TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 1829
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....assessee submitted that the return of income filed on 11.04.2011 may be treated as return u/s 148 of the Act. The assessee had filed return of income declaring total loss at Rs. 41,58,098/-. The AO issued notice u/s 143 (2) and 142 (1) of the Act. In response to the said notices, the authorized representative (AR) of the assessee submitted the details called for. The AO after discussing the case with AR on the basis of evidence on record completed the assessment order u/s 143 (3) r.w.s. 147 of the Act, determining the total income of the assessee at Rs. 3,52,32,740/- after making additions under the head income from business and income from other sources. The assessee challenged the assessment order before the Ld. CIT (A). However, the Ld. CIT (A) partly allowed the appeal of the assessee. Still aggrieved, the assessee is in appeal before the Tribunal by raising the following effective grounds of appeal:- 1. "The Ld. Commissioner of Income Tax (Appeals) ought to have appreciated that as per the decision of Hon'ble Special Court dated 30.04.2010 in MP No. 41 of 1999, the assets under consideration and the consequential income belongs to Shri Harshad S. Mehta and hence the income ....
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....evant material in the light of the rival submissions of the parties. In our considered view, the issue raised by the assessee in the additional ground goes to the root of the case. So, in view of the ratio laid down by the Hon'ble Supreme Court and the Hon'ble jurisdictional High Court, we allowed the application for additional ground in the interest of justice and further allowed the Ld. counsel to argue the case on the points raised in the original grounds as well as the additional ground raised by the assessee. 6. Before us, the Ld. counsel for the assessee submitted that the assessee does not want to press Ground No. 1 of the appeal. In view of the submission made by the Ld. counsel, we dismiss ground no. 1 of the appeal as not pressed. 7. As regards, ground no. 2, the ld. counsel for the assessee submitted this ground of appeal is covered in favour of the assessee by the decision of the ITAT, Mumbai in the assessee own case ITA No. 1728 to 1730/Mum/2015 for the A.Y. 2002-03 to A.Y. 2004-05. 8. On the other hand, the Ld. Departmental Representative (DR) did not controvert the fact that the identical issue has been decided in favour of the assessee by the Tribunal in the asse....
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....nce in the case of Shri Sudhir S. Mehta while disposing off similar ground relating to interest expenditure we allowed the deduction to the assessee out of the interest earned on term deposit. Respectfully following our said order in the preceding paragraph we direct the AO to allow deduction to the assessee amounting to Rs. 20,90,180/- out of the interest on term deposit by following our similar direction given therein. Thus, this ground to that extent is allowed. 9. Since, the coordinate Bench has already dealt with the identical issue and decided the same on merits in favour of the assessee in assessee's own case for the earlier assessment years, we do not find any reason to deviate from the findings of the coordinate Bench. The revenue has not brought on any order passed by the courts of law, contrary to the decision of the coordinate Bench. Hence, respectfully following the decision of the coordinate Bench, we allow this ground of appeal of the assessee and set aside the findings of the Ld. CIT(A). We accordingly direct the AO to delete the addition. 10. Vide Ground No. 3, the assessee has challenged the action of the Ld. CIT (A) in confirming the estimated addition on accou....
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....nses incurred and added in the hands of the following members of the family, which are as under:- Sr. No. Name A.Y. 2006-07 A.Y. 2007-08 Additions by AO (Rs.) Confirmed by CIT (A) (Rs.) Additions by AO (Rs.) Confirmed by CIT (A) (Rs.) 1 Ashwin s. Mehta (Appellant) 12,00,0000 6,00,000 12,00,0000 6,00,000 2 Jyoti H Mehta 18,00,000 9,00,000 18,00,000 9,00,000 3. Rasila S. Mehta 6,00,000 3,00,000 6,00,000 3,00,000 4. Deepika A. Mehta 6,00,000 3,00,000 6,00,000 3,00,000 5. Sudhir S. Mehta - - 12,00,000 12,00,000 6 Smt. Rina S. Mehta - 6,00,000 6,00,000 Total 42,00,000 21,00,000 60,00,000 39,00,000 20: On the other hand, Ld. Special Counsel submitted that the appellant is maintaining motor car and live in posh area of Mumbai, and no details of household expenses has been given by the appellant. In such a case, addition sustained by the CIT(A) appears to be far more reasonable. 21: After considering the rival submissions and on perusal of the relevant finding in the impugned order, we find that the addition made by the AO as well as sustained by the CIT(A) are though on ad-hoc basis, but same was done be....
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.... by the assessee relate to levy and calculation of interest under Section 234A, 234B and 234C. As agreed by both the parties, similar issue has arisen in ITA No. 5799/Mum/2015 in the case of Shri Sudhir S. Mehta for 2009-10. We, therefore, respectfully following the said decision dismiss ground No. 5 regarding levy of interest but direct the AO in respect of ground No. 6 that the interest levied under Section 234A, 234B and 234C be recomputed after excluding the income which is subject to TDS. Thus, this ground is allowed for statistical purposes. " 77. Ground Nos. 5 & 6 relate to levy and calculation of interest under Section 234A, 234B and 234C. Similar issue has arisen in the case of assessee in A.Y. 2002-03. We, therefore respectfully following the order of this Tribunal in the preceding paragraph in the case of assessee confirm the levy of interest under Section 234A, 234B and 234C and dismiss ground No. 5 but direct the AO to recompute interest chargeable under Section 234A, 234B and 234C after excluding income which is subject to provisions of TDS. Thus ground No. 6 is statistically allowed. "20. Ground Nos. 3 & 4 relate to levy or interest under Section 234A, 234B and 2....
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....ductible at source on the income assessed and after affording a reasonable opportunity of hearing to the assessee. Ground no.5 is allowed in part in favour of the assessee." Respectfully following the said order of the Tribunal in the case of Eminent Holding P. Ltd. (supra) we direct the AO to recompute the interest liability after reducing the amount of tax deductible at source on the income earned. Thus, ground No. 3 stand dismissed while ground No. 4 stand partly allowed." 15. Since, the coordinate Bench has set aside the identical issue to the file of the AO with the direction to re-compute the interest u/s 234B and 234C of the Act, in assessee's own cases for the earlier years, we respectfully following the decision of the coordinate Bench set aside this issue to the file of the AO to re-compute the interest liability after reducing the amount of tax deductible at source on the income earned. 16. Vide additional ground of appeal, the assessee has challenged the orders passed by the authorities below contending that the authorities below ought to have adjudicated the issue of interest income of the assessee. The Ld. counsel pointed out that the authorities below have not ad....