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2014 (12) TMI 1372 - ITAT MUMBAIDisallowance of interest expenditure - rejection of books of accounts as the books of account is the basis for computation of book profits u/s 115JA - HELD THAT:- As Revenue Authorities as well as the order of the Tribunal in the case of Hitesh S. Mehta [2013 (10) TMI 1065 - ITAT MUMBAI] Whether the interest liabilities constitutes ascertained one or not is also linked to the issue of rejection of books of accounts as the books of account is the basis for computation of book profits u/s 115JA of the Act. This is common issue qua the issue adjudicated in the case of the Hitesh S. Mehta (supra) and matter was set aside. Respectfully following the said order the issue raised in ground no. 4 should be set aside to the files of the CIT (A) for fresh adjudication. Charging of interest u/s 234A & 234B - HELD THAT:- As assessee submitted that the assessee being a ‘notified person’, there is no change of interest. It is his further submission that the receipts of the assessee are subjected to TDS. On the contrary, Special Counsel for the Revenue filed various decisions of the Tribunal in support of the change of interest. The judgment of the jurisdictional High Court in the case of CIT vs. Devine Holdings Pvt Ltd [2012 (4) TMI 100 - BOMBAY HIGH COURT] was relied on by the Spl. Counsel for the Revenue. During the rebuttal time, Ld Counsel submitted that this issue should also revisit the file of the AO for removal of certain inaccuracies in calculating the interest. We order accordingly. Thus, ground is allowed for statistical purposes.
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