, , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.143/IND/2017 ASSESSMENT YEAR: 2013-14 ACIT KHANDWA / VS. M/S. AGARWAL IN DOTEX LIMITED, AGRAWAL NAGAR, CHHEGAON MAKHAN, INDORE ROAD, KHANDWA (M.P.) ( APPELLANT ) ( REVENUE ) P.A. NO. AABCA6944P REVENUE BY SHRI K.G. GOYAL, SR. DR RESPONDENT BY SHRI G.B. AGRAWAL, CA DATE OF HEARING: 19.03.2018 DATE OF PRONOUNCEMENT: 21.03.2018 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-II, INDORE, (I N SHORT CIT(A)), DATED 25.11.2016 PERTAINING TO A.Y. 2013-14. THE RE VENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL: WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE , LD. CIT(A)- II, INDORE IS JUSTIFIED IN HOLDING THAT THE DISALLO WANCE OF INTEREST U/S 43B WILL LEAD TO DOUBLE DISALLOWANCE WHEREAS TH E ADDITION WERE MADE TO LOSS DECLARED IN ORIGINAL RETURN AND N OT TO THE M/S. AGARWAL INDOTEX LTD. 2 REVISED COMPUTATION AND THIS DISALLOWANCE IS NOT RE LATED TO LOAN TO M/S AGRAWAL POLYFILS PVT. LTD. AND INTEREST DISA LLOWED U/S 36(1)(III) OF THE INCOME TAX ACT, 1961. 2. WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) IS JUSTIFIED IN DELETING THE ADDITION MADE O N ACCOUNT OF DISALLOWANCE OF INTEREST U/S 36(1)(III) WHEREAS THE ASSESSEE HAS FAILED TO PROVE THAT THE LOANS TO M/S AGRAWAL POLYF ILS PVT. LTD. WAS GIVEN FOR BUSINESS PURPOSE. 3. THE APPELLANT CRAVES LEAVE TO ADD TO OR DEDUCT F ROM OR OTHERWISE AMEND THE ABOVE GROUNDS OF APPEAL. 2. BRIEFLY STATED FACTS ARE THAT THE CASE OF THE AS SESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S 1 43(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED REFERRED A S THE ACT) WAS FRAMED VIDE ORDER DATED 29 TH FEBRUARY 2016. DURING THE COURSE OF ASSESSMENT PROCEEDINGS VIDE NOTICE DATED 14.12.2015 CALLED UPON THE ASSESSEE TO FURNISH THE DETAILS OF INTEREST EXP ENSES. THE AO, THEREFORE, DISALLOWED THE EXPENDITURE OF RS.1,07,84 ,349/- AND INTEREST THEREON @ 12% OF RS.93,64,195/- AND ADDED TO THE INCOME OF THE ASSESSEE. AGAINST THIS THE ASSESSEE PREFERRE D AN APPEAL BEFORE THE LD. CIT(A) WHO AFTER CONSIDERING THE SUBMISSION S ALLOWED THE APPEAL OF THE ASSESSEE. THEREBY, HE DELETED THE ADD ITIONS. AGAINST THIS THE REVENUE IS IN APPEAL. 3. APROPOS TO GROUND NOS. 1 AND 2 THE LD. DR SUPPOR TED THE ASSESSMENT ORDER. ON THE CONTRARY THE LD. COUNSEL F OR THE ASSESSEE SUPPORTED THE ORDER OF THE LD. CIT(A) AND SUBMITTED THAT ISSUES ARE SQUARELY COVERED IN FAVOUR OF THE ASSESSEE. 