2014 (7) TMI 466

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....rred in law and in facts in passing order without complying with the principles of natural justice. 3. The learned Commissioner of Income-tax (Appeals) has erred in law and in facts in not appreciating that no income from attached assets can be assessed in the hands of the appellant. 4. The learned Commissioner of Income-tax (Appeals) has erred in law and in facts in confirming the disallowing the interest expenditure of Rs. 5, 14, 455/-. 5. The learned Commissioner of Income-Tax (Appeals) has erred in law and in facts in charging interest u/s. 234A, 234B and 234C of the Act. 6. The appellant craves leave of Your Honour to add to, amend or alter all or any of the grounds appeal. " ITA No. 2141/Mum/2013-AY. 2006-07 "1. The learned Comm....

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.... pressed. 2. 1. Assessee-company, engaged in the business of trading and investing in securities, filed its return of income on 22. 04. 2013. Assessing Officer (AO) passed an order u/s. 144 r. w. s. 147 of the Act on 22. 03. 2006, determining the income of the assessee at Rs. 18. 83 lakhs. During the assess - ment proceedings, certain additions were made by the AO and same were challenged before the First Appellate Authority(FAA). Against the order of the FAA, assessee has raised six grounds of appeal before us, as stated earlier. 2. 2. Ground no. 4 is about disallowance of interest expenditure of Rs. 5, 14, 455/-. Before us, AR stated that identical issue had come up for adjudication before the Tribunal in assessee's own case for the AY-....

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....ection may have direct impact on the issue of the impugned liability, we set aside this issue to the files of the CIT(A) to adjudicate afresh along with the adjudication of the respective ground pertaining to the rejection/ reliability of the books of accounts. " 5. On the other hand, Ld DR dutifully relied on the order of the AO/CIT(A). 6. We have heard both the parties and perused the orders of the Revenue Authorities as well as the order of the Tribunal in the case of Hitesh S. Mehta (supra). Whether the interest liabilities of Rs. 5, 14, 455/- constitutes ascertained one or not is also linked to the issue of rejection of books of accounts as the books of account is the basis for computation of book profits u/s 115JA of the Act. This i....

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....ified entities also, that the assessee was in the process of filing an appeal against the said order before the Hon'ble Supreme Court, that the income earned in the year under consideration was subjected to provisions of TDS, that the changeability of the section 234A, 234B and 234C of the Act should be after considering the amount of tax deductible at source on the income assessed. The appellant relies in this regard on the following decisions. He relied upon the cases of Motorola inc. v. DCIT [95 ITD 269 (Del. (SB)], Sedco Fores Drilling Co. Ltd. [264 ITR 320], NGC Network Asia LLC [313 ITR 187] , Summit Bhatacharya [ 300 ITR (AT) 347 (Bom)(SB)], Vijal Gopal Jindal [ITA No. 4333/Del/2009] & Emillo Ruiz Berdejo [320 ITR 190 (Bom)]. DR reli....