DCIT 5(2), MUMBAI V. JYOTI CERAMIC INDUSTRIES P.LTD, MUMBAI

ITA 29/MUM/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93086 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: J
• Assessment Year: 2010-2011
• Appeal Filed On: 02-01-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL J BENCH, MUMBAI BEFORE S/SHRI I.P. BANSAL, (JM) AND B.R.BASKARAN (AM) . . , . . , ./ I .T.A. NO . 7633 / MUM/20 13 ( / ASSESSMENT YEAR : 20 10 - 11 ) JYOTI CERAMIC INDUSTRIES PVT LTD., B - 603, PARLE UDYAN CO - OP.HSG SOC LTD, 25, PARK ROAD, VILE PARLE (E), MUMBAI - 400057 / VS. DY. COMMISSIONER OF INCOME TAX 5(2), 5 TH FLOOR, ROOM NO.518, AAYAKAR BHAVAN, M K ROAD, MUMBAI - 400020 ( / APPELLANT ) .. ( / RESPONDENT ) ./ I.T.A. NO. 29/ MUM/20 14 ( / ASSESSMENT YEAR : 20 10 - 11 ) DY. COMMISSIONER OF INCOME TAX 5(2), 5 TH FLOOR, ROOM NO.571, AAYAKAR BHAVAN, M K ROAD, MUMBAI - 400020 / VS. JYOTI CERAMIC INDUSTRIES PVT LTD., B - 603, PARLE UDYAN CO - OP.HSG SOC LTD, 25, PARK ROAD, VILE PARLE (E), MUMBAI - 400057 ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN/GIR NO. : AAACJ0247P / : A SSESSEE BY: SHRI K GOPAL / RE VENUE BY : SHRI LOVE KUMAR / DATE OF HEARING : 30 .6. 2015 / DATE OF PRONOU NCEMENT : 30 .6. 2015 ITA NO. 7633 / M/ 1 3 AND ITA NO.29/MUM/2014 2 / O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER : THESE CROSS APPEALS ARE DIRECTED AGAINST THE ORDER DATED 1.10. 2013 PASSED BY LD CIT(A), MUMBAI AND THEY RELATE TO THE ASSESSMENT YEAR 2010 - 11. 2. THE ASSESSEE IS AGGRIEVED BY T HE DECISION OF LD CIT(A) IN HOLDING THAT A PART OF INTEREST EXPENSES IS REQUIRED TO BE DISALLOWED U/S 14A OF THE ACT. THE REVENUE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN HOLDING THAT, FOR COMPUTING INTEREST DISALLOWANCE U/S 14A OF THE ACT, ONLY NET I NTEREST IS REQUIRED TO BE CONSIDERED. 3. WE HEARD THE PARTIES AND PERUSED THE RECORD. THE LD COUNSEL SUBMITTED THAT THE ASSESSEE IS POSSESSING OWN FUNDS IN EXCESS OF THE INVESTMENTS MADE AND HENCE, AS PER THE DECISION RENDERED BY THE HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT V/S HDFC BANK LTD (2014) 366 ITR 505(BOM) , THERE IS NO REQUIREMENT OF MAKING ANY DISALLOWANCE. HE SUBMITTED THAT IDENTICAL ISSUE WAS CONSIDERED BY THE TRIBUNAL IN THE ASSESSEES CASE IN AY 2008 - 09 AND 2009 - 10 AND THE MATTER HAS BEEN RESTORED BACK TO THE FILE OF THE AO TO CONSIDER THE ISSUE AFRESH IN THE LIGHT OF DECISION RENDERED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF HDFC BANK (SUPRA). HE FURTHER SUBMITTED THAT, SINCE THE ASSESSEE IS DISPUTING THE ENTIRE INTERE ST DISALLOWANCE, THE QUESTION OF NETTING OF INTEREST THAT IS BEING CONTESTED BY REVENUE BECOMES CONSEQUENTIAL. THE LD D.R HOWEVER CONTENDED THAT THE PROVISIONS OF SEC. 14A DO NOT PROVIDE FOR NETTING OF INTEREST. 4. WE NOTICE THAT THIS BENCH OF TRIBU NAL HAS CONSIDERED AN IDENTICAL ISSUE IN THE ASSESSEES OWN CASE IN AY 2008 - 09 (ITA NO. 3005/MUM/2013 & ITA NO.1981/MUM/2013) AND THE TRIBUNAL, VIDE ITS ORDER DATED 15 - 06 - 2015 HAS RESTORED THE MATTER TO THE FILE OF THE AO FOR CONSIDERING THE ITA NO. 7633 / M/ 1 3 AND ITA NO.29/MUM/2014 3 CONTENTION OF THE ASSESSEE IN THE LIGHT OF DECISION RENDERED IN THE CASE OF HDFC BANK (SUPRA). THE SAID DECISION WAS FOLLOWED IN AY 2009 - 10 (ITA NO.352/MUM/2013 & ITA NO.66/MUM/2013 DATED 22 - 06 - 2015). HENCE, BY FOLLOWING THE ABOVE SAID DECISIONS, WE SET ASIDE THE ORDE R OF LD CIT(A) AND RESTORE THESE MATTERS TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO EXAMINE THE SAME AFRESH IN THE LIGHT OF DECISION RENDERED IN THE CASE OF HDFC BANK (SUPRA). 5. IN THE RESULT, BOTH THE APPEALS ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 30 TH JUNE , 2015 . 30TH JUNE , 201 5 SD SD ( . . / I.P. BANSAL ) ( . . / B.R. BASKARAN ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI: 30TH JUNE , 201 5 . . . ./ SRL , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - CONCERNED 4. / CIT CONCERNED 5. 6. , , / DR, ITAT, MUMBAI CONCERNED / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) , /ITAT, MUMBAI