Appeal details
Counselvise Citation
[2014] 140 COUNSELVISE.COM (IT) 75643 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 10 month(s) 30 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
21-02-2014
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
D
Next Hearing Date
12-02-2014
Assessment Year
2003-2004
Appeal Filed On
22-03-2012
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D, MUMBAI BEFORE SHRI SANJAY ARORA, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NOS. 1950, 1951 & 1952/MUM/2012 ASSESSMENT YEAR: 2002-03, 2003-04 & 2004-05 SHRI RASESH B. KANAKIA 215-ATTRIUM, 10 TH FLOOR, NEXT TO MARRIOT HOTEL, ANDHERI KURLA ROAD, ANDHERI (E) MUMBAI-400 069 VS. ACIT CENTRAL CIRCLE 23 AAYAKAR BHAVAN, 4 TH FLOOR MK ROAD NEW MARINE LINES MUMBAI-20 (APPELLANT) (RESPONDENT) PERMANENT ACCOUNT NO. :- AABPK 3454 F ITA NOS. 1953, 1954 & 1955/MUM/2012 ASSESSMENT YEAR: 2002-03, 2003-04 & 2004-05 SMT. RUPAL RASESH KANAKIA 215-ATTRIUM, 10 TH FLOOR, NEXT TO MARRIOT HOTEL, ANDHERI KURLA ROAD, ANDHERI (E) MUMBAI-400 069 VS. ACIT CENTRAL CIRCLE 23 AAYAKAR BHAVAN, 4 TH FLOOR MK ROAD NEW MARINE LINES MUMBAI-20 (APPELLANT) (RESPONDENT) PERMANENT ACCOUNT NO. :- AAGPK 6527 Q APPELLANT BY : SHRI ANUJ KISNADWALA RESPONDENT BY : SHRI SANJEEV JAIN DATE OF HEARING : 12.02.2014 DATE OF PRONOUNCEMENT : 21.02.2014 O R D E R PER BENCH:- THESE APPEALS FILED BY THE ABOVE NAMED ASSESSEES A RE DIRECTED THE ORDERS OF THE LD.CIT(A)-40, MUMBAI, BOTH DATED 10.01.2012 FOR THE ASSESSMENT YEARS 2002- 03, 2003-04 & 2004-05 IN THE CASE OF THE AFOREMENTI ONED ASSESSEES VIDE WHICH THE LD.CIT(A) HAS CONFIRMED THE LEVY OF PENALTIES U/S 2 71(1)(C) OF THE INCOME-TAX ACT. ITA NOS. 1950, 1951 & 1952/MUM/2012 ITA NOS. 1953, 1954 & 1955/MUM/2012 SHRI RASESH B. KANAKIA SHRI RUPAL RASESH KANAKIA ASSESSMENT YEAR: 2002-03, 2003-04 & 2004-05 2 SINCE THE FACTS AND ISSUES INVOLVED IN BOTH THESE S ETS OF APPEAL ARE COMMON, WE DISPOSE OF BOTH THE SETS OF APPEAL BY A COMMON ORDE R FOR THE SAKE OF CONVENIENCE. 2. AT THE OUTSET IT HAS BEEN BROUGHT TO OUR NOTICE THAT THE LEVY OF PENALTY ON THE DISALLOWANCE OF THE EXCESS INTEREST PROPORTIONATELY ON TERM LOAN THAT EXCEEDED THE INVESTMENT IN THE OFFICE PREMISES HAS BEEN DELETED BY THE TRIBUNAL, VIDE ORDER DATED 08.04.2013, IN THE CASE OF THE CO-OWNERS OF THE SAI D OFFICE PREMISES NAMELY HIMANSHU B. KANAKIA & HIRAL HIMANSHU KANAKIA RESPEC TIVELY IN ITA NOS. 1956- 1958/MUM/2012 & 2025-2027/MUM/2012. IN THE SAID CAS ES, THE TRIBUNAL HAS HELD THAT MEARLY BECAUSE THE PROPORTIONATE INTEREST ON T HE EXCESSIVE LOANS CLAIMED BY THE ASSESSEE HAS BEEN DISALLOWED, THE LEVY OF PENALTY I S NOT JUSTIFIED AS THE ASSESSEE HAS NOT CONCEALED ANY PARTICULARS OF FACTS OR FURNISHED WRONG PARTICULARS OF INCOME IN THE RETURNS FILED. SINCE THE FACTS AND ISSUES IN BOTH T HE SETS OF APPEAL ARE ALSO IDENTICAL AND THAT TOO RELATE TO THE SAME PREMISES ON WHICH T HE EXCESSIVE INTEREST HAS BEEN CLAIMED ON THE BORROWED FUNDS, WHICH HAS BEEN DISAL LOWED BY THE DEPARTMENT, FOLLOWING THE ORDER OF THE TRIBUNAL IN THE AFOREMEN TIONED CASES, WE DELETE THE PENALTIES LEVIED IN THE CASES OF THE ASSESSEE. 3. IN THE RESULT ALL THE APPEALS FILED BY THE ABOVE NAMED ASSESSEES ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 21 ST DAY OF FEBRUARY 2014. SD/- SD/- (SANJAY ARORA) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 21.02.2014. *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR D BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.
