DCIT, Circle - 9, Kolkata, Kolkata V. M/s. Sarat Chatterjee & Co. (VSP) Pvt. Ltd., Kolkata

ITA 1544/KOL/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62108 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2012
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 05-08-2010
• Court: TRIBUNAL
• Department Lawyers: P S DUTTA
• Assessee Lawyers: SOMNATH GHOSH
• Keywords: Capital asset; Depreciation; Revenue expenditure; Capital expenditure
• Section: 143(3)

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH A, KOLKATA () BEFORE , , , , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . , '# SHRI C.D.RAO, ACCOUNTANT MEMBER $%& $%& $%& $%& ' ' ' ' / ITA NO . 1531/KOL/2010 () *+/ ASSESSMENT YEAR : 2006-07 (-. / APPELLANT ) SARAT CHATTERJEE & CO.(VSP)PVT.LTD., KOLKATA. (PAN: AADCS 6139 A) - ( - - VERSUS - . (01-./ RESPONDENT ) A.C.I.T., CIRCLE-9, KOLKATA ' ' ' ' / ITA NO.1544/KOL/2010 () *+/ ASSESSMENT YEAR : 2006-07 (-. / APPELLANT ) D.C.I.T., CIRCLE-9, KOLKATA. - ( - - VERSUS - . (01-./ RESPONDENT ) M/S.SARAT CHATTERJEE & CO.(VSP) PVT.LTD. KOLKATA. -. 2 3 '/ FOR THE DEPARTMENT: SHRI P.S.DUTTA 01-. 2 3 '/ FOR THE ASSESSEE : SHRI SOMNATH GHOSH 4(5 2 !# /DATE OF HEARING : 18.04.2012. 6* 2 !# /DATE OF PRONOUNCEMENT : 31.05.2012. '7 / ORDER ( (( ( . .. . ! ! ! !. .. . ) )) ), , , , '# PER SHRI C.D.RAO, AM THE ABOVE TWO APPEALS ONE FILED BY THE ASSESSEE AND THE OTHER FILED BY THE REVENUE ARE AGAINST ORDER DATED 20.05.2010 OF THE CIT(A)-VIII, KOLKATA PERTAINING TO A.YR. 2006-07. 2 2. IN THIS APPEAL THE ASSESSEE HAS RAISED THE FOLL OWING GROUNDS :- 1. FOR THAT THE LD. COMMISSIONER OF INCOME TAX (AP PEALS) VIII, KOLKATA ERRED IN UPHOLDING THE ADDITION OF RS. 34,80,019/- BY WAY OF DISALLOWANCE RESORTED TO BY THE LD. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 9, KOL KATA ON THE ALLEGED PREMISE THAT THIS AMOUNT REPRESENTED EXPENDITURE OF CAPITAL NATU RE AND THE ALLEGED FINDINGS ON THAT BEHALF IS WHOLLY ARBITRARY, UNREASONABLE, AND PERVE RSE. 2. FOR THAT THE ACTION OF THE LD. COMMISSIONER OF I NCOME TAX (APPEALS) VIII, KOLKATA IN UPHOLDING THE IMPUGNED FINDING OF THE LD . ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 9, KOLKATA WAS CONTRARY TO LAW AND FACT S AS NONE OF THE CONDITIONS PRECEDENT FOR HOLDING SUCH EXPENDITURE AS BEING CAPITAL IN NA TURE EXISTED AND/OR FULFILLED IN THE INSTANT CASE AND THE PURPORTED FINDING ON THAT BEHA LF IS ALTOGETHER FLAWED, ERRONEOUS AND PERVERSE. 3. FOR THAT THE LD. COMMISSIONER OF INCOME TAX (APP EALS) VIII, KOLKATA ACTED UNLAWFULLY IN UPHOLDING THE ALLEGED FINDING OF THE LD. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 9, KOLKATA THAT THE EXPENDITURE OF RS. 34,80,019/- CONSTITUTED DEFERRED REVENUE EXPENDITURE AS PER THE PROVISIONS OF THE IN COME TAX ACT, 1961 AND THE IMPUGNED FINDING IN THIS RESPECT WAS CAPRICIOUS, UN JUSTIFIED, WRONG AND PERVERSE. 3. THE BRIEF FACTS RELATING TO GROUNDS RAISED BY AS SESSEE AS APPEARING IN THE IMPUGNED ORDER ARE AS UNDER :- THE APPELLANT COMPANY, CARRYING ON THE BUSINESS OF STEVEDORING & CLEANNG AGENTS, SHIP HANDLERS. TRANSPORT & COMMISSION AGENTS HAD FI LED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2006-07 ON 03.11.2006 DISCLOSING TO TAL INCOME OF RS.3,1766,597/-. THE RETURN WAS FILED ALONG WITH PROPERLY AUDITED ACCOUN TS AND THE TAX AUDIT REPORT U/S. 44AB OF THE IT. ACT.1961. THE RETURN WAS ASSESSED U/S. 143(3) ON 28.12.2008 AND THE TOTAL INCOME HAS DETERMINED AT RS.3,76,21,360/-. IN ARRIVING AT THE ASSESSED INCOME, THE ASSESSING O FFICER, INTER ALIA, DISALLOWED.. RS.34,80,0I9/- OUT OF BANK CHARGES ON THE FINDING T HAT THE SAID AMOUNT IS IN THE NATURE OF CAPITAL EXPENDITURE. UNDER THE BANK CHARGES HEAD THE ASSESSEE INCURRED THE FOLLOWING EXPENSES INTER ALIA, RS.L4,24,000/- BEING LJPFRONT FEE FOR TERM LOAN & RS.20,56,019/- BEING PREPAYMENT PENALTY CHARGES BOTH THESE EXPENSES WERE INCURRED IN RELATION TO OB TAINING BANK LOANS TO FINANCE PROCUREMENT OF HEAVY MACHINERY AND WERE PURELY IN T HE NATURE OF REVENUE EXPENDITURE. CAPITAL EXPENDITURE IN THIS CONNECTION WAS DULY INC URRED BEING THE CAPITAL COST OF THE MACHINERIES FINANCED BY THE TERM LOANS THAT WERE RECEIVED FROM THE BANKS/FINANCIAL INSTITUTIONS. THE ASSESSING OFFICERS FINDING AS TO THE AMOUNT OF RS,14,24,000/- BEING UPFRONT FEE FOR TERM LOAN AND RS.20,56.019/- BEING PREPAYMENT PENALTY CHARGES ARE IN THE NATURE OF CAPITAL EXPENDITURE IS NOT CORRECT. BOTH THESE ARE REVENUE EXPENSES INCURRED TO FINANCE THE ACQUISITION OF CAPITAL GOODS ON WHICH DEPRECIAT ION HAS BEEN CLAIMED BY US YEAR TO YEAR. THESE WERE EXPENSES INCURRED TO OBTAIN EITHER LOANS OR TO REDUCE THE COST OF SUCH LOANS WHICH WERE DULY UTILIZED TO ACQUIRE CAPITAL G OODS. ACTUALLY THE EXPENDITURE THAT WAS INCURRED TO BRING INTO EXISTENCE AN ASSET WAS THE AMOUNT OF LOAN AND THE AMOUNT OF LOAN HAS NOT BEEN CLAIMED AS REVENUE EXPENDITURE. T HE EXPENSES INCURRED FOR OBTAINING THE LOAN CANNOT BE EQUATED WITH THE AMOUNT OF LOAN. 3 IN COURSE OF THE ASSESSMENT PROCEEDING IT WAS EXPLA INED AND THE ASSESSING OFFICER ALSO ACCEPTED IN PRINCIPLE, THAT THESE EXPE NSES RESULTED IN THE BUSINESS BEING BENEFITED. THE ASSESSING OFFICERS FINDING THAT THE SAID EXPENSES RESULTED IN ENDURING BENEFIT IS NOT CORRECT. ONLY THE LOAN AMOUNTS WHICH WERE UTILIZED TO ACQUIRE THE CAPITAL ASSETS WERE EXPENSES INCURRED WITH A VIEW TO BRING ING INTO EXISTENCE AN ASSET AND THERE IS NO DISPUTE REGARDING THE CAPITAL NATURE OF SUCH EXPENDITURE. ENDURING BENEFIT FOR THE BUSINESS IS DERIVED FROM T HE CAPITAL GOODS PURCHASED AND NOT BY GETTING SOME REDUCTION IN THE INTEREST O UTGO. BY APPLYING THE ASSESSING OFFICERS LOGIC WE HAVE ALREADY DERIVED THE BENEFIT WHEN WE ACQUIRED THE CAPITAL ASSETS BY OBTAINING LOANS AND NOT AT THAT POINT WHEN BY CH ANGING AND NEGOTIATING WITH A NEW LENDER WE WERE ABLE TO EXTRACT SOME RET BENEFIT SO FAR AS OUR INTEREST OUTGO IS CONCERNED. BY PAYING A LESSER AMOUNT BY WAY OF INTEREST WE NOT ONLY OBTAINED A BENEFIT FOR OUR BUSINESS, WE WERE ABLE TO RETURN INCREASED AMOUNT O F TOTAL INCOME WHICH RESULTED IN A BENEFIT FOR THE EXCHEQUER ALSO AS AN INCREASED AMOU NT OF INCOME TAX WAS PAID COMPARED TO THE AMOUNT WHICH WOULD HAVE BEEN PAYABLE HAD THE RE BEEN NO DECREASE IN THE PAYMENT OF INTEREST ON THE LOANS. IN THE ASSESSMENT ORDER THE ASSESSING OFFICER HAS E LABORATELY QUOTED FROM THE JUDGEMENT IN THE CASE OF GUJARAT MINERAL DEVELOPMEN T CORPN. LTD.. V. CIT [(1983) 143 ITR 822 (GUJ.)] TO HIGHLIGHT THE TESTS TO BE APPLIE D IN DETERMINING CAPITAL EXPENDITURE. THERE IS NO DISPUTE REGARDING THE TESTS TO BE APPLI ED IN DETERMINING CAPITAL EXPENDITURE. HOWEVER THE ASSESSMENT ORDER IS SILEN T ON HOW THE TESTS WERE APPLIED IN OUR CASE. IN THE SHOW CAUSE ISSUED IN COURSE OF THE ASSESSMENT PROCEEDING AND ALSO IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER HAS IND ICATED THAT THE EXPENDITURE IN QUESTION SHOULD HAVE BEEN TREATED AS DEFERRED REVE NUE EXPENDITURE. IT HAS ALSO BEEN EXPLAINED IN THE ASSESSMENT ORDER THROUGH A HYPOTHE TICAL SCENARIO. ALL THESE REASONING BY THE ASSESSING OFFICER PROVES THAT THE ASSESSING OFFICER HIMSELF IS CONVINCED THAT THE EXPENSES IN QUESTION WERE NOT IN THE NATURE OF CAPI TAL EXPENDITURE OR OTHERWISE WHERE IS THE SCOPE FOR TREATING THE AMOUNTS UNDER DEFERRED REVENUE EXPENDITURE? HOWEVER, THE ASSESSING OFFICERS PROPOSAL TO TREAT THE AMOUNTS AS DEFERRED REVENUE EXPENDITURE IS NOT SUPPORTED BY THE PROVIS IONS OF THE INCOME TAX ACT. 1961 AS IN THE SAID STATUTE THERE ARE SPECIFIC PROVISIONS F OR ALLOWANCE OF EXPENSES SPREAD OVER CERTAIN NUMBER OF ASSESSMENT YEARS LIKE IN SECTIONS 35A. 35D, 35DD, 35DDA. ETC .. THE EXPENDITURE UNDER CONSIDERATION DOES NOT FALL U NDER ANY OF SUCH CA1EORICS FOR WHICH DEFERRED ALLOWANCE SPREADS OVER SUCCESSIVE ASSESSME NT YEARS ARE PRESCRIBED IN THE INCOME TAX ACT, 1961. 3.1. AGGRIEVED BY THIS ASSESSEE WENT IN APPEAL BEF ORE LD.CIT(A). THE LD.CIT(A) AFTER TAKING INTO CONSIDERATION OF THE VARIOUS SUBM ISSIONS WHICH WAS RECORDED AT PAGES NOS.8 TO 12 CONCLUDED THAT IN THIS GROUND, THE APPELLANT IS DISPUTING THE ACT ION OF THE ASSESSING OFFICER (AO) IN DISALLOWING PART OF BANK CHARGES CLAIMED BY IT BY H OLDING IT AS CAPITAL EXPENDITURE. THE APPELLANTS CASE IS THAT THIS EXPENDITURE WAS INCUR RED IN CONNECTION WITH PROCUREMENT OF TERM LOANS FROM BANKS / FINANCIAL INSTITUTIONS AND HENCE SHOULD BE ADJUDGED AS REVENUE EXPENDITURE. THE APPELLANTS SUBMISSIONS ON THIS ISSUE ARE A MAT TER OF RECORD AND HAVE BEEN PERUSED. THE BANK CHARGES CONSIST OF UPFRONT FEE F OR TERM LOAN & PREPAYMENT PENALTY CHARGES. BY THE APPELLANTS OWN ADMISSION, THESE HAVE BEEN USED TO OBTAIN BANK LOANS TO FINANCE PROCUREMENT OF MACHINERY. IN MY OPINION, IT IS NOT A CASE OF 4 EQUATING EXPENSES INCURRED FOR OBTAINING LOAN WITH LOAN ITSELF THE EXPENDITURE HAS ULTIMATELY RESULTED IN ENDURING BENEFIT TO THE APPE LLANT IN THE SHAPE OF NEW MACHINERIES WHICH IT HAD PURCHASED. LOGICALLY, THEREFORE, IT SH OULD BE CAPITALIZED. UNDER THE CIRCUMSTANCES, I UPHOLD THE AOS ACTION ON THIS ISS UE AND DISMISS THIS GROUND OF APPEAL. 3.2. AGGRIEVED BY THIS NOW ASSESSEE IS IN APPEAL B EFORE US. 4. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS : 1. WHETHER THE LD. CIT(APPEALS)-VIII, KOLKATA IS C ORRECT IN LAW AND ON THE FACTS AND CIRCUMSTANCES OF THE CASE IN TREATING THE EXPENDITU RE OF RS.20,18,744/- AS REVENUE EXPENDITURE WHEN IT IS SEEN THAT THE EXPENDITURE WA S INCURRED FOR NEW CONCRETE FLOOR WAS CONSTRUCTED. 4.1. THE BRIEF FACTS IN RESPECT OF GROUND RAISED BY THE REVENUE ARE THAT WHILE DOING THE SCRUTINY ASSESSMENT THE AO HAS OBSERVED THAT AS SESSEE HAS DEBITED AN AMOUNT OF RS.20,18,744/- IN P&L ACCOUNT WHICH WAS RELATING TO REPAIR AND MAINTENANCE CHARGES. BASED ON THE EXPLANATIONS OF SECTION 30 OF THE IT A CT THE LD. AO HAS TREATED THE SAME AS CAPITAL IN NATURE AND ADDED TO THE INCOME OF ASS ESSEE. 4.2. ON APPEAL THE LD. CIT(A) AFTER TAKING INTO CON SIDERATION OF THE VARIOUS SUBMISSIONS AND THE EXPENDITURE INCURRED FOR GODOWN MAINTENANCE FOR THE PAST FIVE YEARS DELETED THE SAME BY OBSERVING AS UNDER :- IN THE INSTANT CASE, FLOORS HAVE BEEN REPAIRED, WH ICH IN A GODOWN, IS NECESSARY FOR NORMAL WEAR AND TEAR. FABRICATION DOES NOT NECE SSARILY MEAN THAT A NEW ASSET HAS BEEN BROUGHT TO EXISTENCE. IN THIS CASE, KEEPIN G IN VIEW, THE WDV OF THE ASSETS, THE AMOUNT SPENT ON FABRICATION IS COMPARAT IVELY SMALL AND, IN MY OPINION, THAT IS INDICATIVE OF THE FACT THAT THE PU RPOSE HERE HAS BEEN FOR NORMAL MAINTENANCE. ALSO, IF THE OVERALL SIZE OF THE ASSET S, AS EVIDENT FROM THEIR WDV IS KEPT IN MIND THEN THE AMOUNT CLAIMED BY THE APPELLA NT FOR CURRENT REPAIRS DOES NOT APPEAR TO HE SUBSTANTIAL. NO INFERENCE CAN BE D RAWN FROM HERE THAT ANY NEW ASSET HAS BEEN CREATED. NEITHER HAS THE A.O. POINTE D OUT ANY SUCH CREATION OF A NEW ASSET(S) THE APPELLANT IN ITS SUBMISSION HAS RE FERRED TO THE 2004 TSUNAMI. IN MY OPINION, NATURAL DISASTERS ALSO NECESSITATE HIGH ER SPENDING ON ASSETS TO MAKE THEM USABLE BUT, IT SHOULD BE KEPT IN MIND THAT, AS NO ASSET IS BEING CREATED, THE EXPENDITURE CONCERNED WOULD BE IN THE NATURE OF CUR RENT REPAIRS ONLY. UNDER THE CIRCUMSTANCES, I FEEL THAT THE APPELLANTS CLAIM OF THIS EXPENDITURE AS CURRENT REPAIRS IS JUSTIFIED THE A.O IS DIRECTED TO DELETE THIS ADDITION THIS GROUND OF APPEAL IS ALLOWED. 4.3. AGGRIEVED BY THIS NOW THE REVENUE IS IN APPEAL BY TAKING THE ABOVE GROUNDS. 5 5. WE WANT TO DISPOSE OF THE REVENUES APPEAL FIRST . 6. AT THE TIME OF HEARING BEFORE US THE LD.DR APPE ARING ON BEHALF OF THE REVENUE RELIED ON THE ORDERS OF AO. HOWEVER, HE COULD NOT B RING ANY CONTRARY MATERIAL AGAINST THE FINDINGS OF LD. CIT(A) WHICH WAS INCORPORATED I N THE PRECEDING PARAGRAPHS. 