PURSHOTTAM BUDHWANI, V. ASST CIT CEN CIR 41,

MA 281/MUM/2015

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4343 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-04-2016
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 07-12-2015
• Court: TRIBUNAL
• Assessee Lawyers: GURUMUKH SINGH PURSWANI

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C , BENCH MUMBAI BEFORE SHRI R. C. SHARMA , A M & SHRI PAWAN SINGH , J M MISCELLANEOUS APPLICATION NO S . 281 / MUM/20 1 5 (ARISING OUT OF ITA NO . 304 /MUM/ 201 2 ) ( / ASSESSMENT YEAR : 20 0 6 - 20 07 ) PURSHOTTAM G BUDHWANI, B - 2, HIMALAYA SOCIETY, MILIND NAGAR ASALFA, GHATKOPAR(W), MUMBAI - 400084 VS. ACIT, CENTRAL CIRCLE - 41, MUMBAI ./ ./ PAN/GIR NO. : A DGPB 8380 D /ASSESSEE BY : SHRI GURUMUKH SINGH PURSWANI /REVENUE BY : SHRI M.M.CHATE / DATE OF HEARING : 18 /0 3 /2016 / DATE OF PRONOUNCEMENT : 13/04 / 2016 / O R D E R PER R.C.SHARMA ( A .M.) : THIS MISCELLANEOUS APPLICATION AROSE OUT OF ORDER OF THE TRIBUNAL DATED 21 - 10 - 2015. 2. THROUGH THIS MISCELLANEOUS APPLICATION IT WAS ARGUED BY LD. AR THAT THE TRIBUNAL HAS RESTORED THE MATTER WITH REGARD TO THE DISALLOWANCE OF RS.47,53,110/ - ON ACCOUNT OF WRITE OFF BY LOAN CREDITOR M/S VIRAJ INVESTMENTS TO THE FILE OF AO WITH A DIRECTION TO VERIFY ACTUAL PAYMENT MADE BY THE ASSESSEE IN THE SUBSEQUENT ASSESSMENT YEAR AND IF IT IS FOUND THAT THE AMOUNT WAS ACTUALLY NOT BEEN PAID THE AO IS AT LIBERT Y TO ADD THE SAME IN THE INCOME OF THE ASSESSEE. IT WAS SUBMITTED THAT DIRECTION SHOULD BE RECTIFIED SUITABLY. IT WAS FURTHER ARGUED THAT AS PER DECISION OF HON BLE BOMBAY HIGH COURT IN THE CASE OF M/S MAHINDRA AND MAHINDRA LTD. , 261 ITR 501 AND KEEPING IN VIEW THE PROVISIONS OF SECTION 41(1) OF THE ACT RELYING ON CESSATION OF THE LIABILITY THE LOAN AMOUNT CANNOT BE ADDED TO THE INCOME OF THE ASSESSEE. M A NO. 281/15 2 3. ON THE OTHER HAND, IT WAS CONTENDED BY LD. DR THERE IS NO MISTAKE MUCH LESS AN APPARENT MISTAKE IN THE ORDER OF TRIBUNAL 4. WE HAVE CONSIDERED RIVAL CONTENTIONS AND GONE THROUGH THE ORDER OF THE TRIBUNAL WHEREIN AT PARA 8 THE TRIBUNAL HAVE RESTORED THE MATTER WITH REGARD TO ADDITION OF AMOUNT PAYABLE TO M/S VIRAJ INVESTMENTS TO THE FILE OF AO TO VERIFY THE ACTUAL PAYMENT MADE BY THE ASSESSEE IN THE SUBSEQUENT ASSESSMENT YEAR. HOWEVER, IT IS NOT CLEAR AS TO WHETHER M/S VIRAJ INVESTMENT WAS A LOAN CREDITOR OR TRADE CREDITOR. ACCORDINGLY, WE MODIFY OUR DIRECTION AND DIRECT THE AO TO FIRST VERIFY THE NATURE OF T HE CREDITOR M/S VIRAJ INVESTMENT AND FOR DECIDING THE SAME AS PER THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF MAHINDRA AND MAHINDRA LIMITED (SUPRA). 5 . IN THE RESULT, MISCELLANEOUS APPLICATION S IS ALLOWED IN PART FOR STATISTICAL PU RPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 13/04 / 201 6 SD/ - SD/ - PAWAN SINGH R.C.SHARMA JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 13/04 / 201 6 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RES PONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//