METAL GEMS, MUMBAI V. ADDL CIT RG 15(2), MUMBAI

ITA 3527/MUM/2014

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9190 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 16-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH B, MUMBAI BEFORE D.T. GARASIA, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO.3527/M/2014 ASSESSMENT YEAR: 2009-10 M/S. METAL GEMS, MEHTA LODHA & CO., CHARTERED ACCOUNTANTS, 105, SAKAR-I, ASHRAM ROAD, AHMEDABAD 380 009 PAN: AADFM0423E VS. ADDL. CIT, RANGE-15(2), MATRU MANDIR, 1 ST FLOOR, TARDEO ROAD, MUMBAI 400 007 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : NONE REVENUE BY : SHRI SUMAN KUMAR, D.R. DATE OF HEARING : 16.08.2017 DATE OF PRONOUNCEMENT : 04.10.2017 O R D E R PER D.T. GARASIA , JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 07.02.2014 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2009-10. 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSI NG OFFICER (HEREINAFTER REFERRED TO AS THE AO) HAS MADE THE ADDITION OF INT EREST INCOME OF RS.6,01,169/-. THE AO FOUND THAT THE ASSESSEE HAS RECEIVED THE INTEREST FROM FOLLOWING PARTIES: NAME OF PAYER TYPE OF INCOME AIR AS PER BOOKS DIFFERENCE BOC INDIA LTD. INTEREST INCOME 70,440/- - 70,440/- KOTAK MAHINDRA BANK LTD. -DO- 7,45,206/- 4,33,017/- 3,12,189/- ICICI BANK -DO- 21,944/- - 21,944/- ITA NO.3527/M/2014 M/S. METAL GEMS 2 LTD. ICICI BANK LTD. -DO- 69,815/- - 69,815/- BOB -DO- 7,754/- - 7,754/- CITI BANK NA -DO- 1,16,300/- 2,273/- 1,14,027/- BOC INDIA LTD. -DO- 5,000/- - 5,000/- TOTAL - 6,01,169/- SINCE THE AMOUNT OF RS.6,01,169/- WAS NOT SHOWN IN THE BOOK OF ACCOUNT, THE AO MADE THE ADDITION. 3. MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT (A) HAS RESTORED THE MATTER BY OBSERVING AS UNDER: 7.4 REGARDING OTHER INTEREST INCOME, STATED TO BE ACCOUNTED IN SUBSEQUENT YEAR, IT IS SEEN THAT THE SAME HAS BEEN CREDITED IN THE ACCOUNTS OF THE ASSESSEE DURING THE F.Y 2008-09 AND THEREFORE, THERE IS NO REASON WHY THE SAME IS ASSESSABLE IN SUBSEQUENT YEAR. THE AO HAS RIGHTL Y ASSESSED THE SAME IN THIS YEAR. HOWEVER, IF THE SAME HAS BEEN OFFERED FOR TAX ATION IN SUBSEQUENT YEAR, AO MAY CONSIDER ALLOWING APPROPRIATE RELIEF I N THE SUBSEQUENT YEAR SINCE THE SAME INCOME CANNOT BE TAXED TWICE. ON MER ITS, THEREFORE, THIS GROUND IS DISMISSED. 4. DURING THE COURSE OF HEARING, THE ASSESSEE DID N OT PRESENT BUT FILED THE WRITTEN SUBMISSIONS. WE FIND THAT, BEFORE LD. CIT( A), THE ASSESSEE COULD NOT FURNISHING CONVINCING EXPLANATION TO EXPLAIN THE DI FFERENCES AND MERELY STATED THAT IT DOES NOT BELONG TO HIM OR IT WAS OFFERED TO TAX IN SUBSEQUENT YEARS. PRIMA FACIE, THE ASSESSEE WAS HAVING DEALING WITH THE ABOVE ENTI TIES. UNDISPUTEDLY, THE ASSESSEE WAS REQUIRED TO OFFER TH E INCOME PERTAINING TO IMPUGNED AY IN IMPUGNED AY ONLY AND NOT IN OTHER YE ARS. THEREFORE, ON THE FACTS OF THE CASE, SINCE THE MATTER IS OF RECONCILI ATION, WE RESTORE THE SAME TO THE FILE OF LD. AO TO VERIFY THE CLAIM OF THE ASSES SEE. THE ASSESSEE, IN TURN, IS DIRECTED TO RECONCILE THE DIFFERENCES. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.3527/M/2014 M/S. METAL GEMS 3 ORDER PRONOUNCED IN THE OPEN COURT ON 04.10.2017. SD/- SD/- (MANOJ KUMAR AGGARWAL) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 04.10.2017. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.