MEGA CUSTODIAL SERVICES LIMITED , MUMBAI V. INCOME TAX OFFICER-8(2)(3), MUMBAI

ITA 6270/MUM/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7701 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 16-10-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D G
• Keywords: Depreciation; Cost of acquisition; Commercial expediency; Unabsorbed depreciation
• Section: 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D , BENCH MUMBAI BEFORE SHRI C.N. PRASAD, JM & SHRI M.BALAGANESH, AM ITA NO. 6270 / MUM/20 1 7 ( ASSESSMENT YEAR : 2011 - 12 ) M/S. MEGA CUSTODIAL SERVICES LTD., 301, LEVEL - 3, CEEJAY HOUSE F - BLOCK, SHIV SAGAR ESTATE DR. ANNIE BESANT ROAD WORLI, MUMBAI 400 018 VS. INCOME TAX OFFICER 8(2)(3),MUMBAI PAN/GIR NO. AAACM3508J ( APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY NONE REVENUE BY SHRI D.G. PANSARI DATE OF HEARING 08 / 04 /201 9 DATE OF PRONOUNCEMENT 24 / 04 /201 9 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 6270/MUM/2017 FOR A.Y. 2011 - 12 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 17, MUMBAI IN APPEAL NO. CIT(A) - 17/IT - 24/14 - 15 DATED 30/06/2017 ( LD. CIT(A) IN SHORT) AGAINST THE ORDER OF ASSESSMENT PASSED U/S.143(3)OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) DATED 05/03/2014 BY THE LD. INCOME TAX OFFICER 8(2)(3), MUMBAI (HEREINAFTER REFERRED TO AS LD. AO). 2. NONE APPEARED ON BEH ALF OF THE ASSESSEE NOR ANY ADJOURNMENT PETITION WAS FILED ON BEHALF OF THE ASSESSEE, THOUGH THE NOTICE OF HEARING WAS SERVED ON THE ASSESSEE. HENCE WE PROCEED TO DISPOSE OFF THIS APPEAL ON HEARING THE LD DR AND BASED ON MATERIALS AVAILABLE ON RECORD. ITA NO. 6270/MUM/2017 M/S. MEGA CUSTODIAL SERVICES LTD., 2 3 . THE FIRST ISSUE TO BE DECIDED IN THIS APPEAL IS AS TO WHETHER THE LD CITA WAS JUSTIFIED IN UPHOLDING THE DISALLOWANCE OF INTEREST U/S 36(1)(III) OF THE ACT ON PROPORTIONATE BASIS IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3.1. THE BRIEF FACTS OF THIS ISSUE ARE THAT THE ASSESSEE IS A PUBLIC LIMITED COMPANY ENGAGED IN THE BUSINESS OF PROVIDING FINANCIAL SERVICES TO VARIOUS COMPANIES AND HAD FILED ITS RETURN OF INCOME FOR THE ASST YEAR 2011 - 12 ON 29.9.2011 DECLARING TOTAL INCOME OF RS 22,97,171/ - UNDER NO RMAL PROVISIONS OF THE ACT AND BOOK PROFITS OF RS 50,88,348/ - U/S 115JB OF THE ACT. THE LD AO OBSERVED THAT IN THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE FURNISHED COMPUTATION OF TOTAL INCOME, BALANCE SHEET, PROFIT AND LOSS ACCOUNT, TAX AUDIT RE PORT IN FORM 3CA AND 3CD AND VARIOUS OTHER DOCUMENTS , AS CALLED FOR, BY HIM. ON PERUSAL OF PROFIT AND LOSS ACCOUNT, THE LD AO OBSERVED THAT ASSESSEE HAD CREDITED AN AMOUNT OF RS 12,96,57,884/ - ON ACCOUNT OF