Deputy Commissioner of Income-tax, V. M/s. Western Maharashtra Development Corporation Ltd., Pune

ITA 1161/PUN/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9116 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 30-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR VIVEK AGGARWAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUN E , ! , '# $ !% , ! & BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI VIKAS AWAS THY, JM #. / ITA NO.1161/PUN/2016 ( )( / ASSESSMENT YEAR : 2007-08 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-12, PUNE. ....... / APPELLANT / V/S. M/S. WESTERN MAHARASHTRA DEVELOPMENT CORPORATION LTD. 2 ND FLOOR, KUBERA CHAMBERS, DR. RAJENDRA PRASAD ROAD, SHIVAJINAGAR, PUNE -411 005. PAN : AAACW1864B / RESPONDENT REVENUE BY : DR.VIVEK AGGARWAL. ASSESSEE BY : NONE / DATE OF HEARING : 13.03.2018 / DATE OF PRONOUNCEMENT : 14.03.2018 * / ORDER PER VIKAS AWASTHY, JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDER O F COMMISSIONER OF INCOME TAX (APPEALS), PUNE-5 DATED 04.02.2016 FOR THE AS SESSMENT YEAR 2007-08. 2 ITA NO. 1161/PUN/2016 A.Y. 2007-08 2. THE SOLITARY GROUND RAISED BY THE REVENUE IN APPEAL READS AS UN DER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LEARNED CIT(A) ERRED IN DELETING THE ADDITION OF RS.2,26,64,906/-, MADE BY THE ASSESSING OFFICER, ON ACCOUNT OF ACCRUED INTEREST ON SEED MONEY LOANS, BA SED ON THE FACT THAT SINCE ALL ITEMS OF ACCOUNTS WERE MAINTAINED ON MERCANTILE SYSTEM OF ACCOUNTING ON ACCRUAL BASIS, THERE WAS NO BASIS FOR ACCOUNTING ON INTEREST ON SEED MONEY LOANS ON CASH BASIS, SINCE SECTION 145(1) OF THE I. T. ACT CLEARLY PROVIDES THAT INCOME SHOULD BE COMPUTED EITHER ON CASH OR ON MERC ANTILE BASIS AS PER AMENDMENT W.E.F. A.Y. 1997-98. 3. DR. VIVEK AGGARWAL REPRESENTING THE DEPARTMENT VEHE MENTLY SUPPORTING THE ASSESSMENT ORDER SUBMITTED THAT THE AS SESSEE IS FOLLOWING MERCANTILE SYSTEM OF ACCOUNTING. HOWEVER, ACCRUED INTERES T ON SEED MONEY LOAN IS BEING ACCOUNTED BY THE ASSESSEE ON CASH BASIS. THE ASSESSEE CANNOT BE ALLOWED TO MAINTAIN BOOKS ON HYBRID SYSTEM OF ACCOUNTI NG. THE ASSESSING OFFICER HAS MADE ADDITION TO THE TUNE OF RS.223.92 LACS IN R ESPECT OF ACCRUED INTEREST ACCOUNTED ON CASH BASIS. THE COMMISSIONER OF INCOME TAX (APPEALS) DELETED THE ADDIT ION BY FOLLOWING THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE IN IT A NO. 430/PN/2013 FOR ASSESSMENT YEAR 2008-09 DECIDED ON 22.10.2013 . 4. NOTICE OF APPEAL WAS SENT TO THE ASSESSEE THROUGH R PAD ON 02.02.2018 FOR TODAY I.E. 13.03.2018. AS IS EVIDENT FROM ACKNOWLEDGEMENT CARD AVAILABLE ON FILE, THE NOTICE HAS BEEN DULY SERVED. NEITHER ANY OFFICIAL OF THE ASSESSEE COMPANY NOR ANY AUTHORIZED REPRESENTATIVE OF ASSESSEE HAS APPEARED TO DEFEND THE CASE. WE ARE PROCEEDING TO DECIDE THE APPEAL BY REVENUE WITH THE ASSISTANCE OF LD. DR AND MATERIAL AVAILABLE ON RECORD. 