DELAGE FINANCE & INVESTMENT LTD.(NOW AMALGAMATED WITH CABLE CORPORATION OF INDIA LTD.), MUMBAI V. THE DEPUTY COMMISSIONER OF INCOME TAX -2(1), MUMBAI

ITA 7518/MUM/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1829 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 22-01-2013
• Assessment Year: 1999-2000
• Appeal Filed On: 08-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DIPAK KUMAR SINHA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D BENCH BEFORE SHRI R.S.SYAL(AM) AND DR.T.M PAVALAN (JM) ITA NO.7518/MUM/2011 ASSESSMENT YEAR: 1999-2000 DELAGE FINANCE & INVESTMENT LTD. (NOW AMALGAMATED WITH CABLE CORPORATION OF INDIA LTD.), LAXMI BUILDING, 6, SHOORJI VALLABHDAS MARG, BALLARD ESTATE, MUMBAI-01. PA NO.AAACC 2936 J DCIT 2(1), AAYAKAR BHAVAN, MUMBAI. (APPELLANT) VS. (RESPONDENT) APPELLANT BY : SHRI HITESH TRIVEDI RESPONDENT BY: SHRI DIPAK KUMAR SINHA DATE OF HEARING: 22.1.2013 DATE OF PRONOUNCEMENT: 30.1.2013 ORDER PER R.S.SYAL, AM: THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDE R PASSED BY THE CIT(A) ON 19.8.2011 IN RELATION TO THE ASSES SMENT YEAR 1999- 2000. ITA NO.7518/MUM/2011 ASSESSMENT YEAR: 1999-2000 2 2. THE ONLY ISSUE EMANATING IN THIS APPEAL IS AGAIN ST THE CONFIRMATION OF ADDITION OF RS.1,08,44,785/- BEING INTEREST RECEIVED BY THE ASSESSEE FROM PARTNERSHIP FIRM. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT IN THE ORIGINAL ASSESSMENT, THE AO MADE DISALLOWANCE OF INTEREST AT TRIBUTABLE TO BORROWED FUNDS FOR INVESTMENT IN FIRM AMOUNTING TO RS.1,08,44,785/- . THE MATTER TRAVELLED UP TO THE TRIBUNAL, WHICH, V IDE ITS COMMON ORDER PASSED FOR THE ASSESSMENT YEARS 1999-2000 AND 2001-2002 RESTORED THE MATTER TO THE FILE OF AO. THE. THE A O REPEATED THE EARLIER DISALLOWANCE MADE BY HIM. THE LD. CIT(A), FOLLOWING HIS ORDER FOR ASSESSMENT YEAR 2001-02, UPHELD THE DISALLOWAN CE. 4. THE LD COUNSEL FOR THE ASSESSEE, AT THE VERY OUT SET, SUBMITTED THAT THE ORDER PASSED BY THE LD CIT(A) FOR THE ASSE SSMENT YEAR 2001- 02 CAME UP FOR ADJUDICATION BEFORE THE TRIBUNAL. V IDE ORDER DATED 8.8.2012 IN I.T.A. NO.5878/MUM/2011, THE TRIBUNAL H AS DECIDED THE ISSUE IN ASSESSEES FAVOUR BY HOLDING THAT INTEREST WAS NOT CLAIMED AS ITA NO.7518/MUM/2011 ASSESSMENT YEAR: 1999-2000 3 DEDUCTION BY THE FIRM. IT WAS, THEREFORE, PLEADED THAT THE SAME VIEW BE TAKEN AS THE FACTS AND CIRCUMSTANCES OF THE CASE FOR THE INSTANT YEAR WERE MUTATIS-MUTANDIS SIMILAR TO THE YEAR CONSIDERED AND DECIDED BY THE TRIBUNAL. THE LD. DEPARTMENTAL REPR ESENTATIVE WAS FAIR ENOUGH TO CONCEDE THE POSITION AS STATED BY TH E LD A.R. 5. HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE TRIBUNAL HAS CONSIDERED AND DECIDED T HIS ASPECT IN ASSESSEES FAVOUR FOR THE A.Y. 2001-02. AS THE FAC TS AND CIRCUMSTANCES OF THE YEAR UNDER CONSIDERATION VIS- -VIS THE ASSESSMENT YEAR 2001-02 ARE ADMITTEDLY SIMILAR, RES PECTFULLY FOLLOWING THE PRECEDENT, WE ORDER FOR THE DELETION OF ADDITION. 6. IN THE RESULT, APPEAL FILED BY ASSESSEE IS ALLOW ED. PRONOUNCED IN THE OPEN COURT ON 30 TH JANUARY, 2013 (DR.T.M PAVALAN) JUDICIAL MEMBER (R.S.SYAL) ACCOUNTANT MEMBER MUMBAI, DATED 30 TH JANUARY, 2013 PARIDA ITA NO.7518/MUM/2011 ASSESSMENT YEAR: 1999-2000 4 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS),4, MUMBAI 4. COMMISSIONER OF INCOME TAX, II, MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, BENCH D MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI