M/S INDIA GOLD LIMITED , Mumbai V. ASST. CIT 12(2)(2), Mumbai

ITA 2592/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6611 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 25-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILESH KUMAR YADAVLD
• Assessee Lawyers: MAHESH RAJORALD
• Keywords: Opportunity of being heard; Set aside

Judgement Text

ITA NO.2592/MUM/2019 M/S. INDIA GOLD LIMITED ASSESSMENT YEAR :2015-16 1 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO.2592/MUM/2019 ( / ASSESSMENT YEAR : 2015-16 ) M/S. INDIA GOLD LIMITED VARSHA, 13, ADARSH SOCIETY RAMCHANDRA LANE EXTENSION MALAD (WEST), MUMBAI- 400 064. / VS. A CIT 12(2)(2) MUMBAI. %& ./ ./PAN/GIR NO. AACCI-4727-R ( &( /APPELLANT ) : ( )*&( / RESPONDENT ) ASSESSEE BY : SHRI MAHESH RAJORA-LD.AR REVENUE BY : SHRI SHAILESH KUMAR YADAV-LD. DR / DATE OF HEARING : 16/09/2020 / DATE OF PRONOUNCEMENT : 16/09/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2015-16 CONTEST THE ORDER OF L D. COMMISSIONER OF INCOME-TAX (APPEALS)-20, MUMBAI, [IN SHORT REFERRED TO AS CIT(A)], APPEAL NO. CIT(A)-20/IT-10343/2017-18 DATED 22/03/2 019 ON FOLLOWING GROUNDS: - ITA NO.2592/MUM/2019 M/S. INDIA GOLD LIMITED ASSESSMENT YEAR :2015-16 2 1. (A) THE COMMISSIONER OF INCOME TAX( APPEALS) - 2 0, MUMBAI [HEREINAFTER REFERRED TO AS CIT(A)] ERRED IN DISMISSING THE APPE AL HOLDING THAT THE FORM NO.35 HAS BEEN VERIFIED BY APPELLANT M/S INDIA GOLD LIMI TED' AND HAS NEITHER BEEN VERIFIED BY THE MANAGING DIRECTOR NOR ANY OTHER DIRECTOR AND HENCE THE APPEAL IS NOT VALID. THE APPELLANT SUBMIT THAT FORM NO, 35 HAS DULY BEEN VERIFIED AND DIGITALLY SIGNED BY THE DIRECTOR OF THE APPELLANT 'SHRI SHIRISH SHANTIL AL JAIN' AND THE NAME OF THE APPELLANT 'M/S INDIA GOLD LIMITED' TYPED IN FORM OF VERIFICATION IS ONLY A TYPOGRAPHICAL ERROR; AND HENCE THE APPEAL FILED BY THE APPELLANT IS A VALID APPEAL AND CIT(A) OUGHT TO HAVE DECIDED THE APPEAL ON MERI T. (B) THE CIT(A) ERRED IN PASSING THE ORDER, WITHOUT PROVIDING ANY OPPORTUNITY OF BEING HEARD TO THE APPELLANT TO REPRESENT ITS CASE. THE APPELLANT SUBMIT THAT THE CIT(A) OUGHT TO HAVE GIVEN AN OPPORTUNITY OF BEING HEARD TO THE APPELLANT; AND ON THE FACTS AND CIRCUM STANCES OF THE CASE THE APPEAL SHALL BE SET ASIDE TO THE FILE OF CIT(A) FOR FRESH ADJUDICATION. 2. THE CIT(A) ERRED IN NOT ADJUDICATING THE DISALLO WANCE OF INTEREST ON CAR LOAN OF RS.30,57,125/- U/S 37 OF THE ACT MADE BY THE AO BY HOLDING THAT INTEREST CANNOT BE CLAIMED AS DEDUCTION AS VEHICLES WERE NOT OWNED, NO T POSSESSED AND NOT PUT TO USE FOR THE BUSINESS PURPOSE. THE APPELLANT SUBMITS THAT, ON THE FACTS AND CIRCUM STANCES OF THE CASE OF THE APPELLANT AND IN LAW, INTEREST PAID FOR ACQUIRING V EHICLES SHALL BE ALLOWED AS DEDUCTIBLE REVENUE EXPENSE/BUSINESS LOSS. 3. THE CIT(A) ERRED IN NOT ADJUDICATING THE DISALLO WANCE OF INTEREST ON HOUSING LOAN OF RS.7,95,573/- U/S 36(1)(III) OF THE ACT MADE BY THE AO ON THE GROUND THAT THE APPELLANT WAS NEITHER IN POSSESSION OF FLAT NOR CAP ITALISED THE SAME IN ITS BOOKS OF ACCOUNT. THE APPELLANT SUBMIT THAT IT HAS PURCHASED THE FLAT AND ALSO TAKEN THE POSSESSION OF THE FLAT DURING THE YEAR UNDER CONSIDERATION; HENCE ON THE FACTS AND CIRCUMSTANCES OF THE CASE OF THE APPELLANT AND IN LAW, INTEREST O N HOUSING LOAN SHALL BE ALLOWED AS DEDUCTIBLE EXPENSE. 2. DRAWING OUR ATTENTION TO GROUND NO.1, THE LD. AU THORIZED REPRESENTATIVE FOR ASSESSEE (AR), SHRI MAHESH RAJOR A, SUBMITTED THAT THE APPEAL HAS BEEN DISMISSED BY LD. CIT(A) MERELY ON TECHNICAL GROUND THAT FORM NO. 35 WAS NOT VERIFIED BY MANAGING DIREC TOR OR ANY OTHER DIRECTOR. THE LD. AR, DRAWING ATTENTION TO COPY OF FORM 35, SUBMITTED THAT THE APPEAL WAS E-FILED UNDER THE DIGITAL SIGNA TURES OF ASSESSEE COMPANYS DIRECTOR NAMELY SHRI SHIRISH SHANTILAL JA IN AND THE MENTIONING OF ASSESSEES NAME IN FORM OF VERIFICATION WAS AN I NADVERTENT ERROR WHICH ITA NO.2592/MUM/2019 M/S. INDIA GOLD LIMITED ASSESSMENT YEAR :2015-16 3 MUST BE IGNORED AND THE ADJUDICATION BE DONE ON MER ITS. THE LD. DR SUBMITTED THAT THE APPEAL WAS TO BE FILED IN THE PR ESCRIBED MANNER ONLY. 3. UPON DUE CONSIDERATION, WE CONCUR WITH LD. ARS SUBMISSIONS THAT FORM 35 WAS FILED UNDER THE DIGITAL SIGNATURES OF A SSESSEE COMPANYS DIRECTOR NAMELY SHRI SHIRISH SHANTILAL JAIN AND THE MENTIONING OF ASSESSEES NAME IN FORM OF VERIFICATION WAS, AT THE MOST, AN INADVERTENT TYPOGRAPHICAL ERROR. HENCE, THE ASSESSEE IS DIRECTE D TO RECTIFY THE ERROR AND LD. CIT(A) IS DIRECTED TO ADJUDICATE THE APPEAL ON MERITS AS ASSAILED BY THE ASSESSEE IN FORM NO. 35. 4. THE APPEAL STANDS ALLOWED FOR STATISTICAL PURPOS ES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH SEPTEMBER, 2020. SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 16/09/2020 SR.PS, JAISY VARGHESE !'! / COPY OF THE ORDER FORWARDED TO : 1. &( / THE APPELLANT 2. )*&( / THE RESPONDENT 3. 1 ( ) / THE CIT(A) 4. 1 / CIT CONCERNED 5. 23),4 , 4 , / DR, ITAT, MUMBAI 6. 3567 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.