BHAGIRATHI TRANSCORPO P. LTD., MUMBAI V. DCIT CIR. 12(1)(2), MUMBAI

ITA 6027/MUM/2016

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 7814 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 10-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T A KHAN; CHAITANYA ANJARIA
• Assessee Lawyers: N AVNEET KUMAR ARORA
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI AMARJIT SINGH , JM ITA NO. 6027 / MUM/20 1 6 ( ASSESSMENT YEAR : 2012 - 13 ) M/S. BHAGIRATHI TRANSCORPO PVT. LTD., 2/37, PARISHRAM CHSL DUTTAPADA, RAJENDRA NAGAR BORI VALI (EAST), MUMBAI 400 066 VS. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 12(1)(2) MUMBAI PAN/GIR NO. AADCB7436K ( APPELLANT ) .. ( RESPONDENT ) ITA NO. 6133 /MUM/20 16 ( ASSESSMENT YEAR : 2012 - 13 ) DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 12(1)(2) MUMBAI VS. M/S. BHAGIRATHI TRANSCORPO PVT. LTD., 2/37, PARISHRAM CHSL DUTTAPADA, RAJENDRA NAGAR BORIVALI (EAST), MUMBAI 400 066 PAN/GIR NO. AADCB7436K ( APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY SHRI NAVNEET KUMAR ARORA REVENUE BY SHRI T.A. KHAN & SHRI CHAI TANYA ANJARIA DATE OF HEARING 21 / 12 /201 8 DATE OF PRONOUNCEMENT 21 / 12 /201 8 / O R D E R PER R.C.SHARMA (A.M) : THESE ARE THE CROSS APPEALS FILED BY ASSESSEE AND REVENUE AGAINST THE ORDER OF CIT(A) - 20, MUMBAI DATED 29/07/2016 FOR A.Y. 2012 - 13 IN THE MATTER OF ORDER PASSED U/S. 143(3) OF THE IT ACT. ITA NOS.6027/MUM/2016 & 6133/MUM/2016 M/S. BHAGIRATHI TRANSCORP PVT. LTD., 2 2. IN RESPECT OF THE APPE AL FILED BY REVENUE WE OBSERVE THAT TAX EFFECT IS LESS THAN THE LIMIT PRESCRIBED , THEREFORE, IN VIEW OF THE CBDT CIRCULAR NO. 3/2018 DATED 11.07.2018, THE APPEAL FILED BY REVENUE IS DISMISSED. 3. IN THE RESULT APPEAL FILED BY THE REVENUE IS DISMISSED. 4. IN THE APPEAL FILED BY ASSESSEE, ASSESSEE IS AGGRIEVED FOR DISALLOWANCE OF INTEREST U/S.40(A)(IA) AMOUNTING TO RS.34,26,102.00. IN THIS REGARD WE OBSERVE THAT THE AO DISALLOWED INTEREST OF RS 34,26,102/ - UNDER SECTION 40 (A)(IA) OF ACT, PAID TO FOLLOWING NBFC'S FOR AMOUNT BORROWED FOR PURCHASE OF VEHICLE: SR. NO. NAME OF THE NBFC INTEREST AMOUNT (RS.) 1 HINDUJA LAY LAND LTD 1,59,553.00 2 KOTAK MAHINDRA PRIME LIMITED 34,063.00 3 MAGMA FINCORP LIMITED 6,40,851.00 4 RELIANCE CAPITAL LIMITED 11,26,672.00 5 TATA CAPITAL LIMITED 8,36,258.00 6 TATA MOTORS FINANCE LIMITED 6,28,705.00 TOTAL 34,26,102.00 5. BEFORE THE LOWER AUTHORITIES, IT WAS CONTENTION OF ASSESSEE THAT ALL THE ABOVE PAYEE ARE LARGE CORPORATE HOUSE AND ABOVE COMPANI ES LISTED COMPANIES ON STOCK EXCHANGES . ACCORDINGLY THEY HAVE ALREADY PAID TAX ITA NOS.6027/MUM/2016 & 6133/MUM/2016 M/S. BHAGIRATHI TRANSCORP PVT. LTD., 3 ON THE INTEREST INCOME EARNED BY THEM. HOWEVER, AO DID NOT AGREE WITH THE ASSESSEES CONTENTION AND MADE THE DISALLOWANCE. 6. FROM THE RECORD WE FOUND THAT ALL THE ABOVE MENTION ED COMPANIES HAD FILED THEIR RESPECTIVE TAX RETURNS DISCLOSING THE ABOVE INTEREST INCOME AND PAID THE APPLICABLE TAX ACCORDINGLY. IF THE AO HAD GIVEN OPPORTUNITY TO THE ASSESSEE TO PROVIDE THE CERTIFICATE IN ANNEXURE B, ASSESSEE WOULD HAVE PROVIDED. IN FA CT THERE IS NO LOSS OF REVENUE TO THE GOVERNMENT TREASURY. THIS ADDITION IS MADE WITHOUT GIVING REASONABLE OPPORTUNITY TO FURNISH THE RELEVANT DOCUMENTS. 7. IN VIEW OF THE ABOVE, IN THE SUBSTANTIAL INTEREST OF JUSTICE, WE RESTORE THIS ISSUE BACK TO THE FIL E OF THE AO FOR DECIDING AFRESH AS PER LAW. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART WHEREAS APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 21 / 12 /201 8 SD/ - ( AMARJIT SINGH ) SD/ - (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 21 / 12 /201 8 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//