2015 (9) TMI 1704 - ITAT MUMBAI - Income Tax

Head Note / Extract:
Interest expenditure disallowance - HELD THAT:- We find that the Tribunal in the case of Eminent Holdings [2014 (7) TMI 466 - ITAT MUMBAI] have followed the decision of the Tribunal given in common group case of Hitesh S. Mehta [2013 (10) TMI 1065 - ITAT MUMBAI]and restored the matter to the file of the Ld. CIT(A) for fresh adjudication We restore this issue to the files of the Ld. CIT(A) for fresh adjudication after giving reasonable opportunity of being heard to the assessee. Before closing this issue, the Ld. Counsel for the assessee pointed out that the Ld. CIT(A) has held that the issue of interest expenditure is pending before the Hon'ble Special Court. It is the say of the Ld. Counsel that the proceedings in which the said issue of interest was issued by the custodian have been already concluded which fact has already been recorded by the Ld. CIT(A) in the impugned order. We, therefore, direct the Ld. CIT(A) to consider this fact while deciding the issue afresh. Levy of interest u/s. 234A, 234B and 234C - HELD THAT:- Identical issue was decided in the cases of Topaz Holdings Pvt. Ltd. [2014 (6) TMI 998 - ITAT MUMBAI] and Eminent Holdings Pvt. Ltd. [2014 (7) TMI 466 - ITAT MUMBAI] that the Tribunal had upheld the levy of interest in principal, that it had set aside the issue for calculating the interest to the file of the AO with direction that the tax deducted as source should be reduced while calculating the interest.Respectfully, following the above order we restore back the issue to the file of the AO who would levy the interest as per the provisions of section 234 of the Act and give credit for the TDS amounts.