WELLNESS N. SOLUTIONS (INDIA) P.LTD, MUMBAI v. ITO 8(2)(3), MUMBAI

ITA 1511/MUM/2012 | 2007-2008
Pronouncement Date: 28-10-2013 | Result: Allowed

Appeal Details

RSA Number 151119914 RSA 2012
Assessee PAN TOBER2013S
Bench Mumbai
Appeal Number ITA 1511/MUM/2012
Duration Of Justice 1 year(s) 7 month(s) 24 day(s)
Appellant WELLNESS N. SOLUTIONS (INDIA) P.LTD, MUMBAI
Respondent ITO 8(2)(3), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 28-10-2013
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted G
Tribunal Order Date 28-10-2013
Date Of Final Hearing 28-10-2013
Next Hearing Date 28-10-2013
Assessment Year 2007-2008
Appeal Filed On 05-03-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL G GG G BENCH BENCH BENCH BENCH MUMBAI MUMBAI MUMBAI MUMBAI . . !' !' !' !' #$ #$ #$ #$ BEFORE BEFORE BEFORE BEFORE SHRI SHRI SHRI SHRI VIJAY PAL RAO JM VIJAY PAL RAO JM VIJAY PAL RAO JM VIJAY PAL RAO JM & & & & SHRI SHRI SHRI SHRI D. KARUNAKARA RAO D. KARUNAKARA RAO D. KARUNAKARA RAO D. KARUNAKARA RAO AM AM AM AM ./ I.T.A. NO. I.T.A. NO. I.T.A. NO. I.T.A. NO.1511/MUM/2012 1511/MUM/2012 1511/MUM/2012 1511/MUM/2012 ( %& %& %& %& ' ' ' ' / ASSESSMENT YEAR :2007-08) M/S WELLNESS N. SOLUTIONS (INDIA) PVT. LTD. (FORMERLY KNOWN AS MUKTA STEELS & FABS. P. LTD.) B4 MANJU BUNGLOW 3 RD CROSS LANE S. S. NAGAR LOKHANDWALA COMPLEX ANDHERI (WEST) MUMBAI-400053 & & & & / VS. THE INCOME TAX OFFICER-8(2)(3) MUMBAI $( !' ./ ) ./ PAN/GIR NO. :AACCM54836 ( (* / APPELLANT APPELLANT APPELLANT APPELLANT) .. ( + (* / RESPONDENT RESPONDENT RESPONDENT RESPONDENT) $ $ $ $ - . ! - . ! - . ! - . ! / REVENUE BY : DR. MANJUNATH KARKIHALLI %& %&%& %& /0 /0 /0 /0 - . ! - . ! - . ! - . ! /ASSESSEE BY : SHRI VIMAL PUNMIYA & & & & - -- - 0' 0' 0' 0' / DATE OF HEARING : 28 TH OCTOBER 2013 12' 12' 12' 12' - -- -0' 0' 0' 0' /DATE OF PRONOUNCEMENT: 28 TH OCTOBER 2013 #!3 / O R D E R PER : . . / VIJAY PAL RAO JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 19.1.2012 OF COMMISSIONER OF INCOME TAX(APPEALS) FO R THE ASSESSMENT YEAR 2007-08. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: 1. THE LD. COMMISSIONER OF INCOME TAX (A) ERRED IN CONFIRMING THE ADDITIONS MADE BY THE A.O OF ` 18 75 000/- ON A /C OF RENTAL INCOME FROM LETTING OUT OF BUILDING AND PLANT AS IN COME FROM OTHER SOURCES AS AGAINST TREATED THE SAME AS INCOME FROM BUSINESS OR PROFESSION OFFERED BY THE APPELLANT. ITA NO.1511/M/2012 WELLNESS N. SOLUTIONS (INDIA) PVT. LTD. 2 2. THE LD. COMMISSIONER OF INCOME TAX (A) ERRED IN THEREBY CONFIRMING THE DISALLOWANCE OF THE EXPENSES CLAIMED AGAINST THE SAID INCOME. 