GROWMORE RESEARCH & ASSETS MGT LTD, MUMBAI V. ASST CIT CEN CIR 31, MUMBAI

ITA 5137/MUM/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 88483 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Next Hearing Date: 03-03-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 13-08-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR P DANIAL
• Assessee Lawyers: VIJAY MEHTA SHRI DHARMESH SHAH
• Keywords: Opportunity of being heard
• Section: 234B; 115JB

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL G BE NCH, MUMBAI , ! '# $ $ $ $ , '# % BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER ./I .T.A. NOS.5137 & 5138/MUM/2012 ( & & & & / ASSESSMENT YEARS:2006-07 &2007-08 A N D ./I .T.A. NO.2150/MUM/2013 ( & & & & / ASSESSMENT YEAR:2010-11 M/S. GROWMORE RESEARCH & ASSETS MGT. LTD., 32, MADHULI, 3 RD FLOOR, DR. ANNIE BESANT ROAD, NEHRU CENTRE, WORLI, MUMBAI-400 018 / VS. THE ACIT, CENT CIRCLE-31, MUMBAI #' ! ./ ( ./ PAN/GIR NO. : AAACG 4936C ( ') / APPELLANT ) .. ( *+') / RESPONDENT ) ') , / APPELLANT BY: SHRI VIJAY MEHTA SHRI DHARMESH SHAH *+') - , / RESPONDENT BY: DR. P. DANIAL - ./! / DATE OF HEARING :05.03.2015 01& - ./! / DATE OF PRONOUNCEMENT :05.03.2015 '2 / O R D E R PER N.K. BILLAIYA, AM: THESE THREE APPEALS BY THE ASSESSEE ARE PREFERRED AGAINST THREE SEPARATE ORDERS OF THE LD. CIT(A)-40, MUMBAI PERTAI NING TO ASSESSMENT GROWMORE LEASING & INV. LTD. 2 YEARS 2006-07, 2007-08 & 2010-11 RESPECTIVELY. ALL THESE APPEALS HAVE COMMON GROUNDS OF APPEAL, THEREFORE, THEY WERE HEAR D TOGETHER AND DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CO NVENIENCE AND BREVITY. 2. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSE SSEE STATED THAT IN ALL THE THREE YEARS INVOLVED HE IS NOT PRESSING GROUND NO. 1,2 & 3. THESE GROUNDS ARE ACCORDINGLY DISMISSED AS NOT PRESSED. 3. GROUND NO. 4 RELATES TO THE DISALLOWANCE OF INTE REST EXPENSE. THE LD. COUNSEL FOR THE ASSESSEE BROUGHT TO OUR NOTICE THAT THE DECISION RELIED UPON BY THE LD. CIT(A) WHILE DISPOSING THIS GROUND HAS BEEN SET ASIDE BY THE TRIBUNAL TO THE FILE OF THE LD. CIT(A). 4. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT BR ING ANY DISTINGUISHING DECISION IN FAVOUR OF THE REVENUE. 5. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTH ORITIES BELOW. WHILE DISPOSING THE GROUND RELATING TO THE DISALLOW ANCE OF INTEREST, WE FIND THAT THE LD. CIT(A) HAS FOLLOWED THE FINDINGS GIVEN IN THE CASE OF EMINENT HOLDINGS PVT. LTD. WE FIND THAT THE TRIBUN AL IN THE CASE OF EMINENT HOLDINGS IN ITA NOS. 2139, 2140 AND 2141/MU M/2013 HAVE FOLLOWED THE DECISION OF THE TRIBUNAL GIVEN IN COMM ON GROUP CASE OF HITESH S. MEHTA AT PARA 2.3 OF THE ORDER AND RESTOR ED THE MATTER TO THE