Nirman Discretionery Family Trust, Ahmedabad v. The Dy.CIT.,Circle-10,, Ahmedabad

ITSSA 188/AHD/2009 | misc
Pronouncement Date: 29-07-2011 | Result: Partly Allowed

Appeal Details

RSA Number 18820516 RSA 2009
Assessee PAN AAATN1192J
Bench Ahmedabad
Appeal Number ITSSA 188/AHD/2009
Duration Of Justice 1 year(s) 7 month(s) 7 day(s)
Appellant Nirman Discretionery Family Trust, Ahmedabad
Respondent The Dy.CIT.,Circle-10,, Ahmedabad
Appeal Type Income Tax (Search & Seizure) Appeal
Pronouncement Date 29-07-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted A
Tribunal Order Date 29-07-2011
Date Of Final Hearing 27-07-2011
Next Hearing Date 27-07-2011
Assessment Year misc
Appeal Filed On 22-12-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH 'A' BEFORE SHRI BHAVNESH SAINI JM & SHRI A N PAHUJA AM IT(SS)A NO.188/AHD/2009 [BLOCK PERIOD: 01-04-1995 TO 27-09-2001] NIRMAN DISCRETIONARY FAMILY TRUST NIRMA HOUSE ASHRAM ROAD AHMEDABAD V/S DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE-10 AHMEDABAD PAN: AAATN 1192 J [APPELLANT] [RESPONDENT] ASSESSEE BY :- SHRI S N SOPARKAR AR REVENUE BY:- SHRI KARTARSINGH DR O R D E R A N PAHUJA: THIS APPEAL BY THE ASSESSEE AGAINST AN ORDER DATED 15- 10-2009 OF THE LD. CIT(APPEALS)-XVI AHMEDABAD FOR THE BLOCK PERIOD RAISES THE FOLLOWING GROUNDS:- [1] IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE APPELLAN T'S CASE THE LEARNED CIT(A) HAS GROSSLY ERRED IN POINTS OF LAW AND FA CTS. [2] IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE APPELLANT 'S CASE THE LEARNED CIT(A) HAS GROSSLY ERRED IN NOT ADJUDICATING APP ELLANT'S GROUND NOS.2 & 3 WHICH READ AS UNDER: GROUND NO.2: 'IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE APPELLA NT'S CASE THE LEARNED ASSESSING OFFICER HAS GROSSLY ERRED IN ASSESSING TH E APPELLANT IN THE STATUS OF 'TRUST'. THE CORRECT STATUS OF THE APPELLANT IS THAT OF INDIVIDUAL'. GROUND NO.3: 'IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE APPELLA NT'S CASE THE ASSESSMENT MADE IN THE STATUS OF 'TRUST' IS NULL AND VO ID HAVING NO LEGAL FORCE'. [3] IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE APPELLANT 'S CASE THE LEARNED CIT(A) HAS GROSSLY ERRED IN CONFIRMING ADDITION OF ACCRUED INTEREST RS.4 36 622. 