INTEREST INCOME AND DEBITED AN AMOUNT OF RS 12,9 5,71,373/ - ON ACCOUNT OF INTEREST AND FINANCE CHARGES AS EXPENDITURE DURING THE PREVIOUS YEAR RELEVANT TO ASST YEAR 2011 - 12. THE ASSESSEE FURNISHED THE DETAILS OF LOANS AND ADVANCES BEFORE THE LD AO AND GAVE THE BREAK UP OF INTEREST RECEIVED IN THE SUM OF RS 12,96,57,884/ - IN THE TABULAR FORM AS UNDER: - SR. NO NAME OF THE PARTY OPENING BALANCE LOANS GIVEN DURING THE YEAR LOANS REPAID CLOSING BALANCE AMOUNT OF INTEREST RECEIVED RATE OF INTEREST 1. M/S. EVEREST ANGGAN PVT. LTD., 54,05,000 54,05,000 --- 3,5 3,836 12% 2. MEGA MANAGEMENT SERVICES PVT. LTD., 38,37,23,310 1,61,34,25,577 123,14,94,142 76,56,54,745 12,77,86,271 14% 3. V.K. INDUSTRIES LTD., 51,11,000 51,11,000 1,23,333 12% 4. VARUN RETREAS LTD., 16,20,280 1,89,097 18,09,377 1,94,444 12% 5. SH REE MAHAVEER ASSOCIATES & DEVELOPMEN T & HOUSING 1,00,00,000 1,00,00,000 12,00,000 12% ITA NO. 6270/MUM/2017 M/S. MEGA CUSTODIAL SERVICES LTD., 3 TOTAL 41,68,75,932 251,23,25,674 214,66,26,484 79,64,19,083 12,96 , 57,884 AVERAGE RATE OF INTEREST WORKS OUT TO 12.40% 3.2. THE LD AO OBSERVED THAT THE ASSESSEE H AD TAKEN LOANS DURING THE PREVIOUS YEAR FROM VARIOUS PARTIES AND PAID INTEREST THEREON AS UNDER: - SR. NO. NAME OF THE PARTY DATE TOTAL AMOUNT TAKEN DURING THE YEAR RATE 6F INTEREST 1 SICOM LIMITED 08/04/2010 10,00,00,000 14.75% SICOM LIMITED 31/08/2010 25,00,00,000 SICOM LIMITED 25/11/2010 10,00,00,000 13.50% SICOM LIMITED 08/11/2010 35,0 0, 00,000 13.00% TOTAL AMOUNT TAKEN FROM SICOM LIMITED, 8 0 , 00 , 00 , 000 1 1 .75% 2 BARCLAYS IN VESTMENT AND LOAN (INDIA) LTD. 22/07/2010 15,00,00,000 3 BRIGHT BROTHERS LIMITED 25/03/2011 3, 00,00,000 17.50% 4 INDIA INFOLINE INVESTMENT SE RV ICES LIMITED 23/06/2010 15,00,00,000 12.25% 5. S T. ARCHANA MI TT AL ON VARIOUS DA TE 90,97,27,342/ - 16% AVERAGE RATE OF INTEREST 13.81% 3.3. THE LD AO OBSERVED THAT IN ADDITION TO THE INTEREST PAYMENT ON LOANS OF RS 12,95,71,373/ - , THE ASSESSEE COMPANY HAD ALSO PAID BROKERAGE AND COMMISSION OF RS 6,50,000/ - ; PROCESSING FEES O F RS 10,25,000/ - AND LEGAL AND PROFESSIONAL FEES OF RS 15,00,000/ - WHICH FORM PART OF COST OF ACQUISITION OF FUND. ACCORDINGLY, THE LD AO ASKED THE ASSESSEE TO EXPLAIN AS TO WHY THE PROPORTIONATE DISALLOWANCE OF INTEREST U/S 36(1)(III) OF THE ACT SHOUL D NOT BE MADE AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. ITA NO. 6270/MUM/2017 M/S. MEGA CUSTODIAL SERVICES LTD., 4 3.4. THE LD AR REPLIED THAT THE AVERAGE RATE OF INTEREST ON SECURED LOANS WORKS OUT TO 12.79% AND THAT OF INTEREST PAID ON UNSECURED LOANS WORKS OUT TO 14.71%. THUS THE ASSESSEE COMPANY HAD PA ID MORE INTEREST ON UNSECURED LOANS BY 1.92% IN COMPARISON WITH PAYMENT OF INTEREST ON SECURED LOANS. THE ASSESSEE SUBMITTED THAT IT HAD BORROWED SECURED LOANS AS UNDER: - SR. NO. NAME OF THE PARTY TOTAL AMOUNT TAKE DURING THE YEAR RATE OF INTEREST 1. SIC OM LIMITED 80,00,00,000 13.26% 2. BARCLAYS INVESTMENT AND LOAN (INDIA) LTD., 15,00,00,000 11.75% 3. BRIGHT BROTHERS LIMITED 3,00,00,000 17.50% 4. INDIA INFOLINE INVESTMENT SERVICES LIMITED 15,00,00,000 12.25% TOTAL AMOUNT 113,00,00,000 3.5. AGAINST THE ABOVE SECURED LOANS, THE ASSESSEE COMPANY HAS GIVEN LOANS TO PARTIES, AS UNDER: - SR. NO. NAME OF THE PARTY TOTAL AMOUNT TAKE DURING THE YEAR RATE OF INTEREST 1. MRS. ARCHANA MITTAL 89,36,00,000 16% 2. MEGA MANAGEMENT SERVICES PVT. LTD., 161, 34,25,577 14% 3. V.K. INDUSTRIES LTD., 51,11,000 12% TOTAL AMOUNT 251,26,55,736 3.6. WITH REGARD TO OTHER EXPENSES SUCH AS BROKERAGE AND COMMISSION AND PROFESSIONAL FEES (LOAN PROCESSING FEES) , THE ASSESSEE SUBMITTED THAT IT HAD TO PAY BROKERAGE AND COMMISSION AT A CERTAIN PERCENTAGE OF LOAN AMOUNT AND THAY ARE SANCTIONING TO THE ASSESSEE AND ARE CONDITIONAL PAYMENTS, THEREFORE THE COMPANY HAD TO INCUR FOR GETTING THE SAID LOANS. FURTHER THE COMPANY HAD TO ITA NO. 6270/MUM/2017 M/S. MEGA CUSTODIAL SERVICES LTD., 5 APPROACH THE THIRD PARTY FOR ARRANGING THE FUNDS AND THE THIRD PARTY CHARGES TO COMPANY ON ACCOUNT OF LOAN PROCESSING FEES / PROFESSIONAL CHARGES. 3.7. THE LD AO ON PERUSAL OF THE MEMORANDUM OF ASSOCIATION OF THE COMPANY OBSERVED THAT THE MAIN OBJECTS AND INCIDENTAL OBJECTS OF THE ASSESSEE C OMPANY ARE AS UNDER: - (A) THE MAIN OBJECTS OF THE COMPABY TO BE PURSUED BY THE COMPANY ON ITS INCORPORATION: 1. TO RECEIVE, HOLD IN TRUST AS TRUSTEE, AGENT OR NOMINEE OF ANY PERSON OR PERSONS, COMPANY, CORPORATION, GOVERNMENT, STATE OR PROVINCE OR OF ANY MUNICIPAL OR OTHER AUTHORITY OR PUBLIC BODY AND SELL, TRANSFER, EXCHANGE, ASSIGN, LEND, BAIL, PLEDGE OR DEAL WITH, MANAGE AND TURN TO ACCOUNT ANY REAL AND PERSONAL PROPERTY OF ALL KINDS AND IN PARTICULAR SHARES,, STOCKS, DEBENTURES, SECURITIES, POLICIES, BOOK DEBTS, CLAIMS AND CHOSES IN ACTION, BONDS, PROMISSORY NOTES, PARTICIPATION, CERTIFICATES, LANDS, BUILDING, HEREDITAMENTS, BUSINESS CONCERNS. 2. TO ACT AS ADVISORS AND MANAGER........................ (B) THE OBJECTS INCIDENTAL OR ANCILLARY TO THE ATTAINMENT OF THE MAIN OBJECTS: 3. TO BORROW OR RAISE MONEYS OR LOANS FOR THE PURPOSES OF THE COMPANY BY PROMISSORY NOTES, BILLS OF EXCHANGES, HUNDIES AND OTHER NEGOTIABLE OR TRANSFERABLE INSTRUMENTS OR BY MORTGAGE, CHARGES, HY POTHECATION OR PLEDGE, OR BY ISSUE OF DEBENTURES OR DEBENTURE - STOCK CONVERTIBLE INTO SHARES OF THIS COMPANY, CHARGED UPON ALL OR ANY OF THE COMPANY'S PROPERTY AND ASSETS, BOTH PRESENT AND FUTURE, MOVEABLE AND IMMOVABLE., INCLUDING ITS UNCALLED CAPITAL, UPO N SUCH TERMS AS THE DIRECTORS MAY DEEM EXPEDIENT, OR TO LAKE MONEY ON DEPOSIT OR OTHERWISE (MERELY) FOR THE PURPOSE OF FINANCING THE BUSINESS OF THE COMPANY SUBJECT 10 RESTRICTIONS AND RULES IN FORCE AT THAT TIME AND TO LEND MONEY TO CUSTOMERS AND OTHERS H AVING DEALINGS WITH THE COMPANY AND TO EXECUTE ALT DEEDS, WRITINGS AND ASSURANCES FOR ANY OF THE AFORESAID PURPOSES. FROM THE ABOVE, THE LD AO OBSERVED THAT THE ASSESSEE IS INVOLVED IN THE FINANCIAL ACTIVITY OF PROVIDING FINANCE TO VARIOUS PARTIES. HE OBSERVED THAT THE ASSESSEE HAD ONLY RS 41,68,75,932/ - OF FUNDS OF ITS OWN AND ALMOST THE ENTIRE FUNDS WERE BORROWED BY IT ON INTEREST EITHER FROM FINANCIAL INSTITUTIONS OR FROM OTHER PARTIES AND OUT OF THAT, SUBSTANTIAL AMOUNTS TO THE EXTENT OF RS 89,36,00 ,000/ - AND RS 161,34,25,577/ - WERE GIVEN TO SMT ARCHANA MITTAL , M/S MEGA MANAGEMENT SERVICES PVT LTD RESPECTIVELY. HE OBSERVED THAT THE ASSESSEE ITA NO. 6270/MUM/2017 M/S. MEGA CUSTODIAL SERVICES LTD., 6 IS NOT REGISTERED AS A NON - BANKING FINANCIAL COMPANY. HENCE THE LOANS ADVANCED BY THE ASSESSEE WERE AT ALL G IVEN AS A MEASURE OF COMMERCIAL EXPEDIENCY IS TO BE TESTED. THE LD AO OBSERVED THAT THE ASSESSEE HAD ADVANCED LOANS TO ITS RELATED PARTIES EITHER AT THE SAME RATE OF INTEREST ON WHICH BORROWINGS WERE MADE OR AT THE RATE LOWER THAN THE BORROWINGS RATE. TH E LD AO ARRIVED AT THE DIFFERENTIAL RATE OF INTEREST AT 1.41% AND APPLIED THE SAME ON THE TOTAL BORROWINGS AND ARRIVED AT THE DISALLOWANCE OF INTEREST U/S 36(1)(III) OF THE ACT ON A PROPORTIONATE BASIS IN THE FOLLOWING MANNER: - SR. NO. NAME OF THE LENDER D ATE AMOUNT (RS.) NO. OF DAYS ON WHICH INTEREST CALCULATED @1.41% AMOUNT (RS.) 1. SICOM LIMITED 08 . 04.2010 1 0 .00 CR. 358 13,82,959 2. SICOM LIMITED 31.03 . 2010 25.00 CR. 213 20,57,055 3. SICORN LIMITED 25.11. 2010 10.00 CR. 127 4,90,603 4 . SICOM LIMITED 08.11.2010 35.00 CR. 144 19,46,959 5. BARCLAYS INVESTMENT & LOAN (INDIA) LTD., 22.07.2010 15.00 CR. 253 14,66,014 6. IIFL 23.06.2010 15.00 CR. 282 16,34,055 7. BRIGHT BROTHERS LTD., 25.03.2011 03.00 CR. 07 8,112 TOTAL 89,85,757/ - 4. THE ASSESSEE STATED BEFORE THE LD CITA THAT IT HAD RECEIVED MORE INTEREST AT A HIGHER RATE THAN THE RATE OF INTEREST ON ITS BORROWINGS WHICH IS EVIDEN T FROM THE FOLLOWING TABLE: - PARTICULARS RATE OF INTEREST AS PER APPELLANT AS PER AO AVERAGE INTEREST RECEIVED 14.71% 12.40% AVERAGE INTEREST PAID 12.79% 13.81% ITA NO. 6270/MUM/2017 M/S. MEGA CUSTODIAL SERVICES LTD., 7 ACCORDINGLY IT PLEADED THAT THERE IS NO NEED TO DISALLOW ANY INTEREST ON PROPORTIONATE BASIS U/S 36(1)(III) OF THE ACT IN THE SUM OF RS 89,85,757/ - . 