DCIT (LTU) 2, MUMBAI vs. TATA MOTORS LTD, MUMBAI

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ITA 751/MUM/2015Status: DisposedITAT Mumbai07 September 2021AY 2010-112 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the issue was covered by a co-ordinate bench's decision in the assessee's own case for a subsequent assessment year. Therefore, the order of the CIT(A) on this point was upheld.

What were the facts?

The appeal was recalled to adjudicate ground no. 2 regarding the deletion of an addition made under Section 36(2)(iii) of the Act. The addition was made because a loan was allegedly used for investment purposes.

What were the issues?

Whether a loan used for investment purposes warrants an addition under Section 36(2)(iii) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 36(2)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI “J” BENCH, MUMBAI

Per Pramod Kumar, VP: It is a recalled matter. Vide order dated 18th March, 2019, this appeal was disposed 1. but, subsequently on 10th September, 2020, this order was recalled for the limited purposes of disposing of ground no.2 which, due to an inadvertent mistake, had remained unadjudicated in the order dated 10th September, 2020.

2.

The aforesaid grievance, vide ground no. 2, is as follows: 2. On the facts and circumstances of the case and in law, the Ld. DRP erred in directing to delete the addition u/s.36(2)(iii) of the Act of Rs.3,65,37,000/- when the loan was used for purpose of investment only.

3.

Learned Representatives fairly agree that the aforesaid issue is covered, in favour of the assessee, by a co-ordinate bench’s decision dated 8th November, 2019, in assessee’s own case for the assessment year 2011-12. A copy of the said decision was placed before us.

1.

Assessment Year: 2010-11 Page 2 of 3 4. We see no reasons to take any other view of the matter than the view so taken by the co-ordinate bench for the assessment year 2011-12. Accordingly, we uphold the order of the ld. CIT(A) on this point and decline to interfere in the matter.

Ground no. 2 is thus dismissed, and, to this extent, order dated 18th March, 2019 5. stands supplemented and modified. Pronounced in the open court on 7th day of September, 2021.

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