VASAI ROLLER FLOUR MILLS P.LTD, MUMBAI V. DCIT 13(3)(2), MUMBAI

ITA 672/MUM/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3162 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2013-2014
• Appeal Filed On: 05-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJIV GUBGOTRA
• Keywords: Opportunity of being heard
• Section: 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE S/ SHRI B.R. BASKARAN (AM) & SANDEEP GOSAIN (JM) I.T.A. NO. 672 /MUM/20 1 8 (ASSESSMENT YEAR 20 13 - 14 ) M/S. VASAI ROLLER FLOUR MILLS P. LTD. PLOT NO. 9, GANESH PLOT OWNER ASSOCIATION RAMCHANDRA LANE KANCHPADE, MALAD WEST MUMBAI - 400 064. PAN : AAACV1783G VS. DCIT CIRCLE 13(3)(2) ROOM NO. 229 AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400020. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY NONE DEPARTMENT BY SHRI RAJIV GUBGOT R A DATE OF HEARING 7 . 2 . 201 9 DATE OF PRONOUNCEMENT 7 . 2 . 201 9 O R D E R PER B.R. BASKARAN (AM) : - THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 29.11.2017 PASSED BY LEARNED CIT(A) - 21, MUMBAI AND IT RELATES TO A.Y. 2013 - 14. SOLITARY ISSUE URGED BY T HE ASSESSEE IN THIS APPEAL RELATES TO DISALLOWANCE OF RS.1,65,737/ - MADE BY THE ASSESSING OFFICER U/S. 40(A)(IA) OF THE ACT, WHICH HAS SINCE BEEN CONFIRMED BY LEARNED CIT(A). 2. NONE APPEARED ON BEHALF OF THE ASSESSEE EVEN THOU GH NOTICE OF HEARING WAS SEN T TO THE ASSESSEE BY REGISTERED POST AND THE SAME WAS ACKNOWLEDGED BY THE ASSESSEE ALSO. ACCORDINGLY, WE PROCEED TO DISPOSE OF THE APPEAL EX - PARTE, WITHOUT PRESENCE OF THE ASSESSEE. 3. WE HAVE HEARD LEARNED DR AND PERUSED THE RECORD. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS CLAIMED A SUM OF RS. 42.07 LAKHS AS INTEREST EXPENDITURE ON VARIOUS LOANS. ON VERIFICATION OF THE SAME, IT WAS FOUND THAT OUT OF THE ABOVE SAID AMOUNT, 2 ASSESSEE HAS PAID INTERE ST OF RS. 87,851/ - ON CAR LOAN AND INTEREST OF RS. 77,886/ - ON TEMPO LOAN TAKEN FROM TWO FINANC E COMPANIES NAMED M/S. KOTAK MAHINDRA PRIME LTD. AND M/S. RELIANCE CAPITAL LTD. IT WAS NOTICED THAT THE ASSESSEE HAS NOT DEDUCTED TAX AT SOURCE FROM THE INTERES T EXPENDITURE SO PAID. ACCORDINGLY, THE ASSESSING OFFICER DISALLOWED BOTH INTEREST EXPENDITURE REFERRED ABOVE AGGREGATING TO RS.1,65,737/ - BY INVOKING PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. LEARNED CIT(A) CONFIRMED THE ADDITION AND HENCE THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 4. WE HAVE HEARD LEARNED DR AND PERUSED THE RECORD. FROM THE ORDER PASSED BY LEARNED CIT(A), WE NOTICED THAT THE ASSESSING OFFICER HAS MADE AN IDENTICAL DISALLOWANCE IN A.Y. 2012 - 13 AND THE COORDINATE BENCH OF THE TRIBUNAL VIDE ITS ORDER DATED 8.8. 2016 PASSED IN ITA NO. 5437/MUM/2015 HAS RESTORED THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO VERIFY WHETHER RECIPIENT HAD SHOWED THE SAID AMOUNT IN THE RETURN OF INCOME AND ACCORDINGLY DECIDE THE ISSUE. 5. SINCE ISSUE RELATING TO IDENTICAL ADDITION HAS BEEN RESTORED TO THE FILE OF THE ASSESSING OFFICER, WE ARE OF THE VIEW THAT THIS ISSUE MAY ALSO BE RESTORED TO BE FILE OF THE ASSESSING OFFICER FOR EXAMINING IT AFRESH. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY LEARNED CIT(A) ON THIS ISSUE AND RESTORE THE SAME TO THE FILE OF THE ASSESSING OFFICER FOR EXAMINING IT AFRESH IN ACCORDANCE WITH LAW AFTER AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, APPEAL FILED BY THE ASSE SSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER HAS BE E N PRONOUNCED IN THE COURT ON 7 . 2 .201 9 . SD/ - SD/ - (SANDEEP GOSAIN ) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 7 / 2 / 20 1 9 3 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( SENIOR PRIVATE SECRETARY ) PS ITAT, MUMBAI