ASST CIT (OSD) 8(3), MUMBAI V. TIME TECHNOPLAST LTD, MUMBAI

ITA 7008/MUM/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1034 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 14-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V JUSTIN DR SHRI RAKESH JOSHI
• Keywords: Depreciation; Earning of tax free income
• Section: 14A; 32

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI RAJENDRA , AM AND SHRI AMARJIT SINGH, JM / I .T.A. NO. 7045 / MUM/ 201 4 ( / ASSESSMENT YEAR: 2010 - 11 ) M/S. TIME TECHNOPLAST LTD. 102, TODI COMPLEX, 35 SAKI VIHAR ROAD , ANDHERI (E), MUMBAI - 400072 / VS. ACIT, RANGE - 8(3) MUMBAI / I .T.A. NO. 7008 / MUM/ 20 1 4 ( / ASSESSMENT YEAR: 20 10 - 1 1 ) ACIT, RANGE - 8(3) MUMBAI / VS. M/S. TIME TECHNOPLAST LTD. 102, TODI COMPLEX, 35 SAKI VIHAR ROAD, ANDHERI (E ), MUMBAI - 400072 ./ ./ PAN/GIR NO. : AAACT 2783 J ( / APPELLANT ) .. ( / RESPONDENT ) / DATE OF HEARING : 05 .10 .2017 / DATE OF PRONOUNCEMENT : 02 . 01 . 201 8 / O R D E R PER AMARJIT SINGH, J M: THE ASSESSEE AS WELL AS R EVENUE HAVE FILED THE ABOVE MENTIONED APPEAL S AGAINST THE ORDER DATED 24 . 09 .201 4 PASSED BY THE COMMISS IONER OF INCOME TAX (APPEALS) - 18 , MUMBAI [HEREINAFTE R REFERRED TO AS THE CIT(A)] RELEVANT TO THE A.Y. 2010 - 1 1 . REVENUE BY: SHRI V. JUSTIN (DR) ASSESSEE BY : SHRI RAKESH JOSHI ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 2 ITA. NO. 7045/MUM/2014: - 2 . THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE ORDER DATED 24.09.2014 PASSED BY THE COMMISSIONER OF INCOME TA X (APPEALS) - 18, MUMBAI [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO THE A.Y.2010 - 11. 3 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: - 1. ON THE FACT AND CIRCUMSTANCES OF THE CASE AS WELL AS IN LAW, THE LD. CIT(A) HAS ERRED IN CONFIRMING THE AC TION OF ASSESSING OFFICER IN DISALLOWING THE CLAIM OF DEPRECIATION BY RS.9,03,914/ - WITHOUT CONSIDERING THE FACTS & CIRCUMSTANCES OF THE CASE. 2. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER OR DELETE THE SAID GROUND OF APPEAL. 4 . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME ON 08.10.2010 DECLARING TOTAL INCOME TO THE TUNE OF RS.24,57,70,037/ - A FTER CLAIMING DEDUCTION U/S 80 - IB (3) OF THE ACT TO THE TUNE OF RS.37,31,88,591/ - . THE RETURN OF INCOME WAS DULY PROCESSED U/S 143(1) OF THE I.T. AC T 1961 ON 04.05.2011 . THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE U/S 143(2) OF THE I.T. ACT, 1961 WAS ISSUED ON 25.08.2011 WHICH WAS DULY SERVED UPON THE ASSESSEE. NOTICE U/S 142(1 ) OF TH E I.T. ACT, 1961 WAS ISSUED TO THE ASSESSEE COMPANY ON 17.01.2012 & 21.08.2012 WHICH WERE ALSO SERVED UPON THE ASSESSEE. THE ASSESSEE CLAIMED THE DEPRECIATION TO THE TUNE OF RS. 42,52,38,130/ - IN RESPECT OF WITH ITS DAMAN II UNIT AND BADDI I UNIT . AFTER TAKING INTO CONSIDERATION THE DEPRECIATION ACT UALLY ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 3 ALLOWED TO THE ASSESSEE FOR THE A.YS. 2002 - 03, 2003 - 04, 2004 - 05, 2006 - 07 AND THE RESULTANT WDV OF THE ASSET AS ON 01.04.2009 AS PER THE ASSESSMENT ORDERS FOR 2006 - 07, 2007 - 08, 2008 - 09, 2009 - 10 WAS TAKEN INTO CONSIDERATION AND THE DEPRECIATION IN CONN ECTION WITH THE DAMAN II UNIT WAS FOUND EXCESS TO THE TUNE OF RS.3,84,772/ - WHICH WAS DISALLOWED AND THE DEPRECIATION IN RESPECT TO THE BADDI I UNIT WAS FOUND EXCESS OF RS.519,142/ - . THE TOTAL DEPRECIATION IN EXCESS WORK OUT TO THE TUNE OF RS.9,03,914/ - . T HE WORKING HAS BEEN GIVEN IN PARA NO. 4 OF THE ASSESSMENT ORDER WHICH IS HEREBY REPRODUCED BELOW AS UNDER: - WORKING FOR DAMAN II UNIT PARTICULARS WDV AS ON 01.04.09 ADDITIONS MORE THAN 180 DAYS ADDITIONS LESS THAN 180 DAYS DEPRECIATION NET WDV AS ON 31 .03.2010 LAND 57,43,549 295146 3800 - 6042495 FACTORY BUILDING 3777577041 395377 966698 87873 38851243 PLANT AND MACHINERY - DIES & MOULDS 32502187 16556806 11771 4785380 11171772 PLANT & MACHINERY 327900089 4813328 61312251 61599322 332426346 FU RNITURE 1901866 709367 312710 276759 2647184 ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 4 OFFICE EQUIPMENT 541224 857456 117513 218615 1297578 COMPUTER 1106643 387240 2996250 1795205 2694928 VEHICLES 4156054 72849 628872 3600031 TOTAL 411428654 9098892 65793842 69392026 398731577 WORKING OF D EPRECIATION FOR BADDI I UNIT PARTICULARS WDV AS ON 01.04.09 ADDITIONS MORE THAN 180 DAYS ADDITIONS LESS THAN 180 DAYS DEPRECIATION NET WDV AS ON 31.03.2010 LAND 1089469 - - - 1089469 FACTORY BUILDING 5160130 - - - 5160130 PLANT AND MACHINERY - - - D IES & MOULDS 358253 - - 107476 250777 PLANT & MACHINERY 19990093 - - 2998514 16991579 FURNITURE 762422 - - 76242 686180 OFFICE EQUIPMENT 72099 - - 10815 61284 COMPUTER 186970 - - 112181 74789 VEHICLES - - - - - TOTAL 27619435 - - 3305228 24314208 I N VIEW OF THE ABOVE DISCUSSION, DEPRECIATION OF RS.7,26,97,254/ - IS HEREBY ALLOWED AS AGAINST THE ASSESSEES CLAIM OF ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 5 RS.7,36,01,167/ - . PENALTY PROCEEDINGS U/S 271(1)(C) OF THE I.T. ACT, 1961 ARE HEREBY INITIATED FOR FURNISHING INACCURATE PARTICULARS OF IN COME/CONCEALMENT OF INCOME. 5. THE ASSESSEE HAS SHOWN OPENING BALANCE OF INVESTMENT TO THE TUNE OF RS.1,29,56,22,141/ - AND CLOSING BALANCE OF INVESTMENT TO THE TUNE OF RS.1,49,39,20,326/ - . THEREFORE, THE PROVISION OF U/S 14A R.W. RULE 8D OF THE I.T. RULE, 1962 WAS APPLIED AND THE EXPENDITURE TO INCUR THE EXEMPT INCOME WAS ASSESSED TO THE TUNE OF RS.1,93,04,966/ - . THE TOTAL INCOME OF THE ASSESSEE WAS ASSESSED TO THE TUNE OF RS.27,64,60,250/ - . THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A) WHO REJECTED THE CL AIM OF THE ASSESSEE . T HEREFORE , THE ASSESSEE HAS FILED THE PRESENT APPEAL BEFORE US. ISSUE NO.1: - 4 . UNDER THIS ISSUE THE ASSESSEE HAS CHALLENGED THE CONFIRMATION OF THE ACTION OF AO IN DISALLOWING THE CLAIM OF DEPRECIATION TO THE TUNE OF RS.9,03,914/ - . HO WEVER, AT THE TIME OF ARGUMENTS, THE LD. REPRESENTATIVE OF THE ASSESSEE HAS ADMITTED THAT THIS ISSUE HAS DECIDED AGAINST THE ASSESSEE IN VIEW OF THE ORDER PASSED IN THE ASSESSEES OWN CASE FOR THE A.Y.2007 - 08 & 2008 - 09 IN ITA. NO. 8126/M/2010 AND 7576/M/201 1 DATED 02.01.2014 . THE HONBLE ITAT MUMBAI HAS DECIDED THE MATTER OF CONTROVERSY ON THE BASIS OF FINDING OF THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF PLASTBLENDS ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 6 INDIA LIMITED VS. CIT IN APPEAL NO. 1282 OF 2007 . THE RELEVANT FINDING OF PARA NO. 4 IS HEREBY REPRODUCED BELOW AS UNDER: - 4. THE LD. REPRESENTATIVE OF THE ASSESSEE HAS BEEN FAIR ENOUGH TO ADMIT THAT THE ISSUE, SO FAR THE LEGAL POSITION AS ON TODAY IS CONCERNED, IS SQUARELY COVERED BY THE DECISION OF THE HONBLE MUMBAI HIGH CO URT IN THE CASE OF PLASTBLENDS INDIA LIMITED VS. CIT 318 ITR 352(SUPRA) WHEREIN THE HONBLE HIGH COURT HAS HELD AS UNDER: FOR ALL THE AFORESAID REASONS, WE HOLD THAT THE QUANTUM OF DEDUCTION UNDER SECTION 80 - IA IS NOT DEPENDENT UPON THE ASSESSEE CLAIMING OR NOT CLAIMING DEPRECIATION, BECAUSE, UNDER SECTION 80 - IA THE QUANTUM OF DEDUCTION HAS TO BE DETERMINED BY COMPUTING TOTAL INCOME FROM BUSINESS AFTER DEDUCTING ALL DEDUCTIONS ALLOWABLE UNDER SECTIONS 30 TO 43D OF THE ACT. IN THE RESULT, WE ANSWER THE QUES TION REFERRED TO US SET OUT AT PARA 1 ABOVE IN THE AFFIRMATIVE, THAT IS, FOR THE PURPOSES OF DEDUCTION UNDER CHAPTER VI - A, THE GROSS TOTAL INCOME HAS TO BE COMPUTED, INTER ALIA, BY DEDUCTING THE DEDUCTIONS ALLOWABLE UNDER SECTIONS 30 TO 43D OF THE ACT, INC LUDING DEPRECIATION ALLOWABLE UNDER SECTION 32 OF THE ACT, EVEN THOUGH THE ASSESSEE HAS COMPUTED THE TOTAL INCOME UNDER CHAPTER IV BY DISCLAIMING THE CURRENT DEPRECIATION. THIS ISSUE IS ACCORDINGLY DECIDED AGAINST THE ASSESSEE AND THE FINDINGS OF THE CIT( A) ON THIS ISSUE ARE HEREBY UPHELD. 6. IN VIEW OF THE SAID DECISION, WE DECIDE THIS ISSUE IN FAVOUR OF THE REVENUE AGAINST THE ASSESSEE. ISSUE NO.2 & ADDITIONAL GROUND: - 5. UNDER THIS ISSUE THE ASSESSEE HAS CHALLENGED THE CONFIRMATION OF THE DISALLOWANCE MADE U/S 14A R.W. RULE 8D OF THE ACT TO THE TUNE OF RS. 1,93,04,966/ - . THE LD. REPRESENTATIVE OF THE ASSESSEE HAS ARGUED THAT THE ASSESSEE OWN FUNDS ARE MORE THAN INVESTMENT, THEREFORE, THERE SHOULD BE NO DISALLOWANCE ON ACCOUNT OF INTEREST EXPENDITURE IN V IEW ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 7 OF LAW SETTLED IN HDFC BANK LTD. VS. DCIT (2016) 383 ITR 529 (BOM). THE APPLICATION OF FUND IN THE INVESTMENT IS TO THE TUNE OF RS.1,49,39,20,326/ - . THE ASSESSEE FUND IS MORE THAN THE INVESTMENT . T HE CASE OF THE ASSESSEE IS CLEARLY FALLS WITHIN THE P URVIEW OF HDFC BANK LTD. VS. DCIT (2016) 383 ITR 529 (BOM). THEREFORE, IN THE SAID CIRCUMSTANCES, WE SET ASIDE THE FINDING OF THE CIT(A) IN QUESTION AND RESTORED THE ISSUE BEFORE THE AO TO DECIDE THE MATTER AFRESH IN VIEW OF THE DECISION OF THE CASE HDFC B ANK LTD. VS. DCIT (2016) 383 ITR 529 (BOM) . ACCORDINGLY, THIS ISSUE IS DECIDED IN FAVOUR OF T HE ASSESSEE AGAINST THE REVENUE FOR STATISTICAL PURPOSE. ITA. NO. 7008 /MUM/2014: - 6. THE REVENUE HAS FILED THE PRESENT APPEAL AGAINST THE ORDER DATED 24.09.2014 PA SSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 18, MUMBAI [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO THE A.Y.2010 - 11. 7. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS: - 'WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD - CIT(A) ERRED IN DIRECTING TO RE - COMPUTE THE DISALLOWANCE U/S 14A R.W. RULE 8C BY ADOPTING THE FIGURE OF INTEREST AT RS.8,26,59,276/ - IN PLACE OF RS. 13,60,17,24 HOLDING THAT THE TOTAL INTEREST EXPENSES INCLUDE THE INTEREST OF RS.5,33,57,973/ WHICH WAS ALLOCATE D FOR COMPUTING DEDUCTION U/S 80IA / 8 OIC OF THE ACT PLACING RELIANCE ON ITAT'S ORDERS IN ASSESSEE'S OWN CASE FOR AYS 2GG7 - QB AND 2009 - 10?' 'WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN HOLDING THAT THE TOTAL INTEREST EXPENSES ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 8 INCLUDES THE INTEREST OF RS.5,33,57,973/ - IGNORING THAT IN THE ORDER FOR AYS 2007 - 08 & 2009 - 10, THE HON'BLE ITAT HAD CONFIRMED THE FINDING OF CIT(A) WHO HAD ALLOWED RELIEF AFTER CAUSING VERIFICATION OF THE ACTUAL UTILIZATION OF BORROWED FUNDS THROUGH ASSESSING OFFICER VIDE REMAND PROCEEDINGS WHEREAS IN THE AY 2010 - 11, THE CIT(A) HAS NEITHER CAUSED ANY VERIFICATION NOR HAS PROVIDED ANY OPPORTUNITY TO THE ASSESSING OFFICER TO VERIFY THE SAME? 1 ' 'WHETHER ON THE FACTS AND IN THE CIRC UMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF R$, 1,04,81,3307 - MADE ON ACCOUNT OF MISMATCH OF AIR INFORMATION WITHOUT APPRECIATING THAT HE HAD ADMITTED AND RELIT UPON FRESH EVIDENCES WHICH WERE SUBMITTED ONLY DURING TH E COURSE OF APPELLATE PROCEEDINGS, WITHOUT PROVIDING AN OPPORTUNITY TO THE ASSESSIN G OFFICER TO EXAMINE THEM AND TO OFFER COMMENTS THEREON?' 1 'THE APPELLANT PRAYS THAT THE ORDER OF TH E CIT (A) ON THE ABOVE GROUNDS SET ASIDE AND THAT OF THE A*0, BE RESTORED .' 'THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUNDS OR ADD A NEW GROUND WHICH MAY BE NECESSARY.' 8. THE BRIEF FACTS OF THE PRESENT CASE ARE QUITE SIMILAR TO THE FACTS OF THE CASE AS NARRATED ABOVE IN ITA. NO. 7045/M/2014, T HEREFORE, THERE IS NO N EED TO REPEAT THE SAME. HOWEVER, THE FIGURE IS DIFFERENT. ISSUE NO.1 & 2: - 9. ISSUE NO. 1 & 2 ARE INTER - CONNECTED, THEREFORE, ARE BEING TAKEN UP TOGETHER FOR ADJUDICATION. UNDER THESE ISSUES THE REVENUE HAS CHALLENGED THE DELETION OF THE ADDITION OF INTERE ST TO THE TUNE OF RS.5,33,57,973/ - WHICH WAS ALLOCATED FOR CALCULATI NG FOR DEDUCTION U/S 80 - 1 A OF THE ACT . THESE ISSUES HAVE ALREADY BEEN ADJUDICATED BY US WHILE DECIDING THE ADDITIONAL GROUND IN THE APPEAL OF THE ASSESSEE WHEREIN THESE ISSUES HAVE BEEN RE MANDED BEFORE THE AO TO DECIDE THE ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 9 MATTER AFRESH IN THE LIGHT OF THE CASE HDFC BANK LTD. VS. DCIT (2016) 383 ITR 529 (BOM) . HOWEVER, WHILE DECIDING THESE ISSUES THE CIT(A) HAS DIRECTED THE AO TO DECIDE THE MATTER AFRESH EXCLUDING THE INTEREST UPON THE FUND S ALLOCATED U/S 81A OF THE ACT. THE SAID INTEREST WAS ALLOCATED TO OTHER TAXABLE INCOME, THEREFORE, THE SAME CANNOT BE CONSIDERED AGAINST THE PURPOSE OF DISALLOWANCE U/S 14A . T HIS ISSUE HAS BEEN DECIDED BY CIT(A) ON THE BASIS OF DECISION OF PILANI INVESTME NT (35 CCH 141) . I N THE LIGHT OF THIS FACT THAT THE MATTER OF CONTROVERSY HAS ALREADY BEEN REMANDED BEFORE THE AO TO DECIDE THE MATTER OF AFRESH IN THE LIGHT OF LAW SETTLED IN CASE HDFC BANK LTD. VS. DCIT (2016) 383 ITR 529 (BOM) . THEREFORE, ACCORDINGLY, T HESE ISSUES ARE DECIDED IN FAVOUR OF THE ASSESSEE ON SIMILAR LINES. ACCORDINGLY, THESE ISSUES ARE DECIDED IN FAVOUR OF THE ASSESSEE AGAINST THE REVENUE. ISSUE NO.3: - 10. UNDER THIS ISSUE THE REVENUE HAS CHALLENGED THE DELETION OF ADDITION OF RS.1,0481,330/ - MADE ON ACCOUNT OF MISMATCH OF AIR INFORMATION. BEFORE GOING FURTHER, IT IS NECESSARY TO ADVERT THE FINDING OF THE CIT(A) ON RECORD: - IN THIS REGARD THE APPELLANT SUBMIT THAT IT HAD AL READY OFFERED SHE SAID INCOME DURING THE YEAR UNDER CONSIDERATION WE ARE ENCLOSING HEREWITH THE COPY OF THE LEDGER ACCOUNT OF THE PARTY REFLECTING THE INTEREST INCOME OFFERED FOR THE YEAR UNDER CONSIDERATION HENCE IN VI &W OF THIS AMOUNT ALREADY DISCLOSED BY ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 10 THE APPELLANT YOU ARE KINDLY REQUESTED TO PLEASE DELETE THE ADDIT ION MADE BY THE LEARNED ASSESSING OFFICER. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, (HE A.Q. ASKED FOR DETAILS OF INTEREST RECEIVED FROM BANKS ON FOR KEPT AS MARGIN MONEY. THE APPELLANT SUBMITTED DETAILS OF INTEREST RECEIVED FROM BANK OF RS. 72J9,039/ - AND SUBMITTED THAT INTEREST INCOME RECEIVED TO THE APPELLANT HAS BEEN NETTED OFF WITH THE INTEREST PAYMENT THE A O. BASED ON THIS REPLY ASSUMED THAT INTEREST FROM OTHER PARTIES NOT OFFERED BY SHE APPELLANT IN THE RETURN OF INCOME ACCORDINGLY HE HAS ADDED INTEREST RECEIVED OF RS.1,04,81,330/ - FROM OUTSIDE PARTIES THE A O HAS ARRIVED AT THIS CONCLUSION WITHOUT VERIFICATION OF THE DETAILS OF INTEREST PAID/RECEIVED SUBMITTED BY THE APPELLANT BEFORE YOUR HONOUR WE REITERATE THIS FACTS AND SUBMIT THAT THE APPELL ANT HAS OFFERED ENTIRE AMOUNT HAS BEEN RECEIPT OF RS.1,94, 65,300/ - IT THE RETURNED INCOME AND THIS ENTIRE AMOUNT HAS BEEN NETTED OFF WITH THE INTEREST PAID, MADS OF WHICH A/ONE; WITH PARTY LEDGER ALREADY SUBMITTED BEFORE YOUR HONOUR VIDE OUR SUBMISSION GIV EN ON 15.09.2014, SUMMARY OF WHICH IS AS UNDER: - 1 INTEREST ON TERM LOAN 9,32,94,247 2 INTEREST PAID ON CC/OD A/C TO BANKS 15,54,82,549 3 BANK COMMISSION AND CHARGES 1,21,09,238 TOTAL INTEREST PAID 26,08,86,034 LESS: INTEREST RECEIVED ON FDR FROM BANKS 1 INTEREST RECEIVED ON FDR FROM BANKS 72,79,039 2 INTEREST RECEIVED FROM OUTSIDE PARTIES 1,04,81,330 3 INTEREST RECEIVED FROM 17,04,931 1,94,65,300 ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 11 ASSOCIATE CONCERN NET FINANCE COST DEBITED TO P&L A/C. 24,14,20,734 BREAK - UP OF INTEREST R ECEIVED FROM BANKS, OUTSIDE PARTIEIS & ASSOCIATE CONCERN ARE AS UNDER: - A INTEREST RECEIVED ON FDR FROM BANKS 1 AXIS BANK 337309 2 CITY BANK 1175069 3 ING VYSYA BANK LTD. 23646789 4 BANK OF BARODA 2239563 5 STATE BANK OF INDIA 321645 6 STATE BAN K OF INDIA 810845 72,79,039 B INTEREST RECEIVED FROM OUTSIDE PARTIES 1 SAI JYOTI LOGISTICS SERVICES P. LTD. 514501 2 SCHOLLER ARCA TIME MATERIAL HANDLING SOLUTIONS LTD. 931293 3 STANDARD CHARTED INVT AND LOANS INDIA LTD. 8975331 4 OTHERS 60205 1, 04,84,330 C INTEREST RECEIVED FROM ASSOCIATE CONCERN 11 TIME MASSER INDUSTRIES 1704931 17,04,931 ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 12 P. LTD. TOTAL 1,94,65,300 THUS, IT WILL BE CLEAR THAT THE APPELLANT HAS OFFERED ENTIRE INTEREST RECEIVED IN ITS INCOME AND THE ADDITION MADE BY THE AO IS DOUBLE ADDITION. 4.3. I HAVE CONSIDERED THE SUBMISSIONS OF THE APPELLANT, ORDER OF THE A.O. AND FACTS OF (HE CASE CAREFULLY, IT IS NOTICED THAT AS PER THE AIR INFORMATION, THE ASSESSES HAS RECEIVED INTEREST OTHER THAN INTEREST ON SECURI TIES AMOUNTING TO RS, 1,97,60,36 8/~ THE A O HAS ASKED THE ASSESSES TO RECONCILE THIS FIGURE WITH THE RETURN OF INCOME IN RESPONSE TO THIS. THE AR OF THE APPELLANT HAS SUBMITTED THAT (HE AMOUNT OF INTEREST RECEIVED AT RS. 72,79,0 33/ - , THUS, THE A.G. HAS ADDED BAC K THE BALANCE AMOUNT OF RS. 1.04,81,330/ - . ON THE OTHER HAND, THE AR OF THE APPELLANT HAS SUBMITTED THAT THE DETAILS OF INTEREST RECEIVED FROM THE BANK OF RS. 72,79,03S/ - WAS INTEREST INCOME RECEIVED BY THE APPELLANT WHICH WAS NETTED OFF WITH THE INTEREST PAYMENT. THE A.O. HAS ASSUMED THAT INTEREST FROM OTHER PARTIES WAS NOT OFFERED BY THE APPELLANT IN THE RETURN OF INCOME AND ADDED BACK TO THE INTE REST RECEIVED OF RS. 1,04,81,330 / - . THE APPELLANT HAS OFFERED ENTIRE INT EREST RECEIVED OF RS 1,94 - 65,300/ - - IN THE RETURNED INCOME AND THIS ENTIRE AMOUNT HAS BEEN NETTED OFF WITH THE INTEREST PAID. SINCE THE TOTAL INTEREST RECEIVED HAS ALREADY BEEN SHOWN AS INCOME, THEN. THERE IS NO QUESTION OF DISALLOWING ANY AMOUNT AND THE ADDITION MADE BY THE A O. IS TAXING THE SAME AMOUNT TWICE. FROM THE PERUSAL OF THE SUBMISSIONS AND FACTS OF THE CASE, IT IS NOTICED THAT THE AR OF THE APPELLANT HAS SUBMITTED COMPLETE DETAILS OF INTEREST RECEIVED FROM BANKS ON FOR AND INTEREST RECEIVED FROM OUTSIDE PARTIES AND ALSO INTEREST REC EIVED FROM ASSOCIATE CONCERNS ALONG WITH THE COPY OF AUDITED ACCOUNTS AND ANNEXURES. FROM THE PERUSAL OF THE SAME. IT IS NOTICED THAT THE CONTENTION OF THE APPELLANT IS CORRECT THAT THE WHOLE AMOUNT OF RS.1,97,60,368/ - IS DECLARED BY THE APPELLANT AS TAXAB LE INCOME. SINCE IT IS A MISTAKE APPARENT FROM THE RECORD, THEREFORE, THE ADDITION MADE BY THE AO IS DELETED. GROUND OF APPEAL IS ALLOWED. ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 13 11 . ON APPRAISAL OF THE ABOVE MENTIONED FINDING , WE NOTICED THAT THE ASSESSEE HAS SHOWN THE INTEREST AMOUNT TO THE T UNE OF RS.1,97,60,368/ - AS TAXABLE INCOME. HOWEVER, AFTER THE IS SUANCE OF THE NOTICED BY THE AO , T HE ASSESSEE HAS SHOWN THE INTEREST RECEIVED TO THE TUNE OF RS.72,79,038/ - . THEREFORE, THE AO DEDUCTED THE SAME FROM THE AMOUNT OF RS.1,94,65,300/ - TOTAL TO T HE TUNE OF RS.1,04,81,330 AND ADDED TO THE INCOME OF THE ASSESSEE . I N FACT THE AMOUNT TO THE TUNE OF RS. 72,79,038/ - WAS THE INTEREST INCOME RECEIVED BY THE APPELLANT WHICH WAS NETTED OFF ON THE INTEREST PAYMENT. THE INTEREST RECEIVED FROM THE OTHER PARTY T O THE TUNE OF RS.1,04,81,330/ - WAS ADDED TO THE INCOME OF THE ASSESSEE WHEREAS IN FACT THE ASSESSEE HAD ALREADY OFFERED THE INTEREST RECEIVED TO THE TUNE OF RS.1,94,65,300/ - AS TAXABLE INCOME. IT IS PURELY CALCULATION MISTAKE WHICH HAS RIGHTLY BEEN RECORDE D BY THE CIT(A), THEREFORE, IN THE SAID CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE CIT(A) HAS PASSED THE ORDER JUDICIOUSLY AND CORRECTLY WHICH IS NOT REQUIRED TO BE INTERFERE WITH AT THIS APPELLATE STAGE. ACCORDINGLY, THIS ISSUE IS DECIDED IN FAVOUR OF THE ASSESSEE AGAINST THE REVENUE. ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 14 12 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS HEREBY ORDERED TO BE DISMISSED AND ASSESSEE APPEAL IS HEREBY ORDERED TO BE ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 02. 01. 2018 . SD/ - SD/ - ( RAJENDRA ) (AMARJIT SINGH) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBA I DATED : 02. 01 . 2018 VIJAY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDE NT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, //TRUE COPY// / / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI ITA. NOS 7045/M/2014 7008/M/2014 A.Y. 2010 - 11 15