ASHOK LALJIPRASAD GANDHI, MUMBAI V. ACIT, CIRCLE-2(1)(2), MUMBAI

ITA 947/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0223 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 19-02-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: BRAJENDRA KUMAR
• Assessee Lawyers: VIPUL J SHAH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A , MUMBAI BEFORE S HRI RAJESH KUMAR (AM ) AND SHRI AMARJIT SINGH (JM) ITA NO. 947/MUM/2019 ASSESSMENT Y EAR: 2014 - 15 ASHOK LALJIPRASAD GANDHI, 203, MIDTOWN CHS LTD., B.G. KHER MARG, WORLI, MUMBAI - 4000 18 PAN: AEPPG7114L VS. THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE 2(1)(2), AAYKAR BHAVAN, M.K. ROAD, CHURCHGATE, MUMBAI - 400020 (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VIPUL J. SHAH (A R) REVENUE BY : SHRI BRAJENDRA KUMAR (D R) DATE OF HEARING: 21 /12 /2020 DATE OF PRONOUNCEMENT: 21 / 12 /2020 O R D E R PER AMARJIT SINGH , JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER DATED 03.12.2018 PASSED BY THE COMMISS IONER OF INCOME TAX (APPEALS) - 4 (FOR SHORT THE CIT(A), MUMBAI, FOR THE ASSESSMENT YEAR 2014 - 15 , WHEREBY THE LD. CIT(A) HAS DISMISSED T HE APPEAL FILED BY THE ASSESSEE AGAINST THE ASSESSMENT ORDER PASSED U/S 143 (3) OF THE INCOME TAX ACT, 1961 (FOR SHORT TH E ACT). 2 . THE ASSESSEE HAS CHALLENGED THE IMPUGNED ORDER PASSED BY THE LD. CIT (A) ON THE FOLLOWING EFFECTIVE GROUNDS: - 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) (HEREINAFTER REFERRED TO AS CIT (A) ERRED IN UPHOLDING THE DISALLOWANCE OF INTEREST OF RS. 26,15,429/ - CLAIMED AS DEDUCTIONS U/S 57 (III) WITHOUT ITA NO. 947 / MUM/20 ASSESSMENT YEAR: 20 14 - 1 5 APPRECIATING A FACT THAT PROVISIONS OF SEC. 57(III) SPECIFIES THAT EXPENDITURE SHOULD BE LAID WHOLLY AD EXCLUSIVELY FOR THE PUR POSE OF MAKING OR EARNING SUCH INCOME AND DOES NOT MEAN EXPENSES INCURRED FOR EARNING INCOME FROM OTHER SOURCES, AS HELD BY THE LEARNED CIT (A). 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT (A) ERRED I N NOT APPRECIATING A FACT THAT THE INTEREST ON BORROWED AMOUNT AGAINST THE FIXED DEPOSIT WAS TO PROTECT THE INTEREST INCOME FROM THE FIXED DEPOSITS AND THUS WAS INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF EARNING INCOME. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW TH E CIT (A) ERRED IN NOT DISTINGUISHING THE DECISIONS OF APEX COURT AND HIGH COURT RELIED UPON BY THE APPELLANT WHICH HAVE IDENTICAL FACTS. 3. WHEN THIS APPEAL WAS CALLED OUT FOR HEARING, THE LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT HE HAS FILED THE NEC ESSARY DECLARATION UNDER DIRECT TAX VIVAD SE VISHWAS ACT, 2020 (ACT 3 OF 2020) AND IS AWAITING FOR FINAL RESOLUTION OF THE MATTER UNDER THE SAID SCHEME. HE SUBMITTED THAT UPON COMPLETION OF THE NECESSARY FORMALITIES, HE WILL WITHDRAW THE APPEAL. IN RESPONS E TO THE SUGGESTION FROM THE BENCH, HE FAIRLY ACCEPTED THAT HE HAS NO OBJECTION TO THE APPEAL BEING DISMISSED AS WITHDRAWN AS LONG AS HIS RIGHT FOR REVIVAL OF THE APPEAL ARE PROTECTED, IN THE EVENT OF, FOR SOME UNFORTUNATE REASON, THE MATTER BEING NOT SETT LED UNDER THE VIVAD SE VISHWAS SCHEME. 4. THE LD. DR ALSO DID NOT OBJECT TO DISGRACE SO SUGGESTED. 5. IN VIEW OF THE ABOVE, WE DISMISS THE APPEAL AS WITHDRAWN, SUBJECT TO BE RIDER THAT IN THE UNLIKELY EVENT OF MATTER NOT BEING RESOLVED UNDER THE ITA NO. 947 / MUM/20 ASSESSMENT YEAR: 20 14 - 1 5 VIVAD SE V ISHWAS SCHEME , THE ASSESSEE SHALL HAVE LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF HIS APPEAL. 6. IN THE RESULT, THE APPEAL IS DISMISSED AS WITHDRAWN SUBJECT TO THE OBSERVATION ABOVE. ORDER PRONOU NCED IN THE OPEN COURT ON 21 /12/2020 SD/ - SD / - / - ( RAJESH KUMAR ) (AMARJIT SINGH) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; DATED : 21 / 12/2020 VIJAY PAL SINGH (SR.PS) / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, //TRUE COPY// / /(DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI