SANGEETA P. PODDAR, MUMBAI V. JCIT RG 14(2), MUMBAI

ITA 1869/MUM/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3722 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 02-12-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 24-03-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D SONGATE
• Assessee Lawyers: SANJIV SHAH
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E, MUMBAI BEFORE SHRI P.M. JAGTAP, A.M. AND SHRI V. DURGA RAO , J.M. ITA NO. 1869/M/2009 ASSESSMENT YEAR: 2004-05 SMT. SANGEETA P. PODDAR, APPELLANT TRADE WORLD, B-WING, 3 RD FLOOR, KAMLA CITY, SENAPATI BAPAT MARG, LOWER PAREL, MUMBAI 400 013. (PAN AACPP2350G) VS. JT. COMMISSIONER OF INCOME-TAX, RESPONDENT RANGE 14(2), MUMBAI. APPELLANT BY : MR. SANJIV SHAH RESPONDENT BY : MR. D. SONGATE . ORDER PER V. DURGA RAO, J.M.: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF CIT(A)- XIV, MUMBAI, PASSED ON 16/01/2009 FOR THE A SSESSMENT YEAR 2004-05, WHEREIN THE ASSESSEE HAS RAISED THE FOLLOW ING GROUNDS OF APPEAL:- 1. THE LEARNED CIT(A) HAS GROSSLY ERRED IN CONFIRM ING THE DISALLOWANCE OF INTEREST OF ` . 11,05,609/- U/S 14AOF THE INCOME TAX ACT, 1961 AND THE REASONS ASSIGNED BY HIM IN DO ING SO ARE WRONG AND ARE CONTRARY TO THE PROVISIONS OF INCOME TAX ACT, 1961 AND RULES MADE THERE UNDER. 2. THE LEARNED CIT(A) OUGHT TO HAVE CONSIDERED NET INTEREST PAYMENT OF ` . 2,26,344/- FOR THE PURPOSE OF SEC. 14A (RECEIPT O F ` . 8,79,265/- MINUS INTEREST PAYMENT OF ` . 11,05,069/-. 3. THE CIT(A) HAS FURTHER ERRED IN NOT CONSIDERING THE DISALLOWANCE UNDER SECTION 14A OF INTEREST PAYMENT ON BORROWINGS FOR INVESTMENT IN PARTNERSHIP FIRM OF M/ S SHREE ITA NO. 1869/M/09 SMT. SANGEETA P. PODDAR 2 SIYARAM TEXTILES FROM WHOM THE ASSESSEE HAS RECEIVE D SHARE OF PROFIT OF ` . 28,905/- AND INTEREST OF ` . 2,41,899/-, WHICH HAS BEEN OFFERED FOR TAXES. 2. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF TH E PARTIES AND PERUSED THE MATERIAL ON RECORD. THE GROUNDS RAISED IN THIS APPEAL ARE COVERED BY THE LATEST JUDGMENT OF THE HONBLE JURIS DICTIONAL HIGH COURT IN THE CASE OF GODREJ & BOYCE MANUFACTURING C O. LTD. VIDE INCOME TAX APPEAL NO. 626 OF 2010 AND W.P. OF 758 O F 2010, JUDGMENT DATED 12.08.2010 (328 ITR 81) THEREFORE, WE REMIT THESE GROUNDS/ISSUES BACK TO THE FILE OF THE AO WITH A DI RECTION TO DECIDE THESE GROUNDS OF APPEAL IN THE LIGHT OF THE JUDGMEN T OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF GODREJ & B OYCE MANUFACTURING CO. LTD., AFTER PROVIDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE IN THE MATTER. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 16 TH DAY OF DECEMBER, 2010. SD/- SD/- (P.M. JAGTAP) (V. D URGA RAO) ACCOUNTANT MEMBER JUDI CIAL MEMBER MUMBAI, DATED: 16 TH DECEMBER, 2010 ITA NO. 1869/M/09 SMT. SANGEETA P. PODDAR 3 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) CONCERNED. 4) THE CIT CONCERNED. 5) THE DEPARTMENTAL REPRESENTATIVE, E BENCH, I.T .A.T., MUMBAI. BY ORDER //TRUE COPY// ASST. REGISTRAR, I.T.A.T., MUMBAI. KV