DEEPIKA A. MEHTA,MUMBAI vs. DCIT CEN CIR 4(1), MUMBAI

This is an appeal filed by assessee against the order of CIT(A)-52, Mumbai dated 02/02/2017 for A.Y.2013-14 in the matter of order passed u/s. 143(3) r.w.s. 147 of the IT Act.

In this appeal, assessee is aggrieved for disallowance of interest expenditure. At the outset, learned AR placed on record the order of the Tribunal in assessee’s own case as well as in the case of other family members wherein exactly similar issue was decided by the Tribunal and the matter was restored back to the file of the CIT(A) with certain directions.

The learned DR fairly conceded that the issue is covered by the order of the Tribunal.

Respectfully following the order of the tribunal the matter is restored back to the file of the CIT(A) with the same directions.

Next issue is relating to charging of interest u/s.234A, 234B and 234C of the IT Act. As per learned AR this issue is also covered by the order of the Tribunal.

I have gone through the order of the Tribunal and found that this issue is identical to the issue decided in the following cases wherein the Hon'ble Tribunal has upheld the applicability of interest u/s. 234A, 234B and 234C in the case of notified entities following the decision of the Hon'ble Bombay High Court in the case of Divine Holdings Pvt. Ltd. and Cascade Holdings Pvt. Ltd. For the purpose of calculation, the Hon'ble Tribunal has set aside the issue to the file of the Assessing Officer to compute interest liability after considering the amount taxed deductible at source on the income assessed.