KARGIL CORPORATION, MUMBAI V. ITO 20(1)(4), MUMBAI

ITA 6978/MUM/2010

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3106 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-04-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 07-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A RAMACHANDRAN
• Assessee Lawyers: N S AGARWAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH , MUMBAI BEFORE SRI MAHAVIR SINGH, J M AND SRI RAMIT KOCHAR , A M ITA NO . 6978/MUM/2010 (A.Y.:2007 - 08 ) M/S. KARGWAL CORPORATION, 307, SHALIMAR MORYA PARK, NEW LINK ROAD, ANDHERI (W), MUMBAI 400 053 VS. THE I NCOME TAX OFFICER, WARD - 20 (1) (4), PIRAMAL CHAMBERS, MUMBAI PAN: A A ADFK 9973 F APPELLANT .. RESPONDENT APPELLANT BY SHRI N. S. AGARWAL, AR RESPONDENT BY SHRI A. RAMACHANDRAN, DR DATE OF HEARING 14 - 06 - 2016 DATE OF PRONOUNCEMENT 17 - 06 - 2016 O R D E R PER MAHAVIR SINGH , JM : THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF THE LEARNED CIT (A) - 31, MUMBAI PASSED IN APPEAL NO.CIT (A) - 31/IT.253/AC.20(1)/09 - 10 DATED 13 - 08 - 2010. ASSESSMENT WAS FRAMED BY THE ACIT, CIRCLE - 20 (1), MUMBAI FOR ASSESSMENT YEAR 2007 - 08 VIDE HIS ORDER DATED 30 - 11 - 2009 PASSED U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) . 2. THE ONLY ISSUE IN THIS APPEAL OF THE ASSESSEE IS AGAINST THE ORDER OF THE LEARNED CIT (A) CONFIRMING THE ACTION OF THE AO IN DISALLOWING INTEREST ON FIXED DEPOSITS AMOUNTING TO RS.3,95,376/ - , HOLDING THE SAME AS INCOME FROM OTHER SOURCES CLAIMED U/S 80 - IB OF THE ACT. 3 . WE HAVE HEARD THE RIVAL CONTENTIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE AO HAS DISALLOWE D THE CLAIM OF DEDUCTION U/S 80 - IB OF THE ACT IN RESPECT TO INTEREST INCOME EARNED BY THE ASSESSEE ON FIXED DEPOSITS AMOUNTING TO RS.3,95,676/ - , HOLDING THE SAME AS INCOME FROM OTHER SOURCES. ITA NO. 6 978 /MUM/20 1 0 2 4 . AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE BEFORE US FILED COPIES OF TRIBUNAL ORDER IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2003 - 04 AND 2004 - 05 IN ITA NO.2613 AND 2614/MUM/2007 DATED 04 - 02 - 2009 WHEREIN THE ISSUE OF SIMILAR INTEREST WAS SET ASIDE TO THE FILE OF TH E AO BY OBSERVING IN PARA 5 AND 6 OF THE ORDER AS UNDER: - 5. THE SECOND GROUND IS AGAINST NON - GRANTING OF DEDUCTION U/S. 80 - IB ON THE INTEREST RECEIVED ON FIXED DEPOSITS. THE ASSESSING OFFICER DID NOT ALLOW DEDUCTION UNDER THIS SECTION ON THE INTEREST INC OME RECEIVED ON FIXED DEPOSITS, WHICH ACTION WAS ECHOED IN THE FIRST APPEAL. 6. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERUSING THE RELEVANT MATERIAL ON RECORD IT IS OBSERVED THAT SIMILAR DISALLOWANCE WAS MADE IN THE IMMEDIATELY PRECEDING YEAR AND WH EN THE MATTER TRAVELLED TO THE TRIBUNAL IT HELD THAT THE MATTER REQUIRED RECONSIDERATION BY THE ASSESSING OFFICER FOR WANT OF CERTAIN DETAILS. SINCE THE FACTS AND CIRCUMSTANCES OF T HE INSTANT YEAR ARE MUTATIS MUTANDIS SIMILAR TO THOSE OF THE PRECEDING YEA R, WE SET ASIDE THE IMPUGNED ORDER AND RESTORE THE MATTER TO THE FILE OF THE A. O. FOR DECIDING IT AFRESH AS PER THE MANDATE OF THE ORDER PASSED BY THE TRIBUNAL IN THE PRECEDING YEAR. THE LEARNED COUNSEL FOR THE ASSESSEE FINALLY FILED ORDER GIVING APPEAL EFFECT TO THE ITAT ORDER FOR ASSESSMENT YEAR 2003 - 04 AND 2004 - 05 WHEREIN THE AO HAS NOT MADE ANY DISALLOWANCE IN RESPECT TO INTEREST EARNED BY THE ASSESSEE ON FIXED DEPOSITS C LAIMED AS DEDUCTION U/S 80 - IB OF THE ACT. 5. ON QUERY FROM THE BENCH, THE LEAR NED SR. DR FAIRLY AGREED THAT THE ISSUE CAN BE REMITTED BACK TO THE FILE OF THE AO IN TERMS OF THE ABOVE DECISION OF THE TRIBUNAL. 6. AFTER HEARING BOTH THE SIDES WE FIND THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENU E WHEREBY THE AO ALLOWED THE CLAIM OF THE ASSESSEE WHILE GIVING APPEAL EFFECT TO THE ORDER OF THE TRIBUNAL. HENCE, TAKING CONSISTENT VIEW, WE ALLOW THE CLAIM OF THE ASSESSEE. ITA NO. 6 978 /MUM/20 1 0 3 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . O RDER PRONOUNCED IN THE OPEN COURT ON 17 /06 / 201 6 . SD/ - SD/ - ( RAMIT KOCHAR ) ( MAHAVIR SINGH ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI , DATED 17 /6 / 201 6 LAKSHMIKANTA DEKA/SR.PS COPY OF T HE ORDER FORWARDED TO : BY ORDER, ASSISTANT REGI STRAR ITAT, MUMBAI DATE INITIAL DICTATION PAD ATTACHED WITH THE DRAFT ORDER YES 1. DRAFT DICTATED ON 14 - 06 - 16 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 16 - 06 - 16 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DI SCUSSED/APPROVED BY SECOND MEMBER. AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT ( A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//