FILE OF THE LD. CIT(A) FOR FRESH ADJUDICATION. RESPECTF ULLY FOLLOWING THE FINDINGS OF THE CO-ORDINATE BENCH, WE RESTORE THIS ISSUE TO THE FILES OF THE LD. CIT(A) FOR FRESH ADJUDICATION AFTER GIVING REAS ONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. GROWMORE LEASING & INV. LTD. 3 6. BEFORE CLOSING THIS ISSUE, THE LD. COUNSEL FOR T HE ASSESSEE POINTED OUT THAT THE LD. CIT(A) HAS HELD THAT THE ISSUE OF INTEREST EXPENDITURE IS PENDING BEFORE THE HONBLE SPECIAL COURT. IT IS TH E SAY OF THE LD. COUNSEL THAT THE PROCEEDINGS IN WHICH THE SAID ISSU E OF INTEREST WAS ISSUED BY THE CUSTODIAN HAVE BEEN ALREADY CONCLUDED WHICH FACT HAS ALREADY BEEN RECORDED BY THE LD. CIT(A) IN THE IMPU GNED ORDER. WE, THEREFORE, DIRECT THE LD. CIT(A) TO CONSIDER THIS F ACT WHILE DECIDING THE ISSUE AFRESH. THE LD. CIT(A) MAY ALSO DIRECT FOR T HE TAXING OF INCOME IN THE HANDS OF THE RECIPIENT (FAMILY MEMBERS) IN ACCO RDANCE WITH THE METHOD OF ACCOUNTING FOLLOWED BY THEM AND AS PER TH E PROVISIONS OF THE LAW. GROUND NO. 4 IS TREATED AS ALLOWED FOR STATIS TICAL PURPOSE. 7. GROUND NO. 5 RELATES TO THE COMPUTATION OF BOOK PROFIT U/S. 115JB OF THE ACT. 8. IN OUR CONSIDERED OPINION, THIS GROUND IS CONSEQ UENTIAL TO OUR DECISION GIVEN FOR GROUND NO. 4 (SUPRA). THIS GROU ND IS ACCORDINGLY DISPOSED OF. 9. GROUND NO. 6 RELATES TO THE CHARGING OF INTEREST U/S. 234A, 234B AND 234C OF THE ACT. 10. THE LD. COUNSEL FOR THE ASSESSEE BROUGHT TO OUR NOTICE THAT AN IDENTICAL ISSUE WAS CONSIDERED BY THE TRIBUNAL IN O NE OF THE GROUP CASES VIZ., M/S. HARSH ESTATES PVT. LTD. IN ITA NOS. 1035 M 1033 AND 3464/M/2013. WE FIND FORCE IN THE CONTENTION OF TH E LD. COUNSEL. 11. THE TRIBUNAL HAS CONSIDERED THIS ISSUE AT PARA- 6 OF ITS ORDER AND RESTORED THE MATTER TO THE FILE OF THE AO TO RECOMP UTE THE INTEREST LIABILITY GROWMORE LEASING & INV. LTD. 4 AS PER THE PROVISIONS OF THE LAW. WE DIRECT ACCORD INGLY. GROUND NO. 6 IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. 12. GROUND NO. 7 RAISED BY THE ASSESSEE IS NOT PRES SED, THEREFORE IT IS DISMISSED AS NOT PRESSED. 13. IN THE RESULT, ALL THE THREE APPEALS FILED BY T HE ASSESSEE ARE ALLOWED IN PART FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON 5 TH MARCH, 2015 SD/- SD/- (VIVEK VARMA ) (N.K. BILLAIYA) '# /JUDICIAL MEMBER ! '# / ACCOUNTANT MEMBER MUMBAI; 3' DATED : 5 TH MARCH, 2015 . . ./ RJ , SR. PS '2 '2 '2 '2 - -- - *. *. *. *. 4&. 4&. 4&. 4&. / COPY OF THE ORDER FORWARDED TO : 1. ') / THE APPELLANT 2. *+') / THE RESPONDENT. 3. 5 ( ) / THE CIT(A)- 4. 5 / CIT 5. 67 *. , , / DR, ITAT, MUMBAI 6. 78 9 / GUARD FILE. '2 '2 '2 '2 / BY ORDER, +. *. //TRUE COPY// : :: : / ; ; ; ; (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI