MODI BUSINESS CENTRE PVT. LTD. vs DC (IT) SPL. RG. 19

Judgment text excerpt

Neeta Sawant ITXA-584-2004-FC IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 584 OF 2003 Modi Business Centre Pvt. Ltd. ...Appellant -Versus- DC (IT) Spl. Rg. 19, Bombay ...Respondent Mr. Bharat Raichandani with Bhagrai Sahu i/b. M/s. UBR Legal, for the Appellant-Assessee. Mr. Arjun Gupta, for Respondent-Revenue. CORAM : ALOK ARADHE, CJ. & SANDEEP V. MARNE, J. RESERVED ON : 14 AUGUST 2025 PRONOUNCED ON : 21 AUGUST 2025 JUDGMENT : (Per : Sandeep V. Marne, J.) 1) By this Appeal filed under Section 260-A of the Income Tax Act, 1961 (the Act) the Assessee has challenged order dated 28 January 2003 passed by the Income Tax Appellate Tribunal allowing the appeal filed by the Revenue and setting aside the order passed by the Commissioner of Page No. 1 of 33 21 August 2025 Neeta Sawant ITXA-584-2004-FC Income Tax (Appeals) and restoring the order passed by the Assessing Officer. The Appeal pertains to the Assessment Year 1992-93. 2) Brief facts, leading to filing of the Appeal are that the Assessee is a private limited company incorporated on 17 February 1992 under the provisions of the Companies Act, 1956 with the objective of constructing business centres, buildings, houses, premises, etc. and to let on lease the same, in addition to the business of financing. In respect of Assessment Year 1992-93, the Assessee filed return of income declaring income of Rs.5,966/- under the head “business”. Return was accompanied by profit and loss account which showed interest receipt of Rs.14,66,825/-, against which deduction of interest of Rs.13,37,225/- on fixed loan, guarantee commission of Rs.1,21,759/- and other sundry expenses were claimed and net profit of Rs.5,966/- was shown. The Assessee had borrowed money on interest from Citi