Shri Manjeet Singh Bhatia, Indore V. THE DCIT-1(1), Indore

ITA 281/IND/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6243 (ITAT-INDORE)
• Duration Of Justice: 2 year(s) 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 06-08-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 17-04-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V J BORICHA
• Keywords: Rule 8D; Set aside
• Section: 143(3); 14A; 68

Judgement Text

MANJEET SINGH BHATIA ITA NO. 281/IND/2017 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HON'BLE KUL BHARAT, JUDICIAL MEMBER AND HON'BLE MANISH BORAD, ACCOUNTANT MEMBER ITA NO. 281/ IND/2017 ASSESSMENT YEAR 2012-13 PAN : AGJPB0022G SHRI MANJEET SINGH BHATIA, V/S DCIT-1(1), 8/5, MANORAMAGANJ, I NDORE BCC HOUSE, NAVRATANBAGH MAIN ROAD, INDORE (APPELLANT) (RESPONDENT) REVENUE BY SHRI V.J. BORICHA , SR.DR ASSESS EE BY SHRI HARSH VIJAYVARGIYA , CA DATE OF HEARING 0 6 . 0 8 . 201 9 DATE OF PRONOUNCEMENT 07 . 0 8 .2019 O R D E R PER MANISH BORAD, A.M. THE ABOVE CAPTIONED APPEAL FILED AT THE INSTANCE OF THE ASSESSE PERTAINING TO ASSESSMENT YEARS 2012-13 IS DIRECTED AGAINST THE ORDERS OF LD. COMMISSIONER OF INCOME TAX (APPEALS)- III (IN SHORT LD.CIT(A)], INDORE DATED 30.01.2017 WHICH IS AR ISING OUT OF THE ORDER U/S 143(3) OF INCOME TAX ACT, 1961 DATED 27. 03.2015 FRAMED BY DCIT-1(1), INDORE. MANJEET SINGH BHATIA ITA NO. 281/IND/2017 2 2. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL; 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE LD. CIT(A) HAS ERRED IN DISALLOWING AN AMOUNT OF RS.2,58,656 AS INTEREST PA ID TOWARDS UNSECURED LOANS TO THREE PARTIES. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE LD. CIT(A) HAS ERRED IN DISALLOWING EXPENDITURE OF RS.57,025 UNDER RULE 8D. 3. THAT THE ORDER SO PASSED IS BAD IN LAW AND WRONG . 4. THAT THE ASSESSEE CRAVES YOUR HONORS PERMISSION TO ADD ALTER OR DELETE ANY GROUNDS OF APPEAL. 3. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBMI TTED THAT GROUND NO.1 OF THE INSTANT APPEAL RELATES TO DISALL OWANCE OF INTEREST PAID ON UNSECURED LOANS TO THREE PARTIES. THE UNSE CURED LOANS WERE TAKEN DURING THE FINANCIAL YEAR 2009-10 RELEVANT TO ASSESSMENT YEAR 2010-11 AND ADDITION U/S 68 OF THE ACT FOR UNEXPLAI NED CASH CREDIT WAS MADE DURING THE YEAR 2010-11 AND THE ASSESSEE I S IN APPEAL BEFORE LD. CIT(A) AGAINST THE ADDITION FOR UNEXPLAI NED CASH CREDIT U/S 68 OF THE ACT AT RS.30,00,000/-. THE APPEAL BEFORE LD. CIT(A) FOR ASSESSMENT YEAR 2010-11 IS STILL PENDING. HE ALSO SUBMITTED THAT THE GENUINENESS OF THE CLAIM OF INTEREST EXPENDITUR E WILL HAVE ITS BEARING FROM THE FINDING OF LD. CIT(A) FOR TREATMEN T OF THE UNSECURED LOAN, WHETHER CHARGEABLE TO TAX U/S 68 OF THE ACT O R NOT. HE MANJEET SINGH BHATIA ITA NO. 281/IND/2017 3 THEREFORE REQUESTED TO SET ASIDE THE ISSUE OF INTER EST DISALLOWANCE RAISED IN THIS APPEAL TO THE FILE OF LD. CIT(A). 4. PER CONTRA LD. DEPARTMENTAL REPRESENTATIVE VEHEM ENTLY ARGUED AND SUPPORTING THE ORDER OF LD. CIT(A) BUT DID NOT CONTROVERT THE CONTENTION MADE BY THE LD. COUNSEL FOR THE ASSESSEE . 5. WE HAVE HEARD RIVAL CONTENTION AND PERUSED THE R ECORDS PLACED BEFORE US. 6. IN THIS APPEAL OF THE ASSESSEE TWO GROUNDS HAVE BEEN RAISED. GROUND NO.1 RELATES TO DISALLOWANCE OF INTEREST EXP ENDITURE OF RS.2,58,658/- AND GROUND NO.2 RELATES TO DISALLOWAN CE OF EXPENDITURE OF RS.57,025/- U/S 14A OF THE ACT. AFTE R HEARING THE CONTENTIONS OF THE LD. COUNSEL FOR THE ASSESSEE WE OBSERVE THAT GROUND NO.1 WHICH RELATES TO DISALLOWANCE OF INTERE ST EXPENDITURE PAID ON THE UNSECURED LOAN HAVE ITS NEXUS WITH THE APPEAL OF THE ASSESSEE PENDING BEFORE LD. CIT(A) FOR ASSESSMENT Y EAR 2010-11 WHEREIN THE ASSESSEE HAS CHALLENGED THE ACTION OF T HE LD. A.O OF MAKING ADDITION U/S 68 OF THE ACT FOR UNSECURED LOA NS OF RS.30,00,000/- TAKEN DURING THE YEAR. IT IS ALSO P LEADED THAT THE ALLEGED INTEREST EXPENDITURE IS CLAIMED ON THE LOAN TAKEN DURING ASSESSMENT YEAR 2010-11. COPY OF APPEAL IN FORM NO .35 FILED BEFORE MANJEET SINGH BHATIA ITA NO. 281/IND/2017 4 LD. CIT(A)-1, INDORE FOR ASSESSMENT YEAR 2010-11 IS PLACED ON RECORD. THE ISSUE RELATING TO ADDITION U/S 68 OF T HE ACT AT RS.30,00,000/- FOR ASSESSMENT YEAR 2010-11 IS STILL NOT BEEN DECIDED BY LD. CIT(A). IN THE GIVEN FACTS AND CIRC UMSTANCES OF THE CASE AND SINCE NO OBJECTION HAS BEEN RAISED BY LD. DEPARTMENTAL REPRESENTATIVE, WE ARE OF THE CONSIDERED VIEW THAT ALL THE ISSUES RAISED IN THE INSTANT APPEAL IN GROUND NO.1 & GROUN D NO.2 MAY BE SET ASIDE TO THE FILE OF LD. CIT(A) FOR AFRESH ADJU DICATION SO THAT LD. CIT(A) COULD DECIDE THE ISSUES ALONG WITH THE PENDI NG APPEAL RELATING TO QUANTUM OF UNSECURED LOAN FOR ASSESSMENT YEAR 20 10-11. NEEDLESS TO MENTION THAT PROPER OPPORTUNITY OF BEIN G HEARD SHOULD BE PROVIDED TO THE ASSESSEE. 7. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 07.08.2 019 SD/- SD/- (KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 07 AUGUST, 2019 /DEV MANJEET SINGH BHATIA ITA NO. 281/IND/2017 5 COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T. A.T., INDORE