DCIT 1(1), MUMBAI V. BIRLA INTERNATIONAL P. LTD, MUMBAI

ITA 5261/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 55174 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 25-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P C MAURYA
• Assessee Lawyers: VIJAY C KOTHARI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH B,MUMBAI BEFORE SHRI R.S. SYAL (AM) & SHRI VIJAY PAL RAO (JM ) I.T.A.NO.5261/MUM/2010 (A.Y.2006-07) DY. COMMR. OF INCOME-TAX-1(1), ROOM NO. 579, AAYKAR BHAVAN, M.K. ROAD, MUMBAI-400 020. VS. M/S. BIRLA INTERNATIONAL P.LTD., INDUSTRY HOUSE, 159, CHURCHGATE RECLAMATION, MUMBAI-400 020. PAN: AAACB 4327 L APPELLANT RESPONDENT APPELLANT BY SHRI P.C. MAURYA. RESPONDENT BY SHRI V IJAY C. KOTHARI. DATE OF HEARING : 30-08-20 11 DATE OF PRONOUNCEMENT : 07-09-2011 O R D E R PER R.S. SYAL, AM : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A) ON 26-02-2010 IN RELATION TO THE ASSTT. YEAR 2006-07. 2. THE ONLY GROUND IS AGAINST THE DELETION OF DISAL LOWANCE OF INTEREST OF RS.1,17,04,755/- BEING THE EXPENDITURE NOT INCURRED FOR THE PURPOSE OF THE BUSINESS. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE AO MADE DISALLOWANCE OF INTEREST BY HOLDING THAT IT WAS NOT INCURRED FOR TH E PURPOSE OF BUSINESS. THE LD. CIT(A) DELETED THE DISALLOWANCE BY RELYING ON THE O RDERS PASSED BY THE TRIBUNAL IN EARLIER YEARS. ITA NO.5261/MUM/2010 BIRLA INTERNATIONAL P.LTD.. 2 4. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD, IT IS OBSERVED THAT THE LD. CIT(A) HAS DELETED THE ADDITION BY RELYING ON THE ORDERS PASSED BY THE TRIBUNAL IN THE ASSESSEES OWN CASE F OR EARLIER YEARS. NO MATERIAL HAS BEEN PLACED ON RECORD TO DEMONSTRATE THAT SUCH ORDERS HAVE EITHER BEEN REVERSED OR MODIFIED IN ANY FURTHER PROCEEDINGS. S INCE THE ORDER PASSED BY THE LD. CIT(A) ON THIS ISSUE IS IN CONSONANCE WITH THE CONSISTENT VIEW TAKEN BY THE TRIBUNAL IN EARLIER YEARS IN ASSESSEES OWN CASES ALLOWING DEDUCTION OF INTEREST, RESPECTFULLY FOLLOWING THE PRECEDENTS, WE UPHOLD TH E IMPUGNED ORDER. 5. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED ON THE 07TH DAY OF SEPTEMBER, 2011. SD/- SD/- (VIJAY PAL RAO) (R.S. SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 07TH SEPTEMBER , 2011. NG: COPY TO : 1. DEPARTMENT. 2.ASSESSEE. 3 CIT(A)-1,MUMBAI. 4 CIT-1,MUMBAI. 5.DR,B BENCH,MUMBAI. 6.MASTER FILE. (TRUE COPY) BY ORDER, ASST.REGISTRAR, ITAT, MUMBAI. ITA NO.5261/MUM/2010 BIRLA INTERNATIONAL P.LTD.. 3 DETAILS DATE INITIALS DESIGN ATION 1. DRAFT DICTATED ON 30-08- 2011 SR.PS/ 2. DRAFT PLACED BEFORE AUTHOR 30-08- 2011 SR.PS/ 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/ 6. KEPT FOR PRONOUNCEMENT ON 07-09-11 SR.PS/ 7. FILE SENT TO THE BENCH CLERK 07-09-11 SR.PS/ 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9. DATE ON WHICH FILE GOES TO THE AR 10. DATE OF DISPATCH OF ORDER *