DCIT, Chandigarh V. M/s Punjab State Co-operative Supply and Marketing Federation Ltd., Chandigarh

ITA 126/CHANDI/2015

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1587 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 26-08-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 04-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI SARANGA L

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER ITA NO. 126/CHD/2015 ASSESSMENT YEAR: 2011-12 THE DCIT, VS THE PUNJAB STATE CO-OPERATIVE CIRCLE 4(1), SUPPLY & MARKETING FED.LTD., CHANDIGARH. PLOT NO. 4, SECTOR 35-B, CHANDIGARH. PAN: AAAAT3454G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAVI SARANGAL, DR RESPONDENT BY : SHRI AMAN PARTI DATE OF HEARING : 26.08.2015 DATE OF PRONOUNCEMENT : 01.09.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDE R OF LD. CIT(APPEALS) CHANDIGARH DATED 03.11.2014 FOR ASSESSMENT YEAR 2011-12 ON THE FOLLOWING GROUNDS : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF TH E ASSESSEE WITHOUT APPRECIATING THE FACTS OF THE CASE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, LD. CIT(A) HAS ERRED IN DELETING THE ADDITI ON MADE BY A.O AMOUNTING TO RS. 19,66,993/- ON ACCOUNT OF ADVERTISEMENT EXPENSES WHEN THE SAME WERE NOT INCUR RED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS OF THE ASSESSEE. 2 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, LD. CIT(A) HAS ERRED IN DELETING THE ADDITIO NS MADE BY A.O BY ADDING BACK THE INTEREST OF RS. 29,86,71,24 9/- ON ACCOUNT OF NON CHARGING OF INTEREST ON FUNDS DIV ERTED TO PUNJAB GOVT. EVEN THOUGH THE ASSESSEE HAD TAKEN INT EREST BEARING LOANS FOR ITS BUSINESS 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, LD. CIT(A) HAS ERRED IN DELETING THE ADDITION S MADE BY A.O BY ADDING BACK THE INTEREST OF RS. 1,65,50,20,081 /- ON ACCOUNT OF NON CHARGING OF INTEREST ON FUNDS DIV ERTED TO M/S FOOD CORPORATION OF INDIA EVEN THOUGH THE ASS ESSEE HAD TAKEN INTEREST BEARING LOANS FOR ITS BUSINESS. 2. THE LD. CIT(APPEALS) NOTED IN THE IMPUGNED ORDER THAT WITH REGARD TO ADVERTISEMENT EXPENSES, THE ISS UE IS COVERED BY ORDER OF ITAT CHANDIGARH BENCH DATED 30.06.2010 IN ITA 802/2009 AND ON THE ISSUE OF INTE REST DIVERTED TO PUNJAB GOVERNMENT AND INTEREST DIVERTED TO M/S FOOD CORPORATION OF INDIA, THE ISSUES ARE COVER ED BY ORDER OF ITAT CHANDIGARH BENCH DATED 30.06.2010 IN ITA 875/2009. THE LD. CIT(APPEALS) FOLLOWING THE ORDER S OF THE TRIBUNAL, DECIDED THE ISSUES IN FAVOUR OF THE A SSESSEE AND ALLOWED THESE GROUNDS IN FAVOUR OF THE ASSESSEE . 3. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED THAT SAME ORDERS HAVE BEEN FOLLOWED IN ASSESSMENT YEAR 2010-11 BY ITAT WHILE DECIDING THE DEPARTMENT APPEAL IN ITA 872/2013 AND ON IDENTICAL GROUNDS, DEPARTMENTAL APPEAL HAS BEEN DISMISSED. T HE ORDER OF THE TRIBUNAL DATED 13.07.2015 IS PLACED ON RECORD 3 IN WHICH THE FINDINGS OF THE TRIBUNAL IN PARA 4 TO 9 ARE REPRODUCED AS UNDER : 4. ON GROUND NO. 2, LD. CIT(APPEALS) NOTED THAT SIMILAR ADDITION WAS MADE IN ASSESSMENT YEAR 2006-07 WHICH WAS DELETED BY THE TRIBUNAL VIDE ORDER DATED 30.06.2010 IN ITA NO. 802/2009. 5. ON GROUND NO. 3, LD. CIT(APPEALS) SIMILARLY NOTED THAT FOR ASSESSMENT YEAR 2006-07 ALSO, THE SAME WAS DELETED BY THE TRIBUNAL VIDE ORDER DATED 30.06.2010 IN ITA 875/2009. 6. ON GROUND NO. 4 ALSO, LD. CIT(APPEALS) SIMILARLY NOTED THAT THE TRIBUNAL FOR ASSESSMENT YEAR 2006-07 VIDE ORDER DATED 30.06.2010 IN ITA 875/2009 DELETED THE ADDITION. THE LD. CIT(APPEALS), THEREFORE, FOLLOWING THE ORDER OF THE TRIBUNAL ABOVE, ALLOWED ALL THE GROUNDS OF APPEAL OF ASSESSEE WHICH ARE IN CHALLENGE BEFORE THE TRIBUNAL. 7. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT IDENTICAL ISSUE WAS CONSIDERED IN DEPARTMENTAL APPEAL IN ITA 1011/2012 FOR ASSESSMENT YEAR 2009-10 AND THE TRIBUNAL DISMISSED THE DEPARTMENTAL APPEAL VIDE ORDER DATED 18.12.2012. COPY OF THE ORDER IS PLACED ON RECORD. 8. THE LD. DR DID NOT DISPUTE CONTENTION OF LD. COUNSEL FOR THE ASSESSEE. IT IS, THEREFORE, CLEAR THAT ALL ISSUES HAVE ALREADY BEEN DECIDED BY THE TRIBUNAL IN THE CASE OF THE ASSESSEE IN EARLIER YEA R 2006-07 WHICH IS FOLLOWED BY THE LD. CIT(APPEALS) AND THE SAME ORDER OF THE TRIBUNAL IS ALSO FOLLOWED IN ASSESSMENT YEAR 2009-10 BY THE TRIBUNAL BY DISMISSING DEPARTMENTAL APPEAL VIDE ORDER DATED 18.12.2012 (SUPRA). ALL THE GROUNDS 4 OF APPEAL OF THE DEPARTMENT ARE, THEREFORE, COVERED BY EARLIER ORDER OF THE TRIBUNAL AS REFERRED TO ABOVE. WE, THEREFORE, DO NOT FIND ANY MERIT IN ALL THE GROUNDS OF APPEAL OF THE REVENUE. 9. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. 4. THE LD. DR DID NOT DISPUTE THIS FACT. THEREFORE , THE GROUNDS OF APPEAL RAISED IN DEPARTMENTAL APPEAL ARE COVERED BY EARLIER ORDERS OF THE TRIBUNAL IN THE CA SE OF THE SAME ASSESSEE. THEREFORE, DEPARTMENTAL APPEAL STAN DS DISMISSED. 5. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST SEPTEMBER,2015. SD/- SD/- (ANNAPURNA MEHROTRA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 1 ST SEPTEMBER,2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT CHANDIGARH