2016 (8) TMI 1610

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....sake of convenience. ITA No. 6539/Mum/2013 A.Y. 2009-10 2. Since the issues involved in both the cases are common, we take brief facts of the case pertaining to the assessment year 2009-10. The appellant an individual and also a partner in partnership firms M/s. Aryan, M/s. Ankit Gems and M/s. Avani Gems, filed its return of income for the assessment year under consideration on 29/09/2010 declaring the total income of Rs. 39,92,870/-. Assessment u/s 143(3) was completed on 05/02/2013 and the AO determined the total income of the assessee at Rs. 61,11,150/- after making addition of Rs. 21,18,279/ towards interest paid for earning exempt income. 3. The assessee challenged the assessment order before the CIT(A). The Ld. CIT(A) after h....

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....nbhai Chimanlal Shah, for the A.Y. 2010-11, in which the Tribunal has decided the identical issue in favour of the assessee. 6. On the other hand the learned departmental representative heavily relying upon the findings of the Assessing Officer submitted the Ld. CIT(A) has passed the impugned order without proper appreciation of law in the light of the facts of the present case. 7. We have heard the rival submissions and also gone through the material placed before us. The issues involved in this case are identical to the case ACIT vs. Shri. Arunbhai Chimanlal Shah aforesaid and the coordinate Bench of ITAT has decided the same holding as under:- "6. We have heard the rival submissions and also perused the impugned orders of ....

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....llowance u/s 14A can be made. Accordingly, for limited purpose, matter is restored to the file of the A.O for verification after giving opportunity to the assessee." 8. We notice that the co-ordinate Bench while deciding the identical issue in favour of the assessee, restored the matter to the file of the A.O for a limited purpose of verification as to whether the borrowed funds which have been given to the current capital account and interest earned thereon has been offered as taxable income or not. However, in the present case, we find that the assessee has offered to tax an amount of Rs. 4828502/- as interest income earned during the A.Y. under consideration from the partnership firm. Hence, in the present case there is no need to res....