DEEPAK SINGH TANWAR, MUMBAI V. I.T.O. WD.20(2)-1, MUMBAI

ITA 2453/MUM/2012

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9497 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 22-11-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 12-04-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROOPAK KUMAR
• Assessee Lawyers: JAGDISH T PUNJABI
• Section: 143(3); 14A; 154

Judgement Text

. , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI , BEFORE SHRI R.K.GUPTA , J M ITA NO. 2453 / MUM/ 20 1 2 ( ASSESSMENT YEA R : 200 4 - 20 0 5 ) DEEPAK SINGH TANWAR, 71 - A, MITTAL CHAMBERS, NARIMAN POINT, MUMBAI - 400 021 VS. ITO, WARD 2 0 (2) - 1 , MUMBAI PAN/GIR NO. : A BZPT 0181 G ( APPELLANT ) .. ( RESPONDENT ) /ASSES SEE BY : MR. JAGDISH T. PUNJABI /REVENUE BY : MR. ROOPAK KUMAR DATE OF HEARING : 2 2 ND NOV. , 2012 DATE OF PRONOUNCEMENT : 27 TH NOV. ,2012 O R D E R THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 8 - 2 - 2012 OF LEANED CIT(A) - 31 , MUMBAI RELATING TO THE ASSESSMENT YEAR 2004 - 2005 . 2. THE ASSESSEE IS OBJECTING IN UPHOLDING THE ORDER PASSED UNDER SECTION 154 OF THE ACT BY THE ASSESSING OFFICER DISALLOWING INTEREST OF RS. 6 2,913/ - UNDER SECTION 14 - A OF THE ACT. 3. THE ASSESSMENT OF THE ASSESSEE WAS COMPLETED UNDER SECTION 143(3) OF THE ACT AT AN INCOME OF RS . 4,17,904/ - ON 13 - 9 - 2006. THEREAFTER THE ASSESSING OFFICER ISSUED NOTICE UNDER SECTI O N 154 ASKING THE ASSESSEE TO SH OW CAUSE AS TO WHY THE INTEREST PAID OF RS. 62,913/ - MAY NOT BE DISALLOWED AS THE SAME IS INCURRED FOR EARNING THE TAXABLE INCOME. ITA NO. 2453 /20 1 2 2 4 . AS PER THE ORDER OF THE ASSESSING OFFICER, THE ASSESSEE ACCEPTED THE PROPOSAL OF THE ASSESSING OFFICER FOR R ECTIFICATION OF THE ASSESSMENT UNDER SECTION 154. ACCORDINGLY, THE ASSESSING OFFICER RECTIFIED THE ORIGINAL ASSESSMENT AND MADE AN ADDITION OF RS. 62,913/ - . THE CIT(A) ALSO CONFIRMED THE ACTION OF THE ASSESSING OFFICER BY OBSERVING THAT THE ASSESSEE HAS NOT RAISED ANY OBJ ECTION TO SHOW CAUSE NOTICE ISSUED BY THE ASSESSING OFFICER FOR HIS PROPOSED R ECTIFICATION UNDER SECTION 154 OF THE ACT. NOW, THE ASSESSEE IS IN APPEAL HERE BEFORE THE TRIBUNAL. 5 . THE COUNSEL OF THE ASSESSEE STATED THAT THE ASSESSEE HAS VERY MUCH OBJECTE D THE ISSUANCE OF SHOW CAUSE NOTICE UNDER SECTION 154 OF THE ACT. THE ATTENTION OF THE BENCH WAS DRAWN ON THE LETTER DATED 2 - 12 - 2009 , COPY OF WHICH IS PACED IN THE PAPER BOOK. IT WAS FURTHER SUBMITTED THAT A COMPUTATION OF DISALLOWANCE OF INTEREST UNDER SE CTION 14A WAS ALSO FILED AND DISALLOWANCE OF INTEREST COMES TO ONLY RS. 5,641/ - . IT WAS FURTHER SUBMITTED THAT THE ASSESSEE REQUESTED THE ASSESSING OFFICER, IF HE WANTS TO ADD THE INTEREST ONLY AMOUNT OF RS. 5,641/ - IS DISALLOWA BLE . THEREAFTER, AS PER THE CO UNSEL OF THE ASSESSEE, THE ASSESSING OFFICER ASKED THE ASSESSEE TO FILE A LETTER FOR NOT OBJECTING THE RECTIFICATION UNDER SECTION 154 OF THE ACT AND IN THESE CIRCUMSTANCES, THE LETTER DATED 11 - 3 - 2010 WAS FILED. IT WAS FURTHER ARGUED THAT THE ASSESSING OFF ICER HAS NOT COMMENTED UPON THE COMPUTATION UNDER SECTION 14A GIVEN BY THE ASSESSEE. IT WAS ARGUED THAT IF ANY DISALLOWANCE CAN BE MADE, THAT CAN BE MADE OF RS. 5,641/ - AND NOT THE ENTIRE INTEREST. ITA NO. 2453 /20 1 2 3 6 . ON THE OTHER HAND , LEARNED DR PLACED RELIANCE ON THE OR DER OF THE CIT(A) . 7 . AFTER CONSIDERING THE SUBMISSION AND PERUSING THE MATERIAL ON RECORD, I FOUND THAT THE ASSESSEE DESERVES TO SUCCEED IN THIS APPEAL THE PART. IT IS A SMALL MATTER AND DISALLOWANCE OF RS, 5,641/ - CAN BE MADE UNDER SECTION 14A AS COMPUT ATION IS ENCLOSED ALONG WITH THE COPY OF THE LETTER DATED 2 - 12 - 2009 FILED BEFORE THE ASSESSING OFFICER. NO COMMENT HAS BEEN GIVEN IN RESPECT TO THIS COMPUTATION, NEITHER THE LEARNED CIT(A) HAS COMMENTED ON THIS. THOUGH THE RECTIFICATION UNDER SECTION 154 I S NOT PERMISSIBLE ON A DEBATABLE ISSUE, HOWEVER, THE ASSESSEE HAS FILED HIS NO OBJECTION, SUBJECT TO MAKING AN ADDITION OF RS. 5641/ - , THEREFORE, TO MEET THE END OF THE JUSTICE, I DIRECT THE ASSESSING OFFICER TO MAKE ADDITION OF RS. 5,641/ - AGAINST ADDITION OF RS. 62,913/ - . CHARGING OF INTEREST IS CONSEQUENTIAL AND, THEREFORE, THE CONSEQUENTIAL RELIEF MAY B E GIVEN TO THE ASSESSEE . I ORDER ACCORDINGLY. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH DAY OF NOV. 2012. 2012 SD/ - ( ) ( R.K.GUPTA ) / JU DICIAL MEMBER MUMBAI ; DATED : 27 / 11 / 2012 . /PKM , PS ITA NO. 2453 /20 1 2 4 COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) - X, MU MBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( DY./ASSTT. REGISTRAR) / ITAT, MUMBAI