The DCIT, Circle-1(1), Baroda V. M/s. Goradia Innovative Technologies Pvt.Ltd., Baroda

ITA 1110/AHD/2010

• Counselvise Citation: 111020514 RSA 2010
• Duration Of Justice: 2 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2004-2005
• Appeal Filed On: 09-04-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T SHANKAR
• Assessee Lawyers: S N SOPARKAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, D BENCH, AHMEDABAD BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER I.T.A. NO. 1110/ AHD/2010 (ASSESSMENT YEAR 2004-05) DCIT, CIRCLE 1(1), BARODA VS. GORADIA INNOVATIVE TECHNOLOGIES PVT. LTD., B-15/16, RAMIN PARK, OLD PADRA ROAD, BARODA PAN/GIR NO. : AAACG7338N (APPELLANT) .. (RESPONDENT) APPELLANT BY: SHRI T SHANKAR, SR. DR RESPONDENT BY: SHRI S N SOPARKAR, SR. ADV. DATE OF HEARING: 31.08.2012 DATE OF PRONOUNCEMENT: 05.10.2012 O R D E R PER SHRI A. K. GARODIA, AM:- THIS IS THE REVENUES APPEAL DIRECTED AGAINST THE ORDER OF LD. CIT(A) I, BARODA DATED 18.12.2009 FOR THE ASSESSMEN T YEAR 2004-05. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(APPEALS) ERRED IN DELETING THE PENALTY OF RS.6,50,000/- LEVIED U/S.271(L)(C) OF THE ACT ON THE ADDITION OF RS.17,99,928/- ON ACCOUNT DISALLOWANCE OF INTEREST EXPENSES AS THE AS SESSEE ON ONE HAND HAD BORROWED FUND ON WHICH INTEREST WAS PAID A ND ON THE OTHER HAND HAD ADVANCED ITS BUSINESS FUND TO ITS SI STER CONCERN WITHOUT: CHARGING ANY INTEREST ON IT. 2. THE LD. CIT(APPEALS) ERRED IN CONSIDERING THE FA CT THAT THE ASSESSEE HAD DIVERTED ITS INTEREST BEARING BUSINESS FUND TO ITS ASSOCIATE CONCERN ON WHICH NO INTEREST WAS CHARGED AND THE FACT WAS UNEARTHED ONLY DURING THE COURSE ASSESSMENT PRO CEEDINGS. I.T.A.NO. 1110/AHD/2010 2 3. THE APPELLANT CRAVES LEAVE TO ADD TO AMEND OR AL TER THE ABOVE GROUNDS AS MAY BE DEEMED NECESSARY. RELIEF CLAIMED IN APPEAL THE ORDER OF THE CIT(APPEALS) ON THE ABOVE ISSUE MA Y BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 2. LD. D.R. SUPPORTED THE PENALTY ORDER WHEREAS IT WAS SUBMITTED BY LD. A.R. THAT IN QUANTUM PROCEEDINGS, THE ISSUE WAS RESTORED BACK BY THE TRIBUNAL TO THE FILE OF LD. CIT(A) FOR A FRESH DECI SION IN ACCORDANCE WITH LAW. HE SUBMITTED A COPY OF THE TRIBUNE DECISION IN QUANTUM PROCEEDINGS IN I.T.A.NO. 662/AHD/2008 DATED 12.06.2011. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERUSE D THE MATERIAL ON RECORD AND HAVE GONE THROUGH THE ORDERS OF AUTHORIT IES BELOW. IN OUR CONSIDERED OPINION, WHEN THE MATTER IN QUANTUM PROC EEDINGS HAS BEEN RESTORED BACK BY THE TRIBUNAL TO THE FILE OF LD. CI T(A) FOR A FRESH DECISION, THE PENALTY MATTER SHOULD ALSO GO BACK TO HIS FILE FOR A FRESH DECISION SIMULTANEOUSLY AND HENCE, WE SET ASIDE THE ORDER OF LD. CIT(A) AND RESTORE THIS MATTER BACK TO HIS FILE FOR A FRESH DE CISION SIMULTANEOUSLY WITH HIS DECISION IN QUANTUM PROCEEDINGS AND IN CASE, HE HAS ALREADY DECIDED THE MATTER IN QUANTUM PROCEEDINGS THEN ALSO, HE SHO ULD DECIDE PENALTY MATTER AFRESH AFTER CONSIDERING HIS FINAL DECISION IN QUANTUM PROCEEDINGS. 4. IN THE RESULT, APPEAL OF THE REVENUE STANDS ALLO WED FOR STATISTICAL PURPOSES. 5. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE M ENTIONED HEREINABOVE. SD./- SD./- (KUL BHARAT) (A. K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER SP I.T.A.NO. 1110/AHD/2010 3 COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR, AHMEDABAD BY ORDER 6. THE GUARD FILE AR,ITAT,AHMEDABAD 1. DATE OF DICTATION 19.09.2012 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 24/09/2012.OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P .S./P.S. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 05/10/2012 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S.9/10/12 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 09/10/2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 9. DATE OF DESPATCH OF THE ORDER. .