3. THE LD. COMMISSIONER OF INCOME TAX (A) ERRED IN CONFIRMING AND TREATING THE INTEREST INCOME OF ` 26 28 411/- A S INCOME FROM OTHER SOURCES. 4. THE LD. COMMISSIONER OF INCOME TAX (A) THEREBY E RRED IN CONFIRMING THE DISALLOWANCE OF THE EXPENSES CLAIMED AGAINST THE SAID INCOME. 5. THE LD. COMMISSIONER OF INCOME TAX (A) ERRED IN CONFIRMING CHARGING INTEREST U/S 234B & 234C OF THE INCOME TAX AC 1961. 3. GROUND NO. 1 & 2 REGARDING TREATMENT OF RENTAL I NCOME AS INCOME FROM OTHER SOURCES AND THEREBY DISALLOWING THE EXPE NSES. THE ASSESSEE COMPANY WAS INITIALLY INCORPORATED AS M/S MUKTA STE ELS & FABS. P. LTD. TO CONDUCT A SHIP BREAKING BUSINESS AND SUBSEQ UENTLY THE COMPANY CHANGED ITS BUSINESS TO CONDUCTING GYMNASIU M AND FITNESS BUSINESS CENTRE. THE ASSESSEE ALSO CHANGED ITS NAME AS WELLNESS N. SOLUTIONS (INDIA) PVT. LTD. THE ASSESSE E ENTERED INTO TWO SEPARATE BUSINESS CENTRE AGREEMENTS WITH M /S GYM MANAGEMENT AND K 11 FITNESS MANAGEMENT CO. PVT. LTD . FOR GIVING THE PREMISES FLAT BEARING NO. 101 201 THAK UR ENCLAVE SANKUL KANDIVALI (EAST) MUMBAI FOR RUNNING A FITN ESS CENTRE. THE A.O FOUND THAT THE ASSESSEE HAS RECEIVED RENTAL INCOME OF ` 18 75 000/-. IN RESPECT OF PREMISES NO. 101 AND 2 01 WHEREAS THE ASSESSEE HAS PAID RENT OF ` 7.5 LACS IN THE PRE VIOUS YEAR. THE ASSESSEE COMPUTED THE SAID RENTAL INCOME AS BUS INESS INCOME. THE ASSESSING OFFICER TREATED THE RENTAL IN COME AS INCOME FROM OTHER SOURCES AND THEREBY DISALLOWED VA RIOUS ITA NO.1511/M/2012 WELLNESS N. SOLUTIONS (INDIA) PVT. LTD. 3 EXPENSES SUCH AS DEPRECIATION ON CAR AND MUNICIPAL TAX WHICH WERE NOT PAID DURING THE YEAR. ON APPEAL THE CIT(A ) HAS CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 4. BEFORE US THE LD. A.R OF THE ASSESSEE HAS SUBMIT TED THAT FOR THE PURPOSE OF SETTING UP OF GYMNASIUM AND FITN ESS CENTRE THE ASSESSEE HAS DEVELOPED THE PREMISES BY SPENDING HUGE AMOUNT ON INTERIOR ELECTRICITY FITTINGS GYM EQUIP MENT WATER CONNECTIONS ETC. THE ASSESSEE HAS SENT ITS DIRECTOR S TO ABROAD FOR INSPECTION AND IMPORT OF GYM EQUIPMENT. THEREFO RE AFTER OBTAINING THE IEC AND RBI CODES FOR THE PURPOSE OF REQUISITE GYM EQUIPMENTS WERE IMPORTED. THIS ENTIRE EXERCISE OF DEVELOPING THE PREMISES AS FITNESS CENTRE CLEARLY S HOWS THAT THE ASSESSEE HAS CARRIED OUT ALL THESE WORK AS COMM ERCIAL VENTURE. THE ASSESSEE HAS NOT LEASED OUT THE PREMIS ES RATHER IT HAD ENTERED INTO BUSINESS AGREEMENT WITH FOUR DIFFE RENT PARTIES AND MAINTENANCE OF GYM WITH THE ASSESSEE. THE LD. A .R HAS FURTHER CONTENDED THAT IT HAS NOT RECEIVED LEASE RE NT RATHER RECEIVED COMPENSATION. HE HAS REFERRED THE CLAUSE 3 OF THE BUSINESS CENTRE AGREEMENT WHICH READS AS UNDER: 3. THE COMPANY HEREBY AGREES TO ALLOW AND RENDER TO THE CLIENT