2 IT(SS)A NO.188/AHD/2009 [4] IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE APPELLANT 'S CASE THE LEARNED CIT(A) HAS GROSSLY ERRED IN HOLDING THAT CHARGIN G OF INTEREST U/SS.234A. 234B AND 234C OF INCOME-TAX ACT IS CONSEQUENTIA L. [5] YOUR APPELLANT RESERVES THE RIGHT TO ADD ALTER AMEND ALL OR ANY OF THE ABOVE GROUNDS OF APPEAL AS MAY BE ADVISED FROM TIME TO TIME. 2. FACTS IN BRIEF AS PER RELEVANT ORDERS ARE THAT A SEARCH U/S 132 OF THE INCOME-TAX ACT 1961 [HEREINAFTER REFERRED T O AS THE ACT] WAS CONDUCTED IN NIRMA GROUP OF CASES ON 27-09-2001. ON THE BASIS OF MATERIAL SEIZED DURING THE SEARCH PROCEEDINGS U/S 158BD OF THE ACT WERE INITIATED ON 5.6.2003 AND BLOCK ASSESSMENT WAS COMPLETED ON 30.6.2004 DETERMINING NIL UNDISCLOSED INCOME. SUBSE QUENTLY THE CIT VIDE HIS ORDER DATED 24-02-2006 SET ASIDE THE A FORESAID BLOCK ASSESSMENT IN THE FOLLOWING TERMS:- 4. I HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE ASSE SSEE TRUST AND I HAVE ALSO PERUSED THE DETAILS ON RECORD. THE BRIEF FACTS OF THE CASE ARE THAT IN THE COURSE OF SEARCH IN THE OFFICE PREMISES OF M/ S NIRMA MANAGEMENT SERVICES PRIVATE LIMITED AT KASHMIRA CHAMBERS ASHRAM'ROAD AHNLEDABAD ON 27-09-2001 A LOOSE PAPER MARKED AS PAGE 222 OF THE ANNEXURE-A-12 OF PANCHNAMA DATED 27-09-200 1 WAS FOUND. IN THIS LOOSE PAPER THERE WERE ENTRIES WHICH INDICATED THA T THE ASSESSEE TRUSTS PROPRIETARY CONCERN M/S NIRMAN CORPORATION WAS TO RECEIVE THE INTEREST TO THE EXTENT OF RS.4 36 622/- ACCRUED ON THE L OANS ADVANCED TO M/S V.M.CONFECTIONERY LTD.(VMC) AND M/S N.P.CHEWING-GUM LTD (NPC). THE ASSESSEE TRUST DID NOT OFFER THIS INTEREST AS ITS UNDI SCLOSED INCOME IN ITS BLOCK RETURN IN FORM NO.2B FILED ON 03-10-2002 NOR THE ASSESSING OFFICER INCLUDED THIS INTEREST IN THE UNDISCLOSED INCOME OF THE ASSESSEE TRUST DETERMINED IN THE BLOCK ASSESSMENT ORDER DATED 30.06 .2004 U/S 158BD READ WITH SECTION 158BC OF THE I. T. ACT 1961 FOR THE BLOCK PERIOD 01.04.1995 TO 27.09.2001. THE EXPLANATION OF THE ASSE SSEE TRUST IS THAT SINCE THE FINANCIAL HEALTH OF THE TWO CONCERNS NAMELY M/ S V.M.CONFECTIONERY LTD.(VMC) AND M/S N.P.CHEWING-GUM LT D (NPC) WAS BAD AND THEREFORE THE MANAGEMENT OF THE ASSESSEE TRUST DECIDED NOT TO CHARGE INTEREST ON THE AMOUNTS ADVANCED TO THEM. IN SUP PORT OF THIS CONTENTION THE ASSESSEE TRUST HAS REFERRED TO THE CORRESPO NDENCE EXCHANGED BETWEEN THESE TWO CONCERNS AND SHRI RAHUL V. DE VI SHRI KAUSHIK PATEL ETC. AS ALSO TO A PROPOSAL WHICH WAS TO BE SUBMITTED TO BIFR FOR REVIVAL OF THE UNITS OF THESE TWO CONCERNS. THE EXPLANATION GIVEN BY THE ASSESSEE TRUST FOR NOT OFFERING TO