M/S GUJARAT ENTERPRISES , MUMBAI V. INCOME TAX OFFICER-32(1)(5), MUMBAI

ITA 4204/MUM/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6192 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 27-06-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 21-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HIMANSHU KUMAR
• Keywords: Accommodation entries
• Section: 143(3); 250

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER IT A N o. 4 2 0 4/M um/ 2 02 3 (A . Y . 2 01 3-14) M/ s G uj a r at E n t e rp ri s es S h op N o . 6, Gr o u n d F l oo r , R a c h an a CH S , O p p M C F , J o g u rs P a rk , E k s a r R o a d , B o ri v al i We s t , Mu mb ai-4 0 0 0 9 2 V s . IT O-3 2( 1) ( 5 ) K a u ti l y a B h av an , B an d r a K u rl a Co mp l ex , Mu mb ai-4 0 0 0 5 1 स्थायी लेखा सं./जीआइआर सं./PAN / GI R N o : AA DF G 091 6 G Appellant .. Respondent Appellant by : Shri Anuj Kisnadwala Respondent by : Shri Himanshu Kumar D a t e o f H e a ri n g 15.05.2024 D a t e o f P r on o un c em e n t 28.06.2024 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the Learned Commissioner of Income-tax (Appeals), Pune-11 [hereinafter referred to as “CIT(A)”] dated 27.09.2023 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for the relevant Assessment Year [A.Y.] 2013- 14. 2. The assessee has raised following grounds of appeal: P a g e | 2 ITA No. 4204/Mum/2023 AY 2013-14 M/s. Gujrat Enterprices, Mumbai 1.The learned CIT(A) has erred in law and on facts in upholding the disallowance of the interest amounting to Rs. 2,15,014/ on the alleged accommodation loan taken by the appellant without appreciating the fact that in AY 2012-13, the said loan taken by the assessee is considered as genuine. 2.The learned CIT(A) has erred in law and on faets by charging interest u/s 234C of the Act. 3. The appellant craves leave to add to, amend, alter or delete all or any of the foregoing grounds of appeal. 3. Brief facts of the case are that the return of income was filed on 29.09.2013 declaring total income of Rs. 15,74,590/-. The assessment was completed u/s 143(3) of the Act by making an addition of Rs. 2,15,014/- on account of interest paid on bogus unsecured loan. The Ld. CIT(A) vide his order dated 27.09.2023 has upheld the disallowance on the ground that the Hon’ble ITAT, Mumbai bench in the case of Shri Praveen Kumar Jain had held that unsecured loans provided by various shell entities (including M/s Duke Business Pvt Ltd. from whom this unsecured loan had been taken) are nothing but accommodation entries. Following these findings of the co-ordinate bench, the Ld. CIT(A) observed that the unsecured loans received from M/s Duke Business Pvt. Ltd. by the assessee is not genuine and interest paid on the same was rightly disallowed by the AO. 4. Before us, the Ld. AR submitted that the unsecured loan was received in the preceding year relevant to AY 2012-13 and the department has not made any addition on account of this loan. Copy of the assessment order u/s 143(3) P a g e | 3 ITA No. 4204/Mum/2023 AY 2013-14 M/s. Gujrat Enterprices, Mumbai for AY 2012-13 dated 07.11.2014 has also been filed in which the returned income has been accepted. 5. We have heard the rival submissions. A clarification was sought from the Ld. DR regarding status of proceedings for re-opening, if any, for AY 2012- 13. As clarified by the Ld. DR, no action has been taken, with regard to the loan in question, during the assessment year 2012-13. Since, the loan has not been treated as bogus/non-genuine, the disallowance of interest thereon in this year is not justified. The addition of Rs. 2,15,014/- on this account is accordingly deleted. 6. In the result, the appeal of the assessee is allowed. Order Pronounced in Open Court on 28.06.2024 Sd/- Sd/- (NARENDER KUMAR CHOUDHRY) (RENU JAUHRI) JUDICIAL MEMBER ACCOUNTANT MEMBER Place: Mumbai Date 28.06.2024 ANIKET SINGH RAJPUT/STENO आदेश की प्रतितलति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER, P a g e | 4 ITA No. 4204/Mum/2023 AY 2013-14 M/s. Gujrat Enterprices, Mumbai उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीलीय अतिकरण/ ITAT, Bench, Mumbai.