Shri DYANDEO NINU PATIL, Akola V. D.C.I.T. Akola Circle, Akola

ITA 266/NAG/2015

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5043 (ITAT-NAGPUR)
• Duration Of Justice: 4 year(s) 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 06-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR MILIND BHUSARI; AGNES THOMAS
• Assessee Lawyers: S C THAKUR
• Keywords: Source of fund
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL BENCH, NAGPUR (AT E - COURT, PUNE) BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI PARTHA SARATHI CHAUDHURY , JM . / I TA NO. 266 /NAG /20 15 / ASSESSMENT YEAR : 2011 - 12 SHRI DNYANDEO NINU PATIL, C/O. ELITE UDYOG, NEAR RADHAKRISHNA CINEMA, MURTIZAPUR ROAD, AKOLA - 444 107 PAN: ADPPP0651A ....... / APPELLANT / V/S. THE DEPUTY COMMISSIONER OF INCOME TAX, AKOLA CIRCLE, AKOLA. / RESPONDENT A SSESSEE BY : SHRI S.C. THAKUR REVENUE BY : DR. MILIND BHUSARI, CIT & SMT. AGNES THOMAS, JCIT / DATE OF HEARING : 1 8 .0 2 .2020 / DATE OF PRONOUNCEMENT : 19 .02 .2020 / ORDER PER PARTHA SARATHI CHAUDHU RY, JM : THIS APPEAL PREFERRED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LD. CIT(APPEALS) - 1, NAGPUR DATED 28.07.2015 FOR THE ASSESSMENT YEAR 2011 - 12 AS PER THE GROUNDS OF APPEAL ON RECORD. 2 ITA NO. 266 /NAG /20 15 A.Y. 2011 - 12 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND THE SOURCES OF INCOME TO THE ASSESSEE DURING THE YEAR UNDER CONSIDERA TION ARE RENT FROM PROPERTY, INTEREST FROM BANK AND OTHER ASSOCIATES CONCERNS. THE ASSESSEE IS ALSO PARTNER IN M/S. DNV REALITY, PUNE AND ALSO IN M/S. ELITE PROMOTERS & BUILDERS, PUNE. THE ASSESSEE FILED HIS RETURN OF INCOME ON 30.03.2012 DECLARING TOTAL I NCOME OF RS.38,90,531/ - . IN THE ASSESSMENT COMPLETED U/S.143(3) OF THE INCOME TAX ACT, 1961 ( HEREINAFTER REFERRED TO AS THE ACT ), THE ASSESSING OFFICER DISALLOWED THE INTEREST PAID ON BORROWED FUNDS TO THE TUNE OF RS.69,08,552/ - BY INVOKING THE PROVISIO NS OF SECTION 14A OF THE ACT. THUS, THE ASSESSMENT WAS COMPLETED U/S.143(3) OF THE ACT AT TOTAL INCOME OF RS.1,07,99,080/ - AS AGAINST THE RETURNED INCOME OF RS.38,90,531/ - RAISING THEREBY A DEMAND OF RS.27,24,300/ - . 3. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE RAISE D IN THE PRESENT APPEAL HAS BEEN DECIDED IN ASSESSEES OWN CASE IN ITA NO.1419/PUN/2015 FOR THE ASSESSMENT YEAR 2011 - 12 BY THE CO - ORDINATE BENCH OF THE TRIBUNAL, PUNE VIDE ORDER DATED 15.05.2018 WHEREIN THE QUESTION BEFORE THE TRIBUNAL WAS AS FOLLOWS: 1. T HE LD. CIT(A) ERRED IN DELETING THE ADDITION U/S.14A ON PRO - RATA BASIS ON ACCOUNT OF INTEREST PAID ON BORROWED FUNDS. 3 .1 THE LD. COUNSEL FOR THE ASSESSEE FURTHER SUBMITTED THAT THE LD. CIT(APPEALS) HAS PASSED THE ORDER O N 28.07.2015 AND OBVIOUSLY, THE DECISION OF THE TRIBUNAL ON THE ISSUE WAS NOT AVAILABLE BEFORE THE FIRST APPELLATE AUTHORITY DURING THAT TIME. THEREFORE, THE LD. COUNSEL FOR THE ASSESSEE PRAYED THAT THE MATTER MAY BE RESTORED TO THE FILE OF THE LD.CIT(APPE ALS) TO CONSIDER THE SAID DECISION OF THE CO - ORDINATE BENCH OF THE TRIBUNAL, PUNE (SUPRA.) AND ADJUDICATE THE ISSUE ACCORDINGLY, AS PER LAW. 3 ITA NO. 266 /NAG /20 15 A.Y. 2011 - 12 4 . THE LD. DR FAIRLY CONCEDED TO THE REQUEST OF THE LD. AR OF THE ASSESSEE. 5 . BOTH SIDES HEARD. WE FIND THAT THE ISSUE U/S.14A OF THE ACT ON PRO - RATA BASIS HAS BEEN ALREADY DEALT WITH IN ASSESSEES OWN CASE (SUPRA.) BY THE CO - ORDINATE BENCH OF THE TRIBUNAL, PUNE AND THE SAME WAS NOT AVAILABLE BEFORE THE FIRST APPELLATE AUTHORITY WHILE ADJUDICATING THE ISSUE. THEREFO RE, IN THE INTEREST OF JUSTICE, THE MATTER NEEDS TO BE RESTORED TO THE FILE OF THE LD. CIT(APPEALS) TO PASS FRESH ORDER ADJUDICATING THE ISSUE AS PER LAW RELYING ON THE DECISION PASSED BY THE TRIBUNAL AS MENTIONED HEREINABOVE. WE ORDER ACCORDINGLY. 6 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRO NOUNCED ON 19 TH DAY OF FEBRUARY , 2020 . SD/ - SD/ - D. KARUNAKARA RAO PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER / PUNE; / DATED : 19 TH FEBRUARY , 20 20 . SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS) - 1, NAGPUR. 4. THE CIT - 1, NAGPUR. 5 . , , / DR, ITAT, NAGPUR. 6. / GUARD FILE. // TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE . 4 ITA NO. 266 /NAG /20 15 A.Y. 2011 - 12 DATE 1 DRAFT DICTATED ON 18 .0 2 .2020 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 1 8.02 .2020 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER