M/s Gourav Malohtra & Co., Faridkot V. DCIT, CC-II, Ludhiana

ITA 1058/CHANDI/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9998 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 08-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

ITA NO. 1058-CHD-C-18- M/S GAURAV MALHOTRA & CO, FARIDKOT 4 THE LD. DR, HOWEVER, HAS ARGUED THAT THE DECISION ARRIVED AT BY THIS TRIBUNAL IN THE CASE OF ACIT VS. JANAK GLOBAL RESOURCES PVT LTD IS NOT A CORRECT DECISION AND FURTHER THAT THE PROP OSITION OF LAW LAID DOWN IN THE LATEST DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT (LTU) VS. RELIANCE INDUSTRIES LTD. (SUPRA) CAN NOT BE APPLIED AS THE HON'BLE SUPREME COURT HAS NOT FINALLY DECIDED THE M ATTER AS ON SOME OTHER ISSUES, THE MATTER HAS BEEN REMANDED BACK TO THE HON'BLE HIGH COURT. 7. WE ARE NOT CONVINCED BY THE ABOVE ARGUMENTS OF T HE LD. DR. IF THE DEPARTMENT IS NOT SATISFIED WITH THE DECISION O F THIS TRIBUNAL IN THE CASE OF ACIT VS. JANAK GLOBAL RESOURCES PVT LTD ( SUPRA), IT IS OPEN TO THE DEPARTMENT TO FILE AN APPEAL BEFORE THE HON'BLE HIGH COURT AGAINST THE SAID DECISION. SO FAR AS THE PROPOSITION OF LAW SAID DOWN BY THE HON'BLE SUPREME COURT IN THE CASE OF RELIANCE IND USTRIES LTD. (SUPRA) IS CONCERNED, WE FIND THAT THE ISSUE HAS BEEN SETTL ED BY THE HON'BLE SUPREME COURT IN CLEAR TERMS VIDE PARA 7 & 8 OF THE ORDER WHICH READS AS UNDER:- 7. IN SO FAR AS THE FIRST QUESTION IS CONCERNED, T HE ISSUE RAISES A PURE QUESTION OF FACT. THE HIGH COUR T HAS NOTED THE FINDING OF THE TRIBUNAL THAT THE INTEREST FREE FUNDS AVAILABLE TO THE ASSESSEE WERE SUFFICIENT TO MEET ITS INVESTMENT. HENCE, IF COULD BE PRESUMED THAT THE INVESTMENTS WERE MADE FROM THE INTEREST FREE FUNDS AVAILABLE WITH THE ASSESSEE. TH E