KARTIK S. GANDHI, MUMBAI V. JCIT 24(2), MUMBAI

ITA 6748/MUM/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0249 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 05-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR YADAV

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH A, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.6748/M/2014 ASSESSMENT YEAR: 2009-10 SHRI KARTIK S. GANDHI, 1301, KUKREJA PALACE-II, E-WING, VALLABHAUG LANE EXTN., GARODIA NAGAR, GHATKOPAR (E), MUMBAI 400 064 PAN: AFPPG 2041H VS. JOINT COMMISSIONER OF INCOME TAX, RANGE-24(2), BANDRA KURLA COMPLEX, C-13, BANDRA (E), MUMBAI 400 051 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI SANJAY C. SHAH, A.R. REVENUE BY : SHRI RAJESH KUMAR YADAV, D.R. DATE OF HEARING : 09.01.2018 DATE OF PRONOUNCEMENT : 14.02.2018 O R D E R PER D.T. GARASIA , JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 19.08.2014 OF THE COMMISSIONER OF I NCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] R ELEVANT TO ASSESSMENT YEAR 2009-10. 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSE E HAS FILED THE RETURN OF INCOME DECLARING INCOME OF RS.74,76,800/- . DURING THE YEAR UNDER CONSIDERATION ASSESSEE HAS EARNED INTERE ST INCOME OF ITA NO.6748/M/2014 SHRI KARTIK S. GANDHI 2 RS.3,19,277/- ON THE LOAN ADVANCED BY HIM TO M/S. G ANDHI AUTOMATION PVT. LTD. WHERE THE ASSESSEE IS A WHOLE TIME DIRECTOR. FOR THE SAID LOAN TO M/S. GANDHI AUTOMATION PVT. LT D. THE ASSESSEE HAS BORROWED LOANS FROM OUTSIDERS AND HE HAS PAID I NTEREST ON THE SAID BORROWED LOANS AMOUNTING TO RS.3,18,794/- WHIC H HE HAS CLAIMED AS A DEDUCTION BY WAY OF INTEREST EXPENSE F ROM INTEREST INCOME EARNED BY HIM FROM THE SAID M/S. GANDHI AUTO MATION PVT. LTD. THERE IS NO DIRECT NEXUS BETWEEN THE LOANS BO RROWED AND LOANS ADVANCED. TO PROVE THIS NEXUS, THE ASSESSEE HAS SU BMITTED THE COPIES OF BANK PASS BOOK/STATEMENTS OF THE EARLIER YEARS W HEN THESE LOANS HAVE BEEN BORROWED AND IMMEDIATELY ADVANCED TO M/S. GANDHI AUTOMATION PVT. LTD. THE ASSESSING OFFICER (HEREIN AFTER REFERRED TO AS THE AO) AND THE LD. CIT(A) HAVE NOT CONSIDERED T HE DOCUMENTARY EVIDENCES AND DISALLOWED THE SAME. 3. DURING THE COURSE OF HEARING, THE LD. A.R. SUBMI TTED THAT ASSESSEE HAS SUBMITTED ALL THE DETAILS BEFORE AO AN D THE LD. CIT(A) BUT WITHOUT CONSIDERING THE SAME THEY HAVE PASSED T HE ORDER. THEREFORE, ALL THE DETAILS MAY BE VERIFIED BY THE A O AND APPEAL MAY BE RESTORED TO AO. 4. LD. D.R. OBJECTED TO IT. 5. HAVING HEARD BOTH THE PARTIES, WE FIND THAT THE LD. CIT(A) HAS TAKEN ALL THESE EVIDENCES ON RECORD BUT HAS NOT CON SIDERED THE DOCUMENTARY EVIDENCE WHICH WAS FILED BEFORE THE AO AND THE LD. CIT(A). THEREFORE, IN THE INTEREST OF JUSTICE AND FAIRPLAY, WE RESTORE ITA NO.6748/M/2014 SHRI KARTIK S. GANDHI 3 THIS MATTER BACK TO THE FILE OF AO AND THE AO IS DI RECTED TO DECIDE THE APPEAL, AS PER LAW. 6. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14.02.2018. SD/- SD/- (RAJESH KUMAR) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 14.02.2018. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.