7. ON THE OTHER HAND, THE LD. COUNSEL APPEARING ON BEHALF OF ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE REVENUE AUTHORITIES WHICH ARE AS UNDER :- THE MAINTENANCE OF THE GODOWN IN PROPER CONDITION IS A MUST TO PREVENT ANY ACCIDENT AND IS A MUST AS PER THE GUIDELINES OF THE PORT AUT HORITIES. DETAILED CLARIFICATIONS IN RESPECT OF THE ITEMS CITED BY YOU IS FURNISHED (ANN EXURE-6). THE IMPORTANCE OF THE JOBS CAN BE GAUGED FROM THE FACT THAT WE HAVE TO EMPLOY A LEADING ORGANIZATION LIKE LARSEN & TOUBRO LTD. FOR SOME OF THE JOBS TO ENSURE PROPER REPAIRS AND LONGEVITY AND ALSO TO REDUCE THE TIME OF REPAIRS AS LARSEN & TOUBRO LTD. HAS GOT FULLY MECHANISED SYSTEM TO HANDLE SUCH WORK. THE ASSESSING OFFICER, WITHOUT GOING INTO THE MERIT S OF OUR SUBMISSION SUMMARILY REJECTED THE ARGUMENTS WITH THE TERSE OBS ERVATION - ASSESSEE SUBMITTED VARIOUS DECISIONS, WHICH NOT COVER AMENDED PROVISIO NS OF SECTION 30. A SAMPLE EXAMPLE IS 6L MTR. FABRICATION @ RS. 9000/- PER MT. , IS NOT REPAIR BUT EXPENDITURE IN NATURE OF CAPITAL. HE HAS ALSO OBSERVED THAT IN TH E RECORDS OF LAST THREE SEARS NO SIZEABLE EXPENDITURE OF THIS NATURE IS REFLECTED. THE ASSESS ING OFFICERS OBSERVATION IS NOT CORRECT AND NOT SUPPORTED BY THE ACTUAL FACTS AS MAY KINDLY BE SEEN FROM THE FOLLOWING FIGURES: FINANCIAL YEAR EXPENDITURE INCURRED ON GODOWN MAINTENANCE (RS.) 2005-06 92,76,719.00 2004-05 48,32,090.00 2003-04 18,87,739.50 2002-03 43,92,633.85 2001-02 19,37,540.00 FROM THE ABOVE CHART IT IS CLEAR THAT EXPENSES FOR GODOWN REPAIRING WERE INCURRED EVERY YEAR AND THE QUANTUM VARIED DEPENDIN G ON THE ACTUAL REQUIREMENT. IN THIS CONTEXT YOUR KIND ATTENTION IS DRAWN TO THE FACT THAT DISASTER IN THE FORM OF TSUNAMI STRUCK SOUTH EAST ASIA AND INDIA ON THE 26T H OF DECEMBER, 2004. THE SAME WAS THE WORST NATURAL DISASTER IN THE RECORDED HIST ORY OF PLANET EARTH. OUR GODOWNS BEING LOCATED ON THE SOUTH EAST OF INDIA WERE SEVER ELY DAMAGED AND TO BRING THE GODOWNS BACK TO NORMAL CONDITION WE HAD TO INCUR MU CH MORE THAN THE AVERAGE OF EXPENSES ON THIS ACCOUNT. SO THE ASSESSING OFFICERS FINDING IN THIS CONTEXT IS ABSOLUTELY WRONG AND ILLEGAL AND YOU ARE REQUESTED TO KINDLY DELETE THE ADDITION OF RS.20,18,744/- ON THIS ACCOUNT. 8. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF MATERIALS AVAILABLE ON RECORD, KEEPING IN VIEW OF THE FACT TH AT THE LD. CIT(A) HAS RIGHTLY OBSERVED THAT NO INFERENCE CAN BE DRAWN FROM THE FA CTS OF THE CASE THAT NEW ASSET HAS BEEN CREDIT, NEITHER THE AO HAS POINTED OUT ANY SUC H CREATION OF THE NEW ASSET. IT IS 6 FURTHER OBSERVED THE EXPENDITURE INCURRED FOR GODOW N MAINTENANCE FOR THE PAST FIVE YEARS HAS BEEN ALLOWED BY THE REVENUE AS REVENUE EX PENDITURE. UNDER THESE CIRCUMSTANCES, WE FIND NO INFIRMITY IN THE ORDERS O F LD. CIT(A) TO BE INTERFERED WITH. 7. IN THE RESULT THE REVENUES APPEAL IS DISMISSED. 8. AS REGARDING THE ASSESSEES APPEAL WHICH IS RELA TING TO THE CONFIRMATION OF ADDITION OF RS.34,80,019/- THE RELEVANT OBSERVATION S OF THE AO AS WELL AS THE LD. CIT(A) ARE INCORPORATED IN THE PRECEDING PARAGRAPHS . 