THE FOLLOWING FACILITIES AMENITIES CONVENIENCES AND SERVICES DURING THE PERIOD OF THIS AGREEMENT VIZ. (A) TO OCCUPY AND USE THE PREMISES FOR ITSELF ITS EMPLOYEES SERVANTS VISITORS CUSTOMERS AFFILIATES ASSOCIATE ETC. AS INCIDENTAL TO AVAILING OF THE FACILITIES. ITA NO.1511/M/2012 WELLNESS N. SOLUTIONS (INDIA) PVT. LTD. 4 (B) TO USE OF THE FURNITURE FIXTURE AND FITTING PROVIDED IN THE SAID PREMISES DETAILS OF WHICH ARE PROVIDED IN ANNEXURE A (PAGE 94) AS PER THE AGREEMENT OF DATE EXECUTED BETWEEN M/S MUKTA STEEL OF THE ONE PART AND CLIENT OF THE OTHER PART AND LYING IN THE SAID PREMISES. (C) TO PROVIDE COMMON PEON FACILITY AS MAY BE REASONABLY REQUIRED BY THE CLIENT AND TO ATTEND AND KEEP SUCH STAFF AVAILABLE FOR SERVICE TO THE CLIENT BETWEEN 8.00 AM TO 8.00 PM EVERY DAY. (D) TO ENGAGE/DEPUTE A PERSON TO LOOK AFTER THE SAID PREMISES IN GENERAL. (E) TO PROVIDE FACILITY TO HIS CLIENT TO MAKE AND RECEIVE TELEPHONE CALLS. (F) TO PROVIDE REASONABLY SUFFICIENT ELECTRIC LIGHTING. (G) TO ALLOW THE CLIENT TO ERECT/AFFIX A SIGNBOARD/SIGNAGE OF THE CLIENT AT PREMISES OF THE COMPANY. THE CLIENT MAY UTILIZE ITS CORPORATE COLORS AND LETTERS FOR THE SIGNBOARD/SIGNAGE BUT NOT IN VIOLATION OF ANY CONCERNED AUTHORITIES. (H) TO PROVIDE AIR-CONDITIONING IN THE PREMISES AND IN THE COMMON AREA WHICH WILL BE ACCORDING TO EXISTING PLAN/LAYOUT. (I) TO KEEP THE PREMISES IN CLEAN & NEAT CONDITION AT ALL TIMES AND MAINTAIN THROUGH EFFICIENT AND TECHNOLOGICALLY ADVANCED SERVICE IN THE CENTRE. (J) TO PROVIDE SECURITY PERSONNEL & WATCHMEN FOR THE SECURITY OF CENTRE. (K) TO PROVIDE A SEPARATE ELECTRICITY METER FOR THE CLIENT IN THE CENTRE. (L) TO PROVIDE PORTABLE FIRE EXTINGUISHERS IN THE CENTRE. (M) TO PROVIDE ANY FURTHER REASONABLE GYM FACILITIES TO THE CLIENT WHICH THE CLIENT REQUIRES UPON TERM AND CONDITION MUTUALLY AGREED UPON. ITA NO.1511/M/2012 WELLNESS N. SOLUTIONS (INDIA) PVT. LTD. 5 (N) THESE SERVICES WILL BE PROVIDED BY THE COMPANY OF THE PREMISES AND SERVICES WILL BE AVAILABLE TO CLIENT AS PER EXISTING NORMS AND PRACTICES. 5. THE LD. A.R HAS SUBMITTED THAT THE AGREEMENT CLE ARLY SHOWS THAT THE ASSESSEE HAS PROVIDED MANY SERVICES WHICH ARE P ART OF ITS BUSINESS. THE ENTIRE ARRANGEMENT INDICATES THAT THE ASSESSEE IS IN THE BUSINESS OF GYMNASIUM AND FITNESS. THE ASSESSEE HAS INVESTED HU GE MONEY IN EQUIPMENT AND OTHER FACILITY ON WHICH DEPRECIATION WAS CLAIMED. HE HAS ALSO RELIED UPON THE DECISION OF HONBLE SUPREME CO URT IN CASE OF SHAMBU INVESTMENT PVT. LTD. VS CIT 263 ITR 143 AND SUBMITT ED THAT THE ASSESSEES MAIN INTENTION WAS TO EXPLOIT THE IMMOVABLE PROPERT Y BY WAY OF COMPLEX COMMERCIAL ACTIVITY AND THEREFORE THE INCOME FROM THE SAID ACTIVITY IS A BUSINESS INCOME. THE LD. A.R HAS FURTHER SUBMITTED THAT THE REVENUE ACCEPTED THE RENTAL INCOME AS BUSINESS INCOME FOR T HE ASSESSMENT YEAR 2006-07 AND ALSO FOR THE ASSESSMENT YEAR 2010-11. T HESE TWO ASSESSMENT YEARS THE ASSESSMENT WAS COMPLETED U/S 143(3). FOR THE REMAINING ASSESSMENT YEARS THE RETURN OF INCOME OF THE ASSESSEE HAS BEEN ACCEPTED U/S 143(1). THE LD. A.R HAS ALSO RELI ED UPON THE DECISION OF HONBLE CALCUTTA HIGH COURT IN CASE OF CIT VS GANGA PROPERTIES LTD. 62 TAXMAN 285 AS WELL AS ORDER OF THIS TRIBUNAL DATED 30.6.2011 IN CASE OF ITO VS SHANAYA ENTERPRISES IN ITA NO. 3648/M/2010. ON THE OTHER HAND THE LD. D.R HAS RELIED UPON THE ORDERS OF THE AUTHO RITIES BELOW AS WELL AS THE DECISION IN CASE OF SHAMBHU INVESTMENT (SUPRA). 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS RELEVANT MATERIAL ON RECORD. THE ISSUE OF TREATING THE RENTA L INCOME WHETHER ITA NO.1511/M/2012 WELLNESS N. SOLUTIONS (INDIA) PVT. LTD. 6 BUSINESS OR INCOME FROM OTHER SOURCES FOR ALLOWING THE PREMISES EQUIPPED WITH FITNESS EQUIPMENTS AND OTHER FACILITIES AS FIT NESS CENTRE IS A HIGHLY DEBATABLE ISSUE. THUS THIS ISSUE HAS TO BE DECIDED ON THE PECULIAR FACTS OF THE CASE WE NOTE THAT THIS IS NOT A CASE OF SIMPLE LETTING OUT OF A PREMISES BUT THE ASSESSEE HAS DEVELOPED AND PREPARED THE PRE MISES AS A FITNESS CENTRE/GYMNASIUM BY INSTALLING THE ALL REQUISITE EQ UIPMENTS MACHINES AND OTHER FACILITIES. THEREFORE THE PRIMARY PURPOS E AND INTENTION OF THE ASSESSEE TO LEASE OUT THE ASSETS COMPRISING THE PRE MISES AS WELL AS THE EQUIPMENTS IS TO EARN THE INCOME BY EXPLOITING THE ASSET BEING EARNING APPARATUS. THE ASSESSEE HAS ALSO UNDERTAKEN THE VAR IOUS ACTIVITY OF MAINTENANCE PROVIDING STAFF AND OTHER FACILITIES FO R SMOOTH FUNCTIONING OF THE FITNESS CENTRE. THEREFORE IT IS NOT A SIMPLE C ASE OF EARNING THE RENTAL INCOME FROM LETTING OUT THE PREMISES. THE REVENUE H AS ACCEPTED THE INCOME FROM LEASE OUT THE PREMISES AS BUSINESS INCO ME FOR THE ASSESSMENT YEAR 2006-07 TO 2010-11 EXCEPT THE ASSES SMENT YEAR UNDER CONSIDERATION. FOR THE ASSESSMENT YEARS 2006-07 AND 2010-11 THE ASSESSMENT HAS BEEN COMPLETED U/S 143(3) AND FOR OT HER ASSESSMENT YEAR IT HAS BEEN ACCEPTED U/S 143(1). THEREFORE EXCEPT THE YEAR UNDER CONSIDERATION THE REVENUE HAS ACCEPTED THE CLAIM OF THE ASSESSEE. WHEN THERE IS NO CHANGE IN THE FACTS AND CIRCUMSTANCES T HEN THE PRINCIPLE OF CONSISTENCY HAS TO BE FOLLOWED. THE A.O HAS NOT POI NTED OUT ANY NEW FACT OR CIRCUMSTANCES FOR DEVIATING THE VIEW CONSISTENTL Y TAKEN IN THE OTHER ASSESSMENT YEARS WHEREBY THE CLAIM OF THE ASSESSEE WAS ACCEPTED. IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE AND AS PER THE RULE OF CONSISTENCY WHEN THE REVENUE HAS ACCEPTED THE CLAIM OF THE ASSESSEE IN ITA NO.1511/M/2012 WELLNESS N. SOLUTIONS (INDIA) PVT. LTD. 7 ALL OTHER YEARS THEN TREATING THE RENTAL INCOME IN RESPECT OF THE FITNESS CENTRE IS NOT JUSTIFIED. ACCORDINGLY WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW ON THESE ISSUES AND ALLOW THE CLA IM OF THE ASSESSEE. 7. AS REGARDS THE DISALLOWANCE OF MUNICIPAL TAXES B Y INVOKING SECTION 43B THE LD. A.R OF THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HAS PAID REMAINING MUNICIPAL TAXES ON 30.9.2007 THEREFORE W HEN THE AMOUNT IS PAID BEFORE THE DUE OF FILING OF RETURN THEN THE SA ME HAS TO BE ALLOWED U/S 43B. THERE IS NO DISPUTE ON THE POINT OF ALLOWABILI TY IF THE AMOUNT HAS BEEN PAID ON OR BEFORE THE DUE DATE OF FILING THE R ETURN OF INCOME U/S 139 OF INCOME TAX ACT. ACCORDINGLY THE A.O IS DIRECTED TO ALLOW THE CLAIM OF THE ASSESSEE IF THE AMOUNT HAS BEEN PAID BEFORE THE DUE DATED OF FILING THE RETURN. 8. GROUND NO. 3 & 4 REGARDING THE INTEREST INCOME T REATED AS INCOME FROM OTHER SOURCES. DURING THE PREVIOUS YEAR THE AS SESSEE HAS RECEIVED INTEREST INCOME OF ` 34 21 921/-. THE A.O HELD THAT THE INTEREST INCOME IS ASSESSABLE AS INCOME FROM OTHER SOURCES U/S 56 OF T HE INCOME TAX ACT. ACCORDINGLY THE INTEREST INCOME IS ASSESSED TO TAX UNDER THE HEAD INCOME FROM OTHER SOURCES AND CONSEQUENTLY CERTAIN EXPENSE S WERE DISALLOWED. ON APPEAL THE CIT(A) HAS CONFIRMED THE ACTION OF T HE A.O. 9. BEFORE US THE LD. A.R OF THE ASSESSEE HAS SUBMIT TED THAT THE ASSESSEE IS IN THE BUSINESS OF MONEY LENDING RIGHT FROM THE BEGINNING. HE HAS REFERRED THE DETAILS OF THE LOANS GIVEN BY THE ASSESSEE FROM THE ASSESSMENT YEAR 2003-04 TO 2007-08 AND SUBMITTED TH AT THE MONEY LENDING IS A REGULAR BUSINESS ACTIVITY OF THE ASSES SEE AND THE INTEREST ITA NO.1511/M/2012 WELLNESS N. SOLUTIONS (INDIA) PVT. LTD. 8 INCOME EARNED BY THE ASSESSEE HAS BEEN ACCEPTED BY THE DEPARTMENT FROM THE ASSESSMENT YEARS 2003-04 TO 2011-12 EXCEPT THE ASSESSMENT YEAR UNDER CONSIDERATION. HE HAS RELIED UPON THE DE CISION OF HONBLE CALCUTTA HIGH COURT IN CASE OF CIT VS HINDUSTAN MOT ORS LTD. 192 ITR 619 AS WELL AS THE DECISION IN CASE OF CIT VS ESS JAY ENTE RPRISES (P) LTD. 173 TAXMAN 1. THE LD. A.R HAS THUS SUBMITTED THAT WHEN THE INTEREST FROM LOAN AND ADVANCES IS A SUBSTANTIAL AND REGULAR BUSI NESS ACTIVITY OF THE ASSESSEE SINCE ITS INCEPTION AND THE REVENUE HAS CO NSISTENTLY ACCEPTED THE SAME THEN FOR THE ASSESSMENT YEAR UNDER CONSIDE RATION THE A.O CANNOT TAKE A DIFFERENT VIEW. HE HAS POINTED OUT TH AT THE ASSESSEE HAS DEPLOYED ITS MORE THAN 90% OF FUNDS FOR ADVANCING T HE LOAN WHICH GENERATE ABOUT 65% OF THE TOTAL INCOME. ON THE OTHE R HAND THE LD. D.R HAS RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW . 10. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WEL L AS RELEVANT MATERIAL ON RECORD. AS PER THE DETAILS THE ASSESSEE HAS ADVANCES THE LOAN DURING THE VARIOUS YEARS AND EARNED INTEREST INCOME AS UNDER: SL. NO. A.Y OP. BALANCE LOAN GIVEN DURING THE YEAR LOAN RETURN BACK CL. BALANCE INTEREST PARTIES 1. 2003- 04 1 01 87 467 4 74 50 000 4 49 43 962 1 29 38 392 13 08 150 29 2. 2004- 05 1 29 38 393 3 79 05 670 3 94 61 760 1 16 52 073 18 90 633 33 3. 2005- 06 1 16 52 073 3 77 00 000 2 92 20 366 2 01 52 119 22 74 051 39 4. 2006- 07 2 66 50 000 2 66 50 00 2 51 09 746 2 25 65 321 32 41 038 39 5. 2007- 08 2 98 52 258 2 98 52 258 1 63 55 268 3 73 84 840 32 21 951 30 ITA NO.1511/M/2012 WELLNESS N. SOLUTIONS (INDIA) PVT. LTD. 9 11. FROM THE DETAILS ABOVE IT IS CLEAR THAT THE SUB STANTIAL INCOME OF THE ASSESSEE IS FROM THE ACTIVITY OF ADVANCING THE LOAN AND IN THE FORM OF INTEREST. THIS INCOME HAS BEEN OFFERED BY THE ASSES SEE AS BUSINESS INCOME WHICH HAS BEEN ACCEPTED BY THE REVENUE SINCE 2003-04 TO 2011- 12 EXCEPT THE ASSESSMENT YEAR 2007-08. THERE IS NO DISPUTE ON THIS FACT THAT OUT OF 9 ASSESSMENT YEARS THE REVENUE HAS ACCE PTED THE INTEREST INCOME AS BUSINESS INCOME OF THE ASSESSEE FOR 8 ASS ESSMENT YEARS. THIS VIEW HAS BEEN TAKEN BY THE A.O CONSISTENTLY FOR 4 A SSESSMENT YEARS PRIOR TO THE ASSESSMENT YEAR UNDER CONSIDERATION AND ALSO SUBSEQUENT 4 ASSESSMENT YEARS. THEREFORE WHEN THE REVENUE HAS C ONSISTENTLY ACCEPTED THE INTEREST INCOME AS BUSINESS INCOME OF THE ASSESSEE THEN IN THE ABSENCE OF ANY CHANGE IN THE FACTS AND CIRCUMST ANCES A DIFFERENT VIEW IS NOT PERMISSIBLE FOR THE ASSESSMENT YEAR UNDER CO NSIDERATION. ACCORDINGLY THE ACTION OF THE A.O IS CONTRARY TO R ULE OF CONSISTENCY AND THEREFORE NOT SUSTAINABLE. HENCE WE SET ASIDE THE O RDERS OF THE AUTHORITIES BELOW QUA THIS ISSUE AND ALLOWED THE CLAIM OF THE A SSESSEE. AS REGARDS THE DISALLOWANCE OF EXPENSES THE SAME IS CONSEQUENTIAL AND ACCORDINGLY ALLOWABLE AS BUSINESS EXPENSES. 12. GROUND NO. 5 REGARDING INTEREST U/S 234B AND 23 4C. LEVY OF INTEREST U/S 234B AND 234C IS CONSEQUENTIAL IN NATURE AND NO SPECIFIC FINDING IS REQUIRED. ITA NO.1511/M/2012 WELLNESS N. SOLUTIONS (INDIA) PVT. LTD. 10 12. IN THE RESULT THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF OCTOBER 2013 SD/- SD/- ( . ) !' #$ (D. KARUNAKARA RAO) ACCOUNTANT MEMBER ( ) % #$ (VIJAY PAL RAO) JUDICIAL MEMBER PLACE: MUMBAI : DATED: 28 TH OCTOBER 2013 SUBODH COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER DY /AR ITAT MUMBAI