TAX THE INTERE ST OF RS.4 36 622/- ACCRUED ON THE LOANS ADVANCED TO M/S V.M.CONFECTIONERY LTD. (VMC) AND M/S N.P.CHEWING-GUM LTD (NPC) IS NOT SATISFACTORY. NO DOC UMENTARY EVIDENCE OF CREDIBLE NATURE HAS BEEN FILED TO SUBSTANTIA TE THIS EXPLANATION. FROM A PERUSAL OF MATERIAL ON RECORD THE ONLY LOGICAL CONCLUSION WHICH CAN FOLLOW IS THAT THE ASSESSEE TRUST DELIBERATELY DID NOT O FFER THIS INTEREST AS ITS 3 IT(SS)A NO.188/AHD/2009 UNDISCLOSED INCOME IN THE BLOCK RETURN IN FORM NO.2B FILE D ON 03-10-2002 AND A REFERENCE TO THE SO CALLED DECISION OF THE MANAGE MENT FOR NOT CHARGING INTEREST ON THE AMOUNTS ADVANCED TO M/S V.M.CONF ECTIONERY LTD. (VMC) AND M/S N.P.CHEWING-GUM LTD (NPC) IS MERELY AN A FTER THOUGHT WHICH IS SOLELY INTENDED TO COVER UP THE LAPSE. THERE IS N O DOUBT THAT THE ASSESSEE TRUST HAS BEEN FOLLOWING THE MERCANTILE SYSTEM OF A CCOUNTING AND THEREFORE THERE WAS NO VALID REASON WITH THE ASSESS EE TRUST FOR NOT OFFERING THIS INTEREST OF RS.4 36 622/- ACCRUED ON THE L OANS ADVANCED BY IT TO M7S V.M.CONFECTIONERY LTD.(VMC) AND M/S N.P.CHEWING- GUM LTD (NPC) AS ITS UNDISCLOSED INCOME IN THE BLOCK RETURN IN FORM NO 2B FILED ON 03-10-2002. AS THE SEIZED DOCUMENT AT PAGE 222 OF THE ANNEXURE-A-12 OF PANCHNAMA DATED 27-09-2001 CLEARLY RELATED TO THE UNDI SCLOSED INCOME OF THE ASSESSEE TRUST FOR THE BLOCK PERIOD THE ASSESSING OFFICER WAS DUTY BOUND TO CONSIDER THIS DOCUMENT IN DETERMINING THE UNDI SCLOSED INCOME OF ASSESSEE TRUST FOR THE BLOCK PERIOD WHICH HAS NOT BEEN DON E. THIS OMISSION ON THE PART OF THE ASSESSING OFFICER HAS PRIMA FACI E LED TO UNDERASSESSMENT OF UNDISCLOSED INCOME OF THE ASSESSEE TRUST FO R THE BLOCK PERIOD TO THE EXTENT OF RS.4 36 622/-. HI THE CIRCU MSTANCES THE BLOCK ASSESSMENT ORDER DATED 30 06.2004 U/S 158BD READ WITH SE CTION 158BC OF THE I. T. ACT 1961 FOR THE BLOCK PERIOD 01.04.1995 TO 27.09.2001 IS DEFINITELY ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE WITHIN THE MEANING OF SECTION 263. HOWEVER IN ORDER TO TAKE A FI NAL VIEW IN THE MATTER FURTHER INQUIRIES IN THIS REGARD ARE NECESSARY WH ICH COULD BE CONDUCTED ONLY BY THE ASSESSING OFFICER AND THEREFORE IT I S NOT POSSIBLE FOR ME TO RECORD CONCLUSIVE FINDINGS ON THIS ISSUE AT THIS STA GE IN THE CIRCUMSTANCES IT IS CONSIDERED FAIR AND REASONABLE TO SET A SIDE THE BLOCK ASSESSMENT ORDER DATED 30.06.2004 U/S 158BD READ WITH SE CTION 158BC OF THE I. T. ACT 1961 FOR THE BLOCK PERIOD 01.04.199 5 TO 27.09.2001 FOR BEING MADE AFRESH ON THIS POINT. THE ASSESSING OFFICER IS DIRECTED TO COMPLETE THE FRESH BLOCK ASSESSMENT AS PER LAW ON THE POINT OF INCLUSION OF INTEREST OF RS.4 36 622/- ACCRUED ON THE LOANS ADVANCE D BY THE ASSESSEE TRUST TO M/S V.M.CONFECTIONERY LTD.(VMC) AND M/S N. P.CHEWING- GUM LTD (NPC) IN ITS UNDISCLOSED INCOME FOR THE BLOCK PE RIOD AS DISCUSSED ABOVE. 5. IN THE RESULT THE BLOCK ASSESSMENT ORDER DATED 30.06.2 004 U/S 158BD READ WITH SECTION 158BC OF THE I. T. ACT 1961 FOR TH E BLOCK PERIOD 01.04.1995 TO 27.09.2001 IS SET ASIDE FOR BEING MADE A FRESH AS PER LAW ON THE POINT OF INCLUSION OF INTEREST OF RS.4 36 622/- ACCRU ED ON THE LOANS ADVANCED BY THE ASSESSEE TRUST TO M/S V.M.CONFECTIONERY LTD.(V MC) AND M/S N.P.CHEWING-GUM LTD (NPC) IN ITS UNDISCLOSED INCOME FOR THE BLOCK PERIOD 01.04.1995 TO 27.09.2001. 3. ON APPEAL AGAINST THE AFORESAID ORDER U/S 263 OF THE ACT THE TRIBUNAL VIDE THEIR ORDER DATED 12-10-2007 IN IT(SS )A NO.97/AHD/2006 UPHELD THE FINDINGS OF THE CIT. 4 IT(SS)A NO.188/AHD/2009 4. IN PURSUANCE TO THE AFORESAID DIRECTIONS OF THE LEARNED CIT IN HIS ORDER U/S 263 OF THE ACT THE AO SHOWCAUSED THE ASSESSEE PROPOSING TO TAX ACCRUED INTEREST OF RS 4 36 622/- ON LOANS ADVANCED TO M/S VM CONFECTIONARY LTD. & M/S NP CHEW ING GUM LTD.. IN RESPONSE VIDE LETTER DATED 25-12-2006 THE ASSESSEE FILED WRITTEN SUBMISSIONS THE GIST OF WHICH IS EXTRACTED IN THE ASSESSMENT ORDER AS UNDER:- (F) THE CONTENTS OF THE RESPECTIVE PAPERS WOULD UNDOUBT EDLY SHOW AND PROVE THAT FINANCIAL POSITION OF BOTH COMPANIES WERE SUB STANTIALLY LOW AND THEY ARE NOT IN A POSITION TO PAY INTEREST AT ALL. THEY REQUIRED FURTHER FUNDS TO MAKE THE PAYMENT OF ELECTRI CITY BILLS P.P. DUES AND OTHER STATUTORY DUES. THE PROPOSAL TO B.I.F.R . WAS ALSO GOING ON AND THERE WAS NO CHANCE OF REVIVAL. (G) IT IS FURTHER SUBMITTED THAT EVEN AS ON DATE NO I NTEREST IS RECEIVED FROM BOTH THE COMPANIES. (H) IN VIEW OF THIS FINANCIAL BAD POSITION BOARD OF T RUSTEES HAVE DECIDED NOT TO CHARGE INTEREST FROM 1.4.1998. (I) INTEREST IS NEITHER ACCRUED NOR RECEIVED FOR THE PE RIOD FROM 1.4.98 TO 3.12.98 WHEN PRINCIPAL AMOUNT AFTER PUTTING MUCH PR ESSURE IS RECEIVED THERE IS NO HOPE OF INTEREST AT ALL FOR THE PERIOD FROM 1.4.98 TO 3.12.98. INTEREST IS THEREFORE NEITHER ACCRUED NOR RECEIVED. (J) ASSESSEE TRUST IS FOLLOWING CASH METHOD OF ACCOUNTING FO R THE DISPUTED DOUBTFUL RECOVERY OF LOANS. IN VIEW OF THIS I NTEREST INCOME CANNOT BE ASSESSED TO TAX MUCH LESS AS UNDISCLOSED INCOME. (K) WE RELY ON THE VARIOUS CIRCULARS DECISIONS OF TRIBUNAL AND COURTS IN THE MATTER IN SUPPORT OF OUR CONTENTIONS. 5. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSE E THE AO REJECTED THE CONTENTIONS OF THE ASSESSEE THAT FINAN CIAL POSITION OF THE AFORESAID TWO COMPANIES VIZ. M/S V.M.CONFECTION ERY LTD.(VMC) AND M/S N.P.CHEWING-GUM LTD (NPC) WAS NOT GOOD AND REFERRING TO THE DOCUMENT AT PAGE 222 OF ANNEXURE A-12 OF THE PA NCHNAMA DATED 27-09-2001 ADDED AN AMOUNT OF RS.4 36 622/- ON ACCOUNT OF ACCRUED INTEREST. 5 IT(SS)A NO.188/AHD/2009 6 ON APPEAL THE LEARNED CIT(A) UPHELD THE FINDINGS OF THE AO IN THE FOLLOWING TERMS:- 4. THE FOLLOWING OPPORTUNITIES OF HEARING WAS GRANTE D TO THE APPELLANT:- NO. DATE OF NOTICE DATE OF FIXING THE HEARING REMARKS 1 11-12-2008 29-12-2008 NO COMPLIANCE 2 23-1-2009 3-2-2009 CASE ADJOURNED FOR 13- 2-2009 13-2-2009 SHRI HEMANSHU SHAH CA ATTENDED & REQUESTED FOR ADJOURNMENT UPTO 27-2- 2009 27-2-2009 NO COMPLIANCE 3 3-3-2009 19-3-2009 ADJ. SOUGHT UPTO 21-4- 2009 21-4-2009 ADJ. SOUGHT UPTO 28-4- 2009 28-4-2009 ADJ. SOUGHT UPTO 19-05- 2009 4 20-5-2009 17-6-2009 ADJ. SOUGHT UPTO 6-7- 2009 5 20-7-2009 11-8-2009 NO COMPLIANCE 6 12-8-2009 4-9-2009 ON 7-9-2009 SHRI HEMANSHU SHAH CA ATTENDED & AGAIN SOUGHT FOR ADJ. SOUGHT UPTO 16- 9-2009 16-9-2009 ADJ. SOUGHT ON THE GROUND THAT SHRI HEMANSHU SHAH IS GONE OUT OF STATION. CASE ADJOURNED UPTO 9- 10-2009 9-10-2009 NO COMPLIANCE 5. FROM THE ABOVE IT IS CLEAR THAT THE APPELLANT H AS BEEN GIVEN ABOUT 14 OPPORTUNITIES BUT NEITHER ANY WRITTEN SUBMISSIONS FILE D NOR ANY ARGUMENTS WERE GIVEN. SINCE THE APPEAL IS OLD (FILED I N MARCH 2007) AND MORE THAN SUFFICIENT OPPORTUNITIES WERE GIVEN THE CASE IS BEING ADJUDICATED ON THE BASIS OF THE RECORDS AVAILABLE. 6 IT(SS)A NO.188/AHD/2009 6. FROM THE ASSESSMENT ORDER IT IS SEEN THAT THE APPELLAN T IS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING AND THE INTEREST ON THE LO ANS GIVEN TO M/S. V M CONFECTIONERY LTD & M/S. N P CHEWING GUM LTD HAS ACCRUED TO THE APPELLANT THEREFORE THE AO WAS JUSTIFIED IN IN CLUDING THE INTEREST INCOME OF RS.4 36 622/- IN THE UNDISCLOSED INCOME OF THE APPELLANT. 7 THE ASSESSEE IS NOW IN APPEAL BEFORE US AGAINST T HE AFORESAID FINDINGS OF THE LEARNED CIT(A). AT THE OUTSET THE LEARNED AR ON BEHALF OF THE ASSESSEE CONTENDED THAT THE LEARNED C IT(A) DID NOT ADJUDICATE GROUND NOS.2 AND 3 RAISED BEFORE HIM. H E ARGUED THAT THE ISSUE OF STATUS OF THE TRUST WAS NOT THE SUBJEC T MATTER OF ORDER DATED 24-2-2006 PASSED BY THE CIT U/S 263 OF THE AC T AND THEREFORE THE AO COULD NOT CHANGE THE STATUS OF TH E ASSESSEE. AS REGARDS THE ADDITION ON ACCOUNT OF ACCRUED INTEREST OF RS.4 36 622/- THE LEARNED AR PLEADED THAT THE LD. CIT(A) DID NOT INDICATE THE DOCUMENT SEIZED FORMING THE BASIS OF THE ADDITION TOWARDS INTEREST AND ADDED THAT NO SUCH MATERIAL WAS SEIZED DURING T HE COURSE OF SEARCH. IN THE ABSENCE OF ANY SEIZED MATERIAL THE LEARNED CIT(A) WAS NOT JUSTIFIED IN UPHOLDING THE ADDITION THE LD . AR ADDED. INTER ALIA THE LD. AR RELIED UPON DECISION IN GODHRA ELE CTRICITY COMPANY LTD. VS. CIT 225 ITR 746(SC) & CIT VS. ARISTOCRAFT INTERNATIONAL (P) LTD.238 ITR 83(DELHI).HOWEVER WE FIND THAT THE LAT TER DECISION IS NOT RELEVANT TO THE ISSUE BEFORE US. THE LEARNED DR ON THE OTHER HAND SUPPORTED THE ORDER OF THE LEARNED CIT(A). 8. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE FACTS OF THE CASE. AS IS APPARENT FROM THE AFORESAID FINDING S OF THE CIT IN HIS ORDER U/S 263 OF THE ACT THE LD. CIT MERELY SET AS IDE THE ASSESSMENT ON THE ISSUE OF INCLUSION OF INTEREST OF RS.4 36 622/- ACCRUED ON LOANS ADVANCED TO M/S VM CONFECTIONARY L TD. & M/S NP CHEWING GUM LTD. AND NOT ON THE STATUS OF THE ASSES SEE. SINCE THE LEARNED CIT(A) HAS NOT ADJUDICATED THE ISSUES RAISE D IN GROUND NOS.2 AND 3 IN THE APPEAL BEFORE HIM IN THE INTERE ST OF JUSTICE WE CONSIDER IT FAIR AND APPROPRIATE TO DIRECT THE LEAR NED CIT(A) TO ADJUDICATE THESE ISSUES IN ACCORDANCE WITH LAW AFTE R ALLOWING 7 IT(SS)A NO.188/AHD/2009 SUFFICIENT OPPORTUNITY TO BOTH THE PARTIES. WITH TH ESE DIRECTIONS GROUND NO.2 IN THE APPEAL IS DISPOSED OF. 9. AS REGARDS GROUND NO.3 WE FIND THAT THOUGH THE LEARNED CIT(A) ALLOWED A NUMBER OF OPPORTUNITIES AS MENTION ED IN PARA-4 OF THE IMPUGNED ORDER THE ASSESSEE DID NOT CARE TO FI LE EITHER WRITTEN SUBMISSIONS NOR ANY ARGUMENTS WERE ADVANCED. SINCE THE ASSESSEE FOLLOWED MERCANTILE SYSTEM OF ACCOUNTING THE LEARN ED CIT(A) UPHELD THE ADDITION. AS IS APPARENT THE LEARNED CIT(A) DI D NOT ADVERT TO THE PLEA NOW RAISED BEFORE US THAT NO MATERIAL WAS SEIZ ED DURING THE COURSE OF SEARCH WHICH COULD FORM THE BASIS OF AFOR ESAID ADDITION ON ACCOUNT OF ACCRUED INTEREST. IN THESE CIRCUMSTANCES WE CONSIDER IT FAIR AND APPROPRIATE