The ITO, Ward-4(1), Ahmedabad V. Gulmohar Greens Golf & Country Club Ltd., Ahmedabad

ITA 2337/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94803 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 28-10-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 15-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SINGH
• Assessee Lawyers: S N SOPARKAR
• Keywords: Depreciation; Capital receipt; Revenue expenditure
• Section: 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD - , , BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER 1. ./ I.T.A.NO.2337/AHD/2011A.Y.2008-09 2. ./ I.T.A.NO.2054/AHD/2011A.Y.2008-09 1. THE ITO WARD-4(1) AHMEDABAD 2. GULMOHAR GREENS GOLF & COUNTRY CLUB LTD., AHMEDABAD / VS. 1.GULMOHAR GREENS GOLF & COUNTRY CLUB LTD. B-204, SHAPATH-IV OPP.KARNAVATI CLUB SARKHEJ GANDHIANGAR HIGHWAY AHMEDABAD 380 054 2. ITO WARD-4(1) AHMEDABAD $ ./ ./ PAN/GIR NO. : AACCG 4253 G ( $' / APPELLANTS ) .. ( ()$' / RESPONDENTS ) REVENUE BY : SHRI NARENDRA SINGH, SR.DR ASSESSEE BY : SHRI S.N. SOPARKAR, AR *+ , - / DATE OF HEARING 28/10/2015 ./ , - / DATE OF PRONOUNCEMENT 30/11/2015 / O R D E R PER SHRI KUL BHARAT, JUDICIAL MEMBER : THESE CROSS-APPEALS BY THE REVENUE AND THE ASSESSE E ARE DIRECTED AGAINST THE ORDER OF THE LD.COMMISSIONER OF INCOME TAX(APPEALS)-VIII, AHMEDABAD [CIT(A) IN SHORT] DATED 12/07/2011 PERTAINING TO ASSESSMENT YEAR (AY) 2008-09. THESE APPEALS WERE HEARD TOGETHER AND ITA NO.2337/AHD/2011 (BY REVENUE) AND ITA NO.2054/AHD/2011 (BY ASSESSEE) ITO VS. GULMOHAR GREENS GOLF & COUNTRY CLUB LTD. ASST.YEAR 2008-09(CROSS-APPEALS) - 2 - ARE BEING DISPOSED OF BY THIS CONSOLIDATED ORDER FO R THE SAKE OF CONVENIENCE. 2. FIRST, WE TAKE UP THE REVENUES APPEAL IN IT A NO.2337/AHD/2011 FOR AY 2008-09. THE ONLY EFFECTIVE GROUND RAISED B Y THE REVENUE READS AS UNDER:- 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.1,75,15,680/- ON ACCOUNT OF MEMBERSH IP FEE INCOME WITHOUT APPRECIATING FACT THAT THE SO CALLED SECURITY DEPOSIT WAS INEXTRICABLY LINKED TO GRANT OF MEMBER SHIP. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD.CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFF ICER. 3. IT IS, THEREFORE, PRAYED THAT THE ORDER OF T HE LD.CIT(A) MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFICER MAY BE REST ORED TO THE ABOVE EXTENT. 3. BRIEFLY STATED FACTS GIVING RISE TO THE PRESENT APPEAL ARE THAT THE ASSESSMENT U/S.143(3) R.W.S.144A OF THE INCOME TAX ACT,1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED V IDE ORDER DATED 24/12/2010, THEREBY THE ASSESSING OFFICER (AO IN SHORT) MADE VA RIOUS ADDITIONS; NAMELY, PRELIMINARY EXPENSES OF RS.72,41 0/-, DEPRECIATION OF RS.29,14,858/-, ADDITION OF MEMBERSHIP FEES CONSIDE RED AS INCOME OF RS.1,87,66,800/- AND DISALLOWANCE U/S.14A OF RS.2, 60,570/-. THE ASSESSEE BEING AGGRIEVED BY THE ASSESSMENT ORDER, P REFERRED AN APPEAL ITA NO.2337/AHD/2011 (BY REVENUE) AND ITA NO.2054/AHD/2011 (BY ASSESSEE) ITO VS. GULMOHAR GREENS GOLF & COUNTRY CLUB LTD. ASST.YEAR 2008-09(CROSS-APPEALS) - 3 - BEFORE THE LD.CIT(A), WHO AFTER CONSIDERING THE SUB MISSIONS OF THE ASSESSEE PARTLY ALLOWED THE APPEAL. AGGRIEVED BY T HE ORDER OF THE LD.CIT(A), NOW BOTH THE REVENUE AND ASSESSEE HAVE F ILED THE CROSS- APPEALS BEFORE US. 4. THE EFFECTIVE GROUND (I.E.GROUND NO.1) RAISED BY THE REVENUE IN THIS APPEAL IS AGAINST DELETION OF ADDITION OF RS.1 ,75,15,680/- ON ACCOUNT OF MEMBERSHIP FEE INCOME. THE LD.SR.DR SHRI NAREND RA SINGH VEHEMENTLY ARGUED THAT THE LD.CIT(A) WAS NOT JUSTIF IED IN DELETING THE ADDITION. HE SUPPORTED THE ORDERS OF THE AO. HE S UPPORTED THAT THE ASSESSEE HAS BEEN ACCEPTING SECURITY DEPOSITS FROM ITS MEMBERS. SECURITY DEPOSITS, HOWEVER, ARE REFUNDABLE BUT REMA INS 25 YEARS WITH THE ASSESSEE-CLUB. THE LD.SR.DR SUBMITTED THAT THE LD. CIT(A) ERRED IN HOLDING THAT THE ONLY 1/25 TH OF THE SECUTIY DEPOSITS WOULD BE LIABLE TO TAX FOR THE FINANCIAL YEAR (FY) ENDED ON 31/03/2008. T HE LD.SR.DR PLACED RELIANCE ON THE JUDGEMENT OF HONBLE PATNA HIGH COU RT RENDERED IN THE CASE OF CIT VS. UNITED CLUB EQUIVALENT CITATIONS: (1986) 161 IR 853(PATNA). IN SUPPORT OF THE CONTENTION THAT THE SECURITY DEPOSITS WERE REQUIRED TO BE TAXED. 4.1. ON THE CONTRARY, LD.SR.COUNSEL FOR THE ASSESSE E SUBMITTED THAT THE APPROACH OF THE LD.CIT(A) IS NOT JUSTIFIED. HE PLA CED RELIANCE ON THE ITA NO.2337/AHD/2011 (BY REVENUE) AND ITA NO.2054/AHD/2011 (BY ASSESSEE) ITO VS. GULMOHAR GREENS GOLF & COUNTRY CLUB LTD. ASST.YEAR 2008-09(CROSS-APPEALS) - 4 - JUDGEMENT OF HONBLE SUPREME COURT RENDERED IN THE CASE OF SIDDHESHWAR SAHAKARI SAKHAR KARKHANA LTD. VS. CIT R EPORTED AT [2004] 270 ITR 1 = 139 TAXMAN 434 (SC). HE SUBMITTED THAT THE DEPOSITS WOULD NOT PARTAKE THE CHARACTER OF INCOME AS THE SA ME REQUIRES TO BE REFUNDED. HE NARRATED CERTAIN INSTANCES WHERE THE SECURITY DEPOSITS WERE REFUNDED. HE SUBMITTED THAT THE JUDGEMENT WHICH IS RELIED UPON BY THE LD.SR.DR WOULD NOT APPLY ON THE FACTS OF THE PRESEN T CASE AS IN THAT CASE IT WAS ONE TIME MEMBERSHIP FEE AND WHICH WAS NOT REFUN DABLE, BUT IN THE INSTANT CASE, THE FEE WAS REFUNDABLE. RELIANCE IS ALSO PLACED ON THE JUDGEMENT OF THE HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. UNIQUE MERCANTILE SERVICE PVT.LTD. IN TAX APPEAL NO S.1471 TO 1478 OF 2005, DATED 18/12/2014. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE REVENUE HAS NOT DISPUTED THAT THE SECURITY DEPO SITS WERE REFUNDABLE TO THE MEMBERS. IT IS ALSO NOT IN DISPUTE THAT IN SOME OF THE CASES THE ASSESSEE-CLUB HAS REFUNDED THE AMOUNT. UNDER THESE FACTS, WE ARE UNABLE TO ACCEPT THE FINDING OF THE AO THAT THE AMOUNT WOU LD BE SUBJECTED TO INCOME-TAX AND WOULD PARTAKE THE INCOME OF THE ASSE SSEE-CLUB. WE ARE OF THE CONSIDERED VIEW THAT EVERY RECEIPT CANNOT BE TERMED AS INCOME UNLESS IT IS SATISFIES THE REQUIREMENT OF LAW. IN THE PRESENT CASE, THE ITA NO.2337/AHD/2011 (BY REVENUE) AND ITA NO.2054/AHD/2011 (BY ASSESSEE) ITO VS. GULMOHAR GREENS GOLF & COUNTRY CLUB LTD. ASST.YEAR 2008-09(CROSS-APPEALS) - 5 - ASSESSEE-CLUB HAD RECEIVED REFUNDABLE NON-INTEREST BEARING SECURITY DEPOSIT WOULD REMAIN LIABILITY FOR THE ASSESSEE-CLU B. MEMBER BY GIVING SECURITY DEPOSIT ENTITLES HIMSELF FOR THE CONCESSIO NAL RATE SERVICES PROVIDED BY THE ASSESSEE-CLUB. THEREFORE, LOOKING TO THE TOTALITY OF THE FACTS OF THE CASE AND IN VIEW OF THE JUDGEMENT OF T HE HONBLE SUPREME COURT IN THE CASE OF SIDDHESHWAR SAHAKARI SAKHAR KA RKHANA LTD. REPORTED AT 270 ITR 1 (SC) AND ALSO THE JUDGEMENT O F HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF UNIQUE MER CANTILE SERVICES PVT.LTD. IN TAX APPEAL NOS.1471 TO 1478 OF 2005, WH EREIN THE HONBLE HIGH COURT HAS CONFIRMED THE VIEW OF THE TRIBUNAL H OLDING THAT THE ASSESSEE WOULD ENTITLE FOR SPREADING OVER THE NON-R EFUNDABLE FEE ON ACCRUAL BASIS, UNDISPUTEDLY THE ONE TIME SECURITY D EPOSIT IS REFUNDABLE. THE HONBLE SUPREME COURT IN THE CASE OF SIDDHESHWA R SAHAKARI SAKHAR KARKHANA LTD. (SUPRA) HAS HELD THAT THESE DEPOSITS ARE AKIN TO TRANSACTION OF LOAN. THEY ARE CLEARLY LIABLE TO BE EXCLUDED FR OM TAXABLE INCOME. THEREFORE, RESPECTFULLY FOLLOWING THE JUDGEMENT OF THE HONBLE APEX COURT IN THE CASE OF SIDDHESHWAR SAHAKARI SAKHAR KA RKHANA LTD., WE ARE OF THE CONSIDERED VIEW THAT THE SECURITY DEPOSITS A S RECEIVED BY THE ASSESSEE-CLUB CANNOT BE SUBJECTED TO TAX. ACCORDIN GLY, WE FIND NO MERIT IN THIS GROUND OF THE REVENUES APPEAL, SAME IS REJ ECTED. 6. GROUND NOS.2 & 3 ARE GENERAL IN NATURE WHICH REQ UIRE NO INDEPENDENT ADJUDICATION. ITA NO.2337/AHD/2011 (BY REVENUE) AND ITA NO.2054/AHD/2011 (BY ASSESSEE) ITO VS. GULMOHAR GREENS GOLF & COUNTRY CLUB LTD. ASST.YEAR 2008-09(CROSS-APPEALS) - 6 - 7. IN THE RESULT, REVENUES APPEAL IN ITA NO.2337/A HD/2011 FOR AY 2008-09 IS DISMISSED. 8. NOW, WE TAKE UP THE ASSESSEES APPEAL IN ITA NO. 2054/AHD/2011 FOR AY 2008-09, WHEREIN FOLLOWING GROUNDS HAVE BEEN TAKEN BY THE ASSESSEE:- 1. THE LD.CIT(A) GROSSLY ERRED IN LAW AND ON FACTS IN CONFIRMING THE VIEW TAKEN BY AO PURSUANT TO THE DIRECTIONS OF ADDL .CIT U/S.144A OF THE ACT THAT THE INTEREST FREE REFUNDABLE SECURIT Y DEPOSITS WAS REVENUE IN NATURE. UNDER THE FACTS AND THE CIRCUMS TANCES OF THE CASE, THE LOWER AUTHORITIES HAVE ERRED IN LINKING T HE LONG TERM REFUNDABLE DEPOSITS WITH THE EXISTENCE OF MEMBERSHI P AND THUS HOLDING SECURITY DEPOSITS AS PART OF THE MEMBERSHIP FEES AND NOT CAPITAL RECEIPTS CLAIMED BY THE APPELLANT. THE ORD ER OF CIT(A) BEING ERRONEOUS AND PASSED IN TOTAL DISREGARD OF EXPLANAT IONS, SUBMISSIONS AND VARIOUS CASE LAWS RELIED UPON BY TH E APPELLANT DESERVES TO BE QUASHED. 2. THE LD.CIT(A) ERRED IN LAW AND ON FACTS IN CONSIDER ING THE SECURITY DEPOSITS AS THE MEMBERSHIP FEES FOR THE PERIOD OF E NTIRE 25 YEARS AND FURTHER DIRECTING AO TO TREAT 1/25 TH OF THE SECURITY DEPOSITS AS TAXABLE IN THE YEAR UNDER CONSIDERATION. THIS ACTI ON OF LD.CIT(A) HOLDING FUTURE LIABILITIES AS INCOME IS COMPLETELY AGAINST THE PRINCIPLES OF ACCOUNTANCY AND PROVISIONS OF LAW THA T OUGHT TO BE QUASHED. 3. THE LD.CIT(A) ERRED IN LAW AND ON FACTS IN DISMISSI NG THE ALTERNATE PLEA OF THE APPELLANT AS INFRUCTUOUS THOUGH AGREEIN G WITH THE CONTENTION RAISED THAT IF SECURITY DEPOSITS WERE TR EATED AS INCOME THAN ESTIMATED COST OF DEVELOPMENT/MAINTENANCE EXPE NDITURE BE ALLOWED AS REVENUE EXPENDITURE AGAINST SUCH INCOME. LD.CIT(A) ALSO ACCEPTED THE CONTENTION THAT ALL FEES CHARGED FROM THE MEMBERS ITA NO.2337/AHD/2011 (BY REVENUE) AND ITA NO.2054/AHD/2011 (BY ASSESSEE) ITO VS. GULMOHAR GREENS GOLF & COUNTRY CLUB LTD. ASST.YEAR 2008-09(CROSS-APPEALS) - 7 - FOR UTILIZATION OF THE FACILITIES OF THE CLUB FOR T HE ENTIRE TENURE BE ALLOWED AS EXEMPT. 4. THE LD.CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMI NG DISALLOWANCE OF RS.2,60,570/- MADE BY AO APPLYING PROVISIONS OF SECTION 14A OF THE ACT. BOTH THE LOWER AUTHORITIES HAVE FAILED TO CONSIDER VARIOUS EXPLANATION AND SUBMISSIONS OF THE APPELLANT. LD.C IT(A) OUGHT TO HAVE DELETED SUCH DISALLOWANCE MADE BY AO. 5. THE LD.CIT(A) HAS ERRED IN NOT ISSUING ANY DIRECTIO N IN RESPECT OF NON-ALLOWANCE OF SET OFF OF CARRIED FORWARD DEPRECI ATION OF RS.32,03,575/- AS WELL SHORT TERM CAPITAL LOSS OF R S.2,83,869/- OF A.Y. 2007/08 THOUGH THE RECTIFICATION APPLICATION B EING FILED BY THE APPELLANT. 6. INITIATION OF LEVY OF INTEREST U/S.234B/234C/234D O F THE ACT IS NOT JUSTIFIED. 7. INITIATION OF PENALTY U/S.271(1)(C) OF THE ACT IS N OT JUSTIFIED. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER, ED IT, DELETE, MODIFY OR CHANGE ALL OR ANY OF THE GROUNDS OF APPEAL AT THE T IME OF OR BEFORE THE HEARING OF THE APPEAL. 12. GROUND NOS.1 TO 3 ARE INTER-CONNECTED WHICH AR E AGAINST THE SECURITY DEPOSITS TREATED AS INCOME. THE RESPECTIV E REPRESENTATIVES OF THE PARTIES HAVE ADOPTED THE ARGUMENTS AS WERE ADVANCED IN THE GROUND NO.1 OF REVENUES APPEAL(SUPRA),WHEREIN WE HAVE REJECTED THE REVENUES APPEAL BY OBSERVING AS UNDER:- 5. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED TH E MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES ITA NO.2337/AHD/2011 (BY REVENUE) AND ITA NO.2054/AHD/2011 (BY ASSESSEE) ITO VS. GULMOHAR GREENS GOLF & COUNTRY CLUB LTD. ASST.YEAR 2008-09(CROSS-APPEALS) - 8 - BELOW. THE REVENUE HAS NOT DISPUTED THAT THE SECUR ITY DEPOSITS WERE REFUNDABLE TO THE MEMBERS. IT IS ALSO NOT IN DISPU TE THAT IN SOME OF THE CASES THE ASSESSEE-CLUB HAS REFUNDED THE AMOUNT. U NDER THESE FACTS, WE ARE UNABLE TO ACCEPT THE FINDING OF THE AO THAT THE AMOUNT WOULD BE SUBJECTED TO INCOME-TAX AND WOULD PARTAKE THE INCOM E OF THE ASSESSEE- CLUB. WE ARE OF THE CONSIDERED VIEW THAT EVERY REC EIPT CANNOT BE TERMED AS INCOME UNLESS IT IS SATISFIES THE REQUIREMENT OF LAW. IN THE PRESENT CASE, THE ASSESSEE-CLUB HAD RECEIVED REFUNDABLE NON -INTEREST BEARING SECURITY DEPOSIT WOULD REMAIN LIABILITY FOR THE ASS ESSEE-CLUB. MEMBER BY GIVING SECURITY DEPOSIT ENTITLES HIMSELF FOR THE CONCESSIONAL RATE SERVICES PROVIDED BY THE ASSESSEE-CLUB. THEREFORE, LOOKING TO THE TOTALITY OF THE FACTS OF THE CASE AND IN VIEW OF TH E JUDGEMENT OF THE HONBLE SUPREME COURT IN THE CASE OF SIDDHESHWAR SA HAKARI SAKHAR KARKHANA LTD. REPORTED AT 270 ITR 1 (SC) AND ALSO T HE JUDGEMENT OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF UN IQUE MERCANTILE SERVICES PVT.LTD. IN TAX APPEAL NOS.1471 TO 1478 OF 2005, WHEREIN THE HONBLE HIGH COURT HAS CONFIRMED THE VIEW OF THE TR IBUNAL HOLDING THAT THE ASSESSEE WOULD ENTITLE FOR SPREADING OVER THE N ON-REFUNDABLE FEE ON ACCRUAL BASIS, UNDISPUTEDLY THE ONE TIME SECURITY D EPOSIT IS REFUNDABLE. THE HONBLE SUPREME COURT IN THE CASE OF SIDDHESHWA R SAHAKARI SAKHAR KARKHANA LTD. (SUPRA) HAS HELD THAT THESE D EPOSITS ARE AKIN TO TRANSACTION OF LOAN. THERE ARE CLEARLY LIABLE TO B E EXCLUDED FROM TAXABLE INCOME. THEREFORE, RESPECTFULLY FOLLOWING THE JUDGEMENT OF THE HONBLE APEX COURT IN THE CASE OF SIDDHESHWAR SAHAK ARI SAKHAR KARKHANA LTD., WE ARE OF THE CONSIDERED VIEW THAT T HE SECURITY DEPOSITS AS RECEIVED BY THE ASSESSEE-CLUB CANNOT BE SUBJECTE D TO TAX. ACCORDINGLY, WE FIND NO MERIT IN THIS GROUND OF THE REVENUES APPEAL, SAME IS REJECTED. 