JAYESH C. RUPAREL, MUMBAI V. ACIT 22(1), NAVI MUMBAI

ITA 7600/MUM/2013

• Counselvise Citation: 760019914 RSA 2013
• Duration Of Justice: 1 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: J
• Assessment Year: 2009-2010
• Appeal Filed On: 26-12-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: SACHIN MAHESHWARI
• Keywords: Additional evidence
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL J BENCH, MUMBAI . , . . , BEFORE SHRI D. MANMOHAN, VICE PRESIDENTA AND SHRI R. C. SHARMA , ACCOUNT ANT MEMBER ./ I.T.A. NO. 7600/MUM/2013 ( / ASSESSMENT YEAR: 2009 - 10 ) JAYESH C. RUPAREL, B - 1, VALLABH VIHAR, M. G. ROAD, RAJAWADI, NEAR SBI, GHATKOPAR (E), MUMBAI - 400 077 / VS. ASST. CIT - 22(1), VASHI INCOME TAX OFFICE, 4 TH FLOOR, TOWER NO. 6, VASHI RAILWAY STATION COMPLEX, VASHI, NAVI MUMBAI ./ ./ PAN/GIR NO. AABPR 0861 R ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI SACHIN MAHESHWARI / RESPONDENT BY : SHRI SANJEEV JAIN / DATE OF HEARING : 14.08.2015 / DATE OF PRONOUNCEMENT : 20 .08.2015 / O R D E R PER R. C. SHARMA , A. M.: THIS IS AN A PPEAL FILED BY THE ASSESSEE AGAINST THE O RDER B Y THE LD. CIT(A) - 33 , MUMBAI DATED 31.10.2013 , IN THE MATTER OF ORDER PASSED U/S.14 4 OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR (A.Y.) 2009 - 10 . 2. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED FOR DISALLOWANCE OF INTEREST PAID TO THE CREDITORS AMOUNT I NG TO ` .5,04,187/ - . 2 ITA NO. 7600/MUM/2013 (A.Y. 2009 - 10) JAYESH C. RUPAREL VS. ASST. CIT 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS A DEALER IN INDUSTRIAL CHEMICALS, RETAILERS AND IMPORTER. THE RETURN OF INCOME WAS FILED AT A LOSS OF ` .1.36 CRORES, WHICH WAS ASSESSED BY THE A.O. AT ` .92.77 LACS U/S. 144. DURING THE APPELLATE PROCEEDINGS THE ASSESSEE FILED ADDITIONAL EVIDENCE INSOFAR AS THE ASSESSMENT WAS FRAMED U/S. 144 AND NO DUE OPPORTUNITY WAS GIVEN TO THE ASSESSEE. A FTER THE RECEIPT OF REMAND REPORT, THE LD. CIT(A) D ELETED MOST OF THE ADDITIONS AND CONFIRMED SOME OF THE ADDITIONS OUT OF WHICH THE ASSESSEE IS IN APPEAL ONLY WITH RESPECT TO DISALLOWANCE OF INTEREST PAID TO CREDITORS AMOUNTING TO ` .5,04,187/ - . THE LD. DR WAS SPECIFICALLY ASKED AS TO WHETHER THE DEPARTMEN T IS IN APPEAL BEFORE THE TRIBUNAL IN RESPECT OF ADDITIONS DELETED BY THE LD. CIT(A). THE LD. DR CONFIRMED THAT NO APPEAL WAS FILED BY THE DEPARTMENT AS THE ADDITIONS WERE DELETED AFTER CALLING THE REMAND REPORT. THUS, WE ARE CONCERNED HERE ONLY WITH THE A CTION OF LD. CIT(A) CONFIRMING DISALLOWANCE OF INTEREST PAID TO CREDITORS AMOUNTING TO ` .5,04,187/ - . FROM THE RECORD, WE FOUND THAT THE ASSESSEE HA S CLAIMED INTEREST ON LATE PAYMENT TO CREDITORS WHICH WAS D ISALLOW ED BY THE LOWER AUTHORITIES AS THE ASSESSEE C OULD NOT FURNISH DETAIL IN RESPECT OF SUCH PAYME NT OF INTEREST TO CREDITORS. IT WAS CONTENDED BY THE LD. AR THAT IN THE IMMEDIATELY SUCCEEDING YEAR THE ASSESSEE HAS OFFERED THE CREDITORS ALONG WITH THE INTEREST AS ITS INCOME AND THE SAME WA S ADDED BY THE A.O. WHILE FRAMING THE SCRUTINY ASSESSMENT PROCEEDINGS U/S. 143(3). OUR ATTENTION WAS ALSO INVITED TO THE SCRUTINY ASSESSMENT ORDER DATED 11.03.2013 FOR THE SUBSEQUENT ASSESSMENT YEAR 2010 - 11, WHEREIN AN AMOUNT OF ` 16,93,165/ - WAS ADDED BY T HE A.O. UNDER THE HEAD BOGUS SUNDRY CREDITORS . AS PER LD. AR THIS AMOUNT OF SUNDRY CREDITORS ALSO INCLUDES THE INTEREST WHICH WAS CLAIMED BY THE ASSESSEE IN THE ASSESSMENT YEAR UNDER CONSIDERATION, I.E., A.Y. 2009 - 10. AS PER THE LD. AR DISALLOWING THE C LAIM OF INTEREST WHICH WAS OFFERED BY THE ASSESSEE IN THE SUBSEQUENT YEAR AS ITS INCOME WILL AMOUNT TO DOUBLE TAXATION OF THE SAME AMOUNT. UNDER THESE CIRCUMSTANCES , AS PER OUR CONSIDERED VIEW IT WILL BE FAIR AND REASONABLE TO RESTORE THE MATTER TO THE FIL E OF THE A.O. WITH A DIRECTION TO VERIFY THE AMOUNT OF INTEREST OFFERED BY THE ASSESSEE AS INCOME IN THE SUBSEQUENT YEAR AND TO DELETE THE DISALLOWANCE TO THAT EXTENT. WE DIRECT ACCORDINGLY. 3 ITA NO. 7600/MUM/2013 (A.Y. 2009 - 10) JAYESH C. RUPAREL VS. ASST. CIT 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED IN PART FOR STATIS TICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON AUGUST 20 , 201 5 SD/ - SD/ - ( D. MANMOHAN ) ( R. C. SHARMA ) / VICE PRESIDENT / ACCOUNTANT MEMBER / MUMBAI ; / DATED : 20 . 0 8 .201 5 . . ./ ROSHANI , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI