 437, 4 TH FLOOR, AAYAKAR BHAVAN, MK ROAD, MUMBAI - 40020 ./ ./ PAN/GIR NO. : AAACPD6411A APPELLANT .. RESPONDENT APPELLANT BY : SHRI VIJAY MEHTA, AR RESPONDENT BY : SHRI RAHUL RAMAN , DR DATE OF HEARING 24 .0 5 .2021 DATE OF PRONOUNCEMENT 17 .0 6 .2021 / O R D E R PER PAVAN KUMAR GADALE JM: THESE TWO APPEALS ARE FILED BY THE ASSESSEE AG AINST THE SEPARATE ORDERS OF THE PRINCIPAL COMMISSIONER O F INCOME TAX-16 (PR.CIT) MUMBAI, PASSED U/S. 263 OF T HE INCOME TAX ACT, 1961. SINCE THE ISSUES INVOLVED IN THE APPEALS ARE IDENT ICAL AND SIMILAR, HENCE THEY ARE CLUBBED, HEARD AND CONSOLIDATED ORDER IS PASSED. FOR THE SAKE OF CONVENIENCE, WE SHALL TAKE-UP ITA NO. 1618/MUM/2020 FOR THE A.Y 1997-98 AS A LEAD CASE AN D ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 2 - THE FACTS NARRATED. THE ASSESSEE HAS RAISED THE FOL LOWING GROUNDS OF APPEAL: 1. THE LD. CIT HAS ERRED IN LAW AND ON THE FACTS O F THE CASE IN REOPENING / INITIATING PROCEEDINGS U/S 263 OF THE ACT, AND COMPLETING THE SAME U/S 263 OF THE ACT. 2. THE LD. CIT HAS ERRED IN LAW AND ON THE FACTS O F THE CASE IN CANCELLING THE ASSESSMENT ORDER PASSED BY I TS AO WITH THE DIRECTION TO PASS FRESH ASSESSMENT ORDER AFTER GIVING ASSESSEE THE OPPORTUNITY OF BEING HEARD AS PER LAW. 3. THE APPELLANT CRAVES LIBERTY TO ADD, ALTER, AME ND, MODIFY OR DELETE ANY OF THE ABOVE GROUNDS OF APPEAL AT THE TIME OF HEARING. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS E IS ENGAGED IN PRODUCTION OF FILMS. THE A.O. HAS RECEIV ED INFORMATION FROM DDIT (INV) MUMBAI THAT ONE MR SURENDRA KHANDHAR WAS INDULGED IN PROVIDING BOGUS HAWALA ENTRIES AND FLOATED DIFFERENT CONCERNS AND T HE DDIT(INV) HAS RECORDED THE STATEMENT. WHEREAS, THE ASSESSEE FIRM HAD OBTAINED THE UNSECURED LOANS FROM THE TWO PARTNERSHIP FIRMS RELATED TO MR SURRENDER KHAND HAR. THE A.O. HAS DEALT ON THE STATEMENT RECORDED AND FO UND THAT THE ASSESSE IS A BENEFICIARY OF LOANS FROM TWO CONCERNS (I) M/S.KAPILESH CORPORATION RS. 10 LAKHS AND (II) M/S. RAY ENGINEERING RS. 10 LAKHS. SINCE THE A SSESSEE HAS NOT FILED THE RETURN OF INCOME, THE A.O. HAS IS SUED NOTICE U/S 148 OF THE ACT. IN COMPLIANCE TO THE N OTICE, ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 3 - THE ASSESSEE HAS FILED THE RETURN OF INCOME DECLA RING RS.NIL INCOME ON 22.04.2004.FURTHER, THE NOTICE U/ S 143(2) OF THE ACT WAS ISSUED. IN COMPLIANCE, THE LD .A.R OF THE ASSESSEE APPEARED AND FILED THE EXPLANATIONS. THE ASSESSEE ALSO MADE AN APPLICATION U/S 144A OF THE A CT TO THE ADDL C.I.T AND THE DIRECTIONS WERE OBTAINED. TH E A.O. TO VERIFY THE IDENTITY, CREDITWORTHINESS AND GENUIN ENESS HAS SENT A LETTER DT 24.03.2005 TO THE ASSESSEE. TH E ASSESSEE INSTEAD OF COMPLYING WITH THE DIRECTIONS IN THE ORDER U/S 144A OF THE ACT HAS NOT PRODUCED THE PARTY FOR VERIFICATION OR CONFIRMATIONS. SINCE, THERE WA S NO PROPER COMPLIANCE, THE A.O. CONSIDERING THE STATEM ENT OF OATH PROVIDED BY THE LENDER OF THE LOAN MADE PRESUMPTIONS OF INTRODUCTION OF CASH UNDER THE GA RB OF ACCOMMODATION LOAN AND MADE ADDITION OF LOANS AS UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT AND ASSES SED THE TOTAL INCOME OF RS. 20,31,250/- AND PASSED THE ORDER U/S 143(3) AND 147 AND 144A OF THE ACT DATED 31.03.2005. ON APPEAL BEFORE THE CIT(A), THE CIT(A) HAS CONFIRMED THE ACTION OF THE A.O. ON, FURTHER APPEA L WITH THE HONBLE TRIBUNAL. THE CO-ORDINATE BENCH OF TRIB UNAL IN ITA NO. 2941 & 2942/MUM/2006 DATED 30.10.2006 HAS RESTORED THE DISPUTED ISSUE TO THE FILE THE A.O . FOR PROVIDING OPPORTUNITY TO CROSS EXAMINE MR. SURENDRA KHANDHAR AND THE A.O HAS TO DECIDE THE ISSUE AFTER ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 4 - PROVIDING OPPORTUNITY OF CROSS EXAMINATION TO THE ASSESSEE. 3. THE A.O. AS PER THE DIRECTIONS OF THE HONBLE T RIBUNAL HAS ISSUED THE LETTER AND SUMMONS U/S 131 OF THE ACT TO MR. SURENDRA KHANDHAR FOR CROSS EXAMINATION, BUT THERE WAS NO RESPONSE. FURTHER THE ASSESSING OFFICE R DEPUTED THE INSPECTOR AND THE REPORT WAS OBTAINED. SINCE THERE WAS NO RESPONSE TO THE SUMMONS ISSUED TO THE LENDER AND THE ASSESSEE COULD NOT PRODUCE THE CONFIRMATION OR THE LENDER, THE A.O FOUND THAT THE RE IS NO FRESH INFORMATION IS RECEIVED AND THE ASSESSEE IS NOT IN A POSITION TO FURNISH THE LOAN CONFIRMATION AS A PRIMARY EVIDENCE OF ESTABLISHMENT OF LOAN. THE A.O. RELIED ON THE FACTS MENTIONED IN ORIGINAL ASSESSMENT ORDER DATED 31.03.2005 AND OBSERVED THAT THERE IS NO CHANGE IN THE CIRCUMSTANCES AND NO NEW MATERIAL INFORMATION IS FI LED. FINALLY MADE ADDITION OF RS.20,31,250/- AND PASSED ORDER U/S 143(3) R.W.S 254 DATED 20.12.2007.AGGRIVED BY T HE ORDER, THE ASSESSEE HAS FILED AN APPEAL TO CIT(A) AND THE APPELLATE AUTHORITY HAS CONFIRMED THE ADDITION AND DISMISSED THE ASSESSEE APPEAL. 4. ON FURTHER APPEAL BEFORE THE HONBLE TRIBUNAL, T HE CO-ORDINATE OF TRIBUNAL IN ITA NO. 6270 & 6271/MUM/2008, 11.09.2009 (SECOND ROUND OF LITIGATI ON) ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 5 - HAS OBSERVED AT PAGE 3 PARA 5.1 OF THE ORDER AND R ESTORED THE MATTER TO THE FILE OF THE A.O.: 5.1 HOWEVER, ON MERIT, WE ARE OF THE CONSIDERED VI EW THAT THE MATTER NEEDS RE-VERIFICATION AT THE END OF THE AO AS THE CASE HAS NOT BEEN EXAMINED PROPERLY ON MERIT. IF T HE STATEMENT OF A THIRD PARTY IGNORED THEN IN THAT CAS E, ONUS LAY UPON THE ASSESSEE TO PROVE THE TRANSACTION BY ADDUC ING NECESSARY CONFIRMATION AND EVIDENCES. NO SUCH EFFO RTS WERE MADE BY THE ASSESSEE TO OBTAIN THE CONFIRMATION FRO M THE RESPECTIVE PARTIES. NEITHER THE DEPARTMENT HAS TRI ED TO VERIFY FROM THE INCOME TAX DEPARTMENT, IN SPITE OF FURNISH ING PAN ETC., OF THE RESPECTIVE PARTIES, AS STATED BY THE L D. COUNSEL OF THE ASSESSEE. THEREFORE, WE ARE OF THE CONSIDERED VIEW THAT TO MEET THE END OF JUSTICE, THE MATTER SHOULD GO BACK TO THE FILE OF THE AO IN RESPECT TO ALL THESE APPEALS TO EXAMINE T HE ISSUE AFRESH ON MERIT AND AFTER AFFORDING REASONABLE OPPO RTUNITY TO THE ASSESSEE TO FILE NECESSARY DETAILS IN RESPECT O F RESPECTIVE LOANS TAKEN BY THE ASSESSEE. ACCORDINGLY, WE SET A SIDE THE ORDER OF THE LOWER AUTHORITIES AND RESTORE THE MATT ER TO THE FILE OF THE AO TO PASS A FRESH ORDER AS PER OUR ABOVE OB SERVATION. 5. SUBSEQUENTLY, THE A.O AS PER THE DIRECTIONS OF T HE HONBLE TRIBUNAL HAS DEALT ON THE DISPUTED ISSUE. T HE A.O. HAS ISSUED NOTICE U/S 143(2) AND 142(1) OF THE ACT, IN COMPLIANCE THE LD.AR APPEARED FROM TIME TO TIME AND THE CASE WAS DISCUSSED. THE A.O. HAS ISSUED SUMMONS U/S 131 OF THE ACT TO MR SURENDRA KHANDHAR FOR CROS S EXAMINATION BUT THERE WAS NO RESPONSE AND COMPLIANC E. WHEREAS, THE LD.AR HAS FILED THE WRITTEN SUBMISSION S ON 01.12.2010 DEALT AT PAGE 2 PARA 2 OF THE ORDER AS UNDER: ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 6 - THE ASSESSEE FIRM HAD BORROWED MONEY ON HUNDI FROM VARIOUS FIRMS DURING THE YEAR. THE VARIOUS HUNDI P APERS SUBMITTED TO YOUR GOODSELF AT THE TIME OF THE LAST HEARING CONTAINS THE NAME AND ADDRESS OF THE ASSESSEE, AMOU NT BORROWED AND THE PAN NO OF THE BORROWER FIRM. THUS THE ASSESSEE FIRM HAS DISCHARGED THE ONUS OF THE GENUIN ENESS OF THE LOAN. IT IS FOR THE DEPARTMENT TO VERIFY THE A BOVE AND DO THE NEEDFUL. FURTHER, THE ADDITIONS MADE IS ON ACCOUNT OF THE ST ATEMENT OF SHRI SURENDRA KHANDHAR WHO IS A WITNESS OF THE DEPA RTMENT. THE ASSESSEE FIRM RESERVES THE RIGHT TO CROSS-EXAMI NE SHRI SURENDRA KHANDHAR TO KNOW THE TRUTH BEHIND THE ALLE GATION BY THE INCOME TAX DEPARTMENT THAT THE LOANS ARE ACCOMM ODATED ENTRIES. WHEREAS THE A.O. HAS CONSIDERED THE SUBMISSIONS AND RELIED ON THE FINDINGS OF THE CIT(A) IN THE EA RLIER ROUND OF LITIGATION. FINALLY THE A.O. HAS OBSERVED THAT THERE IS NO CHANGE IN FACTS AND CIRCUMSTANCES AND T HERE IS NO OTHER ALTERNATIVE EXCEPT MAKING ADDITION U/S 68 OF THE ACT OF RS. 20,31,250/-AND PASSED THE ORDER U/S 143(3) R.W.S 254 OF THE ACT DATED 31.12.2010.AGGRIV ED BY THE ORDER, THE ASSESSEE HAS FILED AN APPEAL TO CIT( A) AND THE APPELLATE AUTHORITY HAS CONFIRMED THE ADDITION AND DISMISSED THE ASSESSEE APPEAL. 