INDIA LIFE CAPITAL P.LTD, MUMBAI V. DCIT 3(2), MUMBAI

ITA 3351/MUM/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 2100 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2015
• Appeal Filed By: Assessee
• Bench Allotted: I
• Next Hearing Date: 25-08-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 30-04-2013
• Court: TRIBUNAL
• Department Lawyers: PREMANAND J

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL I , BENCH MUMBAI . . , , BEFORE SHRI R.C.SHARMA , A M & SHRI PAWAN SINGH , J M ./ ITA NO . 3351 / MUM/20 13 ( / ASSESSMENT YEAR : 20 0 9 - 20 10 ) INDIA LIFE CAPITAL PVT. LTD., OFFICE NO. 6, 3 RD FLOOR, C WING, LAXMI TOWERS, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI - 400051 VS. DCIT - 3(2), MUMBAI ./ ./ PAN/GIR NO. : A A BCI 0729 G ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI NISHIT GANDHI /REVENUE BY : SHRI PREMANAND J. / DATE OF HEARING : 2 5 /0 8 / 2015 / DATE OF PRO NOUNCEMENT 07/10 /2015 / O R D E R PER R.C.SHARMA (A.M) : TH IS IS AN APPEAL FILED BY THE ASSESSEE A GAINST THE ORDER OF CIT (A) , MUMBAI , FOR THE ASSESSMENT YEAR 2009 - 2010 , IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE I.T.ACT . 2. RIVAL CONTE NTIONS HAVE BEEN HEARD AND RECORD PERUSED. THE FACTS OF THE CASE ARE THAT ASSESSEE IS HOLDING MORE THAN 10% SHARES OF ANOTHER COMPANY, INDIA LIFE CREDIT & HOLDINGS PVT. LTD., AND DURING THE YEAR ASSESSEE HAS RECEIVED UNSECURED LOAN FROM THE SAID COMPANY TO THE EXTENT OF RS.29,16,649/ - , WHEREAS THE CLOSING BALANCE WAS RS.24,83,775/ - AND OPENING BALANCE IS CLAIMED TO BE A DEBIT BALANCE OF RS.4,32,574/ - OF THE SAID COMPANY. ITA NO. 3351 /20 13 2 3. THE CONTENTION OF LD. AR WAS THAT THE AMOUNT GIVEN WAS NOT IN THE NATURE OF LOANS B UT WAS INTER - CORPORATE DEPOSIT ON WHICH PROVISIONS OF SECTION 2(22)(E) ARE NOT ATTRACTED. 4 . WE HA VE CONSIDERED RIVAL CONTENTIONS. A SIMILAR ISSUE HAD COME BEFORE THE TRIBUNAL IN CASE OF M/S BOMBAY OIL INDUSTRIES VS. DCIT, 28 SOT 383 (MUM), IN WHICH THE T RIBUNAL HAD HELD THAT INTER CORPORATE DEPOSITS ARE DIFFERENT FROM LOANS AND ADVANCES AND PROVISIONS OF SECTION 2(22)(E) OF THE IT ACT, 1961 CANNOT BE INVOKED IN CASE OF INTER CORPORATE DEPOSITS. FURTHERMORE, THE HONBLE BOMBAY HIGH COURT IN THE CASE OF DUR GA PRASAD MANDELIA V.S REGISTRAR OF COMPANIES, (1987) 61 COMP.CASE 479 (BOM) DISTINGUISHED THE DEPOSITS AND LOANS IN THE CONTEXT OF SECTION 370 OF THE COMPANIES ACT. THE COURT HAS HELD AS UNDER: - THERE CAN BE NO CONTROVERSY THAT IN A TRANSACTION OF A DE POSIT OF MONEY OR A LOAN, A RELATIONSHIP OF A DEBTOR AND CREDITOR MUST COME IN TO EXISTENCE. THE TERM DEPOSIT AND LOAN MAY NOT BE MUTUALLY EXCLUSIVE, BUT NONETHELESS IN EACH CASE WHAT MUST BE CONSIDERED IS THE INTENTION OF THE PARTIES AND THE CIRCUMST ANCES. WE ALSO FOUND THAT THE AO HAS NOT ONLY MADE ADDITION IN RESPECT OF THE AMOUNT ALLEGED TO BE ADVANCED AS ICD DURING THE YEAR INSOFAR AS HE HAS ALSO ADDED THE DEBIT BALANCE AT THE BEGINNING OF THE YEAR AMOUNTING TO RS. 4,32,573/ - . THE AMOUNT GIVEN D URING THE YEAR AMOUNTS TO RS. 24,83,776/ - ONLY, AGAINST WHICH THE AO HAS MADE ADDITION OF RS.29,16,649/ - 5 . IN VIEW OF THE ABOVE, THE APPEAL IS RESTORED BACK TO THE FILE OF AO FOR DECIDING AFRESH AFTER TAKING INTO ACCOUNT AMOUNT OF LOAN ITA NO. 3351 /20 13 3 GIVEN DURING THE YEAR AND ALSO CONSIDERING THE DECISION OF HON BLE BOMBAY HIGH COURT AS WELL AS MUMBAI TRIBUNAL AS DISCUSSED ABOVE. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . O RDER PRONOUNCED IN THE OPEN COURT ON THIS 07/10 / 201 5 . SD/ - SD/ - ( ) ( PAWAN SINGH ) ( . . ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 07/10 /201 5 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6 . / GUARD FILE. //TRUE COPY//