The ITO, Ward-8(1), Ahmedabad V. M/s. S.A.L. Steel Ltd., Ahmedabad

ITA 1431/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6225 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 20-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Assessee Lawyers: KINJAL V SHAH A R
• Section: 143(3)

Judgement Text

, D , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD .. , , BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ! ' ./ I.T.A. NO.1431/AHD/2015 & CO NO. 119/AHD/2015 ( / ASSESSMENT YEAR : 2011-12) INCOME-TAX OFFICER, WARD- 4(1)(1), AHMEDABAD / VS. THE S.A.L. STEEL LTD. 5/1, SHREEJI HOUSE, B/H M.J. LIBRARY, ASHRAM ROAD, AHMEDABAD- 380006 $ ./ %!&! ./ PAN/GIR NO. : AAHCS8284J ( ' $' / APPELLANT ) .. ( ($' / RESPONDENT ) ' $' ) / APPELLANT BY : SHRI V.K. SINGH, SR.DR ($' * ) / RESPONDENT BY : KINJAL V. SHAH, A.R + , * - / DATE OF HEARING 25/01/2018 ./0 * - / DATE OF PRONOUNCEMENT 29/ 01 /2018 ! 1 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN DIRECTED AT THE INS TANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX(APPEALS)- 9, AHMEDABAD [CIT(A) IN SHORT] DATED 28/03/2015 AR ISING IN THE ASSESSMENT ORDER DATED 07.11.2013 PASSED UNDER SECT ION 143(3) OF THE ITA NO.1431AHD/ 2015 S.A.L. STEEL LTD. VS. ITO, WD-4(1)(1) ASST.YEAR 2011-12 - 2 - ACT. THE ASSESSEE HAS ALSO FILED CROSS OBJECTION SU PPORTING THE ACTION OF THE CIT(A). 2. THE REVENUE HAS CHALLENGED THE ACTION OF THE CIT (A) IN DELETING THE DISALLOWANCE OF RS. 92,04,000/- MADE BY THE AO WITH THE AID OF SECTION 36(1)(III) OF THE ACT. 3. WITH THE ASSISTANCE OF THE LD. AUTHORISED REPRES ENTATIVE FOR THE ASSESSEE AND LD. DEPARTMENTAL REPRESENTATIVE FOR TH E REVENUE WE FIND THAT THE ASSESSEE HAS GIVEN CERTAIN ADVANCES TO SIX PARTIES AS NAMED IN THE ORDERS OF THE AUTHORITIES BELOW AGGREGATING TO ABOV E RS. 767.00 LAKHS. ALL THE AFORESTATED ADVANCES WERE GIVEN IN EARLIER YEARS THUS HAVE BEEN BROUGHT FORWARD FROM THE EARLIER YEARS. IT IS INTER ALIA THE CASE OF THE ASSESSEE THAT ITS HOLDS OWN FUNDS BY WAY OF SHARE C APITAL COMBINED WITH WITH RESERVE AND SURPLUS AGGREGATING TO ABOUT RS. 1 2564.00 LAKHS WHICH FAR EXCEEDS, THE CORRESPONDING INTEREST FREE ADVANC ES. 4. ON THESE FACTS, WE TAKE NOTE OF THE DECISION OF THE CO-ORDINATE BENCH OF TRIBUNAL IN ASSESSEES OWN CASE CONCERNING 2009-10 & 2010-11 IN ITA NO. 2013/AHD/2013 AND ORS ORDER DATED 18.01. 2017 WHERE IN THE SIMILAR FACTS, THE RELIEF WAS GRANTED TO THE ASSESS EE AND NO JUSTIFICATION WAS FOUND IN RESORTING TO DISALLOWANCE UNDER SECTIO N 36(1)(III) OF THE ACT. ITA NO.1431AHD/ 2015 S.A.L. STEEL LTD. VS. ITO, WD-4(1)(1) ASST.YEAR 2011-12 - 3 - 5. IN VIEW OF THE FACT THAT INTEREST FREE OWN FUNDS ARE FAR IN EXCESS OF INTEREST FREE ADVANCES, IT IS DIFFICULT TO DRAW PRE SUMPTION ADVERSE TO THE ASSESSEE. WE THEREFORE DO NOT FIND ANY INFIRMITY IN THE ACTION OF THE CIT(A) IN DELETING THE DISALLOWANCE OF INTEREST. WE THEREFORE DECLINE TO INTERFERE WITH THE CONCLUSION OF THE CIT(A). 6. ACCORDINGLY, THE APPEAL OF THE REVENUE IS DISMIS SED. 7. THE CROSS OBJECTION OF THE ASSESSEE MERELY SUPPO RTS THE ACTION OF THE CIT(A). IN THE ABSENCE OF ANY SUBSTANTIVE OBJEC TION OF THE ASSESSEE EMANATING FROM THE ORDER OF THE CIT(A), THE CROSS O BJECTION OF THE ASSESSEE IS ALSO DISMISSED AS INFRUCTUOUS. 8. IN THE RESULT, APPEAL OF THE REVENUE AND CROSS O BJECTION OF THE ASSESSEE ARE DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 29/01/2018 SD/- SD/- (.. ) ( ) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 29/01/2018