TMI Blog2014 (3) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) ought to have appreciated that the assets under consideration and the consequential income belongs to hence, the income assessed by the Assessing Officer ought to have been taxed in the hands of Shri Harshad S. Mehta and not in the hands of the appellant - the ground is legal ground, which does not require any new facts to be brought on record – relying upon National Thermal Power Co. Ltd. Vs. CIT [1996 (12) TMI 7 - SUPREME Court] - the legal ground can be admitted, if no new facts are to be brought on record – thus, no direction is to be required to be given to the AO in this respect because if the Hon'ble Apex Court decides that all the income belongs to Shri Harshad S. Mehta, then the income has to be assessed in the hands of Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the Ld.CIT(A) in confirming the liabilities amounting to Rs.11,24,99,052/- and Rs.12,61,36,245/- respectively for the A.Ys 2005-06 and 2006-07 towards interest expenditure claimed by the assessee. It is pertinent to note that the findings given in para 3.3 above in respect of rejection/reliability of the books of accounts and the proposed adjudication of the Ld.CIT(A) in view of the said direction may have direct impact on the issue of the impugned liability, we set aside this issue also to the files of the Ld.CIT(A) to adjudicate afresh along with the adjudication of the respective ground pertaining to the rejection/reliability of the books of accounts. Also, the ITAT for the AYs 1994-95, 1995-96 2001-02 has decided a similar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant. 5. After going through the addition ground filed by the assessee, we noted that the ground is legal ground, which does not require any new facts to be brought on record. In view of the decision of the Hon'ble Apex Court in the case of National Thermal Power Co. Ltd. Vs. CIT, reported in (1998) 229 ITR 383, the legal ground can be admitted, if no new facts are to be brought on record. However, after going through the additional ground raised by the assessee for all the assessment years involved here before us, we found that the ground is fully academic in nature for the reason that if the Hon'ble Supreme Court decides something that has to be followed without any dispute. The decision of the Hon'ble Apex Court is law of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilar issue, has held as follows: In other group cases, the ITAT held that interest u/s. 234B, 234C and 234D cannot be levied as the assessee is a notified person and the provisions of the Special Court (Trial of offences relating to transactions in Securities) Act 1992 will prevail. Revenue has carried the matter to Hon'ble High Court which upheld the revenue contention. It held vide para 14 in the case of CIT vs. Divine Holdings Pvt. Ltd. in ITA No.3334 of 2010 dated 07-03-2012 as under : '14. In paragraph 14 of the judgment, extracted above, the Supreme Court has held that the provisions of the Special Court Act, wherever they are applicable shall prevail over the provisions of the income tax Act, 1961. The words wherever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the above order was not stayed. Only the appeal was transferred to the same Bench for hearing. In these circumstances, we do not see any reason to differ from the judgment of the Hon'ble High Court in the case of CIT vs. Divine Holdings Pvt. Ltd. Accordingly, it was held that levy of interest u/s. 234A, 234B and 234C is mandatory. The grounds are accordingly allowed. It appears that the decision of the Hon'ble High Court in the case of CIT vs. Divine Holdings Pvt. Ltd has not been brought to the notice of the Tribunal while deciding the assessee's own cases referred in para 4 above. When the facts being so, we do not find any reason to differ from the judgment of the Hon'ble High Court in the case of CIT vs. Divine Hol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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