Gopi Kishan Purohit, JODHPUR V. DCIT, JODHPUR

ITA 141/JODH/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1585 (ITAT-JODHPUR)
• Duration Of Justice: 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-02-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 13-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G R KOKANI
• Assessee Lawyers: S K BISSA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER, AND SHRI N.K.SAINI, ACCOUNTANT MEMBER ITA NO. 141/JU/2012 ASSESSMENT YEAR: 2008-09 SHRI GOPI KISHAN, VS. THE D.C.I.T-I 6, KRISHNA KUNJ CIRCLE - 3 HARDEV COLONY JODHPUR NEW CHAND PAL ROAD, JODHPUR PAN NO. AKCPP 6185 D (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S.K. BISSA DEPARTMENT BY : SHRI G.R. KOKANI DATE OF HEARING : 07.02.2013 DATE OF PRONOUNCEMENT : 07.02.2013 ORDER PER N.K.SAINI, A.M. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 23.12.2011 OF THE LD. CIT(A), JODHP UR FOR A.Y. 2008-09. 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEA L RELATES TO THE CONFIRMATION OF DISALLOWANCE OF INTE REST U/S 24(B) OF THE INCOME-TAX ACT, 1961 [HEREINAFTER REFE RRED TO AS 'THE ACT', FOR SHORT]. 3. DURING THE COURSE OF HEARING, THE LD. COUNSEL FO R THE ASSESSEE, AT THE VERY OUTSET, STATED THIS ISSUE IS COVERED VIDE ORDER DATED 30.3.2012 OF THIS BENCH OF THE TRI BUNAL IN ITA NO 553/JU/2009 AND ITA NO. 324/JU/2010 FOR A.YS . 2006-07 AND 2007-08 RESPECTIVELY. COPY OF THE SAID ORDER WAS FURNISHED. 4. IN HIS RIVAL SUBMISSIONS, THE LD. D.R. SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW BUT COULD NOT CONTR OVERT THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND CARE FULLY PERUSING THE ENTIRE MATERIAL AVAILABLE ON RECORD, I T IS NOTICED THAT THE A.O, WHILE DISALLOWING THE CLAIM O F THE 3 ASSESSEE U/S 24(B) OF THE ACT FOLLOWED HIS EARLIER ORDER FOR A.Y. 2006-07. THE LD. CIT(A) MENTIONED THE SAID FA CT IN PARA 6 OF THE IMPUGNED ORDER AND ALSO STATED THAT A SIMILAR ISSUE WAS DECIDED AGAINST THE ASSESSEE BY THE LD. C IT(A) FOR A.Y. 2007-08. THE ASSESSEE PREFERRED THE APPEAL BEFORE THE ITAT FOR A.YS. 2006-07 AND 2007-08 IN ITA NO 553/JU/2009 AND ITA NO. 324/JU/2010 WHEREIN VIDE OR DER DATED 30.3.2012, IT HAS BEEN HELD AS UNDER: IT IS ONLY THE THIRD CATEGORY OF INTEREST, I.E., A S AT (C) ABOVE, WHICH IS IMPERMISSIBLE FOR DEDUCTION U/S. 24(B) OF THE AC T. ALSO, WE OBSERVE THAT THE RPC HAS MAINTAINED A SINGLE ACCOUN T OF THE ASSESSEE IN WHICH THE INTEREST IS CHARGED EACH QUAR TER; THE SAME FORMING PART OF THE PRINCIPAL AMOUNT ON WHICH INTER EST IS CHARGEABLE FOR THE SUBSEQUENT PERIOD S. WHILE THE SAME MAY BE ADEQUATE FOR ITS PURPOSES, IT WOULD CLEARLY BE NOT SO FOR THE PU RPOSE OF THE BREAK-UP OF THE INTEREST AS STIPULATED HEREINABOVE, I.E., IN V I EW OF THE REQUIREMENT OF LAW. AS SUCH, FOR WORKING OUT TH E INTEREST AS REQUIRED, THE SAME MAY HAVE TO BE COMPUTED FROM THE VERY BEGINNING, I.E., FROM THE FIRST QUARTER. THE AO SHA LL VERIFY THE SAME AND ALLOW THE DEDUCTION OF INTEREST ACCORDINGLY. IN CASE HE DIFFERS WITH THE DETERMINATION OF THE INTEREST FIGURE/S AS COMPUTED BY THE ASSESSEE, HE SHALL STATE EXPLICITLY HIS REASONS FOR THE SAME. WE MAY ALSO CLARIFY THAT THE DEDUCTION ALLOWABLE WOULD ONL Y BE IN RESPECT OF INTEREST LIABILITY ACCRUING OR ARISING TO THE ASSES SEE-BORROWER FOR THE 4 RELEVANT YEAR/S. THIS WOULD ALSO MEET THE ASSESSEE' S RELIANCE ON CIT VS. DEVENDRA BROS. & CO, (SUPRA), WHEREIN IT HAS BE EN CLARIFIED THAT IT IS THE INTEREST PAYABLE, I.E., WHETHER PAID OR N OT, THAT IS DEDUCTIBLE; THE ASSESSEE IN THAT CASE FOLLOWING CAS H METHOD OF ACCOUNTING, WHICH WAS FOUND BY THE HONBLE COURT AS OF NO RELEVANCE. WE DECIDE ACCORDINGLY. RESPECTFULLY FOLLOWING THE AFORESAID REFERRED TO OR DER DATED 30.3.2012 IN ASSESSEES OWN CASE, THIS ISSUE IS SENT BACK TO THE A.O. TO BE DECIDED AS DIRECTED IN THE A FORESAID REFERRED TO ORDER DATED 30.3.2012 IN ITA NO 553/JU/ 2009 AND ITA NO. 324/JU/2010 FOR A.YS. 2006-07 AND 2007- 08. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH FEBRUARY, 2013). SD/- SD/- (HARI OM MARATHA) (N.K.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMER DATED : 7 TH FEBRUARY, 2013. VL/- 5 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR