WHISTLING WOODS INTERNAITONAL TD, MUMBAI V. ITO 9(3)(4), MUMBAI

ITA 5908/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 55700 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 31-10-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 27-07-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G BEFORE SHRI J SUDHAKAR REDDY (AM) & SHRI V. DURGA RAO (JM) I.T.A.NO. 5908/MUM/2010 (ASSESSMENT YEAR : 2006-07) WHISTLING WOODS INTERNATIONAL LTD. FILM CITY COMPLEX GOREGAON EAST MUMBAI-400 065. VS. ITO 9(3)-4 AAYAKAR BHAVAN M.K. ROAD MUMBAI-400 020. PAN/GIR NO. : AAACW4307R ASSESSEE BY : SHRI PARAS SAVLA DEPARTMENT BY : SHRI PAVAN VED DATE OF HEARING : 31.10.2011 DATE OF PRONOUNCEMENT : 31.10.2011 ORDER PER J. SUDHAKAR REDDY, (AM) :- THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF LEARNED CIT(A)-20, MUMBAI DATED 12.5.2010 FOR A.Y. 2006-07 ON THE FOLLOWING GROUNDS :- 1) THE ORDER OF LEARNED CIT(A) ERRED IN TREATING THE I NTEREST INCOME AS INCOME OF OTHER SOURCES INSTEAD OF REDUCI NG THE SAME FROM THE PREOPERATIVE EXPENSES. 2) WITHOUT PREJUDICE TO THE ABOVE, LEARNED CIT(A) FAIL ED TO APPRECIATE THE FACT THAT IF THE INTEREST INCOME IS TREATED AS REVENUE IN NATURE THEN SAME PRINCIPLE APPLIES TO RE VENUE EXPENSES INCURRED, WHICH ARE GENERAL IN NATURE AND NOT DIRECTLY RELATED TO THE PROJECT. THUS THE INCOME SH OULD BE COMPUTED AFTER REDUCING SUCH EXPENSES. 3) WITHOUT PREJUDICE TO ABOVE, IF THE INTEREST INCOME IS TREATED AS INCOME FROM OTHER SOURCES AND THE REVENUE EXPENSE S MAY BE ALLOWED AS DEDUCTION U/S. 57. 4) ON MERITS, THE APPELLANT DENIES THE LIABILITY OF PE NAL INTEREST U/S. 234A, 234B AND 234C. 2. BOTH PARTIES AGREED THAT SIMILAR ISSUE HAS COME UP BEFORE THE G BENCH OF THE MUMBAI TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2003-04 AND 2004-05 WHICH IS REPORTED IN 48 DTR 371 AND THA T THE ISSUES WERE WHISTLING WOODS INTERNATIONAL LTD. 2 DECIDED AGAINST THE ASSESSEE. THE TRIBUNAL HELD THA T INTEREST INCOME IN QUESTION IS TAXABLE AS INCOME FROM OTHER SOURCES. I N VIEW OF THE MUTUALLY ACCEPTED POSITION, RESPECTFULLY FOLLOW THE ORDER OF THE COORDINATE BENCH OF THE TRIBUNAL AND DISMISS THIS APPEAL OF THE ASSESSEE. 3. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. PRONOUNCED IN THE OPEN COURT ON 31.10.2011. SD/- (V.DURGA RAO) JUDICIAL MEMBER SD/- (J.SUDHAKAR REDDY) ACCOUNTANT MEMBER DATED : 31 ST OCTOBER, 2011. COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A)-CONCERNED. 4. THE CIT, CONCERNED. 5. THE DR CONCERNED, MUMBAI 6. GUARD FILE BY ORDER TRUE COPY ASSTT. REGISTRAR, ITAT, MUMBAI PS