DY COMMISSIONER OF INCOME TAX, MUMBAI vs. HITESH SHANTILAL MEHTA, MUMBAI

ITA 7797/MUM/2025Status: DisposedITAT Mumbai09 February 2026AY 2004-05Bench: the Tribunal, as stipulated under CBDT Circular No.09/2024 dated 17.09.2024. It was also not the case of the Revenue that the present appeals fall within any of the exceptions carved out in the said Circular. In view of this admitted position and having regard to the binding nature of the Circular, which expressly applies even to pending appeals, the maintainability of the Revenue's appeals stands squarely governed by the said Circular. 31 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the Revenue's appeals were not maintainable due to low tax effect, as per CBDT Circular No. 09/2024. The Tribunal further held that the assessee was entitled to the full deduction of interest expenditure under Section 57 of the Income Tax Act, as a nexus between the borrowing and income from other sources was established.

What were the facts?

The Revenue filed appeals against the assessee's assessment orders for multiple years. The assessee filed cross-objections challenging the restriction of interest expenditure deduction. The tax effect in the Revenue's appeals was below the prescribed monetary threshold.

What were the issues?

Whether the Revenue's appeals are maintainable given the low tax effect, and whether interest expenditure is fully allowable under Section 57 when there is a nexus with income from other sources.

Which sections of the Income-tax Act were involved?

Section 57,Section 147,Section 144,Section 143(3),Section 268A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(4)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, ‘E’ BENCH

Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL

For Appellant: Shri Dharmesh Shah a/w, Ms. Mitali Parekh
For Respondent: Dr. P. Daniel
Hearing: 05/02/2026Pronounced: 09/02/2026

Heard together (2 matters)

ITA No.7796/Mum/2025
CO No.397/Mum/2025

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

PER AMIT SHUKLA (J.M): These appeals preferred by the Revenue for Assessment Years 2000-01, 2004-05 and 2018-19, along with the corresponding cross-objections filed by the assessee, arise out of a consolidated order dated 26.09.2025 passed by the learned National Faceless Appeal Centre. The impugned order emanates from proceedings f

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 57

All 1,225 judgments and leading authorities on Section 57 →

Recent GST High Court judgments

Search GST case law →