SANIKA SHILOTRI, MUMBAI V. ACIT WD 20(30, MUMBAI

ITA 346/MUM/2009

• Counselvise Citation: 34619914 RSA 2009
• Duration Of Justice: 2 year(s) 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 04-05-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 15-01-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D SONGATE
• Keywords: Cost of acquisition

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH: MUMBAI BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.346/MUM/2009 (ASSESSMENT YEAR: 2003-04) MRS. SANIKA SHILOTRI, 102, VARUN, J.P. ROAD, VERSOVA, ANDHERI (W), MUMBAI -400 061 ..... ASSESSEE VS ACIT WARD 20(3), ROOM NO.506, 5TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI -400 012 ..... REVENUE PAN: AMNPS 1767 K ASSESSEE BY: SHRI JAYANT R. BHATT REVENUE BY: SHRI D. SONGATE O R D E R PER R.S. PADVEKAR, JM THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE IMPUGNED ORDER OF THE LD. CIT (A) CENTRAL -II, MUMBAI DATED 14.02.2007 FOR THE A.Y. 2003-04. THERE IS DELAY OF 336 DAYS IN FILING THE APPEAL. THE ASSESSEE HAS FILED AN APPLICATION FOR CONDONING THE DELAY. THE ASSESSEE HAS ALSO FILED AN AFFIDAVIT IN SUPPORT OF THE APPLICATION FOR DELAY CONDONATION. 2. WE HAVE HEARD THE PARTIES ON THE ISSUE OF DELAY IN FILING APPEAL. THE LD. COUNSEL SUBMITS THAT THE ASSESSEE HAS RELIE D ON THE DECISION OF THE MADRAS HIGH COURT IN THE CASE OF TRISHUL INV ESTMENTS LTD. 305 ITR 434, BUT THE SAME WAS NOT CONSIDERED BY THE LD . CIT (A) AND NOW ITA 346/M/2009 MRS. SANIKA SHILOTRI 2 THE SAID DECISION HAS BEEN UPHELD BY THE APEX COURT WHICH IS IN FAVOUR OF THE ASSESSEE AS SLP FILED BY THE REVENUE HAS BEE N DISMISSED. THE ASSESSEE CAME TO KNOW ABOUT THE SAID DECISION QUITE LATE AND HENCE, THERE IS A DELAY IN FILING THE APPEAL. IN OUR OPIN ION, CONSIDERING THE FACTS OF THE CASE, IN THE ADVANCEMENT OF THE JUSTIC E, THE DELAY NEEDS TO BE CONDONED AND WE ACCORDINGLY CONDONE THE DELAY AN D ADMIT THE APPEAL FOR HEARING. 3. THE ONLY SOLITARY ISSUE FOR OUR CONSIDERATION IS WHETHER THE ASSESSEE IS ENTITLED FOR DEDUCTION OF THE INTEREST OF ` 2,96,716/- WHILE COMPUTING THE SHORT-TERM-CAPITAL-GAIN. 4. WE HAVE HEARD THE PARTIES. THE ASSESSEE HAS SHO WN SHORT-TERM- CAPITAL-GAIN OF ` 4,84,172/- AND CLAIMED CERTAIN EXPENDITURE ALSO IN RESPECT OF THE INTEREST PAID TO STANDARD CHARTERED BANK ON THE LOAN BORROWED. THE A.O. DISALLOWED THE INTEREST EXPENDI TURE. THERE IS NO DISPUTE ABOUT THE FACT THAT THE ASSESSEE HAS BORROW ED THE LOAN FOR THE INVESTMENT IN THE SHARES. IN THE CASE OF TRISHUL I NVESTMENTS LTD. (SUPRA) IT IS HELD THAT INTEREST PAID ON THE MONEY BORROWED WHICH IS USED FOR THE ACQUISITION OF THE SHARES IS TO BE TRE ATED AS COST OF ACQUISITION OF THE SHARES AND SAME IS TO BE ALLOWED WHILE WORKING OUT THE CAPITAL GAINS. IN OUR OPINION, THE ISSUE STAND S SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION IN THE CASE OF TRISHUL INVESTMENTS LTD. (SUPRA). WE, ACCORDINGLY, ALLOW T HE GROUNDS TAKEN BY THE ASSESSEE AND DIRECT THE A.O. TO TREAT THE INTER EST ON THE BORROWED CAPITAL AS PART OF COST OF ACQUISITION. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ITA 346/M/2009 MRS. SANIKA SHILOTRI 3 ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 1 3 TH APRIL 2011. SD/- SD/- ( P.M. JAGTAP ) ACCOUNTANT MEMBER ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI, DATE: 13 TH APRIL 2011 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) CENT II, MUMBAI. 4) THE CIT CENTRAL -IV, MUMBAI. 5) THE D.R. E BENCH, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN ITA 346/M/2009 MRS. SANIKA SHILOTRI 4 SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 04.05.2011 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 05.05.2011 SR.PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 FILE SENT TO THE BENCH CLERK SR.PS/PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER