PALLAVI HOLDING PVT. LTD., MUMBAI V. DCIT, CENTRAL CIRCLE-31, MUMBAI

ITA 2898/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93344 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 28-01-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 15-04-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR P DANIEL
• Section: 143(3); 234B; 115JB

Judgement Text

M/S PALLAVI HOLDING PRIVATE LIMITED ITA 2898 /M/201 3 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C , MUMBAI . . , , BEFORE SHRI G S PANNU , ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA , JUDICIA L MEMBERITA ITA NO. : 2898 /MUM/20 1 3 (ASSESSMENT YEAR: 20 1 0 - 1 1 ) M/S PALLAVI HOLDING PRIVATE LIMITED , 32 MADHULI, DR. ANN IE BESANT ROAD, WORLI, MUMBAI - 400 018 .: PAN : AAACP 8 0 31 H VS DC IT , CENTRAL CIRCLE - 31 , R. NO. 409, AAYAKAR BHAVAN, MUMBAI - 400 020 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DHARMESH SHAH RESPONDENT BY : DR. P DANIEL /DATE OF HEARING : 17 - 0 6 - 2015 / DATE OF PRONOUNCEMENT : 29 - 07 - 2015 ORDER PER AMIT SHUKLA , J.M. : TH IS APPEAL FILED BY THE ASSESSEE AGAINST IMPUGNED ORDER DATED 11.02.2013 PASSED BY CIT(A) - 40 , MUMBAI FOR THE QUANTUM OF ASSESSMENT PASSED U/S 143(3) FOR THE ASSESSMENT YEAR 2010 - 11 ON THE FOLLOWING G ROUNDS : 1. THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) HAS ERRED IN LAW AND IN FACTS IN PASSING THE ORDER U/S 250 OF THE ACT. 2. THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) HAS ERRED IN LAW AND IN FACTS IN INCOME FROM ATTACHED ASSETS CAN BE AS SESSED IN THE HANDS OF THE APPELLANT. 3. THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) HAS ERRED IN LAW AND IN FACTS IN CONFIRMING THE DISALLOWANCE OF RS. 9,852/ - ON ACCOUNT OF INTEREST EXPENSE. 4. THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) HAS ERRED IN LAW AND IN FACTS IN CONFIRMING THE CALCULATION OF BOOK PROFIT U/S 115JB AT ( - ) RS. 5,940/ - . M/S PALLAVI HOLDING PRIVATE LIMITED ITA 2898 /M/201 3 2 5. THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) HAS ERRED IN LAW AND IN FACTS IN CONFIRMING INTEREST CHARGED U/S 234A, 234B AND 234C OF THE ACT. 2. A T THE OUTSET, LD. COUNSEL SUBMITTED THAT GROUND NOS. 1 & 2 ARE NOT PRESSED AND ACCORDINGLY , THE SAME ARE DISMISSED AS NOT PRESSED. 3. REGARDING GROUND NO. 3, THE LD. COUNSEL SUBMITTED THAT THIS ISSUE HAS BEEN SENT BACK TO THE FILE OF THE CIT(A) WITH A DIR ECTION TO ADJUDICATE THE SAME AFRESH , IN THE EARLIER YEARS BY THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2004 - 05, 2005 - 06 & 2007 - 08. ACCORDINGLY, FOLLOWING THE SAME, TH IS ISSUE SHOULD BE SENT BACK TO THE FILE OF THE CIT(A). 4. THE LD. DR ALSO ADMIT TED THAT IN THE EARLIER YEARS, THE ISSUE HAS BEEN SET ASIDE TO THE FILE OF THE LD. CIT(A). 5. AFTER CONSIDERING AFORESAID CONTENTION, WE FIND THAT THE ASSESSEE HAD BORROWED MONEY FROM BROKERAGE FIRMS FOR MAKING THE INVESTMENT IN SHARES AND SECUR ITIES PRIOR TO 08.06.1992. THE ASSESSEE HAD CLAIMED DEDUCTION ON ACCOUNT OF INTEREST PAYABLE TO THESE CREDITORS AND INTEREST AMOUNT OF RS. 9,80,50,000/ - WAS SHOWN TO THESE BROKERAGE FIRM FOR THE YEAR UNDER CONSIDERATION. OUT OF THE SAID AMOUNT, ONLY RS. 9, 852/ - WAS CLAIMED AS DEDUCTION AND NO CLAIM WAS MADE ON THE BALANCE AMOUNT. THE ASSESSING OFFICERS CASE WAS THAT THE SAID CLAIM OF INTEREST WAS MAINLY A CONTINGENT LIABILITY AND THERE IS NO NEXUS OF INTEREST INCOME WITH THE INTEREST EXPENSE. THE LD. CIT(A ) FOLLOWING THE EARLIER YEARS ORDER RIGHT FROM THE AY 2004 - 05 TO AY 2009 - 10 HAS DECIDED THE ISSUE AGAINST THE ASSESSEE. WE FIND THAT IN 6 YEARS, THE TRIBUNAL AFTER FOLLOWING VARIOUS OTHER DECISIONS IN THE GROUP CONCERNS OF THE ASSESSEE HAS RESTORED TH IS I SSUE TO THE FILE OF THE CIT(A) TO BE ADJUDICATE D AFRESH. RESPECTFULLY FOLLOWING THE SAME, WE RESTORE THIS MATTER TO T HE FILE OF THE CIT(A) TO DECIDE IN VIEW OF DIRECTION GIVEN BY THE TRIBUNAL IN THE EARLIER YEARS. ACCORDINGLY, GROUND NO. 3 IS TREATED AS AL LOWED FOR STATIS TI CAL PURPOSES. M/S PALLAVI HOLDING PRIVATE LIMITED ITA 2898 /M/201 3 3 6. REGARDING GROUND NO. 4 IT HAS BEEN ADMITTED BY BOTH THE PARTIES, TH AT IT IS CONSEQUENTIAL TO GROUND NO. 3. ACCORDINGLY, THIS GROUND IS ALSO SET ASIDE TO THE FILE OF THE CIT(A) A S IT WILL HAVE EFFECT IN THE COMPUTATION OF BOOK PROFIT U/S 115JB. 7. GROUND NO. 5 IS CONSEQUENTIAL AND ACCORDINGLY, THE SAME IS TREATED AS DISMISSED. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH JU LY , 2015. SD/ - SD/ - ( . . ) ( ) ( G S PANNU ) ( AMIT SHUKLA ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 29 TH JU LY , 2015 / COPY TO: - 1 ) / THE APPELLANT. 2 ) / THE RESPONDENT. 3) THE CIT (A) - 33 , MUMBAI 4 ) THE CIT 22 , MUMBAI . 5 ) , , / THE D.R. C BENCH, MUMBAI. 6 ) COPY TO GUARD FILE. / BY ORDER / / TRUE COPY / / / , DY. / ASSTT. RE GISTRAR I.T.A.T., MUMBAI * . . *CHAVAN, SR.PS