9. AT THE TIME OF HEARING BEFORE US, THE LD. COUNSE L APPEARING ON BEHALF OF ASSESSEE HAS REITERATED THE SUBMISSIONS MADE BEFORE THE REVENUE AUTHORITIES WHICH ARE AS UNDER :- UNDER THE BANK CHARGES HEAD THE ASSESSEE INCURRE D THE FOLLOWING EXPENSES INTER ALIA, RS.14,24,000/-BEING UPFRONT FEE FOR TE RM LOAN & RS.20,56,019/- BEING PREPAYMENT_PENALTY CHARGES. BOTH THESE EXPENSES WERE INCURRED IN RELATION TO OB TAINING BANK LOANS BY SHIFTING THE SAME FROM CONSORTIUM OF BANKS (WITH STATE BANK OF INDIA, STATE BANK OF HYDERABAD AND ING VYSYA BANK LTD) TO ABN AMRO BANK AGAINST TH E FLOATING CRANE WHICH WAS PUT TO USE IN THE FINANCIAL YEAR 2003-04 AND DEPREC IATION ON THIS ASSET HAS BEEN CLAIMED BY US YEAR TO YEAR STARTING FROM THE FINANCIAL YEAR 2003-04 ( PHOTO COPY OF DEPRECIATION SCHEDULE ENCLOSED) AND AS SUCH WERE PURELY IN THE N ATURE OF REVENUE EXPENDITURE. CAPITAL EXPENDITURE IN THIS CONNECTION WAS DULY INC URRED BEING THE CAPITAL COST OF THE MACHINERIES FINANCED BY THE TERM LOANS THAT WERE O RIGINALLY RECEIVED FROM THE BANKS/FINANCIAL INSTITUTIONS (STATE BANK OF INDIA, STATE BANK OF HYDERABAD AND ING VYSYA BANK LTD). THE ASSESSING OFFICERS FINDING AS TO THE AMOUNT OF RS.14,24,000/- BEING UPFRONT FEE FOR TERM LOAN AND RS.20,56.019/- BEIN G PREPAYMENT PENALTY CHARGES ARE IN THE NATURE OF CAPITAL EXPENDITURE IS NOT CORRECT THESE WERE EXPENSES INCURRED SUBSEQUENT TO COMPLETION OF CONSTRUCTION OF FLOATIN G CRANE AND UTILISATION OF THE SAME FOR THE BUSINESS OF THE ASSESSEE COMPANY IN THE YEA R 2003-04 AND TO REDUCE THE COST OF SUCH LOANS WHICH WERE ORIGINALLY UTILIZED TO ACQUIR E CAPITAL GOODS. IT IS ALSO REQUIRED TO STATE THAT ALL THE RELATED EXPENSES INCLUDING INTER EST PAID ON TERM LOANS WERE CAPITALISED TILL THE POINT OF COMPLETION OF THE CONSTRUCTION OF FLOATING CRANE. THE EXPENSES INCURRED FOR SHIFTING THE LOAN FROM CONSORTIUM OF BANKS(WITH STATE BANK OF INDIA, STATE BANK OF HYDERABAD AND ING VYSYA BANK LTD) TO ABN AMRO BANK CANNOT BE EQUATED WITH THE AMOUNT OF LOAN. IN COURSE OF THE ASSESSMENT PROCEEDING IT WAS EXPLA INED AND THE ASSESSING OFFICER ALSO ACCEPTED IN PRINCIPLE, THAT THESE EXPE NSES RESULTED IN THE BUSINESS BEING BENEFITED. THE ASSESSING OFFICERS FINDING THAT THE SAID EXPENSES RESULTED IN ENDURING BENEFIT IS NOT CORRECT. 7 ENDURING BENEFIT FOR THE BUSINESS IS DERIVED FROM T HE CAPITAL GOODS PURCHASED AND NOT BY GETTING SOME REDUCTION IN THE INTEREST O UTGO. BY APPLYING THE ASSESSING OFFICERS LOGIC WE HAVE ALREADY DERIVED THE BENEFIT WHEN WE ACQUIRED THE CAPITAL ASSETS BY OBTAINING LOANS AND NOT AT THAT POINT WHEN BY CH ANGING AND NEGOTIATING WITH A NEW LENDER WE WERE ABLE TO EXTRACT SOME NET BENEFIT SO FAR AS OUR INTEREST OUTGO IS CONCERNED. BY PAYING A LESSER AMOUNT BY WAY OF INTEREST WE NOT ONLY OBTAINED A BENEFIT FOR OUR BUSINESS, WE WERE ABLE TO RETURN AN INCREASED AMOUN T OF TOTAL INCOME WHICH RESULTED IN A BENEFIT FOR THE EXCHEQUER ALSO AS AN INCREASED AM OUNT OF INCOME TAX WAS PAID COMPARED TO THE AMOUNT WHICH WOULD HAVE BEEN PAYABL E HAD THERE BEEN NO DECREASE IN THE PAYMENT OF INTEREST ON THE LOANS. ON AN ANALYSIS OF THE SEQUENCE OF EVENTS IT IS SEEN THAT THE ASSESSEE COMPANY EVEN AFTER ALLOWING FOR THE SUM OF RS 20,52,419/- P AID AS PREPAYMENT CHARGES, IS STILL BENEFITED BY A SUM OF RS 72,75,295/- ON ACCOUNT OF REDUCTION IN RATE OF INTEREST DUE TO SHIFTING OF THE LOANS TO ABN AMRO BANK. A DETAILED NOTE ON THE SEQUENCE OF EVENTS IN CONNECTION WITH THE ORIGINAL SANCTION AND SUBSEQUEN T SWITCH OVER OF THE LOANS IS APPENDED BELOW: NOTE ON TERM LOAN AVAILED BY M/S.SARAT CHATTERJEE & CO.(VISAKHAPATNAM) PVT. LTD. FROM ABN AMRO BANK AGA INST FLOATING CRANE BY SHIFTING THE LOAN ACCOUNTS FROM CONSORTIUM OF BANKS COMPRISING STATE BANK OF INDIA AS THE LEAD BANK, STATE BANK OF HYDERABAD AND ING VYSYA BANK LTD. AS MEMBER BANKS. 1. THE COMPANY M/S. SARAT CHATTERJEE & CO.(VISAKHAP ATNAM) PVT. LTD. WAS SANCTIONED RUPEE TERM LOAN UNDER CONSORTIUM ARRANGEMENT WITH S TATE BANK OF INDIA AS LEAD BANK, THE FOLLOWING AMOUNTS: STATE BANK OF INDIA - RS.L0.00 CRORES AS MEDIUM T ERM LOAN. STATE BANK OF HYDERABAD - RS.6.00 CRORES. ING VYSYA BANK LTD. - RS.6.35 CRORES 2. THE SANCTIONS WERE RELEASED IN THE YEAR 1999 1 2000 UNDER VARIOUS SANCTION AS FOLLOWS : S. NO. NAME OF BANK SANCTION NO. DATE 1. STATE BANK OF INDIA CD/00/1120 30.03.2000 2. STATE BANK OF INDIA F/ADV 27.04.2000 3. ING VYSYA BANK LTD. RO:HO:EC:DP 15.12.1999 & (16.04.2005) 3. THE LOANS WERE SANCTIONED INITIALLY AT INTEREST RATES UPTO 17.34% BY ING VYSYA BANK LTD. AND AT 15.50% BY STATE BANK OF INDI A AND STATE BANK OF HYDERABAD. THE SAID LOANS WERE TO BE REPAID AS PE THE SCHEDULE OF REPAYMENT FIXED BY THE BANKS UNDER THE CONSORTIUM ARRANGEMENT. 4. THE DRAW-DOWN OF THE LOANS WITH RESPECTIVE BANK S COMMENCED ON THE FOLLOWING DATES STATE BANK OF INDIA - RS.23.05.2000 STATE BANK OF HYDERABAD - RS.23.05.2000 ING VYSYA BANK LTD. - RS.19.05.2000 5. AS ON 01.04.2005, THE FOLLOWING BALANCES WERE OUTSTANDING AGAINST THE TERM LOANS WITH THE CONCERNED BANKS RESPECTIVELY STATE BANK OF INDIA RS.7,76,25,000/- STATE BANK OF HYDERABAD RS.4,65,75,000/- 8 ING VYSYA BANK LTD. RS.5,06,89,787/- 6. THE RESPECTIVE CHARGES WERE CREATED WITH ROC ON 17.05.2000 AND THE REPAYMENT IN INSTALMENTS COMMENCED FROM 01.10.2001. BANK FIRST 27 QUARTERS @ 28 TH QUARTER INSTALLMENTS COMMENCING FROM STATE BANK OF INDIA RS. 35.72 LACS RS. 35.56 LACS 01.10.2001 STATE BANK OF HYDERABAD RS. 22.00 LACS RS. 6.00 LACS 01.10.200 1 VYSYA BANK LTD. RS. 22.68 LACS RS. 22.64 LACS 01 .10.2001 (SINCE RENAMED AS ING VYSYA BANK LTD.) 7. DUE TO DELAY IN PROJECT IMPLEMENTATION FOR REAS ONS BEYOND THE CONTROL OF THE COMPANY, THE COMMENCEMENT OF COMMERCIAL OPERATIONS WAS DELAYED. SINCE THE COMPANY WAS NOT IN A POSITION TO PAY THE INSTALMENT S AS SCHEDULED, THE REPAYMENT WAS RESCHEDULED W.E.F. 01.01.2004 AS FOLLOWS: BANK FIRST 20 