4. GROUND NO.1 IS AGAINST DISALLOWANCE OF INTEREST U/S 43B OF THE ACT OF RS.1,07,84,349/-. WE FIND THAT THE LD. CIT(A ) HAS GIVEN A FINDING ON FACT IN PARA 5 OF HIS ORDER AS UNDER: M/S. AGARWAL INDOTEX LTD. 3 THESE GROUNDS OF APPEAL ARE RELATED TO DISALLOWANC E OF RS.1,07,84,349/- U/S 43B. THE APPELLANT HAS SUBMITT ED BEFORE ME THAT IT HAD VOLUNTARILY REVISED ITS INCOME TAX R ETURN FOR THE ASSESSMENT YEAR IN QUESTION AND HAD ALREADY DISALLO WED A SUM OF RS.1,07,84,349/- U/S 43B OF THE ACT. SINCE, THE INTEREST HAS ALREADY BEEN DISALLOWED BY THE APPELLANT, I AM INCLINED TO AGREE WITH THE SUBMISSION OF THE APPELLANT THAT DIS ALLOWING THE SAME UNDER DIFFERENT SECTION NAMELY 36(1)(III) WILL LEAD TO DOUBLE DISALLOWANCE OF THE SAME EXPENSE. ACCORDINGLY, I FI ND MERIT IN THE SUBMISSION OF THE APPELLANT AND DELETE THE ADDI TION SO MADE OF RS.1,07,84,349/-. THESE GROUNDS OF APPEAL ARE AL LOWED. 5. THE ABOVE FINDING ON FACT IS NOT CONTROVERTED BY REVENUE BY PLACING ANY CONTRARY MATERIAL ON RECORD. AS THE ASS ESSEE HAS ALREADY DISALLOWED THE EXPENDITURE BY REVISING ITS INCOME TAX RETURN, WE, THEREFORE, DO NOT SEE ANY REASON TO INT ERFERE IN THE FINDING OF THE LD. CIT(A), SAME IS HEREBY AFFIRMED. THUS, GROUND NO.1 OF THIS APPEAL IS REJECTED. 6. NOW COMING TO GROUND NO.2: THE LD. DR FAIRLY CON CEDED THAT THE ISSUE RAISED IN THE GROUND HAS BEEN DECIDED AGAINST THE REVENUE BY THE COORDINATE BENCH OF THIS TRIBUNAL. WE FIND THAT THE LD. CIT(A) IN PARA 4.1 HAS OBSERVED AS UNDER: 4.1 I HAVE CAREFULLY GONE THROUGH THE SUBMISSION M ADE BY THE APPELLANT AS WELL AS THE ASSESSMENT ORDER. IT HAS B EEN BROUGHT TO MY NOTICE THAT HONOURABLE I.T.A.T. INDORE BENCH, INDORE VIDE ORDER IN ITANO. 693/IND/2013 FOR A.Y. 2010-11 ORDER DATED. 19 SEP. 2014 REPORTED IN (2014) 24 ITJ 489 (TRIB-INDOR E) HAS IN THE SIMILAR FACTS AND CIRCUMSTANCE HAD DELETED THE ENTI RE ADDITION MADE ON IDENTICAL GROUNDS IN THE APPELLANTS OWN CA SE, A COPY OF THE SAME HAS ALSO BEEN PRODUCED AND HAVE BEEN PE RUSED BY ME. RESPECTFULLY FOLLOWING THE ORDER OF THE JURISDI CTIONAL BENCH OF I.T.A.T., I HEREBY DELETED THE ADDITION SO MADE. THIS GROUND OF APPEAL IS ALLOWED. M/S. AGARWAL INDOTEX LTD. 4 7. SINCE THE LD. CIT(A) HAS FOLLOWED THE DECISION O F COORDINATE BENCH OF THE TRIBUNAL ON THIS ISSUE. THE REVENUE HA S NOT POINTED OUT ANY OTHER BINDING PRECEDENT BY THE HON'BLE HIGH COURT OR THE HON'BLE SUPREME COURT. THUS, WE DO NOT SEE ANY REAS ON TO INTERFERE IN THE FINDING OF THE LD. CIT(A), SAME IS HEREBY AF FIRMED, 8. GROUND NO.3 IS GENERAL IN NATURE NEED NOT SEPARA TE ADJUDICATION. 9. IN THE RESULT, THE APPEAL OF THE REVENUE IN ITANO. 143/IND/2017 IS DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 21 .03.2 018. SD/- (MANISH BORAD) SD/- (KUL BHARAT) A CCOUNTANT MEMBER JUDICIALMEMBER INDORE; DATED : 21/ 03/2018 CTX? P.S/. . . COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUA RD FILE. BY ORDER PRIVATE SECRETARY/DDO, INDORE