The Commissioner Of Income Tax-7 v. M/S. Siyaram Silk Mills Ltd

lgc IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.448 OF 2008 The Commissioner of Income Tax-7versusM/s. Siyaram Silk Mills Ltd. : Appellant. : Respondent. Mr.Suresh Kumar for the Appellant.Mr. A K Jasani for the Respondent. CORAM :J P DEVADHAR AND R M SAVANT, JJ.DATED :16[th] NOVEMBER 2010 P.C. Heard the learned counsel for the Appellant and the learned counsel for the Respondent. Perused the Appeal. By order dated 4[th] September 2008 this Appeal has been admitted on the 2 following substantial question of law :- “(A) Whether, on the facts and in the circumstances of the case and in law, the Hon’ble I.T.A.T. Was justified in deleting disallowance of interest u/s. 14A holding that the burden was on the Assessing Officer to show that the expenditure was actually incurred and there was a relationship with the exempted income without appreciating the fact that the kind of information required to show that the borrowed funds were used or not used for the purpose of long term investment is in the special knowledge of the assessee alone and as per Section 106 of the Indian Evidence Act, 1872, the burden is on the assessee which was not discharged at the A.O.’s level and at the level of the CIT(A)?” 2 The learned counsel for both the sides fairly state that the question of law raised in this Appeal is covered by the decision of this Court in the case of Godrej & Boyce Mfg. Co. Ltd. v/s. Deputy Commissioner of Income Tax and Anr. reported in (2010) 234 CTR (Bom)1. and (2010) 328 ITR 81 (Bom) 2 ITXA NO.448/08. 3In this view of the matter, the order of the Income Tax Appellate Tribunal dated 18/09/2007 is quashed and set aside and the matter is restored to the file of the Assessing Officer to decide the issues raised in this Appeal in accordance with law laid down by this Court in the case of Godrej & Boyce Mfg. Co. Ltd. v/s. DeputyCommissioner of Income Tax and Anr. (supra). The Appeal is disposed of accordingly. [R.M.SAVANT, J] [J P DEVADHAR, J]