DCIT, Central Circle-1, Vadodara V. Shri Shreyas V. Shah, Vadodara

MA 62/AHD/2020

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3726 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 12 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-06-2022
• Appeal Filed By: Department
• Order Result: PartlyAllowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 16-02-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 143(3); 14A; 254(2)

Judgement Text

, ‘A’ । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD (Convened through Virtual Court) BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMEBR & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR MISCELLANEOUS APPLICATION No. 62/Ahd/2020 (in ITA No. 1055/Ahd/2018) ( Assess ment Ye ar : 2014-15) DC IT Ce ntr al C ir cle -1 , B aro da / V s . Sh ri S hrey a s V. S h ah Gro u nd Fl oo r, V a ma To wer , Ne ar P aru l Ap art me nt , Fa te hg u nj, Va do dar a / आइआर /P A N / G IR N o . : A F X P S 9 5 7 6 H ( Appellant) . . ( / Respondent) र /Appellant by : S mt. Le en a La l, Sr . D. R. र / Respondent by : Ms. Urvashi Shodhan, A.R. र D a t e o f H e a r i n g 08/04/2022 !"# र /D a t e o f P r o n o u n c e m e n t 30/06/2022 ORDER PER MAHAVIR PRASAD, JM: This miscellaneous application has been filed by the Revenue under s.254(2) of the Act against the Tribunal order dated 18.09.2019 to recall the impugned order. 2. This Miscellaneous Application has been instituted by the AO wherein it is mentioned that: MA No. 62/Ahd/2020 [DCIT vs. Shri Shreyas V. Shah] AY 2014-15 - 2 - “A search was carried out in the case of Dhanjimama Group of cases including the case of the assessee on 02.07.2012. Consequently, the assessee's case was centralized to this office. The case selected for scrutiny through CASS. The assessee has filed return of income u/s 139 of the IT Act on 29.11.2014 declaring total income at Rs. 1,66,32,000/-. Subsequently, order u/s 143(3) of the Act was passed on 07.11.2016 at the assessed income of Rs.2,01,78,235/- after making following additions to the returned income of the assessee :- Sl.No. Addition on account of Amount 1 Disallowance of interest expenses in case of Shri Bharat Patel(1, 39,740/-), M/s Punamchand Devchand (3,47,986/-) and M/s Godiji Trading Co. (56,096/- +3,74,256/-) 9,18,078/- 2 Disallowance of interest expenses in case of M/s India Infoline Fin.Ser. Ltd 9,67,285/- 3 Disallowance u/s 14A 3,15,062/- 4 Disallowance of Legal & Professional Fees 9,90,000/- 5 Disallowance of Security Charges 3,55,806/- Table 1 2.1 Thereafter, the assessee filed an appeal before the Ld. CIT(A)-12, Ahmedabad against the said assessment order. 2.2 The Ld. CIT(A) had confirmed the addition Rs.9,67,285/- made on account of disallowance of interest expenses in case of M/s India Infoline Financial Services Ltd. as mentioned at Sl.No.2 above (table 1) and the assessee did not press on the addition mentioned at S.No. 4 & 5 (table 1) above during the appellate proceedings. 3. The assessee has filed an ITA vide ITA No. 1055/Ahd/2018. The Hon'ble ITAT has directed this office to delete the addition of Rs. 9,67,285/- while ignoring the fact that the assessee has not been able to prove that the expenditure was incurred for business purpose at any point of time. Thus the decision of Hon'ble ITAT is not acceptable on merit basis. The aggregate tax effect involved of 7,47,923/- which is below the prescribed limit for filing further appeal as per Board's Circular No. 3/2018 dated 11.07.2018 r.w. circular 17/2019 dated 08/08/2019. However, the order of Hon'ble ITAT is contradictory in nature as in para 2 of page no. 3, it has dismissed the grounds No. 4, 5 & 6 of the ITA(of assessee ) as not pressed whereas in para 9 of page 13, it has allowed the ground No. 4 to 6. As the assessee has not pressed the grounds during the proceedings, these grounds may kindly be dismissed. 4. The undersigned pray your honour to rectify the mistake apparent from record for A.Y. 2014- 15 as per the provisions of section 254(2) of the Income Tax Act while intimating the same to this office. It is also prayed that the Hon'ble ITAT may kindly pass an appropriate order on merits, as it may deem fit. It is also submitted that no miscellaneous application u/s 254(2) has been filed earlier in this case. The appellant craves to add, amend or alter the above grounds as may be deemed necessary.” MA No. 62/Ahd/2020 [DCIT vs. Shri Shreyas V. Shah] AY 2014-15 - 3 - 3. We have heard both the parties. So far para no. 2.2 of Miscellaneous Application is concerned ITAT decided the issue after considering arguents of learned D.R. and same is at para no. 7 of the Tribunal’s order dated 18.09.2019. 4. It is mentioned in para no. 9 that Ground nos. 4 to 6 of the assessee’s appeal are allowed wherein same to be read as Ground Nos. 1 to 3 are allowed. 5. Para 10 to be read as appeal of the assessee is in ITA No. 1055/Ahd/2018 is partly allowed. 6. In the result, the miscellaneous application filed by the Revenue is partly allowed to above extent. Sd/- Sd/- (ANNAP UR NA GUP TA) (MAHAVIR PRASAD) ACC OUNTANT MEMB ER JUDICIAL MEMBER Ahmedabad: Dated 30/06/2022 True Copy S.K.SINHA ेश ! " #े" / Copy of Order Forwarded to:- $ र / Revenue 2 आ द / Assessee ' ( )* आ र आ + / Concerned CIT 4 आ र आ + - / CIT (A) . / 0 1 2 2 )*3 आ र )* र#3 45द ( द / DR, ITAT, Ahmedabad 6 1 78 9 इ / Guard file. By order/आद श 3 उ / 4 र आ र )* र#3 45द ( द । This Order pronounced in Open Court on 30/06/2022