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

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ITA 2737/MUM/2017Status: DisposedITAT Mumbai16 October 2017AY 2013-143 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restored the issue of disallowance of interest expenditure back to the CIT(A) for fresh adjudication. For the interest under sections 234A, 234B, and 234C, the matter was restored to the Assessing Officer for computation after considering TDS.

What were the facts?

The assessee appealed against the disallowance of interest expenditure and the charging of interest under sections 234A, 234B, and 234C. The assessee argued that similar issues in their own and family members' cases were decided by the Tribunal.

What were the issues?

Whether interest expenditure was wrongly disallowed and how interest under sections 234A, 234B, and 234C should be computed.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 234A,Section 234B,Section 234C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”, BENCH MUMBAI

Before: SHRI R.C.SHARMA, AM Dr. A.B. Road,

For Appellant: Shri Ashwin Kashinath
For Respondent: Dr. P. Daniel
Hearing: 05/10/2017Pronounced: 16/10/2017

आदेश / O R D E R PER R.C.SHARMA (A.M):

1.

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.

2.

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.

3.

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

Deepika A Mehta 4. I have gone through the order of the lower authorities and found that this issue is identical to the issue decided in the following cases wherein the Hon'ble Tribunal has set aside the issue to the file of the Ld. CIT(A) • Deepika Mehta v. ACIT [ITA No. 6831/Mum/2013] dated 21.10.2015 for A.Y. 2009-10. • Sudhir S. Mehta v. DCIT [ITA No. 2452/Mum/2014] dated 18.11.2016 for A.Y. 1995-96.

5.

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

6.

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.

7.

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.

• Sudhir S. Mehta v. DCIT [ITA No. 2452/Mum/2014] dated 18.11.2016 for A.Y. 1995-96. • DCIT v. Rasila S. Mehta [ITA No. 5870/Mum/2011] dated 21.10.2015 for A.Y. 2003-04

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