Shri Chetan Dass , Bangalore V. The Additional Commissioner of Income TAx Range-6(3), Bangalore

ITA 1097/BANG/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3467 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 04-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI A.K. GARODIA , ACCOUNTANT MEMBER I TA NO. 1097/BANG/2018 ASSESSMENT YEAR : 2012 - 13 SHRI CHETAN DASS, NO.189, SANKEY ROAD, UPPER PALACE ORCHARDS, SADASHIVANAGAR, BENGALURU 560 080. PAN: ACCPD 7140E VS. THE ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE 6(3), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SMT. SUMAN LUNKAR, CA RE SPONDENT BY : SHRI SMARAH SWAIN, JT.CIT(DR)(I TAT), BENGALURU. DATE OF HEARING : 06 .0 8 .201 8 DATE OF PRONOUNCEMENT : 24. 08.2018 O R D E R PER N.V. VASUDEVAN, JUDICIAL MEMBER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 15.12.2017 OF THE CIT(APPEALS), BENGALURU-6, BENGAL URU RELATING TO ASSESSMENT YEAR 2012-13. 2. THE ASSESSEE IS AN INDIVIDUAL. HE DERIVES INCOM E FROM WHOLE LIQUOR DISTRIBUTION AND ALSO FROM ACTING AS AIRLINE BOOKIN G AGENT. IN THE COMPUTATION OF TOTAL INCOME FOR THE AY 2012-13, THE ASSESSEE CLAIMED INTEREST EXPENSES OF RS.33,73,251 AGAINST INTEREST RECEIPTS DECLARED BY THE ASSESSEE. THE AO NOTICED THAT THE INTEREST EXPENSE S WERE CLAIMED ON AN ITA NO. 1097/BANG/2018 PAGE 2 OF 3 ADVANCE OF RS.9.50 LAKHS AND RS.40 LAKHS RESPECTIVE LY RECEIVED FROM M/S. TAPOVAN BUILDERS PVT. LTD. AND M/S. BANGALORE HOSPI TAL LTD. THE ASSESSEE HAD ENTERED INTO A LEASE AGREEMENT WITH BEERA DEVAR A DEVASTHANAGALA SANGHA, BANGALORE IN RESPECT OF PROPERTY OWNED BY T HEM AT SAMPANGI TANK BUND ROAD (AGREEMENT DATED 6.8.1980). THE ASS ESSEE COULD NOT GET POSSESSION OF THE AFORESAID PROPERTY AS THERE WERE SOME DISPUTES PENDING BEFORE THE HONBLE HIGH COURT OF KARNATAKA. PENDIN G RESOLUTION OF THE DISPUTES, THE ASSESSEE HAD ENTERED INTO AN AGREEMEN T DATED 23.02.1987 AND 23.09.1990 WITH M/S. TAPOVAN BUILDERS AND BANGA LORE HOSPITAL LTD. RESPECTIVELY AGREEING TO SUB-LEASE THE PROPERTY TO THEM. IT IS UNDER SUCH AGREEMENT TO SUB-LEASE THAT THE ASSESSEE HAD RECEIV ED ADVANCE FROM SUB- TENANTS TO WHOM THE INTEREST LIABILITY WAS CLAIMED AS PAYABLE. THE CLAIM OF THE ASSESSEE WAS REJECTED BY THE ASSESSEE ON IDENTI CAL REASONS, WHICH WERE GIVEN WHILE REJECTING AN IDENTICAL CLAIM OF TH E ASSESSEE FOR THE AY 2011-12. 3. BRIEFLY, THE REASONS GIVEN BY THE REVENUE AUTHOR ITIES WERE THAT THE CLAIM WAS NOT A BONAFIDE CLAIM AND THERE WAS NO BASIS ON WHICH THE INTEREST LIABILITY WAS COMPUTED AND, IN ANY EVENT, THE LIABILITY WAS NOT A CRYSTALLISED LIABILITY. THE CIT(APPEALS) CONFIRMED THE ORDER OF THE AO. 4. AGGRIEVED BY THE ORDER OF THE CIT(APPEALS), THE ASSESSEE HAS PREFERRED THE PRESENT APPEAL BEFORE THE TRIBUNAL. 5. AT THE TIME OF HEARING OF THE APPEAL, IT WAS AGR EED BY THE PARTIES THAT IDENTICAL ISSUE WAS CONSIDERED BY THIS TRIBUNAL IN ASSESSEES OWN CASE FOR THE AY 2011-12 IN ITA NO.780/BANG/2016, ORDER DATED 19.10.2017. THE TRIBUNAL CONFIRMED THE ORDERS OF THE REVENUE AUTHOR ITIES. A COPY OF THE ORDER OF TRIBUNAL DATED 19.10.2017 WAS PLACED ON RE CORD. THE TRIBUNAL IN THE AFORESAID ORDER HELD THAT THE LIABILITY WAS A C ONTINGENT LIABILITY OR RATHER, ITA NO. 1097/BANG/2018 PAGE 3 OF 3 NOT A LIABILITY IN THE EYES OF LAW. IN VIEW OF THE AFORESAID ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE ON THE SAME SET OF FACTS AND CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE ORDER OF CIT(APPEALS) CONFIRMING THE ORDER OF AO DISALLOWING THE CLAIM OF ASSESSEE F OR DISALLOWANCE OF INTEREST EXPENSES IS JUST AND PROPER AND CALLS FOR NO INTERFERENCE. 6. IN THE RESULT, THE APPEAL BY THE ASSESSEE IS DIS MISSED. PRONOUNCED IN THE OPEN COURT ON THIS 24 TH DAY OF AUGUST, 2018. SD/- SD/- ( A.K. GARODIA ) ( N.V. VASUDEVAN ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 24 TH AUGUST, 2018. / D ESAI S MURTHY / COPY TO: 1. THE APP ELL ANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.