BCD JOINT VENTURE,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX , CIRCLE 42 (1) (1), MUMBAI
Income Tax Appellate Tribunal, Mumbai “B” Bench, Mumbai.
Before: Shri Narender Kumar Choudhry (JM) & Shri Omkareshwar Chidara (AM) BCD Joint Venture 6, Sadichha II, Mandpeshwar Road, Borivali West Mumbai-400 092. Vs. ACIT Circle 42(1)(1) Kautilya Bhavan, BKC, Bandra East Mumbai-40 0051. PAN : AABAB7489C
Per Omkareshwar Chidara (AM) :-
The only dispute in this case is when an appeal relating to alleged bogus loan is pending before Ld. CIT(A) in an earlier year, whether the interest on the same be decided against the appellant.
In this appeal, the appellant claims that for A.Y. 2014-15, certain loan and the interest claimed on it were genuine whereas the Revenue adjudicates the same as not genuine and the appeal is pending before Ld. CIT(A). The present appeal is for A.Y. 2015-16 and Ld. Jt.CIT(A) has adjudicated that the interest claim on alleged bogus loan, should not be allowed as business expenditure. Hence, the appellant filed an appeal against the order of Ld. JCIT(A), stating that the main issue relating to loan is still pending before Ld. CIT(A) in the earlier year i.e., A.Y. 2014-15. 3. The main grievance of the appellant before the ITAT is that the genuineness of loan should be adjudicated first and then only whether interest is allowable or not on the same had to be decided. The argument of appellant is that the order of Ld. JCIT(A) may be set aside to him back with a BCD Joint Venture
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direction that the same may be adjudicated after Ld. CIT(A) decides the main appeal relating to genuineness of loan.
The Ld. DR relied on the orders of Ld. AO and Ld. JCIT(A).
Heard both sides. There is sufficient force in the argument of Ld. AR of appellant. The genuineness of loan has to be adjudicated at the first instance as the interest on the same would be consequential. Hence, the appeal order of Ld. JCIT(A) is set aside to his file with a direction to keep this appeal in abeyance till the main appeal relating to loan is decided. The Ld. JCIT(A) is at liberty to take a decision after the Ld. CIT(A) passed the appeal order.
The appeal of appellant is allowed for statistical purposes. Order pronounced in the open Court on 25/07/2025. (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER
Copy of the Order forwarded to :
1. The Appellant
2. The Respondent.
3. CIT
4. DR, ITAT, Mumbai
5. Guard file.
BY ORDER,
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