MISSION HOLDING PVT. LTD.,NEW DELHI vs. ITO, NEW DELHI

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ITA 1712/DEL/2017Status: HeardITAT Delhi27 July 2022AY 2012-135 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found no reason to interfere with the findings of the CIT(A) who had upheld the disallowance of capitalized interest expenditure. The issue had been decided against the assessee in a prior assessment year.

What were the facts?

The assessee capitalized interest expenditure incurred towards the purchase of shares. The Assessing Officer (AO) and Commissioner (Appeals) [CIT(A)] disallowed this capitalization, stating the interest was incurred after the acquisition of shares. The CIT(A) also noted a similar issue was decided against the assessee in the previous assessment year.

What were the issues?

Whether interest expenditure incurred for the purchase of shares, after acquisition, can be capitalized.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI

Before: SH. N. K. BILLAIYA & SH. YOGESH KUMAR US

Hearing: 27/07/2022Pronounced: 27/07/2022

Appellant None Respondent Ms. Neha Tomar, SR. DR Date of hearing: 27/07/2022 Date of Pronouncement: 27/07/2022 ORDER PER N.K. BILLAIYA, AM:

This appeal by the assessee is preferred against the order of the CIT(A)-33, New Delhi dated 28.12.2016 pertaining to A.Y.2012-13

2.

The grievance of the assessee read as under :-

3.

None appeared on behalf of the assessee inspite of repetitive notices, therefore, we decided to proceed exparte. Having heard the Ld. DR we have carefully perused the orders of the authorities below.

4.

We find that the solitary quarrel is in respect of interest expenditure of Rs.2,88,63,585/- which was capitalised by the assessee towards purchase of shares and such capitalisation dismissed by the AO / CIT(A) as being incurred after the acquisition of the shares. When the assessment was challenged before the CIT(A) the CIT(A) found that identical quarrel was in A.Y.2011-12 wherein his predecessor in office has decided the issue against the assessee. The relevant findings of the CIT(A) read as under :-

5.

The perusal of the assessment order also show that similar issue arose in earlier assessment years also and the AO has followed the findings given in earlier assessment years and the CIT(A) has also followed the order of the appellate authority for A.Y.2011-12.

6 Considering the totality, we do not find any reason to interfere with the findings of the CIT(A). The appeal filed by the assessee is dismissed.

7.

Decision announced in the open court on 27.07.2022.

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