Grand Prix Fab. Pvt. Ltd., Faridabad V. ACIT, Faridabad

ITA 1006/DEL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3990 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 19-02-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Assessee Lawyers: D C GARG
• Keywords: Rejection of books of accounts; Depreciation; Cost of acquisition
• Section: 143(3); 14A; 133(6); 37(1); 131

Judgement Text

ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 1 IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCHES : C NEW DELHI ] BEFORE SHRI S. K. YADAV, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I. T. APPEAL NO. 1006 (DEL) OF 20 1 5 ASSESSMENT YEAR : 200 9 - 1 0 . M/S. GRAND PRIX FAB PVT. LTD., PLOT NO. 82, SECTOR : 25, F A R I D A B A D 121 004. VS. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE : 2, F A R I D A B A D. PAN : A A ACG 8368 C I. T. APPEAL NO. 1200 (DEL) OF 20 1 5 ASSESSMENT YEAR : 200 9 - 1 0 . ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE : 2, F A R I D A B A D. VS. M/S. GRAND PRIX FAB PVT. LTD., PLOT NO. 82, SECTOR : 25, F A R I D A B A D 121 004. PAN : A AACG 8368 C (APPELLANT S ) (RESPONDENT S ) ASSESSEE BY : SHRI D. C. GARG, C. A.; DEPARTMENT BY : SHRI S. L. ANURAGI, SR. D. R.; DATE OF HEARING : 23 . 0 5 .201 8; DATE OF PRONOUNCEMENT : 09.08 .201 8. ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 2 O R D E R . PER PRASHANT MAHARISHI, A.M . : THESE TWO APPEALS HAVE BEEN FILED BY THE ASSESSEE AS WELL AS THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE : II, FARIDABAD (LEARNED ASSESSING OFFICER) AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) FARIDABAD DATED 16.01.2014 FOR ASSESSMENT YEAR 2009 - 10. 2. LIMITED FACTS INVOLVED IN THESE CASES ARE THAT ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURE OF ENGINEERING CAPITAL GOODS. IT FILED ITS RETURN OF INCOME SHOWING INCOME OF RS.2,03,73,410/ - ON 19.09.2009. ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT WAS PASSED ON 19.12.2011 DETERMINING TOTAL INCOME OF THE ASSESSE E AT RS.3,23,97,660/ - . AGAINST THIS THE ASSESSEE PREFERRED APPEAL BEFORE THE LEARNED CIT (APPEALS) WHO PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. THEREFORE, BOTH THE PARTIES ARE IN APPEAL BEFORE US. 3. NOW WE FIRST TAKE UP THE APPEAL OF THE ASSE SSEE. THE FIRST GROUND OF APPEAL IS AGAINST THE SUSTAINING ADDITION OF RS.9,82,800/ - ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 3 BEING 30% OF PURCHASES AND ALLOWING 70% OF THE PURCHASE COST. ON THE ADDITION DELETED THE REVENUE IS IN APPEAL VIDE GROUND NO. 2. 4. THE BRIEF FACTS OF THE ISSUE IS THAT FOR ASSESSMENT YEAR 2008 - 09 THE ASSESSING OFFICER MADE DETAILED ENQUIRY AND HELD THAT CERTAIN PURCHASES MADE FROM CERTAIN PARTIES ARE BOGUS. CONSEQUENTLY THE ADDITIONS WERE MADE. THE LEARNED ASSESSING OFFICER NOTED THAT ASSESSEE HAS PURCHASES OF RS.32.76 LAKHS FROM M/S. OM TRADING COMPANY. THE ASSESSEE SUBMITTED COPY OF THE ACCOUNT OF THE ABOVE PARTY AND THE DETAILS OF PAYMENT MADE TO THAT PARTY. THE LEARNED ASSESSING OFFICER VIDE PARA NO. 5.2 NOTED THE ENQUIRI ES MADE BY THE ASSESSING OFFICER IN CASE OF THIS PARTY IN EARLIER YEAR. THEREFORE, THE ASSESSEE WAS ASKED TO PROVE THE GENUINENESS OF THE PURCHASES FROM THIS PARTY. ASSESSEE SUBMITTED THAT THE PURCHASES WERE MADE FROM THIS PARTY BASED ON THE ESTI MATE COST SHEET AND ALSO SUBSTANTIATED WITH THE STOCK REGISTER TO SHOW THAT THE MATERIAL HAS BEEN RECEIVED FROM THIS PARTY. THE LEARNED ASSESSING OFFICER REJECTED THE CONTENTION OF THE ASSESSEE AND NOTED THAT SINCE THE ASSESSEE WAS NOT IN A P OSITION TO PROVE THE GENUINENESS OF THE PURCHASES HE MADE THE DISALLOWANCE OF THE TOTAL PURCHASES FROM THIS PARTY. BEFORE MAKING THE DISALLOWANCE THE LEARNED ASSESSING OFFICER ISSUED NOTICE UNDER SECTION 133(6) TO THE ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 4 SUPPLIER AT THE GIVEN ADDRESS , BUT THE NOTICE WAS RECEIVED BACK AS NO SUCH PARTY WAS FOUND AT THE GIVEN ADDRESS. THE ASSESSING OFFICER FURTHER ISSUED SUMMONS UNDER SECTION 131 AND ALSO DEPUTED THE INSPECTOR TO SERVE THE ABOVE SUMMONS. THE INSPECTOR REPORTED THAT FROM THE LOCAL ENQUIRY THAT AT THE GIVEN ADDRESS THE PARTY IS NOT AVAILABLE AND SUCH FIRM NEVER EXISTED. THE INSPECTOR ALSO ENQUIRED AT THE OTHER PREMISES AND REPORTED THAT THE FIRM IS NOT GENUINE. WITH THE REPORT OF THE INSPECTOR THE ASSESSEE WAS CONFR ONTED. THE ASSESSEE SUBMITTED THAT AS POSTAL AUTHORITIES HAVE STATED THAT THE PARTY HAS LEFT THAT MEANS IT WAS EXISTING AT THAT PARTICULAR TIME. THE ASSESSING OFFICER REJECTED THE EXPLANATION OF THE ASSESSEE AND REJECTED THE BOOKS OF ACCOUNTS BY INVOKING THE PROVISIONS OF SECTION 145(3) OF THE ACT. HE FURTHER RELIED UPON THE DECISION OF HONBLE DELHI HIGH COURT IN CIT VS. LA MEDICA 205 ITR 575 (DEL). HE, THEREFORE, DISALLOWED THE COMPLETE PURCHASES OF RS.32,76,000/ - . THE ASSES SEE PREFERRED AN APPEAL BEFORE THE LEARNED CIT (APPEALS), WHO RELYING UPON THE DECISION OF THE ASSESSEE FOR ASSESSMENT YEAR 2008 - 09 WHERE 30% OF THE PURCHASE PRICE WAS DISALLOWED AND THE BALANCE WAS ALLOWED AS AN EXPENDITURE. HE, THEREFORE, OUT OF RS .32.76 LAKHS ALLOWED THE PURCHASES OF RS.22,93,200/ - AND CONFIRMED DISALLOWANCE OF RS.98,28,800/ - . THEREFORE, BOTH THE PARTIES ARE IN APPEAL BEFORE US. ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 5 5. THE LEARNED AUTHORIZED REPRESENTATIVE SUBMITTED THAT AN IDENTICAL ISSUE AROSE IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2008 - 09, WHICH IS ALSO REFERRED BY THE LEARNED CIT (APPEALS). THE CO - ORDINATE BENCH VIDE ORDER DATED 18.04.2017 CONFIRMED THE ADDITION DELETED TO THE EXTENT OF 70% BY THE LEARNE D CIT (APPEALS). WITH RESPECT TO THE BALANCE 30% HE STATED THAT SAME IS NOT JUSTIFIED IN VIEW OF THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN 35 TAXMANN.COM 384. 