CHIRAG PRAMOD SHAH,MUMBAI vs. ITO WARD 17(1)(3), MUMBAI

ITA 1191/MUM/2020Status: DisposedITAT Mumbai25 March 2022AY 2013-146 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) passed an ex-parte order without considering the merits of the case. Principles of natural justice require providing another opportunity for the assessee to present their case.

What were the facts?

The assessee claimed a deduction for interest paid on borrowed funds, arguing it was for earning interest income. The Assessing Officer disallowed this deduction, stating the dominant purpose was not established. The CIT(A) confirmed the disallowance ex-parte due to the assessee's non-appearance.

What were the issues?

Whether the interest paid on borrowed funds was for the purpose of earning interest income, and whether the ex-parte order by the CIT(A) was justified.

Which sections of the Income-tax Act were involved?

Section 57

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

Before: SHRI PRASHANT MAHARISHI & SHRI PAVAN KUMAR GADALEDr. AB Raod, Worli

For Respondent: Shri Rajesh Kumar Yadav.DR
Hearing: 22.03.2022Pronounced: 25.03.2022

PER PAVAN KUMAR GADALE JM: The assessee has filed the appeal against the order of the Commissioner of Income Tax (Appeals)-55, Mumbai passed U/sec143(3) and 250 of the Act.The assessee has raised the following grounds of appeal:

The Commissioner of Income Tax(Appeals) - 55, Mumbai Sri Chirag Pramod Shah, Mumbai. (hereinafter referred to as the CIT(A)) has erred in confirming he Assessment Order passed by the Income Tax Officer Ward 17(1)(3), Mumbai (hereinafter referred to as the ITO) and confirming the disallowance made for the appellants claim of deduction U/s. 57 ofRs.21,36,848/- for Interest paid to

The order continues below.

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