SMT HANSA LILADHAR GANATRA, M V. ITO, WARD 26(1)(5), MUMBAI

ITA 3242/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3751 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 15-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SMITA VERMA
• Assessee Lawyers: HIRAL SURESH SHAH

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 3242 //2019 (. . 2015-16 ) ITA NO.3242/MUM/2019 (A.Y.2015-16) HANSA LILADHAR GANATRA, 17-B/2, SION SOCIETY, SION (WEST), MUMBAI- 400 022 PAN: AAKPG5273B ...... ) / APPELLANT VS. ITO, WARD- 26(1)(5) MUMBAI. ..... *,/ RESPONDENT ) -/ APPELLANT BY : MR. HIRAL SURESH SHAH *, -/ RESPONDENT BY : MS. SMITA VERMA . / DATE OF HEARING : 05 /05/2021 . / DATE OF PRONOUNCEMENT : 05/05/2021 / ORDER PER VIKAS AWASTHY, J.M: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-38, MUMBAI (IN SHORT THE C IT(A)) DATED 28/11/2018 FOR THE ASSESSMENT YEAR 2015-16. 2. SHRI HIRAL SURESH SHAH APPEARED ON BEHALF OF THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE ONLY DISPUTE IN THE PRESENT APPEAL IS WITH REGARD TO DISALLOWANCE OF INTEREST EXPENDITURE RS. 5,83,500/- BY THE LD. C IT(A). THE LD. AR SUBMITTED THAT THE ASSESSEE HAS FURNISHED DETAILED SUBMISSIONS AND DOCUMENTS BEFORE THE CIT(A) TO SHOW INTEREST PAID TO PARTIES FROM WHOM THE ASSE SSEE HAS TAKEN LOAN. THE 2 . 3242 //2019 (. .2015-16 ) ITA NO.3242/MUM/2019 (A.Y.2015-16) ASSESSEE HAS ALSO FURNISHED DOCUMENTS TO SUBSTANTIA TE THAT THE PARTIES FROM WHOM THE ASSESSEE HAD TAKEN LOAN HAVE REFLECTED INT EREST INCOME IN THEIR RESPECTIVE RETURN OF INCOME. THE LD. CIT(A) WITHOUT PROPERLY EXAMINING THE DETAILS FURNISHED BY THE ASSESSEE HAS MADE DISALLOWANCE OF INTEREST RS. 5,83,500/-. 3. ON THE OTHER HAND, MS. SMITA VERMA REPRESENTING THE DEPARTMENT VEHEMENTLY DEFENDED THE IMPUGNED ORDER AND PRAYED F OR DISMISSING THE APPEAL OF ASSESSEE. THE LD. DR SUBMITTED THAT THE CIT(A) H AS GRANTED RELIEF TO THE ASSESSEE TO THE EXTENT, ASSESSEE HAS FURNISHED CONC LUSIVE DOCUMENTARY EVIDENCE. 4. BOTH SIDES HEARD, ORDERS OF AUTHORITIES BELOW EX AMINED. DURING THE PERIOD RELEVANT TO AY UNDER APPEAL, THE ASSESSEE HAS EARNE D INTEREST INCOME, AS WELL AS HAS PAID INTEREST ON THE LOANS TAKEN FROM VARIOUS P ARTIES. THE AO IN ASSESSMENT PROCEEDINGS HAD DISALLOWED INTEREST EXPENDITURE OF RS. 30,37,346/-. IN FIRST APPELLATE PROCEEDINGS, THE CIT(A) GRANTED PART RELI EF TO THE ASSESSEE ON THE BASIS OF DOCUMENTS FURNISHED BY THE ASSESSEE AND CONFIRME D THE ADDITION ONLY TO THE EXTENT OF RS. 5,51,000/-. NOW, THE SHORT CONTENTION OF THE ASSESSEE IS THAT THE ASSESSEE HAD FURNISHED VARIOUS DOCUMENTS TO SUBSTAN TIATE PAYMENT OF INTEREST. PURPORTEDLY, THE ASSESSEE HAD ALSO FURNISHED COPIES OF INCOME TAX RETURNS OF THE PARTIES FROM WHOM THE ASSESSEE HAD TAKEN LOAN. THE RESPECTIVE PARTIES HAVE ALREADY DISCLOSED INTEREST INCOME IN THEIR RESPECTI VE RETURN OF INCOME. 5. I FIND THAT THE GROUND RAISED BY ASSESSEE IN APP EAL REQUIRES VERIFICATION OF FACTS. THEREFORE, I DEEM IT APPROPRIATE TO RESTORE THIS ISSUE BACK TO THE FILE OF ASSESSEE FOR VERIFICATION OF FACTS FROM THE DOCUMEN TS ALREADY PLACED ON RECORD BY THE AO. THE AO IS DIRECTED TO EXAMINE THE RELEVANT DOCUMENTS AND ALLOW 3 . 3242 //2019 (. .2015-16 ) ITA NO.3242/MUM/2019 (A.Y.2015-16) REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE A ND THEREAFTER PASS THE ORDER, IN ACCORDANCE WITH LAW. 6. IN THE RESULT, APPEAL BY ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON WEDNESDAY , THE 5 TH DAY OF MAY, 2021. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 3/ DATED: 05/05/2021 SK, PS * 4 * 4 * 4 * 4 COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT , 2. *, / THE RESPONDENT. 3. 5 ( )/ THE CIT(A)- 4. 5 CIT 5. * , . . . , / DR, ITAT, MUMBAI 6. 9 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI