GROWMORE LEASING & INV. LTD., MUMBAI V. A.C.I.T. C.C. 31, MUMBAI

ITA 7300/MUM/2012

• Counselvise Citation: 730019914 RSA 2012
• Duration Of Justice: 1 year(s) 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 12-05-2014
• Assessment Year: 2001-2002
• Appeal Filed On: 07-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P DANIAL
• Assessee Lawyers: DHARMESH SHAH
• Keywords: Opportunity of being heard
• Section: 234B

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNALG BENCH, MUMB AI BEFORE SHRI D.KARUNAKARA RAO, AM AND SHRI VIVEK VAR MA, JM . , ! !! ! ' # , $ % % % % & && & ITA NO. 7299/MUM/2012 ASSESSMENT YEAR-2001-02 M/S GROWMORE EXPORTS LTD. 32, MADHULI, 3 RD FLOOR, A.B. ROAD,WORLI, MUMBAI-400018 ' ' ' ' / VS. ACIT, CC-31, MUMBAI R. NO.409, AAYAKAR BHAVAN, 101, M.K.ROAD, CHURCHGATE, MUMBAI-400020 ( ./ PAN :AAACG4939P ( () /ASSESSEE ) .. ( *+() / RESPONDENT ) ITA NO. 7300/MUM/2012 ASSESSMENT YEAR-2001-02 M/S GROWMORE LEASING & INV. LTD. 32, MADHULI, 3 RD FLOOR, A.B. ROAD,WORLI, MUMBAI-400018 ' ' ' ' / VS. ACIT, CC-31, MUMBAI R. NO.409, AAYAKAR BHAVAN, 101, M.K.ROAD, CHURCHGATE, MUMBAI-400020 ( ./ PAN :AAACG4937D ( () /ASSESSEE ) .. ( *+() / RESPONDENT ) () , - / ASSESSEE BY : SHRI DHARMESH SHAH , - / REVENUE BY : DR. P. DANIAL ' , . / DATE OF HEARING : 15/05/2014 /01 , . / DATE OF PRONOUNCEMENT : 28/05/2014 2 2 2 2 / ORDER PER D. KARUNAKARA RAO, AM: THESE APPEALS FILED BY THE ASSESSEE ON 07/12/12 IS AGAINST THE ORDER OF THE CIT (A)-37, MUMBAI DATED 27/09/201 2 FOR THE ASSESSMENT YEAR 2001-02 AND SINCE, COMMON ISSUES AR E THEREIN, THE SAME HAVE BEEN HEARD TOGETHER AND ARE BEING DIS POSED BY THIS SINGLE CONSOLIDATED ORDER FOR THE SAKE OF CONVENIEN CE. 2. BEFORE US, AT THE OUTSET BOTH THE COUNSELS OF TH E PARTIES MENTIONED THAT THE ISSUE RAISED IN BOTH THE APPEALS ARE IDENTICAL 2 ITA NO.7299 & 7300/MUM/2012. M/S GROWMORE EXPORTS LTD. & M/S GROWMORE LEASING & INVT. LTD. AND THEY HAVE TO BE ADJUDICATED IN THE CONSOLIDATED MANNER. FURTHER THEY MENTIONED THAT THE CIT(A) IN HIS ADJUD ICATION HAS RELIED ON HIS DECISION IN THE CASE OF HITESH S. MEH TA (PAN NO.ABAPM4491J). FURTHER, THEY BROUGHT OUR ATTENTIO N TO THE COPY OF THE ORDER OF THE TRIBUNAL IN THE CASE OF HITESH S. MEHTA IN ITA NO.7726 & 7727/MUM/2010 AND ITA NO.7498 & 7732/MUM/2010 FOR A.Y. 2005-06 & 2006-07 AND MENTIO NED THAT THE IDENTICAL ISSUE WERE REMANDED TO THE FILE OF TH E AO. BOTH THE PARTIES CONCURRED IN MENTIONING THAT THE SIMILAR DI RECTION GIVEN IN THE ORDER OF THE TRIBUNAL IN CASE OF HITESH S. MEHT A (SUPRA) AND THE ISSUES HAVE TO BE REMANDED FOR THE REASONS OF C ONSISTENCY. IT IS THE PRAYER OF THE LD. COUNSEL FOR THE REVENUE TH AT THE JUDGMENT OF THE HONBLE HIGH COURT IN THE CASE OF M/S CASCAD E HOLDINGS PVT. LTD. IN ITA NOS.3365 OF 2010 AND 3371 OF 2010 DATED 01/04/2014 SHOULD BE TAKEN IN ACCOUNT WHILE ADJUDICATING THE I SSUE IN THE REMAND PROCEEDINGS. FOR THE SAKE OF COMPLETENESS O F THE ORDER, WE REPRODUCED THE RELEVANT PARA 5 AND 6 OF THE ORDE R OF THE TRIBUNAL IN THE CASE OF HITESH S. MEHTA (SUPRA). 5.GROUND NO.4 RELATES TO THE ACTION OF THE LD. CIT (A) IN CONFIRMING THE LIABILITIES AMOUNTING TO RS.11,24,99,052/- AND RS.1 2,61,36,245/- RESPECTIVELY FOR THE A.YS. 2005-06 AND 2006-07 TOWA RDS INTEREST EXPENDITURE CLAIMED BY THE ASSESSEE. IT IS PERTINEN T TO NOTE THAT THE FINDINGS GIVEN IN PARA 3.3 ABOVE IN RESPECT OF REJ ECTION/RELIABILITY OF THE BOOKS OF ACCOUNTS AND THE PROPOSED ADJUDICATION OF LD. CIT(A) IN VIEW OF THE SAID DIRECTION MAY HAVE DIRECT IMPACT ON THE ISSUE OF THE IMPUGNED LIABILITY, WE SET ASIDE THIS ISSUE ALSO TO THE FILES OF THE LD. CIT(A) TO ADJUDICATE AFRESH ALONG WITH THE ADJUDICA TION OF THE RESPECTIVE GROUND PERTAINING TO THE REJECTION/RELIABILITY OF T HE BOOKS OF ACCOUNTS. 6.THE GROUNDS OF APPEAL RAISED BY THE REVENUE IN R ESPECT OF THE YEARS UNDER CONSIDERATION RELATE TO THE SOLITARY LEGAL IS SUE OF CHARGEABILITY OF INTEREST U/S 234A, 234B AND 234C AND THE APPLICABIL ITY OF THE SAID PROVISIONS TO THE NOTIFIED PERSONS. IN VIEW OF THE DIRECTION GIVEN IN THE ASSESSEES APPEAL ABOVE, THE LIABILITY OF THE ASSES SEE AS SUCH UNDER INTEREST U/S 234A, 234B, 234C SQUARELY DEPENDS ON T HE PROPOSED ADJUDICATION OF THE LD. CIT(A) AND HENCE WE ARE OF THE VIEW THAT THIS ISSUE IS PREMATURE IN NATURE. ACCORDINGLY, THE GRO UNDS ARE SET ASIDE. 3 ITA NO.7299 & 7300/MUM/2012. M/S GROWMORE EXPORTS LTD. & M/S GROWMORE LEASING & INVT. LTD. 3. WITH THESE IDENTICAL DIRECTIONS OF THE GROUNDS R AISED IN THE APPEALS OF THE ASSESSEE ARE REMANDED. THE AO IS DI RECTED TO GRANT AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE BEFOR E PASSING THE SPEAKING ORDER IN ACCORDANCE WITH THE PROVISIONS OF THE ACT. 4. IN THE RESULT, BOTH THE APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH MAY, 2014. 2 , /01 3 4'5 28 TH MAY, 2014 0 , 9 & SD/- SD/- VIVEK VARMA D.KARUNAKARA RAO (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) MUMBAI , 4' 4' 4' 4' DATED: 28/05 /2014 F{X~{T? P.S. 2 , *$.:' ;'1. / COPY OF THE ORDER FORWARDED TO : (1) $' #<. / THE ASSESSEE; (2) / THE REVENUE; (3) =() / THE CIT(A); (4) = / THE CIT, MUMBAI CITY CONCERNED; (5) '@9 *$.$' , , / THE DR, ITAT, MUMBAI; (6) 9# A / GUARD FILE. +'. *$. / TRUE COPY 2' / BY ORDER B / C / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI,