M/s. Saravana Stores (Tex), CHENNAI V. ACIT, CHENNAI

CO 160/CHNY/2011

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 7338 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 28 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 06-06-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 06-06-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 08-11-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S SATHIYANAR AYANAN
• Assessee Lawyers: VIKRAMADITYA IRS
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER I.T.A. NO. 1739/MDS/2010 ASSESSMENT YEAR : 2007-08 AND C.O.NO.160/MDS/2011 THE ASSISTANT COMMISSIONER OF INCOME-TAX, BUSINESS CIRCLE-II, CHENNAI. (APPELLANT) VS. M/S. SARAVANA STORES (TEX), 45, RANGANATHAN STREET, T.NAGAR, CHENNAI 17. PAN AAWFS 6761 Q (RESPONDENT/CROSS OBJECTOR APPELLANT BY : SHRI VIKRAMA DITYA, IRS, JCIT RESPONDENT BY : SHRI S.SATHIYAN ARAYANAN, ADVOCATE DATE OF HEARING : 6 TH JUNE, 2012 DATE OF PRONOUNCEMENT : 6 TH JUNE, 2012 O R D E R PER DR. O.K.NARAYANAN, VICE PRESIDENT THE APPEAL IS FILED BY THE REVENUE. THE CROSS OBJ ECTION IS FILED BY THE ASSESSEE. THE RELEVANT ASSESSMENT YEA R IS 2007-08. THE APPEAL AND THE CROSS OBJECTION ARE DIRECTED AGA INST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-VI AT CH ENNAI DATED ITA 1739/10 & CO 160/11 :- 2 -: 30.7.2010. AND ARISES OUT OF THE ASSESSMENT COMPLET ED UNDER SEC.143(3) OF THE INCOME-TAX ACT, 1961. 2. THE GROUND RAISED BY THE REVENUE IN ITS APPEAL I S THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN DE LETING A SUM OF ` 83,84,138/- BEING PROPORTIONATE DISALLOWANCE OF IN TEREST ON BORROWED CAPITAL. 3. ON GOING THROUGH THE ORDERS OF THE LOWER AUTHORI TIES, WE FIND THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS NO T MADE ANY DEFINITE FINDING REGARDING THE POINTS RAISED BY THE ASSESSING OFFICER IN HIS ORDER. THE COMMISSIONER OF INCOME-T AX(APPEALS) HAS NOT APPRECIATED THE ARGUMENTS OF THE ASSESSEE AS WELL AS OF THE REVENUE EVEN THOUGH HE HAS GRANTED RELIEF TO TH E ASSESSEE. THEREFORE, WE FIND THAT THE ISSUE OF DISALLOWANCE O F INTEREST HAS TO BE CONSIDERED AFRESH. THEREFORE, THIS ISSUE IS REM ITTED BACK TO THE ASSESSING OFFICER FOR FRESH CONSIDERATION IN TH E LIGHT OF EVIDENCES AND DETAILS TO BE FURNISHED BY THE ASSESS EE. THE ASSESSEE SHALL BE GIVEN AN EFFECTIVE OPPORTUNITY OF BEING HEARD. ITA 1739/10 & CO 160/11 :- 3 -: 4. AS THE ORDER OF THE COMMISSIONER OF INCOME-TAX(A PPEALS) ON THIS ISSUE HAS BEEN SET ASIDE, THE ASSESSEE WILL HAVE OPPORTUNITY TO PRESENT ITS CASE BEFORE THE ASSESSIN G AUTHORITY. THE ASSESSEE IS PERMITTED TO PRODUCE THE DETAILS A ND EVIDENCES BEFORE THE ASSESSING OFFICER TO SUPPORT ITS CASE. 5. IN RESULT, THE APPEAL AS WELL AS THE CROSS OBJE CTION ARE TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON WEDNESDAY, THE 6 TH OF JUNE, 2012 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) JUDICIAL MEMBER (DR. O.K.NARAYANAN) VICE-PRESIDENT CHENNAI, DATED THE 6 TH JUNE, 2012 MPO* COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR