MUMBAI SEZ LTD,MUMBAI vs. DCIT CEN CIR 39, MUMBAI

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ITA 4852/MUM/2014Status: DisposedITAT Mumbai01 March 2021AY 2008-0919 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that interest earned on ICDs should be treated as business income, making the alternative claim for deduction under Section 57(iii) redundant but allowable. Disallowance under Section 14A was deleted as no exempt income was earned. The issue of capitalizing interest to WIP was restored to the AO for fresh examination.

What were the facts?

The assessee, Mumbai SEZ Limited, appealed against the CIT(A)'s orders for AYs 2008-09 and 2009-10. The core dispute revolved around whether the assessee's business had commenced and the allowability of various expenses and income treatments.

What were the issues?

Whether the assessee's business had commenced, and the allowability of deductions for expenses and disallowance of interest income were the key issues.

Which sections of the Income-tax Act were involved?

Section 14A,Section 57(iii)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI M. BALAGANESH, AM & SHRI AMARJIT SINGH, JM

For Appellant: Shri Madhur Aggarwal
Hearing: 03/12/2020Pronounced: 01/03/2021

Heard together (2 matters)

I.T.A. No. 4852/Mum/2014
I.T.A. No. 4853/Mum/2014

Read from the judgment's own cause title. This page is filed under one of them.

आदेश की प्रनिनलनि अग्रेनर्ि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant 2. प्रत्यथी / The Respondent. 3. आयकर आयुक्त(अपील) / The CIT(A)- 4. आयकर आयुक्त / CIT 5. दवभागीय प्रदतदनदध, आयकर अपीलीय अदधकरण, मुंबई / DR, ITAT, Mumbai 6. गार्ड फाईल / Guard file. आदेशधिुसधर/ BY ORDER, सत्यादपत प्रदत //True Copy// उि/सहधिक िंजीकधर /(Dy./Asstt. Registrar) आिकर अिीलीि अनर्करण, मुंबई / ITAT, Mumbai & 4853/M/2014 A.Y. 2008-09 & 2009-10

Date Initials Original dictation pad is Yes enclosed at the end of file 1. Draft dictated on: 01.03.2021 Sr. PS/PS 2. Draft placed before author: 01.03.2021 Sr. PS/PS 3. Draft proposed & placed before the JM/AM second member: 4. Draft discussed/approved by Second JM/AM Member: 5. Approved Draft comes to the Sr. Sr. PS/PS PS/PS: 6. Order pronounced on: 01.03.2021 Sr. PS/PS 7. File sent to the Bench Clerk: 8. Date on which file goes to the Head Sr. PS/PS Clerk: 9. Date on which file goes to AR 10. Date of dispatch of Order:

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