DCIT CC 6(3), MUMBAI vs. PIPAVAV DEFENCE OFFSHORE & ENGINEERUBG CO. LTD, MUMBAI

O R D E R Per Shamim Yahya, A. M.: This appeal by the Revenue is directed against the order of the ld. Commissioner of Income Tax (Appeals) – 54, Mumbai dated 09.03.2016 and pertains to assessment year 2008-09.

read as under: 1. "Whether on the facts and in the circumstances of the case and in law, the Ld, CIT(A) is justified in holding that the business of the assessee was set up during the previous year under consideration while the assessee has not done any business activity during the previous year under consideration.

2. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) is justified in holding that the general administrative expenses are deductible as revenue expenses and interest income of the assessee is assessable to tax as income from business and profession while the business of the assessee was not set up during the previous year under consideration.

3. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) is justified in deleting the disallowance u/s.14A w.r.t. to interest expenses

M/s. Pipavav Defence Offshore & Engineering Co. Ltd. of Rs. 49,97,97,672/- while the assessee has not maintained separate pool of funds for general operating expenses and for capital expenses and investment." The appellant prays that the order of Commissioner of Income-tax (Appeal) on the above ground be set aside and that of the Assessing Officer be restored. The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary.

The assessing officer in the present case has repeated the additions made in the earlier scruitiny assessment. As referred above this was subsequently a subject matter of appeal before the ld. Commissioner of Income Tax (Appeals) and the ITAT. The ITAT vide order dated 31/8/2017 in has dismissed the Revenues appeal.

The grounds of appeal before the ITAT were as under:

1. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) is justified in holding that the business of the assessee was set up during the previous year under consideration while the assessee has not done any business activity during the previous year under consideration.

2. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) is justified in holding that the general administrative expenses are deductible as revenue expenses and interest income of the assessee is assessable to tax as income from business and profession while the business of the assessee was not set up during the previous year under consideration. 3. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) is justified in deleting the disallowance u/s.14A w.r.t. to interest expenses of Rs.49,97,97,672/- while the assessee has not maintained separate pool of funds for general operating expenses and for capital expenses and investment.

M/s. Pipavav Defence Offshore & Engineering Co. Ltd. 4. Since grounds raised in this appeal were already dealt with by the ITAT in its order as above and the Revenues appeal has been dismissed, we do not find any merit in this appeal filed by the revenue. Accordingly the same stands dismissed.