NAYANT MANEKLAL SAVANI, MUMBAI V. ITO RG 7(2)(2), MUMBAI

ITA 464/MUM/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3519 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 07-12-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 20-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VISHWAS JADHAV
• Keywords: Business income
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEORE SHRI G.S.PANNU, ACCOUNTANT MEMBER ITA NO. 464/MUM/2015 (ASSESSMENT YEAR : 2009-10) MR.NAYANT MANEKLAL SAVANI, 210E, OM JAYALAXMI, LAXMI BAI KELKAR ROAD, SION (E), MUMBAI 400 022 PAN: AABPS 9346J ... APPELLANT VS. THE INCOME TAX OFFICER , RANGE 7(2)(2), ROOM NO.671, 6 TH FLOOR, AAYKAR BHAVAN, MK ROAD, MUMBAI- 400020. .... RESPONDENT APPELLANT BY : SHRI NITISH GANDHI RESPONDENT BY : SHRI VISHWAS JADHAV DATE OF HEARING : 07/12/2015 DATE OF PRONOUNCEMENT : 29/02/2016 ORDER THE CAPTIONED APPEAL IS PREFERRED BY THE ASSESSEE AND IS DIRECTED AGAINST THE IMPUGNED ORDER DATED 13/11/2014 OF CIT(A)-13, MUMBAI, PERTAINING TO THE ASSESSMENT YEAR 2009-10, WHICH IN TURN HAS ARISEN FROM AN ORDER PASSED BY THE ASSESSING OFFICER DATED 25/11/2011 UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961( IN S HORT THE ACT). 2. IN THIS APPEAL, THE SOLITARY ISSUE RAISED BY TH E ASSESSEE IS ARISING FROM THE ACTION OF THE CIT(APPEALS) IN SUSTAINING A DISALLOWANCE OF 2 ITA NO. 464/MUM/2015 (ASSESSMENT YEAR : 2009-10) RS.23,21,171/- REPRESENTING INTEREST PAID TO PARTN ERSHIP FIRM WHILE COMPUTING BUSINESS INCOME IN THE HANDS OF THE ASSES SEE. 3. IN BRIEF, THE RELEVANT FACTS ARE THAT THE APPELL ANT IS AN INDIVIDUAL WHO HAD FILED HIS RETURN OF INCOME FOR ASSESSMENT YEAR 2009-10 DECLARING A TOTAL INCOME OF RS.8,39,730/- . IN THE COURSE OF THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTED THAT ASSESSEE HAD EARNED INTEREST FROM PARTNERSHIP FIRM, WHERE HE WAS A PARTNER AND ALSO PAID INTEREST TO ANOTHER PARTNERSHIP FIRM M/S.MSN E NTERPRISE, WHERE ALSO HE WAS A PARTNER. THE INTEREST PAID TO MSN E NTERPRISE AMOUNTING TO RS.23,21,171/- ON ACCOUNT OF DEBIT BALANCE WITH THE SAID FIRM WAS DISALLOWED BY THE ASSESSING OFFICER WHILE COMPUTING BUSINESS INCOME. THIS ACTION OF THE ASSESSING OFFICER WAS UPHELD BY THE CIT(APPEALS). 4. BEFORE ME, THE LD. REPRESENTATIVE FOR THE ASSESS EE RELIED UPON THE ORDER OF THE TRIBUNAL DATED 09/04/2014 PERTAINI NG TO ASSESSMET YEAR 2008-09, IN ASSESSEES OWN CASE, WHEREIN SIMIL AR CONTROVERSY HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE. IT WAS A C OMMON POINT BETWEEN THE PARTIES THAT THE AFORESAID PRECEDENT CO NTINUES TO HOLD THE FIELD AND HAS NOT BEEN ALTERED BY ANY HIGHER AUTHOR ITY. SINCE FACTS AND CIRCUMSTANCES AND THE NATURE OF DISPUTE IS SIMILAR IN THIS YEAR, FOLLOWING THE ORDER OF THE TRIBUNAL DATED 09/04/2014(SUPRA), I SET ASIDE THE ORDER OF THE CIT(APPEALS) AND DIRECT THE ASSESSING OFFICE R TO ALLOW THE RELIEF TO THE ASSESSEE IN ACCORDANCE WITH THE AFORESAID PRECE DENT. 3 ITA NO. 464/MUM/2015 (ASSESSMENT YEAR : 2009-10) 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED AS ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 29/02/2016. SD/- (G.S. PANNU) ACCOUN TANT MEMBER MUMBAI, DATED 29/02/2016 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI VM , SR. PS