DCIT 24(3), MUMBAI V. S.C. BROTHERS, MUMBAI

ITA 2978/MUM/2014

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9051 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 30-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V JUSTIN
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E , MUMBAI BEFORE S HRI G.S. PANNU (AM) AND SHRI RAM LAL NEGI (JM) ITA NO. 2978 /MUM/20 1 4 ASSESSMENT YEAR: 20 09 - 1 0 THE D CIT - 24 ( 3 ), ROOM NO 701, C - 11, 7 TH FLOOR, BKC BANDRA (E) MUMBAI - 4000 51 VS. SC BROTHERS, PLOT NO. 201 - A, TITANIUM - 11, WESTERN EXPRESS HIGH WAY GOREGAON EAST MUMBAI - 4000 63 PAN: AAA R F S6197F (APPELLANT) (RESPONDENT) REVENUE BY : SHRI V. JUSTIN (DR) ASSESSEE BY : SHRI K. SHIVRAM (A R) DATE OF HEARING: 2 1 /0 9 /201 7 DATE OF PRONOUNCEMENT: 13 / 10 /201 7 O R D E R PER RAM LAL NEGI, JM THIS APPEAL HAS BEEN PREFERRED BY THE REVENUE AGAINST ORDER DATED 25/02/2014 PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3 4 , MUMBAI , FOR THE A S S ESSMENT YEAR 2009 - 10 , WHEREBY THE LD. CIT (A) HAS PARTLY ALLOWED THE APPEAL FILED BY THE ASSESSEE AGAINST ASSESSMENT ORDER PASSED U/S 143 (3) OF THE INCOME TAX ACT, 1961 (FOR SHORT THE A CT). 2. 2. THE REVENUE HAS CHALLENGED THE IMPU GNED ORDER ON THE FOLLOWING EFFECTIVE GROUND: - ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN ALLOWING RS. 8,40,249/ - U/S 57(III) OF THE ACT WHEN THE ASSESSEE HAD NEITHER DURING THE ASSESSMENT PROCEEDINGS NOR DURI NG THE APPELLATE PROCEEDINGS GIVEN ANY 2 ITA NO. 2978 /MUM/ 2014 ASSESSMENT YEAR: 20 09 - 10 EVIDENCE TO PROVE THAT THE INTEREST EXPENDITURE ON BANK FDR LOAN OF RS. 8,40,249/ - WAS EXCLUSIVELY USED FOR EARNING INTEREST INCOME. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFE CT IN THIS CASE IS BELOW RS.10,00,000/ - AS THE TOTAL ADDITION MADE BY THE AO UNDER THE HEAD INCOME FROM OTHER SOURCES IS RS. 29,32,494 / - . HENCE, AS PER THE CBDT CIRCULAR NO. 21 OF 2015, DATED 10/12/2015, THE PRESENT APPEAL IS NOT MAINTAINABLE. 4. THE LD. DR FAIRLY ADMITTED THAT THE TAX EFFECT IN DEPARTMENTS APPEAL IS BELOW RS.10 LAKHS, WE FIND THAT THE ISSUE RAISED IN APPEAL DOES NOT FALL UNDER ANY OF THE EXCEPTIONS SPECIFIED IN PARA 8 OF THE CIRCULAR. SINCE, IT HAS BEEN SPECIFICALLY CLARIFIED IN T HE CIRCULAR AFORESAID THAT THE INSTRUCTION WILL APPLY RETROSPECTIVELY TO ALL THE PENDING APPEALS; THE PRESENT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. WE, THEREFORE, DISMISS THE SAME IN LIMINE . IN THE RESULT APPEAL FILED BY THE REVENUE FOR ASSE SSMENT YEAR 2009 - 10 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13TH OCTOBER, 2017 . SD/ - SD/ - ( G.S. PANNU ) ( RAM LAL NEGI ) ACCOUNTANT MEMBER JUDICI AL MEMBER MUMBAI ; DATED: 13 / 10 / 2017 ALINDRA, PS 3 ITA NO. 2978 /MUM/ 2014 ASSESSMENT YEAR: 20 09 - 10 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE C OPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI