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

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.

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.

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)

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.

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

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.