2015 (2) TMI 1403 - AT - Income Tax

Liability towards interest expenditure claimed by the appellant - HELD THAT - This issue was stated to be covered by the earlier decision of the Tribunal, as while deciding this ground Ld. CIT(A) has relied upon the decision in the case of Hitesh S. Mehta 2013 (10) TMI 1065 - ITAT MUMBAI wherein tribunal has restored back the issue to the file of AO and in assessee s own case in respect of assessment years 2002-03, 2008-09, 2000-01, 2001-02, similar issue has been restored back to the file of AO. Thus respectfully following the aforementioned decision of the Tribunal in assessee s own case we restore this ground for all the years to the file of AO with similar directions and this ground for all the years is considered to be allowed for statistical purposes. MAT - calculation of book profit u/s 115JB - HELD THAT - As decided in assessee s own case for A.Y 2008-09 2014 (10) TMI 1075 - ITAT MUMBAI issue a llowed for statistical purposes with a direction to decide it afresh as per the provisions of law after giving finding on the claim of interest thus this ground is allowed for statistical purposes. Charging of interest u/s 234A, 234B and 234C - HELD THAT - Tribunal in the case of assessee for assessment year 2008-09 2014 (10) TMI 1075 - ITAT MUMBAI - Agreed, levy of interest is mandatory and sometimes consequential depending upon the facts of each case. thus direct the Assessing Officer to recomputed the interest liability after reducing the amount of tax deductable at source. We direct accordingly, thus, this ground is allowed for statistical purposes.

Summary

Issues Involved:
1. Liability towards interest expenditure claimed by the appellant.
2. Calculation of book profit under section 115JB.

Analysis:
1. Liability towards Interest Expenditure:
- The appeals by the assessee revolve around the denial of relief concerning interest expenditure claimed. The Tribunal noted that the issue was similar to previous cases where the matter was remanded back to the Assessing Officer (AO) for fresh adjudication. The Tribunal referred to specific cases in the assessee's history where similar issues were dealt with, leading to remand for further consideration.
- After considering the arguments from both parties and following the precedent set in previous cases, the Tribunal decided to remand the issue back to the AO for fresh adjudication, allowing the grounds for statistical purposes. This decision was made consistently across all years in question.

2. Calculation of Book Profit under Section 115JB:
- Another issue raised was the calculation of book profit under section 115JB. The Tribunal found this issue to be consequential to the decision on interest expenditure. Following the same pattern as the interest expenditure issue, the Tribunal remanded this issue back to the AO for reevaluation based on the outcome of the interest expenditure decision.
- The Tribunal allowed this ground for statistical purposes, aligning with the approach taken for the interest expenditure issue. The decision was consistent for the relevant assessment years, ensuring a uniform approach to the appeals filed by the assessee.

3. Departmental Appeal for A.Y. 2007-08:
- The Departmental appeal for the mentioned year was also addressed in light of previous decisions in the assessee's case. The Tribunal directed the Assessing Officer to recompute the interest liability after adjusting the tax deductible at source. This direction was in line with the mandatory nature of interest levy, ensuring a fair and accurate calculation.
- Following the reasoning provided in previous cases, the Tribunal allowed the appeal filed by the Revenue for statistical purposes. The decision was made after considering the arguments presented by both parties and aligning with the principles established in similar cases.

In conclusion, the Tribunal's judgment addressed the issues of interest expenditure liability and book profit calculation systematically, following a consistent approach based on past decisions in the assessee's cases. The remand to the Assessing Officer for fresh adjudication ensured a fair consideration of the matters at hand, leading to partial allowance of the appeals by the assessee and allowance of the Departmental appeal for statistical purposes.