2014 (6) TMI 998

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....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. 2, 86, 72, 678/-. The learned Commissioner of Income-Tax (Appeals) ought to have held that the interest expenses to the extent of Rs. 15, 100/- need to be allowed while calculating income of the appellant. 5. The learned Commissioner of Income-Tax (Appeals) has erred in law and in facts in confirming interest charged u/s....

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....f the FAA. We find that while deciding the appeal in the case of Eminent Holdings Pvt. Ltd., for the AY 2007-08(supra), E Bench of Tribunal has decided the issue as under: "4. Ground nos. 4 & 5 are inter-connected relating to the disallowance of interest expenditure of Rs. 5, 14, 455/-. In this regard, at the outset, Ld Counsel mentioned that an identical issue came up for adjudication before the ITAT, Mumbai in the cased of Hitesh S. Mehta vs. DCIT vide ITA No. 7726 & 7727/M/2010 dated 26. 04. 2013, wherein the Tribunal set aside the issue to the files of CIT(A) for adjudication of the issue afresh by adjudicating the respective ground relating to the rejection/reliability of the books of account. Para 5 from the said order of the....

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....ssue raised in ground no. 4 should be set aside to the files of the CIT(A) for fresh adjudication of the issue after granting a reasonable opportunity of being heard to the assessee. The decision if any should be taken only after considering the decision in the case of Hitesh S Mehta, (supra). Accordingly, ground nos. 4 & 5 are set aside. " Respectfully, following the above order, we are restoring back the matter to the file of the FAA for fresh adjudication. He is directed to afford a reasonable opportunity of hearing to the assessee. Ground no. 4 is allowed in favour of the assessee, in part. 3. Next ground of appeal is about levy of interest u/s. 234 of the Act. Before us, AR stated that the assessee was a notified entity, that the....