TO SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO HIS FILE FOR DECIDING THE IS SUE OF ACCRUED INTEREST RAISED IN THE GROUND NO.3 IN THE APPEAL AFRESH IN ACCORDANCE WITH LAW IN THE LIGHT OF VARIOUS JUDICIA L PRONOUNCEMENTS AFTER ALLOWING SUFFICIENT OPPORTUNITY TO BOTH THE P ARTIES. NEEDLESS TO SAY THAT WHILE REDECIDING THE ISSUE THE LEARNED CI T(A) SHALL PASS A SPEAKING ORDER KEEPING IN MIND INTER ALIA THE MA NDATE OF PROVISIONS OF SEC. 250(6) OF THE ACT BRINGING OUT CLEARLY AS TO WHETHER OR NOT ANY MATERIAL OR EVIDENCE WAS FOUND A S A RESULT OF SEARCH WHICH COULD FORM THE BASIS OF THE SAID ADDI TION. THE ASSESSEE IS ALSO DIRECTED TO APPROACH THE LD. CIT(A ) FOR EXPEDITIOUS DISPOSAL OF THE APPEAL AND SHALL AVOID SEEKING ADJO URNMENTS UNNECESSARILY. WITH THESE OBSERVATIONS GROUND NO. 3 IN THE APPEAL IS DISPOSED OF. 10. GROUND NO.1 IN THE APPEAL BEING GENERAL IN NATU RE NOR ANY SUBMISSIONS HAVE BEEN MADE BEFORE US DOES NOT REQU IRE ANY SEPARATE ADJUDICATION AND IS THEREFORE DISMISSED . 11 GROUND NO. 4 IN THE APPEAL OF THE ASSESSEE RELA TES TO LEVY OF INTEREST U/S.234A 234B & 234C OF THE ACT. SINCE THE LD. AR ON BEHALF OF THE ASSESSEE DID NOT MAKE ANY SUBMISSIONS ON THI S GROUND WHILE 8 IT(SS)A NO.188/AHD/2009 THE LEVY OF INTEREST U/S 234A 234B& 234C OF THE A CT BEING MANDATORY [COMMISSIONER OF INCOME TAX. VS ANJUM M. H. GHASWALA AND OTHERS 252 ITR 1(SC) AFFIRMED BY HON'BLE APEX COURT IN THE CASE OF CIT V. HINDUSTAN BULK CARRIERS [2003] 259 I TR 449(SC) AND IN THE CASE OF CIT V. SANT RAM MANGAT RAM JEWELLERS [2003] 264 ITR 564(SC)] THIS GROUND IS DISMISSED. HOWEVER THE AO MAY ALLOW CONSEQUENTIAL RELIEF IF ANY WHILE GIVING EF FECT TO THIS ORDER. 12 NO ADDITIONAL GROUND HAVING BEEN RAISED BEFORE U S IN TERMS OF RESIDUARY GROUND NO. 5 IN THE APPEAL ACCORDINGLY THIS GROUND IS ALSO DISMISSED. 13. NO OTHER PLEA OR ARGUMENT WAS MADE BEFORE US. 14. IN THE RESULT APPEAL IS PARTLY ALLOWED BUT FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT TODAY ON 29-07-2011 SD/- SD/- ( BHAVNESH SAINI ) JUDICIAL MEMBER ( A N PAHUJA ) ACCOUNTANT MEMBER DATED : 29 -07-2011 COPY OF THE ORDER FORWARDED TO: 1. NIRMAN DISCRETIONARY FAMILY TRUST NIRMA HOUSE ASHRAM ROAD AHMEDABAD 2. DY. COMMISSIONER OF INCOME-TAX CIRCLE-10 AHMED ABAD 3. CIT CONCERNED 4. CIT(A)-XVI AHMEDABAD 5. DR ITAT AHMEDABAD BENCH-A AHMEDABAD 6. GUARD FILE BY ORDER DEPUTY REGISTRAR ASSISTANT REGISTRAR ITAT AHMEDABAD