5. THE LD CITA ARRIVED AT THE REVISED CALCULATION OF AVERAGE RATE OF INTEREST PAID ON BORROWED MONIES FROM VARIOUS FINANCIAL INSTITUTIONS AS UNDER: - SR.NO. NAME OF THE PARTY AMOUNT OF LOAN TA KEN RATE OF INTEREST 1 SICOM LTD. 10,00,00,000 14.75% SICOM LTD. 25,00,00,000 1 11.80% SICOM LTD. 10,00,00,000 13.50% SICOM LTD. 35,00,00,000 13,00% TOTAL AMOUNT TAKEN FROM 80,00,00,000 13.50% 2 BARCLAYS INVESTMENT AND LOAN [INDIA) LTD. 15,00,00,000 11.75% 3 BRIGHT BROTHER LIMITED 3,00,00,000 17.50% 4 INDIA INFOLINE INVESTMENT SERVICES LIMITED 15,00,00,000 12.25% 5.1. THE LD CITA OBSERVED THAT ASSESSEE HAD ALSO ADVANCED MONIES TO THE FOLLOWING PARTIES AND THE REVISED RATE OF INTEREST CHARGED AFTER EXCLUDING INTEREST CHARGED TO MRS ARCHANA MITTAL ARE AS UNDER: - SR.NO. NAME OF THE PARTY AMOUNT OF LOAN TAKEN RATE OF INTEREST M/S. EVEREST ANGGAN PVT. LTD., 54,05,000 12% 1 MEGA MANAG EMENT SERVICES PVT. LTD., 161,34,25,577 14.00% 2. V.K. INDUSTRIES LTD., 51,11,000 12.00% 3. VARUN RETREAS LTD., 1,89,097 12.00% 4. SHREE MAHAVEER ASSOCIATES & DEVELOPMENT & HOUSING 1,00,00,000 (OP.BAL) 12.00% AVERAGE RATE OF INTEREST RECEIVED 12.4 0% ITA NO. 6270/MUM/2017 M/S. MEGA CUSTODIAL SERVICES LTD., 8 5.2. THE LD CITA CONCLUDED THAT SINCE ASSESSEE IS IN THE BUSINESS OF FINANCING ACTIVITIES, IT HAD BORROWED MONIES AT AN AVERAGE RATE OF INTEREST AT 13.5% AND LENT TO VARIOUS PERSONS AT AN AVERAGE RATE OF INTEREST AT 12.40%. BASED ON THIS, HE CONCLUDED THAT NO PRUDENT BUSINESSMAN WOULD BORROW AT A HIGHER RATE AND LEND AT A LOWER RATE OF INTEREST. ACCORDINGLY, THE LD CITA RESTRICTED THE DISALLOWANCE OF INTEREST U/S 36(1)(III) OF THE ACT BY APPLYING THE DIFFERENTIAL RATE OF INTEREST AT 1.1% AND ARRIVED AT THE DISALLOWANCE OF RS 70,16,489/ - AS UNDER: - SR. NAME OF THE DATE AMOUNT NO. O F DAYS AMOUNT 1 SICOM LIMITED 08.04.2010 10.00 CR 385 10,78,904 2 SICOM LIMITED 31.08.2010 25.00 CR 213 16,04, 794 3 SICOM LIMITED 25.11.2010 10.00 CR 127 38,27,39 4 SICOM LIMITED 08.11.2010 35.00 CR 144 15,18,904 5 BARCLAYS INVESTMENT & LOAN (INDIA) LTD., 22.07.2010 15.00 CR 253 11,43,698 6. IIFL 23.06.2010 15.00 CR. 282 12,74,794 7. BRIGHT BROTHERS LIMITED 25.0 3.2011 03.00 CR. 07 6328 6. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 7. WE HAVE HEARD THE LD DR. AT THE OUTSET, IT IS NOT IN DISPUTE THAT THE ASSESSEE HAD MIXED FUNDS IN ITS KITTY I.E OWN FUNDS AS WELL AS BORROWED FUNDS. IT IS NOT IN DISPUTE TH AT THE ASSESSEE IS ENGAGED IN FINANCING ACTIVITIES. IT IS NOT IN DISPUTE THAT THE ASSESSEE HAD INDEED LENT TO VARIOUS PERSONS INCLUDING SISTER CONCERNS WHEREIN INTEREST WAS DULY CHARGED. ONCE THE LENDING IS MEANT IN THE ORDINARY COURSE OF FINANCING ACTIV ITIES OF THE ASSESSEE