2013 (10) TMI 1079 - AT - Income Tax

Tribunal partially allows appeal on interest issues for fresh adjudication by CIT(A)

M/s Eminent Holdings Pvt. Ltd. Versus Asstt. Commissioner of Income Tax

The Tribunal partially allowed the appeal for statistical purposes, setting aside various issues related to interest expenditure, book profit calculation, ... Allowance of interest expenditure claimed by the assessee – Held that:- Relying upon the judgment in the case of M/s Topaz Holdings P. Ltd [2013 (10) TMI 1066 - ITAT MUMBAI], restored the matter to the file of the ld. CIT(A) for deciding the same afresh. Issues:1. Disallowance of interest expenditure claimed by the assessee.2. Disallowance of interest expenditure while computing book profit u/s 115JB.3. Charging of interest u/s 234A, 234B, and 234C of the Act.4. Additional ground raised regarding the taxation of assets and income belonging to a specific individual.Issue 1: Disallowance of Interest Expenditure:The appeal challenged the order of the ld. CIT(A) regarding the disallowance of interest expenditure claimed by the assessee. During the hearing, the assessee's counsel did not press ground No. 1 to 3, leading to their dismissal. The Tribunal referred to a similar issue in the case of another concern belonging to the same group and set aside the matter to the file of the ld. CIT(A) for fresh adjudication. The Tribunal followed the findings in the aforementioned case and allowed Ground No. 4 of the assessee's appeal for statistical purposes, restoring the issue for reconsideration.Issue 2: Disallowance of Interest Expenditure in Book Profit Calculation:The issue related to the disallowance of interest expenditure while computing the book profit u/s 115JB of the Act. Since this issue was consequential to the disallowance of interest expenditure in the previous issue, the Tribunal restored this matter to the file of the ld. CIT(A) for fresh consideration based on the decision made on the previous issue. Ground No. 5 was also allowed for reconsideration in line with the decision on Ground No. 4.Issue 3: Charging of Interest u/s 234A, 234B, and 234C:The issues involved in charging interest u/s 234A, 234B, and 234C were considered consequential. Therefore, the Tribunal also restored these issues to the file of the ld. CIT(A) for providing consequential relief to the assessee. Ground No. 6 was allowed for reconsideration in alignment with the decisions on the previous issues.Issue 4: Additional Ground on Taxation of Assets and Income:During the appellate proceedings, the assessee filed an application seeking admission of an additional ground regarding the taxation of assets and income belonging to a specific individual. The Tribunal admitted the additional ground but ultimately dismissed it as purely academic in nature, following a similar decision in the case of another assessee from the same group. The Tribunal emphasized that if the Hon'ble Supreme Court decides on the matter, it must be followed without dispute. Therefore, the additional ground was treated as academic and dismissed accordingly.In conclusion, the Tribunal partially allowed the appeal for statistical purposes, setting aside various issues related to interest expenditure, book profit calculation, and charging of interest for fresh adjudication by the ld. CIT(A). The additional ground on the taxation of assets and income was admitted but dismissed as academic, following legal precedents.