GANGA DEVELOPERS, MUMBAI V. ASST CIT CEN CIR 31, MUMBAI

ITA 2287/MUM/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3548 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 24-02-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 20-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHAMMED RIZWAN
• Assessee Lawyers: J P BAIRAGRAAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G, BENC H MUMBAI BEFORE SHRI D.KARUNAKARA RAO, ACCOUNTANT MEMBER A ND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO.2287/MUM/2015 (ASSESSMENT YEAR : 2011-12) M/S. GANGA DEVELOPERS LAALASISPLOT NO.219,11 TH ROAD, CHEMBUR MUMBAI-400071. VS. ASST. CIT, CENTRAL CIRCLE-31 MUMBAI. PAN/GIR NO.: AAAFG 8230 C ( APPELLANT ) .. ( RESPONDENT ) REVENUE BY : SHRI MOHAMMED RIZWAN (DR) ASSESSEE BY : SHRI J.P. BAIRAGRA-AR DATE OF HEARING : 24/02/2016 DATE OF PRONOUNCEMENT: 29/02/2016 O R D E R PER PAWAN SINGH, JM: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF CIT(A) -52 MUMBAI, DATED 29.01.2015 RAISING ONLY ONE EFFECTIVE GROUND REGARDING DISALLOWANCE OF INTEREST EXPENSES AMOUNTING TO RS.1,85,57,586/- FOR THE ASS ESSMENT YEAR 2011-12. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE FILED ITS RETURN OF INCOME ON 29.09.2011 DECLARING TOTAL LOSS AT RS. (-)1,92,45,4 09/- THE RETURN WAS SELECTED FOR SCRUTINY AFTER SERVING THE STATUTORY NOTICE U/S. 14 3(2). THE ASSESSING OFFICER, BESIDES THE OTHER DISALLOWANCES, MADE A DISALLOWANCE OF RS.18,5 5,758/- ON ACCOUNT OF INTEREST EXPENSES. THE ASSESSEE FILED AN APPEAL AGAINST THE ASSESSMENT ORDER DATED 23.10.2013 BEFORE THE FIRST APPELLATE AUTHORITY/CIT(A). THE SA ME WAS CONFIRMED BY THE CIT(A) VIDE ITS ORDER DATED 29.01.2015 AGAINST WHICH THE P RESENT APPEAL IS FILED BEFORE US. 3. AT THE OUTSET THE LD. AUTHORISED REPRESENTATIVE (AR) HAD BROUGHT TO OUR NOTICE THAT SIMILAR ADDITION HAD BEEN MADE IN ASSESSMENT Y EARS 2008-09, 2005-06, 2006-07 AND 2007-08 AGAINST WHICH THE ASSESSEE HAS APPROACHED T HIS TRIBUNAL AND SIMILAR ISSUE WAS RESTORED TO THE FILE OF THE ASSESSING OFFICER VIDE ORDER DATED 15.05.2015. IN THIS REGARD WE PERUSED THE SAID ORDERS OF THE TRIBUNAL AND FIN D THAT PARA 24 OF THE ORDER OF THE TRIBUNAL FOR ASSESSMENT YEARS 2005-06, 2006-07 AND 2008-09 IS RELEVANT. CONSIDERING ITS IMPORTANCE, THE SAME IS EXTRACTED AS UNDER :- ITA NO.2287/M/15 GANGA DEVELOPERS 2 24. IN VIEW OF THE ABOVE, WE RESTORE THE MATTER WIT H REGARD TO DISALLOWANCE OF INTEREST TO THE FILE OF AO WITH A DIRECTION TO DECIDE AFRESH KE EPING IN VIEW THE PROPOSITION OF LAW LAID DOWN BY JURISDICTIONAL HIGH COURT IN THE CASE OF RE LIANCE UTILITIES & POWER LTD., WHEREIN IT WAS HELD THAT IN CASE OF AVAILABILITY OF INTERES T FREE FUNDS PRESUMPTION IS THAT THE SAME HAS BEEN UTILIZED FOR ADVANCING INTEREST FREE LOANS , THEREFORE, NO DISALLOWANCE IS TO BE MADE. THE AO IS DIRECTED TO DECIDE THE ISSUE AFTER VERIFYING INTEREST FREE FUNDS AVAILABLE WITH THE ASSESSEE IN TERMS OF DECISION OF HONBLE J URISDICTIONAL HIGH COURT AS WELL AS OTHER HIGH COURTS CITED HEREINABOVE. WE DIRECT ACCO RDINGLY. THE ABOVE FINDING OF THE TRIBUNAL, IS RELEVANT, FOR DECIDING THE PRESENT ISSUE RAISED IN THIS APPEAL. KEEPING IN VIEW THE PRINCIPLE OF CONS ISTENCY, AND FOLLOWING THE ORDER OF THE CO-ORDINATE BENCH OF THE TRIBUNAL, WE RESTORE THE I SSUE TO THE FILE OF THE ASSESSING OFFICER. THEREFORE, WE DIRECT THE ASSESSING OFFICER TO CONSIDER THE SAME IN ACCORDANCE WITH THE DIRECTION WHICH WAS GIVEN IN ORDER DATED 1 5.05.2015 4. IN THE RESULT APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29/02/2016. SD/- SD/- (D.KARUNAKARA RAO) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED : 29 /02/2016 JV, SR.PS COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY/