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TMI Blog2020 (11) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... stain the addition left. Levy of interest u/s 234A, 234B and 234C - HELD THAT:- As relying on own case[ 2017 (12) TMI 1668 - ITAT MUMBAI] issue has been sent back to the Assessing Officer to recompute interest u/s. 234B of the Act with a direction. - I.T.A. No. 7131 And 6896/Mum/2018 - - - Dated:- 4-11-2020 - Shri C. N. Prasad, JM And Shri S. Rifaur Rahman, AM For the Appellant : Shri Dharmesh Shah, AR For the Respondent : Shri P. Daniel, DR ORDER PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER: The present two appeals have been filed by the assessee against the order of Ld. Commissioner of Income Tax (Appeals) 52 in short referred as Ld. CIT(A) , Mumbai, dated 11.10.2018 for Assessment Year (in short AY) 2012-13 2013-14 respectively. 2. Since the issues raised in both the appeals are identical, therefore, for the sake of convenience, these appeals are clubbed, heard and disposed off by this consolidated order. Firstly, we are taking appeal filed by the assessee in ITA No. 7131/Mum/2018 for AY 2012-13. 3. The brief facts of the case are, assessee is a notified person under the Special Court (Trial of Offences relating to transactions in Secur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the above order, assessee is in appeal before us by filing the revised grounds of appeal, which are reproduced below:- 1. The Ld. Commissioner of Income-Tax (Appeals) has erred in law and in facts in reopening the assessment u/s. 147 of the Act. 2. The Ld. Commissioner of Income-tax (Appeals) has erred in law and in facts in confirming disallowance of interest expenditure amounting to ₹ 4,50,52,976/-. The Commissioner of Income-Tax (Appeals) ought to have allowed deduction on account of interest expenditure atleast to the extent of ₹ 22,18,210/- i.e. gross assessed income. 3. The Ld. Commissioner of Income Tax (Appeals) ought to have capitalized the interest expenditure to the extent disallowed u/s. 14A of the Act. 4. The Ld. Commissioner of Income Tax (Appeals) has erred in law and in facts in confirming the estimated addition on account of personal house hold expenses to the tune of ₹ 6,00,000/- u/s. 69C of the Act. 5. The Ld. Commissioner of Income-Tax (Appeals) has erred in law and in facts that in confirming the levy of interest u/s. 234A, 234B and 234C of the Act. 6. The Ld. Commissioner of Income-tax (Appeals) has erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ravels Pvt. Ltd. v. DCIT for A.Y. 2013-14 to 2015-16 in ITA No. 6960 6962/Mum/2018 dated 23.09.2020. 8. On the other hand Ld. DR relied upon the orders passed by the revenue authorities, however he conceded that this ground is covered by the order of Coordinate Bench of ITAT. 9. Considered the rival submissions and material placed on record. We notice from the record that the identical ground raised in the present appeal has already been decided by the Coordinate Benches of ITAT in assessee s own case as well as others on merits. For the sake of clarity, which is reproduced below:- 48. After hearing and carefully considering the rival submissions, we are of the view that the correct interest income has to be assessed in the hand of the assessee. The assessee has given the calculation of interest income which has to be assessed in the hand of the assessee amounting to ₹ 24,18,43,334/-. We, therefore, set aside this issue and restore this issue to the file of the assessee and direct the AO to recalculate the interest income in the hands of the assessee and treat the correct income to be the income of the assessee from interest which has accrued to the assessee from va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised by the assessee stands allowed. 10. With regard to ground no. 3 on account of capitalization of interest expenditure, Ld. AR brought to our notice para no. 6 to 6.6 of the order of Ld. CIT(A) and relied on the order of assessee s own case for A.Y. 2010-11 2011-12 in ITA No. 419 420/Mum/2016 dated 27.12.2017 at Para No. 52 of the said order, wherein the amount of interest disallowance u/s. 14A be held to be capitalized to the cost of shares. While deciding the said issue, the Hon'ble Tribunal has followed their decision in the case of Sudhir Mehta v. DCIT [ITA No. 5799/Mum/2015] dated 27.12.2017 for A.Y. 2009-10 in para no.17 of the said order. He further submitted that in the following cases, the Hon ble Tribunal has directed the assessing officer to treat the proportionate interest expense disallowed to be part of the cost of acquisition of shares and securities, which are as under:- a.) DCIT v. Cascade Holdings Pvt. Ltd. for A.Y. 2012-13, 2013-14 2015-16 in ITA Nos. 6768, 6769 6771/Mum/2018 dated 16.03.2020 b.) DCIT v. Cascade Holdings Pvt. Ltd. for A.Y. 2014-15 in ITA No. 6770/Mum/2018 dated 23.09.2020 c.) DCIT v. Harsh Estates Pvt. Ltd. for A.Y. 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the decision in the case of Sudhir Mehta v. DCIT. He further submitted that AO has disallowed 6 lakhs and Ld. CIT(A) has already disallowed 50%, therefore further deduction is not justifiable, accordingly prayed that disallowance made by Ld. CIT(A) be sustained. 15. Considered the rival submissions and material placed on record. We notice from the record that the identical ground raised in the present appeal has already been decided by the Coordinate Benches of ITAT in assessee s own case as well as others on merits. For the sake of clarity, which is reproduced below:- 53. The next ground in both the assessment years relate to sustenance of addition on account of personal household expenses. Similar issue, as agreed by both the parties, has arisen in ITA No. 5799/Mum/2015 in the case of Shri Sudhir S. Mehta for A.Y. 2009-10. As in that case we have reduced the addition on account household expenses by 50%, we therefore respectfully following our order in ITA No. 5779/Mum/2015 for A.Y. 2009- 10 reduce the addition on account of household expenses to 50% and sustain the addition to the extent of ₹ 1,50,000/- in each of the assessment years. Therefore, respectfull ..... X X X X Extracts X X X X X X X X Extracts X X X X
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