12.1 SINCE WE HAVE HELD THAT THE REFUNDABLE SECURIT Y CANNOT BE SUBJECTED TO INCOME TAX, THEREFORE THE GROUND NOS. 1 TO 3 RAISED IN THE ASSESSEES APPEAL ARE ALLOWED. ITA NO.2337/AHD/2011 (BY REVENUE) AND ITA NO.2054/AHD/2011 (BY ASSESSEE) ITO VS. GULMOHAR GREENS GOLF & COUNTRY CLUB LTD. ASST.YEAR 2008-09(CROSS-APPEALS) - 9 - 13. GROUND NO.4 IS AGAINST CONFIRMING DISALLOWANCE OF RS.2,60,570/- MADE BY AO APPLYING PROVISIONS OF SECTION 14A OF TH E ACT. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AO W AS NOT JUSTIFIED IN MAKING THE ADDITION. 13.1. ON THE OTHER HAND, LD.SR.DR SUPPORTED THE ORD ERS OF THE AUTHORITIES BELOW. 14. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED TH E MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT THE YEAR UNDER APPEAL IS AY 2008-09. WE ALSO FIND THAT THE AO HAS MADE DISALLOWANCE IN RESPECT OF THE ADMINIST RATIVE EXPENSES IN THE YEAR UNDER APPEAL I.E.AY 2008-09, SO RULE 8D WO ULD COME INTO PLAY. THEREFORE, WE DO NOT SEE ANY REASON TO INTERFERE WI TH THE ORDER OF THE LD.CIT(A), SAME IS HEREBY UPHELD. THUS, GROUND NO .4 OF ASSESSEES APPEAL IS REJECTED. 15. APROPOS TO GROUND NO.5, AT THE OUTSET, THECOUNS EL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE REQUIRES TO BE RESTORED BA CK TO THE FILE OF AO FOR FRESH DECISION AS THE RECTIFICATION APPLICATION WAS FILED BY THE ASSESSEE. THE LD.SR.DR HAS NO OBJECTION. THEREFORE, THIS GRO UND IS REMITTED BACK TO THE FILE OF AO FOR FRESH DECISION IN ACCORDANCE WITH LAW. THUS, GROUND IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.2337/AHD/2011 (BY REVENUE) AND ITA NO.2054/AHD/2011 (BY ASSESSEE) ITO VS. GULMOHAR GREENS GOLF & COUNTRY CLUB LTD. ASST.YEAR 2008-09(CROSS-APPEALS) - 10 - 16. GROUND NO.6 IS AGAINST INITIATION OF LEVY OF INTEREST U/S.234B/234C/234D OF THE ACT. THIS GROUND IS BEIN G CONSEQUENTIAL IN NATURE, HELD ACCORDINGLY. 17. GROUND NO.7 IS AGAINST INITIATION OF PENALTY PR OCEEDINGS U/S.271(1)(C) OF THE ACT. THIS GROUND IS BEING PRE -MATURE, THEREFORE THE SAME IS DISMISSED AS SUCH. 18. IN THE RESULT, REVENUES APPEAL IS DISMISSED, W HEREAS ASSESSEES APPEAL IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON MONDAY, THE 30 TH DAY OF NOVEMBER, 2015 AT AHMEDABAD. SD/- SD/- ( ) ( ) ( MANISH BORAD ) ( KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 30/ 11 /2015 3-.., *.../ T.C. NAIR, SR. PS !'#$#%! / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ()$' / THE RESPONDENT. 3. 45 6 / CONCERNED CIT 4. 6 ( ) / THE CIT(A)-VIII, AHMEDABAD 5. 7*8 (45 , - 45/ , / DR, ITAT, AHMEDABAD 6. 8:; <+ / GUARD FILE. / BY ORDER, )7 ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD