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of <h1>Tribunal allows appeal, directs income computation per books. Disputes on deductions and interest chargeability settled.</h1> <h3>Smt. Pratima H. Mehta Versus DCIT, CC-23, Mumbai.</h3> The appeal by the assessee was partly allowed for statistical purposes. The Tribunal directed the computation of income as per books of account, leading ... Determining the income on the final books of account - rejection of books of accounts - confirming the net accretion method adopted by the AO for determination of the total income - HELD THAT:- In the assessee’s group of cases, in Shri Hitesh S. Mehta [2013 (12) TMI 244 - ITAT MUMBAI] for the assessment year 1991-92, while deciding a similar issue, has directed the Ld.CIT(A) to compute the income as per books of account. In view of the reason that similar facts and issue are involved in this ground raised by the assessee, following the said order we direct the Ld.CIT(A) to compute the income as per books of account for the same reasons given by the Tribunal in the aforesaid case. Ground No. 3 is allowed for statistical purpose. Determination of unaccounted investments - information collected from various companies allegedly showing the share holding of the assessee - HELD THAT:- It is noted that similar issue has been decided by the Tribunal in the case of Shri Hitesh S. Mehta (supra) and the Tribunal has deleted a similar addition which have been made on the basis of information collected from various companies behind the back of the assessee. In the absence of any contradictory material brought on record by the Revenue, following the said order, we decide this ground in favour of the assessee Disallowance of deduction on account of interest expenditure claimed by the assessee - HELD THAT:- ntical issue has been considered by the Tribunal in the case of Hitesh S. Mehta (2013 (11) TMI 1650 - ITAT MUMBAI) and the Tribunal restored this issue back to the file of the AO by following the directions of the Tribunal in Hitesh S. Mehta’s own case for the assessment years 2005-06 and 2006-07 in [2013 (12) TMI 244 - ITAT MUMBAI] Issues:1. Determination of income on final books of account2. Total income calculation based on net accretion to assets3. Confirmation of unaccounted investments4. Disallowance of deduction on interest expenditure5. Disallowance of deduction on other expenses6. Chargeability of interest u/s 234A, 234B, and 234CIssue 1: Determination of income on final books of accountThe appeal challenged the action of the Ld.CIT(A) in confirming the net accretion method adopted by the AO for determining the total income instead of as per the final books of account. The Tribunal, in a similar case, directed the Ld.CIT(A) to compute the income as per books of account. Following this precedent, the Tribunal directed the Ld.CIT(A) to compute the income as per books of account for the same reasons given in the previous case. Ground No. 3 was allowed for statistical purposes.Issue 2: Total income calculation based on net accretion to assetsGrounds No. 4, 5, & 6 contested the determination of total income based on net accretion to various assets. The Tribunal, considering the previous case, deleted the additions contested on these grounds as the Ld.CIT(A) was directed to compute the taxable income as per books of account. Consequently, the additions contested under grounds no. 4, 5, & 6 were deleted. Grounds No. 4, 5 & 6 were allowed.Issue 3: Confirmation of unaccounted investmentsGround No. 7 challenged the confirmation of unaccounted investments based on information collected from various companies. The Tribunal, in a similar case, deleted a similar addition made without informing the assessee. As no contradictory material was presented by the Revenue, the Tribunal decided this ground in favor of the assessee. Ground No. 7 was allowed.Issue 4: Disallowance of deduction on interest expenditureThe assessee contested the disallowance of deduction on interest expenditure. The Tribunal, following a previous case, restored this issue back to the AO to comply with the directions given in the earlier case. This issue was restored back to the file of the AO for further action. Ground No. 9 was allowed for statistical purposes.Issue 5: Disallowance of deduction on other expensesGround No. 10 related to the disallowance of deduction of other expenses claimed by the assessee. As the Tribunal directed the Ld.CIT(A) to compute income as per books of account, the deduction of other expenses claimed in the books of account was allowed. Ground No. 10 was accordingly allowed.Issue 6: Chargeability of interest u/s 234A, 234B, and 234CGround No. 11 raised concerns about the chargeability of interest under specific sections of the Act. The Tribunal noted that the levy of interest is mandatory under the provisions mentioned. However, as the interest was consequential in nature, there was no need to further adjudicate this ground.In conclusion, the appeal filed by the assessee was partly allowed for statistical purposes, with specific grounds being allowed or restored for further actions based on the Tribunal's directions and previous judgments.
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