DCIT, CC-3(4), KOLKATA, Kolkata V. M/s RDB Textiles Ltd., Kolkata

ITA 1092/KOL/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100186 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 13-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILOY BARAN SOM
• Assessee Lawyers: J M THARD NATE O
• Keywords: Business expenditure; Tax effect

Judgement Text

I.T.A. NO. 1092/KOL./2015 ASSESSMENT YEAR: 2010-2011 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 1092/KOL/ 2015 ASSESSMENT YEAR: 2010-2011 DEPUTY COMMISSIONER OF INCOME TAX,................. .............APPELLANT CENTRAL CIRCLE-3(4), KOLKATA, 110, SHANTIPALLY, AAYAKAR BHAWAN POORVA, KOLKATA-700 107 -VS.- M/S. RDB TEXTILES LIMITED,......................... ....................RESPONDENT 16A, BRABOURNE ROAD, 6 TH FLOOR, KOLKATA-700 001 [PAN : AABCR 4853 L] APPEARANCES BY: SHRI NILOY BARAN SOM, JCIT, SR. D.R., FOR THE DEPARTMENT SHRI J.M. THARD, ADVOCATE, FOR THE ASSESSEE NATE OF CONCLUDING THE HEARING : DECEMBER 17, 2015 DATE OF PRONOUNCING THE ORDER : DECEMBER 17, 2015 O R D E R THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-XXI, KOLKATA D ATED 11.06.2015 FOR THE ASSESSMENT YEAR 2010-11 ON THE FOLLOWING GROUND S:- (1) THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(APPEALS) HAS ERRED IN DELETING THE DISALLOWANCE ON ACCOUNT OF SHORTAGE/LOSS AMOUNTING TO RS.18,35,435/- ON MANUFACTURING OF JUTE PRODUCTS WITHOUT CONSIDERING THE FACTS THAT THE ASSESSEE DID NOT PRODUCE ANY DOCUMENTS IN SUPPORT OF CLAIM THAT THE ASSESSEE HAD ACTUALLY RECEIVED MORE MOISTURIZED JUT E THAN THE DISCOUNTED MOISTURIZED JUTE. (2) THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, LD. CIT(APPEALS) HAS ERRED IN DELETING THE ADD ITION IN RESPECT OF INTEREST EXPENSES AMOUNTING TO RS.7,12,5 00/- ON ACCOUNT OF INTEREST FREE LOAN WITHOUT CONSIDERIN G THE FACTS THAT THE ASSESSEE COMPANY CLAIMED HUGE AMOUNT OF INTEREST AS BUSINESS EXPENSES AND AT THE SAME TIME THE I.T.A. NO. 1092/KOL./2015 ASSESSMENT YEAR: 2010-2011 PAGE 2 OF 3 ASSESSEE HAD GIVEN INTEREST FREE LOAN TO REDUCE OWN INCOME. (3) THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE TRIBUNALS OBSERVATION IS NOT BASED ON FAC TS OR DOCUMENTARY EVIDENCES. 2. AS POINTED OUT BY THE LD. COUNSEL FOR THE ASSESS EE, AT THE OUTSET, THE TAX EFFECT INVOLVED IN THIS APPEAL OF THE REVENUE I S LESS THAN THE REVISED MONETARY LIMIT RECENTLY FIXED BY THE CBDT VIDE CIRC ULAR NO. 21/2015 DATED 10 TH DECEMBER, 2015 AT RS.10,00,000/- FOR FILING THE AP PEAL BY THE REVENUE BEFORE THE TRIBUNAL AND THIS POSITION CLEAR LY EVIDENT FROM THE GROUNDS RAISED BY THE REVENUE IN THIS APPEAL IS NOT DISPUTED EVEN BY THE LD. D.R. IN CIRCULAR NO. 21/2015 (SUPRA) RECENTLY I SSUED BY THE CBDT, THE MONETARY LIMIT FOR FILING THE APPEALS BY THE REVENU E BEFORE THE TRIBUNAL HAS BEEN INCREASED TO RS.10,00,000/- AND AS CLARIFI ED IN THE SAID CIRCULAR, THE SAID MONETARY LIMIT IS APPLICABLE RETROSPECTIVE LY EVEN TO THE APPEALS PENDING BEFORE THE TRIBUNAL. THE CBDT HAS ALSO INST RUCTED THAT SUCH PENDING APPEALS BELOW THIS SPECIFIED TAX LIMIT OF R S.10,00,000/- MAY BE WITHDRAWN/ NOT PRESSED. KEEPING IN VIEW THE INSTRUC TION GIVEN BY THE CBDT VIDE CIRCULAR NO. 21/2015 DATED 10.12.2015, WH ICH IS SQUARELY APPLICABLE IN THE PRESENT CASE, THE APPEAL FILED BY THE REVENUE IN THIS CASE IS TREATED AS WITHDRAWN/NOT PRESSED AND DISMIS SED ACCORDINGLY. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON DECEMBER 17, 2015. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 17 TH DAY OF DECEMBER, 2015 COPIES TO : (1) DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3(4), KOLKATA, 110, SHANTIPALLY, AAYAKAR BHAWAN POORVA, KOLKATA-700 107 I.T.A. NO. 1092/KOL./2015 ASSESSMENT YEAR: 2010-2011 PAGE 3 OF 3 (2) M/S. RDB TEXTILES LIMITED, 16A, BRABOURNE ROAD, 6 TH FLOOR, KOLKATA-700 001 (3) COMMISSIONER OF INCOME-TAX (APPEALS)-XXI, KOLK ATA (4) COMMISSIONER OF INCOME TAX, KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.