AZRAEL INVESTMENTS P. LTD, MUMBAI V. ITO 2(1)(1), MUMBAI

ITA 4116/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 49323 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 20-05-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MRS USHA NAIR
• Assessee Lawyers: SANTOSH PARAB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO. 4116/MUM./2010 (ASSESSMENT YEAR : 2006-07 ) DATE OF HEARING: 16.6.2011 AZRAEL INVESTMENTS PVT. LTD. MAHINDRA TOWERS DR. G.M. BHOSALE MARG P.K. KURNE CHOWK, WORLI MUMBAI 400 018 AAACA5321K .. APPELLANT V/S INCOME TAX OFFICER WARD-2(1)(1), MUMBAI .... RESPONDENT ASSESSEE BY : MR. SANTOSH PARAB REVENUE BY : MRS. USHA NAIR O R D E R PER J. SUDHAKAR REDDY, A.M. THIS APPEAL PREFERRED BY ASSESSEE, IS DIRECTED AGAI NST THE IMPUGNED ORDER DATED 17 TH MARCH 2010, PASSED BY THE COMMISSIONER (APPEALS)-I V, MUMBAI, FOR ASSESSMENT YEAR 2006-07. 2. WE HAVE HEARD LEARNED COUNSEL, MR. SANTOSH PARAB, O N BEHALF OF THE ASSESSEE AND THE LEARNED DEPARTMENTAL REPRESENTATIV E, MRS. USHA NAIR, ON BEHALF OF THE REVENUE. 3. AS SUBMITTED BY BOTH THE PARTIES, WE SET ASIDE GROU NDS NO.1 AND 2, TO THE FILE OF ASSESSING OFFICER FOR ADJUDICATION AFRE SH IN LINE WITH THE JUDGMENT AZRAEL INVESTMENTS P. LTD. ITA NO. 4116/MUM./2010 2 OF HONBLE JURISDICTIONAL HIGH COURT IN GODREJ & BO YCE MFG. CO. LTD. V/S DCIT, (2010), 328 ITR 081 (BOM.). 4. COMING TO GROUND NO.3, THE DISALLOWANCE HAS BEEN MA DE BY THE ASSESSING OFFICER UNDER SECTION 43B(D) OF THE INCOM E TAX ACT, 1961 (FOR SHORT 'THE ACT' ). THE INTEREST, IN THIS CASE, IS PAYABLE TO HOUSIN G DEVELOPMENT AND FINANCE CORP., AS WELL AS INFRASTRU CTURE LEASING AND FINANCE SERVICES LTD. SECTION 43B(D), EXPLANATION-4 , SUB-CLAUSE (A) READS AS FOLLOWS:- PUBLIC FINANCIAL INSTITUTIONS SHALL HAVE THE MEANI NG ASSIGNED TO IT IN SECTION 4A OF THE COMPANIES ACT, 1956 (1 OF 1956). 5. ON A PERUSAL OF SECTION 4A OF THE COMPANIES ACT, 19 56, AND THE NOTIFIED INSTITUTION UNDER SECTION 4A(2) OF THE COMPANIES AC T, 1956, THESE TWO INSTITUTIONS ARE NOT FINANCIAL INSTITUTION, AS SPECIFIED UNDER S ECTION 43B(D) OF THE ACT. THEREFORE, THE DISALLOWANCE UNDER SECTION 43B(D) OF THE ACT IS BAD-IN-LAW. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED IN PART . ORDER PRONOUNCED IN THE OPEN COURT ON 24.6.2011 SD/- D. MANMOHAN VICE PRESIDENT SD/- J. SUDHAKAR REDDY ACCOUNTANT MEMBER MUMBAI, DATED: 24.6.2011 COPY TO : (1) THE ASSESSEE; (2) THE RESPONDENT; (3) THE CIT(A), MUMBAI, CONCERNED; (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, A BENCH, ITAT, MUMBAI. TRUE COPY BY ORDER PRADEEP J. CHOWDHURY ASSISTANT REGISTRAR SR. PRIVATE SECRETARY ITAT, MUMBAI BENCHES, MUMBAI