6. AGGRIEVED BY THE CIT(A) ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE TRIBUNAL. THE HONBLE TRIBUNAL I N ITA NO.5850&5851/MUM/2011 DATED 29.07.2016 HAS CONSIDERED THE VARIOUS FACTS, AND SUBMISSIONS FOUND THAT ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 7 - IN THE SIMILAR CIRCUMSTANCES, OF SISTER CONCERN IN ITA NO. 7007/MUM/2011 IN THE CASE OF M/S DILSA DISTRIBUTORS COMBINE VS. ITO. DATED 20.04.2016 HAS OBSERVED AT P AGE 11 TO 16 PARA 12 OF THE ORDER AS UNDER: SIMILAR SITUATION AROSE IN THE APPEAL IN ITA NO 7007/MUM/2011 IN THE CASE OF DILSA DISTRIBUTORS COM BINE V. ITO WHEREBY TRIBUNAL VIDE ORDERS DATED 20- 04-2016 (WHEREBY ONE OF US I.E. ACCOUNTANT MEMBER WAS AUTHOR OF THE SAID ORDER OF THE TRIBUNAL) WHEREIN TRIBUNAL HELD AS UNDER : 9. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND PER USED THE MATERIAL AVAILABLE ON RECORD. WE HAVE OBSERVED THAT THE ASSESSEE HAS RAISED LOANS OF RS.45,50,000/- FROM VA RIOUS PARTIES DURING THE INSTANT ASSESSMENT YEAR 1998-99 UNDER APPEAL AND ONE SHRI SURENDRA KHANDHAR HAS GIVEN STA TEMENT U/S 131 OF THE ACT AGAINST THE ASSESSEE THAT HE HAS FLOATED VARIOUS FIRMS TO GIVE ACCOMMODATION LOAN ENTRIES TO VARIOUS PERSONS WHICH ALSO INCLUDED THE ASSESSEE . THE SAID STATEMENT OF SH.SURENDER KHANDHAR WAS RECORDED BY T HE REVENUE AT THE BACK OF THE ASSESSEE. THE SAID SHRI SURENDRA KHANDHAR HAS NOT BEEN SUBJECTED TO CROSS EXAMINATIO N BY THE ASSESSEE AND HENCE THE STATEMENT OF SHRI SURENDRA K HANDHAR CANNOT BE USED AGAINST THE ASSESSEE UNTIL AND UNLES S THE CROSS EXAMINATION OF THE SAID SHRI SURENDRA KHANDHA R BY THE ASSESSEE TAKES PLACE. WE FIND THAT THE TRIBUNAL IN THE FIRST ROUND OF LITIGATION, SET ASIDE THE MATTER TO THE FI LE OF A.O. WITH A DIRECTION TO REVERIFY THE LOAN TRANSACTIONS AS PE R PROVISIONS OF THE ACT AFTER AFFORDING OPPORTUNITY TO THE ASSES SEE, THE TRIBUNAL ALSO HOLDING THAT SINCE SH SURENDER KHANDH AR COULD NOT BE OFFERED FOR CROSS EXAMINATION BY THE ASSESSE E , HIS STATEMENT CANNOT BE USED AGAINST THE ASSESSEE. THE SAID SHRI SURENDRA KHANDHAR DID NOT APPEAR BEFORE THE REVENUE ALSO. THE A.O. ALSO FAILED TO MAKE VERIFICATION AND ENQUI RIES ON MERITS WITH RESPECT TO THE LOAN RAISED BY THE ASSES SEE. THE ASSESSEE, ON THE OTHER HAND, PRODUCED THE COPIES OF PROMISSORY NOTE/HUNDI AS LOAN CONFIRMATIONS. IN THE ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 8 - IMMEDIATELY PRECEDING ASSESSMENT YEAR 1997-98, THE TRIBUNAL IN THE SECOND ROUND OF LITIGATION DELETED THE ADDIT ION WITH A DIRECTION TO THE A.O. TO VERIFY THE CONTENTIONS OF THE ASSESSEE REGARDING REPAYMENT OF LOAN IN ITA NO. 5849/MUM/201 1 FOR ASSESSMENT YEAR 1997-98 VIDE ORDERS DATED 6TH SEPTE MBER, 2013, THE SAID DIRECTIONS OF THE TRIBUNAL ARE REPRO DUCED BELOW:- WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND CAREF ULLY PERUSED THE RELEVANT MATERIAL ON RECORD. IN THE EAR LIER ROUND OF LITIGATION THIS TRIBUNAL HAS REMANDED THE MATTER TO THE RECORD OF THE ASSESSING OFFICER VIDE ORDER DATED 11-9-2009 IN PARA 5 AND 5.1 AS UNDER:- 5. WE HAVE 'HEARD THE RIVAL SUBMISSIONS AND CONSID ERED THEM CAREFULLY. AS MENTIONED ABOVE, THE ASSESSMENTS WERE COMPLETED ORIGINALLY WHICH WERE SET ASIDE BY THE TR IBUNAL WITH A DIRECTION TO ALLOW CROSS EXAMINATION OF ONE SHRI KHANDHAR ON WHOSE STATEMENT BASIS, THE ADDITIONS WE RE MADE IN THE HANDS OF THE ASSESSEE. SHIR KHANDHAR COULD N OT BE TRACED OUT IN SPITE OF BEST EFFORTS MADE BY THE AO; THEREFORE, CROSS EXAMINATION COULD NOT BE ALLOWED. IT IS WELL SETTLED LAW THAT WITHOUT CONFRONTING THE STATEMENT OF WITNESS O R ALLOWING CROSS EXAMINATION, NO ADVERSE INFERENCE CAN BE MADE AGAINST A PERSON, AGAINST WHICH STATEMENT OF A THIRD PARTY IS USED. SINCE CROSS EXAMINATION COULD NOT BE ALLOWED; THERE FORE, WE HOLD THAT THE STATEMENT OF SHRI KHANDHAR CANNOT BE USED AGAINST THE ASSESSEE. 5.1 HOWEVER, ON MERIT, WE ARE OF THE CONSIDERED VIE W THAT THE MATTER NEEDS RE-VERIFICATION AT THE END OF THE AO A S THE CASE HAS NOT BEEN EXAMINED PROPERLY ON MERIT. IF THE STA TEMENT OF A THIRD PARTY IGNORED THEN IN THAT CASE, ONUS LAY UPO N THE ASSESSEE TO PROVE THE TRANSACTION BY ADDUCING NECES SARY CONFIRMATION AND EVIDENCES. NO SUCH EFFORTS WERE MA DE BY THE ASSESSEE TO OBTAIN THE CONFIRMATION FROM THE RESPEC TIVE PARTIES. NEITHER THE DEPARTMENT HAS TRIED TO VERIFY FROM THE INCOME TAX DEPARTMENT, INSPITE OF FURNISHING PAN ET C., OF THE RESPECTIVE PARTIES, AS STATED BY THE LD. COUNSEL OF THE ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 9 - ASSESSEE. THEREFORE, WE ARE OF THE CONSIDERED VIEW THAT TO MEET THE END OF JUSTICE, THE MATTER SHOULD GO BACK TO THE FILE OF THE AO IN RESPECT TO ALL THESE APPEALS TO EXAMINE T HE ISSUE AFRESH ON MERIT AND AFTER AFFORDING REASONABLE OPPO RTUNITY TO THE ASSESSEE TO FILE NECESSARY DETAILS IN RESPECT O F RESPECTIVE LOANS TAKEN BY THE ASSESSEE. ACCORDINGLY, WE SET AS IDE THE ORDERS OF THE LOWER AUTHORITIES AND RESTORE THE MAT TER TO THE FILE OF THE AO TO PASS A FRESH ORDER AS PER OUR ABO VE OBSERVATIONS. 7. IT IS CLEAR FROM THE ORDER OF THIS TRIBUNAL THAT THE ADDITION MADE ON THE BASIS OF THE STATEMENT OF MR. SURENDRA KHANDHAR WITHOUT GIVING AN OPPORTUNITY OF CROSS-EXAMINATION WAS HELD TO BE NOT PROPER AND ACCORDINGLY IT WAS OBSERVED TH AT THE STATEMENT OF MR. SURENDRA KHANDHAR CANNOT BE USED A GAINST THE ASSESSEE: THE AO WAS DIRECTED TO DECIDE THE ISS UE ON MERITS AFTER AFFORDING AN OPPORTUNITY TO THE ASSESS EE TO FILE NECESSARY DETAILS IN RESPECT OF RESPECTIVE LOANS TA KEN BY THE ASSESSEE. WE NOTE THAT IN THE ASSESSMENT ORDER PASS ED IN PURSUANT TO THE DIRECTIONS OF THIS TRIBUNAL, THE AO HAS REPEATED THE ADDITION IN PARA 10-12 AS UNDER: '10. IN VIEW OF THE ABOVE, IT CAN BE SEEN THAT THER E IS NO CHANGE IN THE FACTS AND CIRCUMSTANCES OF THE CASE. UNDER THE CIRCUMSTANCES, THERE IS NO ALTERNATIVE THAN TO PASS THE ORDER WITH THE MATERIALS AVAILABLE ON RECORD. THE DETAILS AND FACTS OF THE CASE ARE ELABORATELY DISCUSSED IN THE ORIGIN AL ORDER PASSED ON 31.3.2005 BY THE ERSTWHILE ASSESSING OFFI CER. HENCE THEY ARE NOT REPEATED HERE AGAIN. 11. I DO NOT FIND THAT THE SUBMISSION MADE BY THE A UTHORISED REPRESENTATIVE HAS ANY MATERIALS TO SERVE HIS PURPO SE. CONSIDERING THE STATEMENT ON OATH PROVIDED BY THE L ENDER OF THE LOAN; THERE IS NO IOTA OF DOUBT THAT THE ASSESS EE HAS INTRODUCED HIS UNDISCLOSED CASH UNDER THE GARB OF ACCOMMODATION LOAN. IN THE CIRCUMSTANCES, THE LOAN SO RECEIVED ARE UNEXPLAINED CASH CREDIT U/S 68 OF THE I. T. ACT 1961 AND SAME ARE BROUGHT TO TAX. ACCORDINGLY, A SU M OF RS. 55,25,000/- IS ASSESSED AS UNDISCLOSED INCOME OF TH E ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 10 - ASSESSEE FOR THE YEAR. PENALTY PROCEEDINGS U/S 271( 1)(C) OF THE I.T. ACT, 1961 ARE INITIATED SEPARATELY.' SUBJECT TO THE ABOVE REMARKS, THE TOTAL INCOME OF T HE ASSESSEE IS COMPUTED AS UNDER:- BUSINESS INCOME INCOME AS PER ORDER DTD. 31.3.2005 RS.2,35,505 ADD: DISALLOWANCE OF LOAN AS PER ORDER RS.30,00,00 0 DTD. 31.3.2005 INTEREST ON LOAN RS.25,25,000 TOTAL INCOME RS. 57,60,505 ROUNDED OFF RS.57,60,510 IT IS CLEAR THAT THE AO HAS NOT TAKEN PAIN TO EXAMI NE THE ISSUE ON MERITS ON THE BASIS OF THE DETAILS TO BE FILED B Y THE ASSESSEE AS DIRECTED BY THE TRIBUNAL. NOW BEFORE US THE ASSESSEE HAS CLAIMED THAT THE LOANS HAVE BEEN REPAI D THEREFORE, THE CLAIM OF THE ASSESSEE BASED ON THE R ECORD SHOWING THE REPAYMENT OF LOAN IS REQUIRED TO BE VER IFIED. IF THE CLAIM OF THE ASSESSEE THAT LOANS HAVE ALREADY BEEN REPAID IS FOUND CORRECT THEN THE ADDITION U/S 68 IS NOT SUSTA INABLE AND LIABLE TO BE DELETED. THEREFORE IN THE INTEREST OF JUSTICE WE SET ASIDE THIS ISSUE FOR LIMITED PURPOSE OF VERIFICATIO N OF THE FACT AND THE RECORD FILED BY THE ASSESSEE TO SHOW THAT T HE LOANS IN QUESTION HAVE BEEN REPAID BY THE ASSESSEE. THE AO T O DECIDE THE ISSUE IN TERMS OF OUR OBSERVATION. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ACCORDINGLY, THE A.O. VIDE ORDER DATED 31-3-2015 IN COMPLIANCE TO THE DIRECTIONS OF THE TRIBUNAL IN SEC OND ROUND OF LITIGATION, DELETED THE ADDITIONS SO MADE FOR ASSES SMENT YEAR 1997-98 AFTER VERIFYING THAT THE LOANS HAVE BEEN DU LY REPAID BY THE ASSESSEE VIDE ORDERS DATED 31-03- 2015 (COPY PLACED IN THE FILE). THE ASSESSEE HAS CLAIMED THAT THE LOANS RAISED DURING THE INSTANT YEAR UNDER APPEAL HAVE ALSO BEEN REPAID AND CLAIM OF THE ASSESSEE BASED ON RECORDS SHOWING THE ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 11 - REPAYMENT OF THE LOAN IS REQUIRED TO BE VERIFIED. I N THE INSTANT CASE, THE ISSUE AND GROUNDS ARE IDENTICAL AND IN TH E INTEREST OF JUSTICE, RESPECTFULLY FOLLOWING THE ORDER OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN ITA NO. 5849/MUM/2011 VID E ORDERS DATED 06-09-2013, THE ISSUE IS SET ASIDE TO THE FIL E OF A.O. ON THE SIMILAR LINES AS WAS DONE BY THE TRIBUNAL IN TH E IMMEDIATELY PRECEDING ASSESSMENT YEAR 1997-98 , FOR THE LIMITED PURPOSE OF VERIFICATION BY THE AO OF THE FA CT AND THE RECORD FILED BY THE ASSESSEE TO SHOW THAT THE LOANS IN QUESTION RAISED DURING THE INSTANT ASSESSMENT YEAR OF RS.45, 50,000/- HAVE BEEN REPAID BY THE ASSESSEE. THE AO TO DECIDE THE ISSUE IN TERMS OF OUR ABOVE OBSERVATIONS .WITH RESPECT TO ADDITIONS MADE ON ACCOUNT OF INTEREST OF RS.4,00,000/- ON THE SE LOANS, WE FIND THAT THE AO HAS MADE ADDITIONS BASED ON NOT IONAL INTEREST BEING PAID/PAYABLE BY THE ASSESSEE ON THES E LOANS, WE DID NOT FIND ANY BASIS/JUSTIFICATION FOR THE SAM E AS PER THE FACTS EMANATING FROM THE RECORDS. THIS ISSUE IS ALS O SET-ASIDE TO THE FILE OF THE AO TO BE DECIDED BASED ON MERITS AFTER BRINGING ON RECORD COGENT MATERIAL/BASIS FOR THE SA ID INTEREST TO BE BROUGHT TO TAX AS INCOME OF THE ASSESSEE. NEE DLESS TO SAY PROPER AND ADEQUATE OPPORTUNITY OF BEING HEARD SHALL BE PROVIDED BY THE AO TO THE ASSESSEE IN ACCORDANCE WI TH PRINCIPLES OF NATURAL JUSTICE IN ACCORDANCE WITH LA W AND THE ASSESSEE SHALL BE ALLOWED TO PRODUCE EVIDENCES/EXPL ANATIONS IN ITS DEFENSE WHICH SHALL BE ADMITTED AND CONSIDER ED BY THE AO ON MERITS. WE ORDER ACCORDINGLY. 10. IN THE RESULT, APPEAL OF THE ASSESSEE IN ITA NO . 7007/MUM/2011 FOR THE ASSESSMENT YEAR 1998-99 IS TR EATED AS ALLOWED FOR STATISTICAL PURPOSE. OUR DECISION IN THE INSTANT APPEAL IN ITA NO. 5850/ MUM/2011 IS IN LINE WITH THE DECISION OF THE TRIBUNAL IN THE CASE OF DILSA DISTRIBUTORS COMBINE(SUPRA) IN ITA NO. 7007/MUM/201 1 WHEREIN THE FACTS WERE IDENTICAL. 11. OUR ABOVE DECISION IN ITA NO. 5850/MUM/2011 SHA LL APPLY MUTATIS MUTANDIS TO THE ASSESSEES APPEAL IN ITA NO. 5851/MUM/2011 WHEREIN THE FACTS ARE IDENTICAL. ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 12 - 12. IN THE RESULT, BOTH THE APPEALS FILED BY THE AS SESSEE IN ITA N0. 5850/MUM/2011 FOR THE ASSESSMENT YEAR 1997-98 A ND ITA NO. 5851/MUM/2011 FOR THE ASSESSMENT YEAR 1998- 99 ARE ALLOWED FOR STATISTICAL PURPOSES. 7. THE A.O CONSIDERING THE DIRECTIONS AND DECISION OF THE HONBLE ITAT IN ITA NO. 5850/MUM/2011 DATED 29.07.2016 TO VERIFY THE REPAYMENT MADE BY THE ASS ESSEE TO THE LOAN CREDITORS. THE ASSESSEE WAS SERVED WITH THE NOTICE U/S 142(1) OF THE ACT AND IN COMPLIANCE, ONE OF THE PARTNER OF THE ASSESSEE FIRM APPEARED AND FILED THE LETTER DATED 25.04.2017. THE A.O IN THE ASSESSMENT ORDER OBSERVED THAT THE UNSECURED LOAN HAS BEEN SQUARED O FF TOWARDS THE INVESTMENTS WITH THE CREDITORS. THE A.O . FINDS THAT THE ASSESSEE FIRM HAS DISCHARGED THE L IABILITY OF LOANS BY TRANSFERRING SHARES IN UNDER PRODUCTION FILM MASEEHA UNDER THE BANNER OF M/S BABA SAI FILMS (ASSESSEE) AND CONFIRMED THAT IT WILL GIVE 25% SHA RE OF PROFIT TO THE LOANEES AND THE ASSESSEE ALSO PRODUCE D THE COPY OF PROMISSORY NOTE DISCHARGED BY THE ABOVE PAR TIES. FINALLY, THE A.O TAKING INTO CONSIDERATION ALL THE FACTS, CIRCUMSTANCES, DIRECTIONS AND THE SQUARING OF LOAN AND CONFIRMATION OBSERVED THAT THERE IS NO ADDITION TO BE CALLED FOR AND ASSESSED THE TOTAL INCOME OF RS. NIL AND PASSED THE ORDER U/S 143(3) R.W.S 254 OF THE ACT DA TED 30.06.2017. ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 13 - 8. SUBSEQUENTLY, THE PR.CIT HAS ISSUED SHOW CAUSE N OTICE U/S 263 OF THE ACT DATED 16.01.2020 AND OBSERVED TH AT THE A.O HAS NOT CARRIED OUT THE INDEPENDENT ENQUIRI ES OR VERIFICATION AND EXAMINATION OF THE LOAN CREDITORS AND ALSO FAIL TO VERIFY THE FACT OF REPAYMENT OF LOANS WERE MADE THROUGH ACCOUNT PAYEE CHEQUES. THE ITAT DIRECTIONS WAS ONLY IF THE REPAYMENT IS MADE BY THE ACCOUNT PAYEE CHEQUES AND NO ADDITION WILL BE MADE. THEREFORE, THE PR. CIT OBSERVED THAT THE ORDER IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE. THE ASSESSEE IN COMPLIANCE TO THE NOTICE U/S 263 OF THE ACT HAS FILED THE REPLY ON 06.02.2020 EXPLAINING TH E DETAILED FACTS AND THE REASONS ON THE SQUARING OF LOAN TOWARDS THE INVESTMENTS. THE PR.CIT WAS NOT SATISFI ED WITH EXPLANATIONS AND RELIED ON THE A.O. REPORT ON THE ASSESSES EXPLANATIONS ENDORSED BY THE RANGE HEAD AND PASSED ORDER U/S 263 OF THE ACT ON 04.03.2020. AGGRIEVED BY THE ORDER, THE ASSESSEE HAS FILED AN A PPEAL BEFORE THE HONBLE TRIBUNAL. 9. THE LD.AR SUBMITTED THAT THIS IS A FOURTH ROUND OF LITIGATION. IN THE ASSESSEE FIRM, ONE OF THE SENIOR PARTNER SHRI VALLABH DASI RAMANI ,WHO WAS HANDLING THE FINANCIAL MATTERS WITH THE CREDITORS HAS EXPIRED ON 03.05.1999 AND THEREFORE THE DISPUTED FINANCIAL ISS UES COULD NOT BE SETTLED. THE ASSESSEE FIRM WAS PASSING ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 14 - THROUGH THE LIQUIDITY CRUNCH AND THE ONLY ASSET WI TH THE ASSESSEE FIRM IS THE UNDER PRODUCTION OF FILM M ASEEHA. THEREFORE THE LOANS OBTAINED EARLIER COULD NOT BE REPAID FOR LONG TIME DUE TO THE FINANCIAL CRISES. SUBSEQUE NTLY, IT WAS MUTUALLY AGREED THAT THE LOAN CREDITORS ARE CONVERTING THE LOANS INTO INVESTMENTS AND THE LETTE R WAS FILED ON 22.05.2001. THE LD. AR CONTENTIONS ARE THA T IN SIMILAR CIRCUMSTANCES THE HONBLE TRIBUNAL IN ASSE SSEE SISTER CONCERN IN THE CASE OF M/S DILSA DISTRIBUT ORS COMINES (SUPRA) HAS DEALT ON THE ISSUE AND HAS ISSU ED SPECIFIC DIRECTIONS AND THE SAME ARE APPLICABLE TO THE ASSESSEE FIRM. THEREFORE, THE HONBLE TRIBUNAL IN I TA NO.5850 & 5851/MUM/2011 DATED 29.07.2016 HAS MADE CERTAIN OBSERVATIONS IN RESPECT OF REPAYMENT OF LOA NS. 10. THE LD. AR MENTIONED THAT BEFORE THE PR.CIT THE ASSESSE HAS GIVEN COMPLETE DISCLOSURE OF THE FACTS AND FILED POSSIBLE EXPLANATIONS. THE LD. AR ALSO EXPRES SED THE DEEP CONCERN THAT THE ASSESSEE FIRM IS IN THE LITIG ATION BEFORE THE HONBLE TRIBUNAL FOR THE FOURTH TIME AND THE A.O AS PER THE DIRECTIONS HAS PASSED THE REASONED ORDER. THE PR.CIT HAS NOT POINTED OUT ANY SPECIFIC ERROR I N THE A.O. ORDER AND EMPHASIZED ONLY ON THE STATUS OF REPAYMENT OF LOAN BY ACCOUNT PAYEE CHEQUES. THE LD. AR SUBMITTED THAT THE PARTNER OF THE ASSESSE FIRM HAS ATTENDED THE REVISION PROCEEDINGS AND FILED DETAILE D ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 15 - EXPLANATIONS ON 6-02-2020 & 13-02-2020. THE LD. AR EMPHASIZED THAT ON THE ISSUE OF THE DIRECTIONS OF THE HONBLE TRIBUNAL ON MODE OF REPAYMENT OF LOAN AND RETURNED BY ACCOUNT PAYEE CHEQUE. THE ASSESSEE SOUG HT SOME TIME TO FILE THE MISCELLANEOUS PETITION BUT D UE TO LAPSE OF TIME LIMIT PRESCRIBED UNDER SEC 254 OF TH E ACT FOR FILLING THE MISCELLANEOUS PETITION THE ASSESS EE HAS DEFERRED THE FILLING. FURTHER THE ORDER PASSED BY T HE A.O DOES NOT SATISFY THE TWIN CONDITIONS THAT THE ORDE R IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE RE VENUE. FURTHER THE PR.CIT IN HIS ORDER HAS NOT POINTED OUT SPECIFIC ERROR AND THE A.O. CONSIDERING THE FACTS, CIRCUMSTANCES, RECORD OF LONG DRAWN LITIGATION, SUBMISSIONS OF THE ASSESSEE TOOK A POSSIBLE AND REASONABLE VIEW AND PRAYED FOR ALLOWING THE ASSES SEE APPEAL. 11. CONTRA, THE LD.DR SUBMITTED THAT THE PR. CIT HA S CONSIDERED ALL THESE ASPECTS AND ONLY SET ASIDE THE ORDER OF THE A.O. THE A.O HAS NOT CONSIDERED THE DIRECTIO NS AS PER THE REPORT SUBMITTED AND ENDORSED BY THE RANGE HEAD AND SUPPORTED THE ORDER OF THE PR.CIT. 12. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FOUND THAT THE AS SESSEE FIRM HAS FOUGHT A LONG LITIGATION BEFORE THE HONORA BLE ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 16 - TRIBUNAL UP TO THE YEAR 2016 BEING THE THREE ROUNDS OF LITIGATION. THE CO-ORDINATE BENCH OF TRIBUNAL IN ITA NO 5850&5851/M/ 2011 DATED 29-07-2016 HAS RESTORED TH E DISPUTED ISSUE WITH THE DIRECTIONS TO THE A.O AND ALLOWED THE ASSESSES APPEAL FOR STATISTICAL PURPOSE . THE LD. AR CONTENTIONS ARE THAT THE MAIN PARTNER OF THE ASSESSEE FIRM, WHO WAS LOOKING AFTER THE CREDITORS PAYMENTS AND UNSECURED LOANS HAS EXPIRED. DUE TO WH ICH THE ASSESSEE FIRM WAS IN FINANCIAL CRISIS AND WAS N OT IN A POSITION TO REPAY THE LOANS. SUBSEQUENTLY, BECAUSE OF MUTUAL UNDERSTANDING BETWEEN THE LOAN CREDITORS ON CERTAIN TERMS AND CONDITIONS THE LOAN AMOUNT WAS TR EATED AS INVESTMENTS OF THE CREDITORS WITH PROFIT SHARING . THE A.O. IN ORDER DATED 30.06.2017 PASSED U/SEC143(3) R .W,S 254 OF THE ACT HAS RELIED ON THE SUBMISSIONS. WE FI ND THE MAIN CRUX OF THE ISSUE THAT, THE PR.CIT IS OF THE O PINION THAT THE A.O. ORDER IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE AND WAS SET ASIDE FOR FRESH ADJUDICATION. ON PERUSAL OF THE PR.CIT ORDER WE FOU ND THAT THE PR. CIT HAS ONLY VERIFIED THE FACTS OF LOA N AND THE ASSESSEE FIRM IS IN THE LITIGATION BEFORE THE HONB LE TRIBUNAL FOR THE THIRD TIME AND THE PR.CIT HAS NOT POINTED OUT ANY SPECIFIC ERROR IN THE A.O. ORDER AND EMPHA SIZED ONLY ON THE STATUS OF REPAYMENT OF LOAN BY ACCOUNT PAYEE CHEQUES AND HAS RELIED ON THE OBSERVATIONS OF THE A.O. ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 17 - DULY ENDORSED BY THE RANGE HEAD AT PAGE 4 OF THE REVISION ORDER AS UNDER: THE DETAILS SUBMITTED HAVE BEEN EXAMINED PROPERLY. THE A.O HAS REBUTTED ASSESSEES EXPLANATION WHICH DULY ENDO RSED BY THE RANGE HEAD, WHICH IS AS UNDER: . THE A.O HAS SUBMITTED IN HIS REPORT THAT IT I S CLEAR THAT THE ASSESSEE HAS NOT REPAID THE MONEY TO THE L OAN CREDITOR AS THE PRODUCTION OF THE MOVIE MASEEHA WAS SUSPENDED AND THE CONTENTION OF THE ASSESSEE THAT T HE LOANS OF RS. 20 LAKHS WERE SQUARED OFF BY CONVERTING INTO AN INVESTMENT SEEMS TO BE INCORRECT. FURTHER, THE AO STATED THAT THE ASSESSEE HAS REQUESTED TO DEFER THE PROCEEDINGS U/S 263 FOR SOME TIME AS THE ASSESSEE IS INTENDING TO FILE A MISCELLANEOUS PETITION BEFORE THE ITAT TO AMEND THE IR ORDER AS THE ASSESSEE HAD NEVER PLEADED BEFORE THE ITAT THAT THE LOANS TAKEN HAD BEEN RETURNED BY ACCOUNT PAYEE CHEQUES. THE ASSESSEE HAS NOT PROVIDED ANY INFORMATION FOR FILIN G OF MA BEFORE THE HONBLE ITAT TILL DATE. 13. THE BENCH REQUIRED THE LD.AR TO CLARIFY THE IS SUE OF FILING MISCELLANEOUS PETITION. THE LD.AR SUBMITTED THAT THE ASSESSEE WANTED TO FILE A MISCELLANEOUS APPLICA TION BUT DUE TO LAPSE OF TIME ALLOWED U/SEC254(2) OF TH E ACT, THE ASSESSEE COULD NOT FILE THE MISCELLANEOUS APPLI CATION WITHIN THE TIME AND IS NOT A WANTON ACT. THE ASSES SEE HAS SQUARED OFF THE LOAN AMOUNT WITH THE MUTUAL CON SENT OF CREDITORS. THE LD.AR REFERRED TO THE ORDERS OF T HE HONBLE TRIBUNAL IN THE CASE OF ASSESSES SISTER CO NCERN M/S DILSA DISTRIBUTORS COMBINE (SUPRA) WHERE THE HO NBLE ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 18 - TRIBUNAL HAS MADE OBSERVATIONS REGARDING THE REPAY MENT OF LOAN AND THE SAME WAS FOLLOWED IN ASSESSES OWN CASE IN ITANO5850&5851/M/2011 DATED 29.7.2016 WHICH IS NOT DISPUTED. 14. WE FIND THAT THE LD. AR CONTENTIONS ARE REALIST IC AND THE ASSESSEE HAS RESOLVED THE ISSUE BY MUTUAL UNDERSTANDING AND COMPROMISE WITH THE LOAN CREDITOR S TOWARDS THE INVESTMENTS AND THERE IS NO FRESH INFOR MATION AVAILABLE BEFORE THE A.O EXCEPT THE DIRECTIONS OF T HE HONBLE TRIBUNAL. THE A.O. HAS MADE EFFORTS AS HIS PREDECESSORS HAVE UNDERTAKEN ON THE DISPUTED ISSUE AND IN THE PRESENT SITUATION HE COULD NOT CHANGE THE CIRCUMSTANCES. THEREFORE, WE ARE CONVINCED THAT THE A.O HAS TAKEN ONE OF THE POSSIBLE VIEW IN THE ASSESSMEN T ORDER. FURTHER, A QUERY WAS RAISED TO THE LD.DR, W HETHER REVENUE HAS CHALLENGED THE ITAT ORDER 29-07-2016 BE FORE THE HONBLE HIGH COURT IT WAS CLARIFIED THAT NO AP PEAL HAS BEEN FILED. WE ON PERUSAL OF THE PR. CIT ORDER FIN D THAT THE PR. CIT COULD NOT FIND ANY SPECIFIC ERROR IN T HE A.O. ORDER BUT ONLY RELIED ON THE ITAT DIRECTIONS ON REP AYMENT OF LOAN. WE FIND THAT THE LD. AR HAS ANSWERED THE QUERY ON THE MISCELLANEOUS PETITION AGAINST THE ITAT ORD ER DT 29-07-2016 AND THE SAME COULD NOT BE FILED DUE TO L APSE OF TIME U/S 254(2) OF THE ACT. WE FIND THE LD AR SUBMISSIONS ON THE ISSUE OF OUTSTANDING LOANS SQUAR ED ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 19 - OFF AS INVESTMENTS IN PRODUCTION OF FILM WITH THE M UTUAL CONSENT OF THE CREDITORS CONSIDERED AS HOLISTIC VIE W. FURTHER THE PR. CIT SHOULD SPECIFICALLY POINT OUT T HE ERROR IN THE ORDER PASSED BY THE A.O. WHICH IS ERRO NEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE. WE FIND THAT THERE IS NO ENQUIRY WHICH WAS CONDUCTED BY TH E PR.CIT EXCEPT RELYING ON THE A.O. SUBMISSIONS ENDOR SED BY THE RANGE HEAD. WE ALSO OBSERVE THAT THE ASSESS EE HAS FOUGHT THE LITIGATION FOR THE FOURTH TIME IN THE PR ESENT CASE BEFORE THIS HONBLE TRIBUNAL. WE FIND THE A.O AS PER THE DIRECTIONS OF THE HONORABLE TRIBUNAL IN ORDER D ATED 29.07.2016 HAS TAKEN A POSSIBLE VIEW CONSIDERING TH E LITIGATION FOR A PERIOD OF MORE THAN 20 YEARS. WE A RE CONVINCED THAT THE ORDER PASSED BY THE A.O ARE ON F ACTS, CIRCUMSTANCES, POSSIBLE AND REASONABLE VIEWS. WE FI ND THE ACTION OF THE PR. CIT REVISING THE A.O. ORDER W ITH OUT CONDUCTING OF ENQUIRY IS NOT TENABLE. ACCORDINGLY WE SET ASIDE THE ORDER OF THE PR. CIT AND ALLOW THE GROUND S OF APPEAL IN FAVOUR OF THE ASSESSEE. ITA NO. 1619/MUM/2020, A.Y 1998-99. 15. AS THE FACTS AND CIRCUMSTANCES IN THIS APPEAL ARE IDENTICAL TO ITA NO. 1618/MUM/2020 FORA.Y.1997-98, THE DECISION RENDERED IN ABOVE PARAGRAPHS WOULD APPLY MUTATIS MUTANDIS FOR THIS CASE ALSO. ITA NO. 1618 & 1619/MUM/2020 BABA SAI FILMS, MUMBAI - 20 - ACCORDINGLY, THE ORDER PASSED U/SEC263 OF THE ACT I S SET-ASIDE AND ALLOW THE GROUNDS OF APPEAL OF THE ASSESSEE. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASS ESSEE ARE ALLOWED.. ORDER PRONOUNCED IN THE OPEN COURT ON 17.06.2021 SD/- SD/- ( M.BALAGANESH ) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 17.06.2021 KRK, PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) 4. ( ) / CONCERNED CIT 5. '#$%&&' , )* , / DR, ITAT, MUMBAI 6. %-./0 / GUARD FILE. / BY ORDER, '& //TRUE COPY// 1. ( ASST. REGISTRAR) ITAT, MUMBAI