3 ITA NO. 1161/PUN/2016 A.Y. 2007-08 5. THE ASSESSEE COMPANY IS A STATE GOVERNMENT UNDERT AKING. THE ASSESSEE COMPANY WAS INCORPORATED FOR DEVELOPMENT OF INDUSTRIES AND PROMOTE INDUSTRIALIZATION OF WESTERN MAHARASHTRA REGION BY UNDERTAKING, PREPARING, EXECUTING INDUSTRIAL SCHEME EITHER SOLELY OR JOIN TLY WITH THE GOVERNMENT OF MAHARASHTRA OR ANY OTHER CORPORATION, CO MPANY, ASSOCIATION, INSTITUTION AND INDIVIDUAL. WE FIND THAT THE ISSUE RAISED BY T HE DEPARTMENT IN APPEAL IS RECURRING IN NATURE. THE TRIBUNAL IN ASSESSEE S OWN CASE FOR ASSESSMENT YEARS 1999-00, 2001-02, 2003-04, 2004-05 AN D 2008-09 HAS DELETED THE ADDITIONS MADE BY THE ASSESSING OFFICER FOR IDENTICAL REAS ONS. 6. THE COMMISSIONER OF INCOME TAX (APPEALS) HAS DELETED T HE ADDITION BY FOLLOWING THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE FOR A SSESSMENT YEAR 2008-09. THE LD. DR HAS FAIRLY ADMITTED THAT THE ISSUE RAIS ED BY THE DEPARTMENT IN APPEAL IS IDENTICAL TO THE ONE WHICH HAS ALRE ADY BEEN ADJUDICATED BY THE TRIBUNAL IN FAVOUR OF ASSESSEE IN ASSES SMENT YEAR 2008-09 AND EARLIER ASSESSMENT YEARS. FOR THE SAKE OF COMPLETENE SS, THE RELEVANT EXTRACT OF THE FINDINGS OF TRIBUNAL IN ITA NO.430/PN/2013 (SUPRA.) FOR ASSESSMENT YEAR 2008-09 IS REPRODUCED HEREIN BELOW: 4. AFTER HEARING BOTH THE SIDES WE FIND THE ISSUE STAN DS DECIDED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE TRIBU NAL IN ASSESSEE'S OWN CASE FOR A.YRS. 1999-2000, 2001-02, 2003-04 AND 200 4-05. SINCE THE LD.CIT(A) WHILE DELETING THE ADDITION HAS FOLLOWED THE ORDER OF THE TRIBUNAL IN ASSESSEE'S OWN CASE AND SINCE NOTHING C ONTRARY WAS BROUGHT TO OUR NOTICE AGAINST THE ORDER OF THE TRIBUNAL, TH EREFORE, WE FIND NO INFIRMITY IN THE ORDER OF THE CIT(A) WHO HAS DELETE D THE ADDITION ON THE BASIS OF THE CONSISTENT DECISION OF THE TRIBUNAL IN ASSESSEE'S OWN CASE. ACCORDINGLY, THE ORDER OF THE LD.CIT(A) IS UPHELD A ND THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. THE LD. DR HAS NOT BEEN ABLE TO DISTINGUISH THE FINDINGS OF TRIBUNAL IN ASSESSEES OWN CASE. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF 4 ITA NO. 1161/PUN/2016 A.Y. 2007-08 COMMISSIONER OF INCOME TAX (APPEALS) IN ACCEPTING THE CLAIM OF ASSESSEE BY FOLLOWING THE ORDER OF TRIBUNAL. ACCORDINGLY, IMPUGNED ORDER IS UPHELD AND THE APPEAL OF REVENUE IS DISMISSED. 7. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED ON WEDNESDAY, THE 14 TH DAY OF MARCH, 2018. SD/- SD/- ( / ANIL CHATURVEDI ) ( $ !% /VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; !' / DATED : 14 TH MARCH, 2018. SB * + ,-$ .$) / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS), PUNE-5. 4. THE PR. CIT, PUNE-4, PUNE. 5. %&' () , * () , + +,- , / DR, ITAT, B BENCH, PUNE. 6. './ 01 / GUARD FILE. // % // TRUE COPY // *2 / BY ORDER, 3 (- /PRIVATE SECRETARY * () , / ITAT, PUNE.