Itxa/1132/2010 Of The Commissioner Of Income Tax-7 , Mumbai v. M/S. The Swastik Safe Deposit And Investment Ltd. Mumbai

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1132 OF 2010 The Commissioner of Income Tax-7, Mumbai ..Appellant. V/s. M/s. The Swastik Safe Deposit & Investment Ltd. ..Respondent. Mr. Suresh Kumar for the appellant. Mr. J.D. Mistri, senior advocate with Atul K. Jasani for the respondent. CORAM : J.P. DEVADHAR AND K.K. TATED, JJ. K.K. TATED, JJ. DATED : 5TH SEPTEMBER, 2011 P.C. :- 1.Two questions of law raised by the revenue read thus:- (i)Whether on the facts and circumstances of the case and in law, the ITAT was justified in restoring the issue relating to disallowance of Rs.1,20,96,000/- being premium paid on redemption of debentures by the assessee ?the ITAT was justified in restoring the issue relating to disallowance of Rs.1,20,96,000/- being premium paid on redemption of debentures by the assessee ? (ii)Whether on the facts and circumstances of the case and in law, the ITAT was justified allowing the appeal of the assessee by directing to delete the disallowance of advance discounting charges of Rs.1,45,22,563/- as revenue expenditure without appreciating the fact that lease transactions are found to be bogus and assets said to leased out were non existent and even supplier of assets did not exist ?the ITAT was justified allowing the appeal of the assessee by directing to delete the disallowance of advance discounting charges of Rs.1,45,22,563/- as revenue expenditure without appreciating the fact that lease transactions are found to be bogus and assets said to leased out were non existent and even supplier of assets did not exist ? 2.As regards the first question is concerned, since the ITAT has restored the issue back to the file of the assessing officer for fresh consideration, we do not deem it proper to entertain the first question. 3.As regards the second question is concerned, the ITAT has deleted the disallowance by relying upon its decision in the case of Morarji Gokuldas Spinning & Weaiving Co. Ltd. V/s. DCIT reported in 95 ITD 1 (Mum)(TM) wherein it is held that the lease transactions are genuine transactions.Admittedly, the appeal filed by the revenue against the order of the ITAT in the case of Morarji Gokuldas Spinning & Weaving Co. Ltd. (supra) has been dismissed by this Court for want of removal of office objections and that order has attained finality. In these circumstances, the deletion of disallowance by the ITAT cannot be faulted. Therefore, the second question cannot be entertained. In the result, the appeal is dismissed with no order as to costs. (K.K. TATED, J.) (J.P. DEVADHAR, J.)