M/s. Indiabuild Reality Private Limited , Bangalore V. Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore

MA 65/BANG/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6507 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-05-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 09-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PADMA MEENAKSHI JT BENGALURU

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC B BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER M.P. NO.65/BANG/2018 [IN ITA NO. 1271/BANG/2017] ASSESSMENT YEAR : 2012 - 13 INDIABUILD REALTY PVT. LTD., NO.6/A, 2 ND FLOOR, KABRA EXCELSIOR, 7 TH CROSS, 1 ST BLOCK, KORAMANGALA, BANGALORE 560 024. PAN: AACCI 4014M VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 3(1)(1), BENGALURU. APP L IC ANT RESPONDENT APP L IC ANT BY : SHRI SIDDESH GADDI, CA RESPONDENT BY : SMT. PADMA MEENAKSHI, JT.CIT(DR)(ITAT), BENGALURU. DATE OF HEARING : 06.04.2018 DATE OF PRONOUNCEMENT : 10 .05.2018 O R D E R THIS MISCELLANEOUS PETITION IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE TRIBUNAL DATED 22.12.2017 WITH THE SUBMISSION THAT THOUGH THE TRIBUNAL HAS RECORDED THE GROUNDS OF APPEAL RAI SED BEFORE IT, BUT IT DID NOT ADJUDICATE GROUND NO.2 RELATING TO DISALLOWANCE OF DEDUCTION ON INTEREST EXPENDITURE, THEREFORE THE APPEAL MAY BE REFIXED FO R HEARING FOR DISPOSAL OF GROUND NO.2. 2. THE LD. COUNSEL FOR THE ASSESSEE HAS ALSO SUBMI TTED THAT THOUGH THE TRIBUNAL HAS ADJUDICATED GROUND NO.1 BUT WHILE ADJUDICATING CERTAIN MP NO.65/BANG/2018 PAGE 2 OF 3 FACTS WERE NOT TAKEN INTO ACCOUNT AND THE TRIBUNAL HAS CONFIRMED THE ORDER OF THE CIT(APPEALS). THEREFORE, THE ORDER OF TRIBU NAL IN GROUND NO.1 MAY ALSO BE RECALLED AND FRESH HEARING MAY BE GIVEN. 3. HAVING CAREFULLY EXAMINED THE ORDER OF TRIBUNAL VIS--VIS THE MISCELLANEOUS PETITION, I FIND THAT THOUGH THE TRIB UNAL HAS RECORDED GROUNDS OF APPEAL IN THE ORDER, BUT GROUND NO.2 WAS NOT ADJ UDICATED. I THEREFORE DIRECT THE REGISTRY TO FIX THE APPEAL FOR HEARING F OR ADJUDICATION OF GROUND NO.2 WHICH IS AS UNDER:- 2. THE ASSESSING OFFICER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, HAS ERRED IN ARBITRARILY DISALLOWING THE DEDUCTION ON INTEREST EXPENDITURE O F RS.151,370 BEING AN AMOUNT BEYOND 12% INTEREST RATE BY STATING IN ITS REMAND REPORT THAT INTEREST SHOULD BE RESTRICTED TO 12% BEING MARKET RATE. THE ASSESSING OFFICER HAS NOT PROVIDE D ANY BASIS OF THE MARKET RATE OF 12%. THE LEARNED CIT(A)-II HAS FURTHER ERRED IN CONFIRMING THE SAID DISALLOWANCE. 4. IN THE RESULT, THE MISCELLANEOUS PETITION OF THE ASSESSEE IS PARTLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS 10 TH DAY OF MAY, 2018. SD/- ( SUNIL KUMAR YADAV ) JUDICIAL MEMBER BANGALORE, DATED, THE 10 TH MAY, 2018. / D ESAI S MURTHY / MP NO.65/BANG/2018 PAGE 3 OF 3 COPY TO: 1. APPL IC ANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.