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2013 (10) TMI 979 - AT - Income TaxIncome to be assessed in the hands of Others Whether legal ground can be admitted, if no new facts are to be brought on record Held that - As per Hon ble Apex Court in the case of National Thermal Power Co. Ltd. Vs. CIT, reported in 1996 (12) TMI 7 - SUPREME Court , the legal ground can be admitted, if no new facts are to be brought on record - The decision of the Hon ble Apex Court is law of land, which has to be followed by every authority. Therefore no direction is to be required to be given to the AO in this respect because if the Hon ble Apex Court decides that all the income belongs to Shri Harshad S. Mehta, then the income has to be assessed in the hands of Shri Harshad S. Mehta, not in the hands of any other person. Levy of interest u/s 234A, 234B & 234C of the Income Tax Act Held that - As per Hon ble High Court in the case of CIT vs. Divine Holdings Pvt. Ltd. 2012 (4) TMI 100 - BOMBAY HIGH COURT . Accordingly, it was held that levy of interest u/s. 234A, 234B and 234C is mandatory Decided in favor of Revenue.
Issues:
1. Liability amounting to interest expenditure for AY 2007-08. 2. Additional ground raised by the assessee regarding taxation of income. 3. Deletion of interest charged under sections 234A, 234B, and 234C of the Income Tax Act. Analysis: Issue 1: Liability amounting to interest expenditure for AY 2007-08 The appeal involved cross appeals between the Assessee and Revenue against the order of the Ld.CIT(A)-40, Mumbai for the assessment year 2007-08. The ITAT referred to similar cases in the assessee's group and decided to set aside the issues related to the liability amounting to interest expenditure for fresh adjudication by the Ld.CIT(A) in line with previous directions. Grounds were allowed for statistical purposes based on the Tribunal's findings in the aforementioned cases. Issue 2: Additional ground raised by the assessee regarding taxation of income The assessee raised an additional ground stating that the income assessed by the Assessing Officer should have been taxed in the hands of another individual. The ITAT considered this ground as a legal issue and decided that if the Hon'ble Supreme Court determines that the income belongs to a specific individual, it should be assessed in that individual's hands. The Tribunal treated this ground as academic, following the decision of the Hon'ble Apex Court, and decided it in the same manner as similar cases. Issue 3: Deletion of interest charged under sections 234A, 234B, and 234C of the Income Tax Act The Revenue's appeal focused on the decision of the Ld.CIT(A) deleting the interest charged under sections 234A, 234B, and 234C of the Income Tax Act. The ITAT referred to previous cases and held that the levy of interest under these sections is mandatory. The Tribunal considered the judgment of the Hon'ble High Court in a specific case and allowed the grounds raised by the Revenue. The decision was based on the High Court's ruling, and the Tribunal found no reason to differ from it, thus upholding the levy of interest under the mentioned sections. In conclusion, the ITAT allowed the appeal filed by the Assessee for statistical purposes and also allowed the appeal filed by the Revenue based on the findings and judgments discussed for each issue.
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