COMPANY, THEN CHARGING / NON - CHARGING OF INTEREST OR CHARGING OF INTEREST AT A LESSER RATE WOULD NOT FALL IN THE DOMAIN OF THE REVENUE. IT SI FOR THE BUSINESSMAN TO DECIDE THE SAME AND THE REVENUE CANNOT STEP INTO THE SHOES OF THE BU SINESSMAN IN THIS REGARD. THE TEST OF COMMERCIAL EXPEDIENCY IS TO BE VIEWED FROM THE POINT OF VIEW OF BUSINESSMAN AND NOT FROM THE POINT OF VIEW OF THE REVENUE. RELIANCE IN THIS REGARD IS PLACED ON THE DECISION ITA NO. 6270/MUM/2017 M/S. MEGA CUSTODIAL SERVICES LTD., 9 OF HONBLE SUPREME COURT IN THE CASE OF CI T VS DHANRAJGIRI RAJA NARASINGIRJI REPORTED IN 91 ITR 544 (SC). ONCE IT IS PROVED AND ACCEPTED THAT THE LENDING IS PART OF BUSINESS ACTIVITIES OF THE ASSESSEE COMPANY AND ONCE THERE IS NO FINDING RECORDED BY THE LOWER AUTHORITIES THAT THE BORROWED FUNDS WERE DIVERTED FOR NON - BUSINESS PURPOSES, THERE CANNOT BE ANY DISALLOWANCE OF INTEREST U/S 36(1)(III) OF THE ACT ON A PROPORTIONATE BASIS. ACCORDINGLY, THE GROUND NO. 1 RAISED BY THE ASSESSEE IS ALLOWED. 8. THE LAST ISSUE TO BE DECIDED IN THIS APPEAL IS WITH REGARD TO CLAIM OF SET OFF OF BUSINESS LOSS OF RS 16,29,034/ - AND UNABSORBED DEPRECIATION OF RS 14,75,566/ - AGAINST THE TOTAL INCOME OF THE ASSESSEE. THIS WAS DISALLOWED BY THE LD AO ON THE GROUND THAT THE DETAILS FURNISHED BY THE ASSESSEE IN THE RET URN OF INCOME UNDER THE RELEVANT COLUMN DIFFERED WITH THE DETAILS SUBMITTED DURING THE COURSE OF ASSESSMENT PROCEEDINGS AND THE ASSESSEE FAILED TO RECONCILE THE SAME. THE LD CITA HOWEVER FOUND CERTAIN DISCREPANCIES IN THE CLAIM MADE BY THE ASSESSEE AND A CCORDINGLY DIRECTED THE LD AO TO VERIFY THE AMOUNT OF LOSSES BROUGHT FORWARD / CARRIED FORWARD AND COMPUTE THE CORRECT AMOUNT OF SET OFF AVAILABLE AND GRANT THE SAME TO THE ASSESSEE AS PER LAW. AGGRIEVED BY THIS DIRECTION OF THE LD CITA, THE ASSESSEE IS IN APPEAL BEFORE US. 8.1. WE HAVE HEARD THE LD DR. WE FIND THAT THERE IS NOTHING WRONG IN THE DIRECTION OF THE LD CITA IN ASKING THE LD AO TO VERIFY THE CLAIM OF BROUGHT FORWARD BUSINESS AND DEPRECIATION LOSSES FROM EARLIER YEARS. THE ASSESSEE CANNOT BE A GGRIEVED BY THIS DIRECTION. HENCE THE ORDER OF THE LD CITA IN OUR CONSIDERED OPINION, DOES NOT CALL FOR ANY INTERFERENCE. ACCORDINGLY, THE GROUND NO. 2 RAISED BY THE ASSESSEE IS DISMISSED. 9. THE GROUND NO. 3 RAISED BY THE ASSESSEE IS GENERAL IN NATURE AND DOES NOT REQUIRE ANY SPECIFIC ADJUDICATION. ITA NO. 6270/MUM/2017 M/S. MEGA CUSTODIAL SERVICES LTD., 10 10. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 24 / 04 /201 9 SD/ - ( C.N. PRASAD ) SD/ - (M.BALAGANESH) JU DICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED 24 / 04 /201 9 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//