HARSORA HOTELS PVT. LTD., VAPI V. ITO 5(1)(4), MUMBAI

ITA 3996/MUM/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4882 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2012-2013
• Appeal Filed On: 01-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SANJAY R PARIKH
• Section: 14A; 195

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH H, MUMBAI BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER ITA NOS.3996 & 3997/M/2017 ASSESSMENT YEARS: 2012-13 & 2013-14 M/S. HARSORA HOTELS PVT. LTD., 577/578, HOTEL GREEN VIEW, NATIONAL HIGHWAY NO.8, PARDI, VAPI 396 195 PAN: AAACH1522M VS. THE INCOME TAX OFFICER, AAYAKAR BHAVAN, 5 TH FLOOR, M.K. MARG, MUMBAI - 400020 (APPELLANT) (R ESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI SANJAY R. PARIKH, A.R. REVENUE BY : SHRI MANOJ KUMAR SINGH, D.R. DATE OF HEARING : 08.01.2019 DATE OF PRONOUNCEMENT : 11.02.2019 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THE ABOVE TILED TWO APPEALS HAVE BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 28.02.2017 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER R EFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT YEARS 2012-13 & 2013-14. ITA 3996/M/2017 2. THE ISSUE RAISED IN GROUND-A OF APPEAL BY THE ASSESSEE IS AGAINST THE CONFIRMATION OF DISALLOWANCE BY CIT(A) UPHOLDING THE ORDER OF AO DISALLOWING INTEREST OF RS. 27,63,3 48/- U/S 36(1)(III) OF THE ACT. ITA NOS.3996 & 3997/M/2017 M/S. HARSORA HOTELS PVT. LTD 2 3. AT THE OUTSET THE LD AR SUBMITTED BEFORE THE BEN CH THAT THE ISSUE WAS ALSO THERE IN THE EARLIER YEAR IN 2011- 12, AND THE COORDINATE BENCH IN ITA NO. 5945/MUM/2016 VIDE ORDE R DATED 18.12.2017 RESTORED THE ISSUE BACK TO THE FILE OF T HE AO TO DECIDE THE SAME AFRESH AFTER CONSDIERING THE ARGUMENTS OF LD AR THAT OWN FUNDS WERE SUFFICIENT AND THEREFORE THE DISALLO WANCE U/S 36(1)(III) OF THE ACT COULD NOT BE MADE. THE LD AR SUBMITTED THAT THE GROUND NO-A MAY BE RESTORED TO THE FILE OF THE AO TO DECIDE THE SAME ON SIMILAR LINES. 4. LD. D.R. HOWEVER OBJECTED TO THE ARGUMENTS THAT THE ISSUE WAS COVERED HOWEVER ON THE POINT OF RESTORATION TO AO, THE LD. D.R. FAIRLY AGREED. 5. WE HAVE HEARD THE RIVAL ARGUMENTS AND PERUSED T HE FACTS AS PLACED BEFORE US INCLUDING THE ORDER OF TRIBUNAL . UPON PERUSAL OF THE ORDER OF TRIBUNAL IN ITA NO. 5945/MUM/2016(S UPRA), WE OBSERVE THAT SIMILAR ISSUE INVOLVED WAS RESTORED TO THE AO TO DECIDE AFRESH. IN THE CURRENT YEAR ALSO THE AR ADVA NCED ARGUMENTS BEFORE US THAT THE OWN FUNDS WERE USED IN ADVANCING TO THE RELATED CONCERNS. WE THEREFORE RESTORE THE I SSUE TO THE FILE OF AO TO BE DECIDED AS PER FACTS AND LAW AFTER GIVI NG REASONABLE OPPORTUNITY TO THE ASSESSEE. 6. THE ISSUE RAISED IN GROUND B &C IS AGAINST THE CONFIRMATION OF DISALLOWANCE OF EXPENSES U/S 14A R. W.R. 8D. 7. WE OBSERVE FROM PARA 3 OF THE ORDER OF TRIBUNAL IN ITA NO. 5945/MUM/2016 , THAT THE ISSUE OF DISALLOWANCE WAS RESTORED TO THE FILE OF THE AO TO BE DECIDED AFRESH AFTER AF FORDING A REASONABLE OPPORTUNITY TO THE ASSESSEE. SINCE THE F ACT IN THE ITA NOS.3996 & 3997/M/2017 M/S. HARSORA HOTELS PVT. LTD 3 PRESENT GROUNDS BEFORE US ARE IDENTICAL, WE THEREFO RE RESTORE THE ISSUE TO THE FILE OF THE AO TO DECIDE THE SAME AFRE SH AFTER HEARING THE ASSESSEE. 8. THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ITA 3997/MUM/2017 9. IN THE PRESENT APPEAL BEFORE US, THE ISSUES ARE IDENTICAL TO ONES AS DECIDED BY US IN ITA NO. 3996/MUM/ 2016 AND OUR DECISION ON THESE ISSUES IN THE SAID ITA NO. 3996/M UM/2016 WOULD, MUTATIS MUTANDI, APPLY TO THIS APPEAL AS WEL L. THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. 10. IN RESULT BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 11.02.2019. SD/- SD/- ( RAM LAL NEGI) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 11.02.2019. * 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 ORDER DY/ASS TT. REGISTRAR, ITAT, MUMBAI.