DCIT CIR 3(2)(1), MUMBAI V. INDIAN EXPRESS NEWSPAPAERS (MUMBAI) LTD, MUMBAI

MA 702/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6957 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 30-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NISHANT SAMAIYA
• Assessee Lawyers: V MOHAN
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'G' BENCH, MUMBAI BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER MA NO. 702/MUM/2018 (ARISING OUT OF ITA NO. 3664/MUM/2016) (ASSESSMENT YEAR: 2012-13) D C I T - 3(2)(1) ROOM NO. 608, 6H FLOOR AAYAKAR BHAVAN, M.K. ROAD MUMBAI 400020 VS. M/S. INDIAN EXPRESS NEWSPAPERS (MUMBAI) LTD. EXPRESS TOWERS NARIMAN POINT MUMBAI 400021 PAN AAACI2555F APPLICANT RESPONDENT APPLICANT BY: SHRI NISHANT SAMAIYA RESPONDENT BY: SHRI V. MOHAN DATE OF HEARING: 25.01.2019 DATE OF PRONOUNCEMENT: 01.03.2019 O R D E R PER MAHAVIR SINGH, JM BY WAY OF THIS MISCELLANEOUS APPLICATION THE REVENU E HAS REQUESTED FOR RECALLING OF THE ORDER PASSED BY THE TRIBUNAL I N ITA NO. 3664/MUM/2016 FOR A.Y. 2012-13 ORDER DATED 31.05.20 18. 2. THE MAIN CONTENTION OF REVENUE IS THAT THE TRIBUNAL HAS NOT FOLLOWED THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF M/S. MAXOPP INVESTMENT LTD. IN DECIDING THE CIVIL APPEAL NO. 104-109 OF 2015 DATED 12.02.2018 WHEREIN THE HON'BLE SUPREME COURT HAS UPHELD THE PRINCIPLE OF APPORTIONMENT IN THE CASES WHERE THE A SSESSEE HAS MIXED FUNDS AND INTEREST HAS BEEN PAID. 3. ON THE OTHER HAND, THE LEARNED COUNSEL FOR THE ASS ESSEE STATED THAT THE TRIBUNAL HAS FOLLOWED THE DECISION OF THE HON'B LE BOMBAY HIGH COURT IN THE CASE OF CIT VS. HDFC BANK LTD. (2014) 366 IT R 505 (BOM), WHEREIN THE HON'BLE BOMBAY HIGH COURT HAD HELD THAT THE PRE SUMPTION IS IN FAVOUR ITA NO. 702/MUM/2018 M/S. INDIAN EXPRESS NEWSPAPERS 2 OF THE ASSESSEE THAT THE ASSESSEE HAS INVESTED THE INTEREST FREE FUNDS TO EARN INTEREST FREE INCOME FROM SECURITIES AS THE RE VENUE COULD NOT PROVE THE NEXUS. 4. WE HAVE GONE THROUGH THE ORDER OF THE TRIBUNAL AND NOTED THAT IN REGARD TO DELETION OF DISALLOWANCE OF EXPENSES RELA TABLE TO INTEREST WE HAVE FOLLOWED THE DECISION OF THE HON'BLE BOMBAY HIGH CO URT IN THE CASE OF HDFC BANK LTD. (SUPRA) AND EVE NOW BEFORE US THE RE VENUE COULD NOT POINT OUT HOW THE THEORY OF APPORTIONMENT WILL APPL Y TO THE PRESENT CASE. IN FACT THE REVENUE WANTS TO REVIEW THE ORDER OF TH E TRIBUNAL, WHICH IS NOT PERMISSIBLE UNDER THE PROVISIONS OF SECTION 254(2) OF THE I.T. ACT, 5. IN THE RESULT, THE MISCELLANEOUS APPLICATION FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST MARCH, 2019. SD/ - SD/ - (G. MANJUNATHA) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 1 ST MARCH, 2019 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -8, MUMBAI 4. THE PR.CIT - 3, MUMBAI 5. THE DR, G BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.