PALLAVI HOLDINGS P.LTD, MUMBAI V. DCIT CC 31, MUMBAI

ITA 3435/MUM/2011

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70812 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 14-08-2013
• Assessment Year: 2004-2005
• Appeal Filed On: 29-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE S/SHRI B.R.MITTAL,(JM) AND RAJENDRA (AM) . . , , ./I.T.A. NO.3435 AND 3437/MUM/2011 ( / ASSESSMENT YEARS:2004-05 AND 2005-06) M/S PALLAVI HOLDINGS PVT. LTD., 32, MADHULI, 3 RD FLOOR, DR.ANNIE BESANT ROAD, NEHRU CENTRE, WORLI, MUMBAI-400018 / VS. DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-31, MUMBAI. ( & / APPELLANT) .. ( ' & / RESPONDENT) ./ ./PAN/GIR NO. : AAACP8031H & / APPELLANT BY : SHRI DARMESH SHAH ' & * /RESPONDENT : DR.P.DANIEL, SR.COUNSEL * - / DATE OF HEARING : 14.8.2013 * - /DATE OF PRONOUNCEMENT : 14.8.2013 / O R D E R PER B.R.MITTAL, JM: THESE TWO APPEALS ARE FILED BY THE ASSESSEE AGAINST THE ORDERS OF LD.CIT(A) BOTH DATED 28.2.2011 FOR THE ASSESSMENT YEARS 2004-05 AN D 20050-06 ON SIMILAR GROUNDS EXCEPT DISALLOWANCE OF INTEREST VARYING IN BOTH AS SESSMENT YEARS UNDER CONSIDERATION. IN ASSESSMENT YEAR 2004-05, THE INTEREST DISALLOWED IS RS.18,91,771/- AND WHEREAS IN ASSESSMENT YEAR 2005-06 IT IS RS.19,88,682/-. WE CONSIDER IT PRUDENT TO STATE GROUNDS OF APPEAL FOR ASSESSMENT YEAR 2004-05 WHICH ARE AS UNDER : 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. I.T.A. NO.3435 AND 3437/MUM/2011 2 2. THE LEARNED COMMISSIONER OF INCOME-TAX THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) HAS ERRED IN LAW AND IN FACTS IN PASSING THE ORDER WITHOUT COMPLYING WITH THE PRINCIPLES OF NATURAL JUSTICE. 3. THE LEARNED COMMISSIONER OF INCOME-TAX (A PPEALS) HAS ERRED IN LAW AND IN FACTS IN NOT APPRECIATING THAT NO INCOME FROM A TTACHED ASSETS CAN BE ASSESSED IN THE HANDS OF THE APPELLANT. 4. THE LEARNED COMMISSIONER OF INCOME-TAX (A PPEALS) HAS ERRED IN LAW AND IN FACTS IN NOT GRANTING RELIEF OF LIABILITY AMOUNT ING TO RS. 18,91,771/-, TOWARDS INTEREST EXPENDITURE CLAIMED BY THE APPELLANT. 2. AT THE TIME OF HEARING. LD. AR SUBMITTED THAT GR OUNDS OF APPEAL NO.1,2 AND 3 IN BOTH APPEALS ARE NOT PRESSED FOR. IN VIEW OF ABOVE , GROUND NOS.1,2, AND 3 OF BOTH APPEALS ARE REJECTED. 3. IN RESPECT OF GROUND NO.4 OF BOTH APPEALS, LD. AR SUBMITTED THAT ON SIMILAR FACTS, AN IDENTICAL ISSUE WAS CONSIDERED BY MUMBAI BENCH OF TRIBUNAL IN THE CASE OF HITESH S. MEHTA V/S DCIT IN ITA NOS.7726 AND 7727/ MUM/2010 (AY-2005-06 AND 2006- 07) DATED 26.4.2013 AND THE TRIBUNAL VIDE PARA 5 TH EREOF RESTORED THE ISSUE TO THE FILE OF LD. CIT(A) TO ADJUDICATE IT AFRESH. LD. AR FURTHE R SUBMITTED THAT THE SIMILAR ISSUE WAS AGAIN CONSIDERED BY ITAT, MUMBAI IN ASSESSEES OWN CASE IN ITA NO.8599/MUM/2010 (AY-2007-08) DATED 17.7.2013 AND THE TRIBUNAL FOLLO WING THE ORDER IN THE CASE OF HITESH S MEHTA, DATED 26.4.2013 (SUPRA) RESTORED TH E ISSUE TO THE FILE OF LD. CIT(A) WITH A DIRECTION TO ADJUDICATE THE SAME AFRESH AFTER CON SIDERING THE FINDING TO BE CONSIDERED IN RESPECT OF REJECTION /RELIABILITY OF BOOKS OF AC COUNT BECAUSE IT WAS OBSERVED THAT LD. CIT(A) HAD GIVEN THE REASONINGS FOR NOT GRANTING R ELIEF OF LIABILITY OF INTEREST EXPENDITURE CLAIMED BY THE ASSESSEE BY FOLLOWING TH E ORDER OF LD. CIT(A) IN THE CASE OF HITESH S MEHTA (SUPRA). LD. AR FILED COPIES OF S AID ORDERS (SUPRA) TO SUBSTANTIATE THE ABOVE SUBMISSIONS. 4. LD. DR HAS NOT DISPUTED THE ABOVE CONTENTIONS OF LD. AR. 5. IN VIEW OF ABOVE SUBMISSIONS OF LD. REPRESENTATI VES OF THE PARTIES AND ALSO CONSIDERING THE DECISIONS OF CO-ORDINATE BENCHES OF THE TRIBUNAL IN THE CASE OF HITESH S MEHTA, DATED 26.4.2013 AND FOLLOWED IN THE CASE OF ASSESSEE FOR ASSESSMENT YEAR 2007- 08 DATED 27.7.2013(SUPRA), WE SET ASIDE THE ORDERS OF LD. CIT(A) AND RESTORE THE MATTER TO THE FILE OF LD. CIT(A) WITH A DIRECTION TO ADJUD ICATE AFRESH AFTER CONSIDERING THE FINDING I.T.A. NO.3435 AND 3437/MUM/2011 3 TO BE CONSIDERED IN RESPECT OF REJECTION/RELIABILIT Y OF BOOKS OF ACCOUNT. HENCE, GROUND NO.4 IN BOTH APPEALS TAKEN BY ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, BOTH APPEALS OF ASSESSEE ARE ALLO WED IN PART FOR STATISTICAL PURPOSE. ORDER PRONOUNCED AFTER HEARING LD. REPRESENTATIVES OF THE PARTIES IN THE OPEN COURT ON 14TH AUG, 2013 * 1 2 14TH AUG, 2013 * SD/- SD/- ( /RAJENDRA ) ( . . /B.R.MITTAL) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; 2 DATED 14/ 08/2013 . . ./ SRL , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. & / THE APPELLANT 2. ' & / THE RESPONDENT. 3. 7 ( ) / THE CIT(A)- CONCERNED 4. 7 / CIT CONCERNED 5. 8 ': , - : , / DR, ITAT, MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) - : , /ITAT, MUMBAI