Sri Renga Fashions, Coimbatore V. ITO, Coimbatore

ITA 1386/CHNY/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4981 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 30-05-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: J PAVITRAN KUMAR
• Assessee Lawyers: K RAGHU
• Keywords: Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , D B ENCH, CHENNAI, CAMP AT COIMBATORE ... , ! '#, $ #% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.1386/CHNY/2017 ( / ASSESSMENT YEARS:2012-2013) SRI RENGA FASHIONS, 68/A, BHARATHI PARK VII CROSS, SAIBABA COLONY COIMBATORE 641 011. VS THE INCOME TAX OFFICER, NON CORPORATE WARD 2(4), COIMBATORE PAN: AAKFS 5206Q ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI K. RAGHU, C.A. /RESPONDENT BY : SHRI J. PAVITRAN KUMAR, JCIT /DATE OF HEARING : 07.02.2020 ! /DATE OF PRONOUNCEMENT : 07.02.2020 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-2, COIMBAT ORE DATED 30.03.2017 AND PERTAINS TO THE ASSESSMENT YEAR 2012-2013. 2 I.T.A. NO.1386/2017 2. SHRI. K. RAGHU, LD. REPRESENTATIVE FOR THE ASS ESSEE SUBMITTED THAT THE ONLY ISSUE ARISES FOR CONSIDERATION IS DISALLO WANCE OF :34,27,065/- TOWARDS INTEREST U/S.36(1) (III) OF THE INCOME TAX ACT, 19 61 (IN SHORT THE ACT). ACCORDING TO THE LD. REPRESENTATIVE THE T OTAL AVAILABLE INTEREST FREE FUND WITH THE ASSESSEE IS :1,59,51,085/-. THE INVESTMENTS MADE DURING THE YEAR IS RS.1,60,00,000/-. THE ASSESSEE HAD AL SO PROFIT TO THE EXTENT OF :80,00,000/-. THEREFORE THERE CANNOT BE ANY DISALLO WANCE TOWARDS INTEREST. 3. ON THE CONTRARY, SHRI PAVITRAN KUMAR, THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE AVAILABLE FUNDS NEEDS TO BE VERIFIED AFTER CONSIDERING THE BALANCE SHEET AND OTHER MATERIALS A ND THEREFORE THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING O FFICER. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THIS TRIBUNAL I S OF THE CONSIDERED OPINION THAT INTEREST FREE FUNDS AVAILABLE WITH THE ASSES SEE NEEDS TO BE EXAMINED BEFORE MAKING ANY DISALLOWANCE U/S.36(1) (III) OF THE ACT. THEREFORE AS RIGHTLY SUBMITTED BY THE LD. DEPARTMENTAL REPRESENTATIVE, THIS ISSUE NEED TO BE RE- EXAMINED BY THE ASSESSING OFFICER. ACCORDINGLY, OR DERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE ENTIRE ISSUE RAISED BY THE ASSESSEE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER TO RE-EXA MINE THE ISSUE AFRESH IN THE LIGHT OF THE MATERIAL AVAILABLE ON RECORD AND OTHER MATERIAL THAT MAY BE FILED 3 I.T.A. NO.1386/2017 BY THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE AFR ESH IN ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESS EE. 6. IN THE RESULT, THE APPEAL FILED BY TH E ASSESSEE IN ITA NO.1386/ CHNY/2017 FOR ASSESSMENT YEAR 2012-2013 IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 7TH FEBRUARY , 2020 AT CAMP AT COIMBATORE. SD/- SD/- ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER (... ) (N.R.S. GANESAN) / JUDICIAL MEMBER COIMBATORE , /DATED, THE 7 TH FEBRUARY, 2020. KV #$ %&'& /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. * ( )/CIT(A) 4. * /CIT 5. &+, - /DR 6. ,./ /GF