SUDHIR S. MEHTA,MUMBAI vs. ASST CIT CEN CIR 4(1), MUMBAI

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ITA 2740/MUM/2017Status: DisposedITAT Mumbai16 October 2017AY 2012-133 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restored the issue of interest expenditure disallowance to the CIT(A) for decision as per prior directions. The issue of interest under sections 234A, 234B, and 234C was restored to the Assessing Officer for recomputation based on tribunal directions.

What were the facts?

The assessee appealed against the CIT(A)'s order concerning disallowance of interest expenditure and charging of interest under sections 234A, 234B, and 234C. Both parties agreed that the issues were covered by previous tribunal decisions in the assessee's own case.

What were the issues?

Whether the disallowance of interest expenditure and the charging of interest under sections 234A, 234B, and 234C were correctly determined, considering previous tribunal rulings.

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 Shri Sudhir S. Mehta 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 the assessee against the order of CIT(A)- 52, Mumbai dated 02/02/2017 in the matter of order passed u/s.143(3) r.w.s. 147 of the IT Act.

2.

Assessee is aggrieved for disallowance of interest expenditure. At the outset learned AR contended that both the issues are covered by the decision of the Tribunal in assessee’s own case. Learned DR fairly agreed for the same.

3.

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 set aside the issue to the file of the Ld. CIT(A)

Shri Sudhir S. Mehta • 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.

4.

Respectfully following the order of the Tribunal, the matter is restored back to the file of the CIT(A) for deciding as per direction given by the Tribunal in assessee’s own case for the A.Y. 1995-96 vide order dated 18/11/2016.

5.

Next grievance assessee is relating to charging of interest u/s.234A, 234B and 234C. I found that this issue is also 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

6.

Respectfully following the above order of the Tribunal in assessee’s own case, the matter is restored back to the file of the AO for recomputing the interest liability in terms of the direction given by the Tribunal in its order dated 18/11/2016.

Shri Sudhir S. Mehta 7. In the result, appeal of assessee is allowed in part for statistical purposes.

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