6. THE LEARNED DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ORDER OF THE LEARNED ASS ESSING OFFICER AND STATED THAT WHEN THE PURCHASES ARE BOGUS, THERE IS NO REASON TO ALLOW EVEN 70% OF THE PURCHASES TO THE ASSESSEE AND, THEREFORE, THE ORDER OF THE LEARNED CIT (APPEALS) IS NOT PROPER. 7. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AND FIND THAT THE ISSUE IS SQUARELY COVERED BY THE DECISION OF THE CO - ORDINATE BENCH IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2008 - 09 DATED 18.04.2017 WHEREIN ON THE IDENTICAL FACTS AND CIRCUMSTANCES THE ORDER PASSED BY THE LEARNE D CIT (APPEALS) WAS UPHELD WHEREIN THE DELETION OF THE DISALLOWANCE TO THE EXTENT OF 70% AND CONFIRMATION OF THE ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 6 DISALLOWANCE TO THE EXTENT OF 30% WAS UPHELD. THE CO - ORDINATE BENCH HAS CONSIDERED THE DECISION OF THE HONBLE BOMBAY HIGH COURT ALSO AS PRESSED BEFORE US BY THE LEARNED DEPARTMENTAL REPRESENTATIVE AND THE DECISION OF THE HONBLE DELHI HIGH COURT AS PRESSED BY THE LEARNED DR. IN THAT YEAR THE PURCHASES FROM THIS PARTY WAS ALSO INVOLVED. IN VIEW OF THIS, WE DO NOT FIND ANY RE ASON TO INTERFERE WITH THE ORDER OF THE LEARNED CIT (APPEALS). ACCORDINGLY GROUND NO. 1 OF THE APPEAL OF THE ASSESSEE AND GROUND NO. 2 OF THE APPEAL OF THE REVENUE ARE DISMISSED. 8. NOW WE COME TO GROUND NO. 2 OF THE APPEAL OF THE ASSESSEE WHEREIN THE DISALLOWANCE OF RS.1,94,888/ - CONFIRMED BY THE LEARNED CIT (APPEALS) ON ACCOUNT OF INTEREST EXPENDITURE IS CONTESTED. 8.1 THE BRIEF FACTS SHOWS THAT ASSESSEE HAS PURCHASE LA ND FOR A CONSIDERATION OF RS.22,45,406/ - . THE ASSESSEE SUBMITTED THAT THESE FUNDS ARE USED OUT OF THE INTERNAL APPROVALS AND NOT FROM BORROWED FUNDS. ASSESSEE ALSO SUBMITTED A COMPLETE CHART SHOWING THE SOURCE OF THE FUNDS USED FOR THE PURPOSE OF PURCHAS E OF THE ABOVE LAND. THE LEARNED ASSESSING OFFICER NOTED THAT THE ABOVE LAND WAS NOT USED FOR THE PURPOSES OF THE BUSINESS AND, THEREFORE, INTEREST EXPENDITURE THEREON IS ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 7 NOT ALLOWABLE, BUT SHOULD BE CAPITALIZED AND, THEREFORE, HE APPLIED THE RATE OF 12% AND RESULTANT INTEREST OF RS.1,94,888/ - WAS CAPITALIZED. THE ISSUE REACHED THE LEARNED CIT (APPEALS). THE LEARNED CIT (APPEALS) NOTED THAT THE APPELLANT HAS UTILIZED THE ABOVE SUM FROM CASH CREDIT ACCOUNT AND, THEREFORE, THE DISALLOWANCE HAS BEEN MADE BY THE LEARNED ASSESSING OFFICER. VIDE PARA NO. 19 HE FURTHER NOTED THAT THE PAYMENT FOR THE PURCHASE OF LAND MADE TO THE SELLER FROM THE CASH CREDIT ACCOUNT AND THE ASSESSEE COULD NOT RECONCILE THE DIFFERENCE IN THE DATE OF THE PAYMENT AS PER THE TWO CHART S SUBMITTED BY THE ASSESSEE BEFORE HIM. THEREFORE, HE CONFIRMED THE DISALLOWANCE OF RS.1,94,888/ - . 8.2 THE ASSESSEE SUBMITTED THAT THE FUNDS WERE UTILIZED OUT OF THE RECOVERIES MADE BY THE ASSESSEE FROM ITS BUSINESS AND, THEREFORE, THE BORROWED FUNDS WERE NOT USED. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 9. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS. THE MAIN CONTENTION OF THE ASSESSEE IS THAT ASSESSEE HAS ACCRUALS BEFORE INVESTMENT MADE IN THE LAND. THE ASSESSEE HAS STATED THAT NET PROIT OF THE ASSESSEE BEFORE DEPRECIATION FOR ASSESSMENT YEAR 2009 - 10 STANDS AT 9.26% AND, THEREFORE, HE TOOK SALES UP TO 30.06.2008 OF ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 8 RS.2,52,83,638/ - AND STATED THAT CASH PROFIT ACCRU AL UP TO THAT DATE IS RS.23,42,056/ - AND, THEREFORE, TO THAT EXTENT THE FUNDS UTILIZED ARE FROM INTERNAL A CCRUALS . THE ARGUMENT OF THE ASSESSEE IS NOT ACCEPTED, BECAUSE THE PROFIT ACCRUES TO THE ASSESSEE AT THE END OF THE ACCOUNTING YEAR WHEN THE FINAL ACCOUNTS ARE MADE. IT DOES NOT ACCRUE ON DAY - TO - DAY BASIS. FURTHER THE ASSESSEE COULD NOT SHOW THE INTEREST FR EE FUNDS AVAILABLE WITH HIM AT THE TIME OF PURCHASE OF LAND AND, THEREFORE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LEARNED CIT (APPEAL S) IN CONFIRMING THE ADDITION OF RS.1,94,888/ - ON ACCOUNT OF INTEREST EXPENDITURE. ACCORDINGLY, GROUND NO. 2 OF THE APPEAL OF ASSESSEE IS DISMISSED. 10. GROUND NO. 3 IS WITH RESPECT TO THE DISALLOWANCE OF RS.7,500/ - UNDER SECTION 14A READ WITH RULE 8D(2)(3) OF THE ACT. THE LEARNED ASSESSING OFFICER NOTED THAT ASSESSEE HAS MADE AN INVESTMENT OF RS.15 LAKHS IN THE MUTUAL FUND AND, THEREFORE, ASSESSEE WAS ASKED TO EXPLAIN THE DISA LLOWANCE UNDER SECTION 14A OF THE ACT. THE ASSESSEE SUBMITTED THAT THE INVESTMENTS ARE OUT OF INTEREST - FREE FUNDS AND NO INTEREST IS DISALLOWABLE. HOWEVER, THE ASSESSEE DID NOT MADE ANY REFERENCE OF THE OTHER EXPENDITURE AND, THEREFORE, HE APPLIED 0.5% OF EXPENDITURE AMOUNTING TO RS.7,500/ - AND FURTHER ALSO ALLOWED ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 9 INTEREST COMPONENT OF RS.1,50,000/ - . CONSOLIDATED DISALLOWANCE UNDER SECTION 14A OF RS.1,57,500/ - WAS MADE. 10.1 ON APPEAL BEFORE THE LEARNED CIT (APPEALS) HE DELETED TH E DISALLOWANCE ON ACCOUNT OF INTEREST FOLLOWING THE DECISION OF THE CO - ORDINATE BENCH IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2008 - 09, BUT CONFIRMED THE DISALLOWANCE OF RS.7,500/ - ON ACCOUNT OF EXPENSES. THEREFORE, THE ASSESSEE IS IN APP EAL BEFORE US. 11. THE LEARNED AUTHORIZED REPRESENTATIVE RELIED UPON THE ORDER OF THE CO - ORDINATE BENCH FOR ASSESSMENT YEAR 2008 - 09. THE LEARNED DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ORDER OF THE LOWER AUTHORITIES. 12. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AND FIND THAT FOR ASSESSMENT YEAR 2008 - 09 THE CO - ORDINATE BENCH HAS DELETED THE DISALLOWANCE ON ACCOUNT OF INTEREST, BUT THERE IS NO RE FE RENCE OF THE DISALLOWANCE WITH RESPECT TO THE EXPENDITURE. AS TH ERE IS NO CLAIM BY THE ASSESSEE THAT NO SUCH EXPENDITURE HAS BEEN INCURRED BY THE ASSESSEE, WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE ASSESSEE WITH RESPECT TO THE DISALLOWANCE CONFIRMED BY THE LEARNED CIT ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 10 (APPEALS) OF RS.7,500/ - . THE DISALLOWANCE IS IN ACCORDANCE WITH THE PROVISIONS OF SECTION 14A OF THE ACT. ACCORDINGLY GROUND NO. 3 OF THE APPEAL OF THE ASSESSEE IS DISMISSED. 13. NOW WE COME TO THE GROUND NO. 1 OF THE APPEAL OF THE REVENUE WHICH CHALLENGES THE DISALLO WANCE OF RS.60,94,813/ - DELETED BY THE LEARNED CIT (APPEALS) ON ACCOUNT OF LOSS DUE TO FOREIGN EXCHANGE FLUCTUATION. THE CLAIM OF THE ASSESSING OFFICER IS THAT SUCH LOSS IS ON ACCOUNT OF CONTINGENT LIABILITY AND IS NO T ALLOWABLE UNDER SECTION 37(1) OF THE ACT. IT WAS FURTHER NOTED BY THE LEARNED ASSESSING OFFICER THAT THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. WOOD WA RD GOVERNORS INDIA PVT. LTD. R EPORTED IN 312 ITR 254 (SC) DOES NOT APPLY TO THE FACTS OF THE CASE. HE HELD THAT THE L IABILITY IS NOT ASCERTAINED AND FURTHER IT DOES NOT PERTAIN TO ANY REVENUE TRANSACTION AS IT RELATES TO AN ADVANCE RECEIVED BY THE ASSESSEE AND THERE IS NO PURCHASE AND SALES DURING THE YEAR. THE ASSESSEE CHALLENGED THE ISSUE BEFORE THE LEARNED CIT (APPEA LS) WHO DELETED THE SAME HOLDING THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. WOODWARD GOVERNORS INDIA PVT. LTD. (SUPRA). THEREFORE, THE REVENUE IS IN APPEAL BEFORE US. ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 11 1 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ORDERS OF THE LEARNED ASSESSING OFFICER. 15. THE LEARNED AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND RELIED UPON THE ORDER OF THE LEARNED CIT (APPEALS). 16. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS. AS AT THE END OF THE YEAR THE ASSESSEE RESTAT ED THE ADVANCES RECEIVED FOR FOREIGN EXCHANGE FOR SUPPLY OF GOODS FROM ONE PARTY. THE ASSESSEE MAINTAINS ITS BOOKS OF ACCOUNT ON MERCANTILE BASIS. AS ON THE LAST DAY OF THE ACCOUNT , SUCH ADVANCES ARE REQUIRED TO BE RESTATED IN TERMS OF THE ACCOUNTING STANDARD 11 ISSUED BY THE ICAI AND FURTHER COMPULSORILY TO BE FOLLOWED BY THE COMPANY, THE ASSESSEE RECORDED THE FOREIGN EXCHANGE FLUCTUATION, WHICH RESULTED INTO LOSS. THE LOSS WAS DEBITED TO THE PROFIT AND LOSS ACCOUNT AND CLAIMED AS DEDUCTION. THE FOREIGN EXCHANGE FLUCTUATION IS ON ACCOUNT OF ADVANCE RECEIVED FOR SUPPLY OF GOODS, WHICH IS REVENUE IN NATURE AND AS IT IS A TRADE ADVANCE, THEREFORE, ACCORDING TO US, NO ERROR CAN BE FOUND IN TH E ORDER OF THE LEARNED CIT (APPEALS) IN ALLOWING THE CLAIM OF THE ASSESSEE BASED ON THE DECISION OF THE HONBLE SUPREME COURT . ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 12 17. IN THE RESULT, GROUND NO. 1 OF THE APPEAL OF THE REVENUE IS DISMISSED. 18. GROUND NO. 3 OF THE APPEAL OF THE REVENUE IS WITH RESPECT TO THE DISALLOWANCE OF RS.23 , 01 , 048/ - DELETED BY THE LEARNED CIT (APPEALS). 1 8 . 1 THE BRIEF FACTS OF THE CASE SHOWS THAT ASSESSEE HAS PURCHASED LAND OF RS.3.83 CRORES IN THE EARLIER YEARS AND INTEREST WAS DETERMINED ON THE SAID LAND, WHICH WAS NOT PUT TO USE DURING THE YEAR OF RS.36,76,668/ - . DURING THE YEAR SUCH LAND WAS PUT TO USE ON 1.10.2008 AND, THEREFORE, THE LEARNED ASSESSING OFFICER DISALLOWED INTEREST @ 12% TH EREON FOR 6 MONTHS AS IT WAS MADE IN EARLIER YEARS ALSO. SUCH DISALLOWANCE WAS WORKED OUT AT RS.23,01,048/ - . THE ASSESSEE CHALLENGED THE DISALLOWANCE BEFORE THE LEARNED CIT (APPEALS) WHO DELETED THE ABOVE DISALLOWANCE RELYING UPON THE ORDER OF THE CO - O RDINATE BENCH IN ASSESSEES OWN CASE IN I.T. APPEAL NO. 2115 (DEL) OF 2011 FOR ASSESSMENT YEAR S 2008 - 09 AND 2007 - 08 . 18.2 THE LEARNED DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ORDER OF THE LEARNED ASSESSING OFFICER. ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 13 19. THE LEARNED AUTHORIZED REPRESENTATIVE RELIED UPON THE ORDER OF THE ASSESSING OFFICER WHEREAS THE LEARNED DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ORDER OF THE LEARNED CIT (APPEALS) AS WELL AS THE ORDER OF THE CO - ORDINATE BENCH. 20. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS. AN IDENTICAL ISSUE INVOLVED IN ASSESSMENT YEAR 2008 - 09 WHEREIN THE CO - ORDINATE BENCH VIDE ORDER DATED 18.04.2017 DELETED THE DISALLOWANCE AS PER PARA NOS. 14 - 16 OF THE APPEAL. WHILE GIVIN G ITS FINDING IN PARA NO. 16 THE CO - ORDINATE BENCH NOTED THAT THE LEARNED CIT (APPEALS) HAS CORRECTLY NOTED THE FACTS THAT NO SUCH INTEREST - BEARING FUNDS WERE USED BY THE ASSESSEE FOR PURCHASE OF THE LAND. THE CO - ORDINATE BENCH ALSO FOLLOWED TH E ISSUE DECIDED BY THE CO - ORDINATE BENCH IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2007 - 08. AS THERE IS NO CHANGE IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND NO REASON TO DEVIATE FROM THE FINDING OF THE CO - ORDINATE BENCH. THEREFORE, THE GROUND NO. 3 OF THE APPEAL OF REVENUE IS DISMISSED. 21. THE G ROUND NO. 4 OF THE APPEAL IS WITH RESPECT TO DELETION OF THE DISALLOWANCE OF RS.1,50,000/ - BY THE LEARNED CIT (APPEALS) UNDER SECTION 14A OF THE ACT. ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 14 22. THE FACTS HAVE BEEN SUCCINCTLY STATED WHILE DECIDING GROUND NO. 3 OF THE APPEAL OF THE ASSESSEE ON IDENTICAL FACTS AND CIRCUMSTANCES. THE CO - ORDINATE BENCH IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2008 - 09 HAS DELETED THE DISALLOWANCE OF RS.1,50,000/ - ON ACCOUNT OF INVESTMENT MADE IN MUTUAL FUNDS. THE CO - ORDINATE BENCH FOR ASSESSMENT YEAR 2008 - 09 ALSO FOLLOWED THE DECISION OF CO - ORDINATE BENCH IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2007 - 08. IN VIEW OF THIS, WE DO NOT FIND ANY INFI RMITY IN THE ORDER OF THE LEARNED CIT (APPEALS) IN DELETING THE DISALLOWANCE OF RS.1,50,000/ - UNDER SECTION 14A OF THE ACT. CONSEQUENTLY GROUND NO. 4 IS DISMISSED. 23. IN THE RESULT, APPEAL OF THE ASSESSEE AND APPEAL OF THE REVENUE, ARE DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON : 09 AUGUST , 201 8 . - S D/ - - SD/ - ( S. K. YADAV ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : THE 09 . 07. 201 8 . *MEHTA* ITAS. 1006 & 1200 (DEL) OF 201 5 . GRAND PRIX FAB PVT. LTD. 15 COPY OF THE ORDER FORWARDED TO : - 1. APPELLANT S ; 2. RESPONDENT S ; 3. CIT; 4. CIT (APPEALS); 5. DR, ITAT, ND. //TRUE COPY// BY ORDER ASSISTANT REGISTRAR