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TMI Blog2013 (8) TMI 991X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Member Rajendra, Accountant Member Appellant by : Shri Dharmesh Shah Respondent by : Shri Dr. P. Daniel ORDER PER BENCH Cross appeal have been filed by the Assessing Officer (AO) and the assessee for the above referred four assessment years.As the issues involved in these appeals are common or almost similar,so,for the sake of convenience, all the cases are being adjudicated upon by a single common order. Following identical Grounds of appeal have been filed by the AO for the three assessment yearsi. e.1998-99, 2000-01,2001-02.Ground of appeal read as under: ITAs No.3285/Mum/2012AY 1998-99, 3386/Mum/2012 AY 2000-01 and 3329/Mum/2012 AY 2001-02 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the interest charged u/s. 234A 234B of the I.T. Act. 2. The appellant craves to leave, to add, to amend and / or to alter any of the grounds of appeal, if need be. 3. The Appellant, therefore, prays that on the ground stated above, the order of the CIT(A)-37, Mumbai may be set aside and that of the Assessing Officer restored. ITA.No.5228/Mum/2011/-AY-2008-09 For the AY.2008-09 AO has filed f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rejection of the books of account of the appellant. 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 law and in facts in confirming the addition on account of deposits in the bank account treated as suspense entries aggregating to ₹ 2,92,972/-. 5.Learned Commissioner of Income Tax (Appeals) has erred in law and in facts in confirming the disallowance of interest expenditure of ₹ 83,57,821/-. 6.The appellant craves leave of Your Honour to add to, alter, amend and/or delete all or any of the foregoing grounds of appeal. ITA No. 5500/Mum/2011 A.Y-2008-09 Assessee has filed below mentioned grounds of appeal for the AY.2008-09: 1. The Learned Commissioner of Income Tax (Appeals) has erred in law and facts in passing the order u/s. 250 of the Act. 2. The Learned Commissioner of Income Tax (Appeals) has erred law and in facts in not appreciating that no income from attached assets can be assessed in the hands of the appellant. 3. The Learned Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.2011 ITAs No. 3285/Mum/2012 AY 1998-99, 3386/Mum/2012 AY 2000-01, 3329/Mum/2012 AY 2001-02 2.First we will take up the appeals filed by the AO.The effective ground of appeal for all the four AYs.is about charging of interest u/s 234A,234B and 234C of the Act.While passing the assessment orders for various AYs.,AO had charged interest as per the provisions of section 234 of the Act. 2.1.Assessee preferred appeals before the First Appellate Authority(FAA).Before him assessee submitted that she was a notified entity under the provisions of Special Court Act,that no interest u/s.234A, 234B 234C of the Act could be charged in her case,that the bank account of the assessee were operated under the directions of the Special Court,that the provisions of Special Court had overriding effect over the Act,that all the assets were under the control of the custodian, that the appellant could not have paid the advance tax unless directed by the Special Court,that the assessee did not have control over its income/assets,that she could not be penalised for non-payment of advance tax.After considering the submissions of the assessee and the order passed by the Mum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sanctity of the books of account in the form of communica - tion from custodian,that was not able to prove that the books of account drawn were based on the information gathered from the office of the custodian that the very basis of preparation of the books of account led foundation.Finally,he upheld the order of the AO.He also mentioned in the case of Shri Hitesh Mehta, husband of the assessee similar issue had been dismissed by the CIT (A)-40 Mumbai for the A.Y. 2006-07.He also mentioned that while deciding the grounds of appeal for the rejection of books of account,he had kept in mind the decision of CIT(A)-40 Mumbai delivered in the case of Shri Hitesh Mehta for the AY 2006-07. 4.2.Before us,AR submitted that in the case of Hitesh Mehta,for the A.Y. 2006-07,Tribunal has decided the issue on 26.04.2013 (ITA No. 7726/Mum/2010). DR supported the order of the FAA. 4.3.We have heard the rival submission and perused the material before us. We find that H Bench of Mumbai Tribunal,vide its order dated 26.04.2013,in the case of Hitesh Mehta for the AY 2005-06 has dealt the issue as under: 3.3.We have heard the rival submissions on this issue and perused the material on rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1998-99 and 2000-01. Following the same ground no.2 is allowed in part in favour of the assessee, 6.3.Ground no.5 is pertains to disallowance of interest expense of ₹ 83.57 lacs.While deciding the similar issue for the earlier A.Ys, we have restored back the matter to the file of the FAA (Paragraphs no.5.and 5.1.of our order for the A.Y ).Following the same, ground no. 5 is allowed in part in favour of the assessee. 6.4.Ground no.4 is about addition of ₹ 2.92 lacs on account of suspense entries. During the course of hearing,it was brought to our notice that similar issue had arisen in the case of husband of the assessee,Shri Hitesh S. Mehta for theA.Y 2001-02 wherein the issue of suspense entries was restored back to the file of the FAA, by the Tribunal (ITA No. 5587/Mum/2011 order dated 12.06.2013). 6.5.We find that in the case of Shri Hitesh S. Mehta, similar issue has been remitted back to the file of the FAA.Following the order of co-ordinate bench (ITA No.5587/Mum/2011 order dated 12.06. 2013-para-6), we remit back the issue of suspense entries to the file of the FAA. He is directed to afford a reasonable opportunity of hearing to the assessee. Ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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