QUARTERS @ 21ST QUARTER INSTALLMEN TS COMMENCING FROM STATE BANK OF INDIA RS. 44.75 LACS RS. 105.0 0 LACS 01.01.2004 STATE BANK OF HDERABAD RS. 26.85 LACS RS. 63 .00 LACS 01 .01 .2004 VYSYA BANK LTD. RS.28.40 LACS RS.67.00 LAC S 01.01.2004 (SINCE RENAMED AS ING VYSYA BANK LTD.) 8. IN VIEW OF THE HARDSHIPS FACED, ON 08.07.2004, THE COMPANY REPRESENTED TO THE CONSORTIUM OF BANKS TO RECONSIDER WAIVING A PART OF INTEREST AND ALSO TO REDUCE THE RATE OF INTEREST IN ORDER TO LESSEN THE BURDEN OF THE CO MPANY DUE TO COST OVER RUNS AND TIME OVER RUNS CAUSED BY DELAY IN CONSTRUCTION OF THE FL OATING CRANE BY M/S.HINDUSTAN SHIPYARD LTD., 9. FURTHER ON 10.01.05, A REQUEST WAS MADE TO CONS IDER FCNR-B LOAN. THE LEADER OF THE CONSORTIUM I.E; STATE BANK OF INDIA THEN CON SIDERED FCNR-B LOAN AT 525 BPS OVER THE 6 MONTHS LIBOR. THE SAID INTEREST RATE TEC HNICALLY WORKED OUT TO 8.66% PER ANNUM STRAIGHT AWAY. FURTHER, THE RISK OF THE UNFAV OURABLE MOVEMENT IN THE EXCHANGE RATE AND THE LIKELY INCREASE IN LIBOR RATE WOULD HA VE POSSIBLY ADDED FURTHER BURDEN ON THE COMPANY. 10. HOWEVER, THE THEN PREVAILING RATES IN THE MARK ET ON FCNR-B LOANS WERE AT ABOUT 200 BPS OVER THE LIBOR. THE COMPANY, ON 28.05 .2005, THEREFORE, REQUESTED STATE BANK OF INDIA TO CONSIDER REDUCING THE RATE OF INTE REST TO 250 BPS OVER THE SIX MONTHS LIBOR AND TO RE-SET THE SAME EVERY 6 MONTHS IN ORDE R TO ENABLE THE COMPANY TO BEAR THE COST IN LINE WITH THE PREVAILING MARKET CONDITI ONS. 11. FURTHER, SINCE THE STATE BANK OF INDIA DID NOT AGREE TO BRING DOWN THE SPREAD OVER THE 6 MONTHS LIBOR RATE, THE COMPANY AGAIN MAD E A REQUEST ON 2ND SEPTEMBER, 2005 TO CONSIDER REDUCING THE RATE OF INTEREST ON T ERM LOAN TO 8.25% PER ANNUM BY CONTINUING THE SAME AS RUPEE LOAN IN ORDER TO CONTA IN THE COSTS. AT THE SAME TIME THE COMPANY STARTED EXPLORING ALTERNATIVE BORROWING OPT IONS AS ARE AVAILABLE IN THE MARKET. IN THE PROCESS, THE COMPANY SUBMITTED ITS PROPOSAL TO ABN AMRO BANK AMONG VARIOUS BANKS FOR CONSIDERING TAKEOVER OF THE LOAN FROM THE CONSORTIUM. 12. THE REQUEST OF THE COMPANY WAS CONSIDERED BY A BN AMRO BANK WHO SANCTIONED A TERM LOAN OF RS. I 4,24,00,000/-AT OVE RALL COST OF 8.25% PER ANNUM. 9 13. UPON RECEIPT OF THE APPROVAL FROM ABN AMRO BAN K, THE COMPANY MADE A PLEA TO THE CONSORTIUM OF BANKS TO REDUCE THE RATE OF INTEREST TO AT LEAST 8.25% AND AGREED TO CONTINUE WITH THE CONSORTIUM OF BANKS ITS ELF IF THE COST OF INTEREST WAS BROUGHT DOWN TO THE DESIRED LEVEL. THE CONSORTIUM OF BANKS COULD NOT FAVOURABLY RESPOND AND AGREED TO ABN AMRO BANK TAKING OVER THE LOANS. 14. ON 12.12.2005, ABN AMRO BANK HANDED OVER THE P AYMENTS OF THE RESPECTIVE PRINCIPAL AMOUNTS OUTSTANDING AS FOLLOWS: FAVOURING D.D.NO.& DATE AMOUNT DRAWN ON STATE BANK OF INDIA 00324, 12.12.05 6,42,00,000/- ICICI BANK LTD. VISHAKAPATNAM STATE BANK OF 00325,12.12.05 3,84,20,945/- ICICI BANK LTD. HYDERABAD VISHAKAPATNAM ING VYSYA BANK 008293,12.12.05 3,97,79,055/- ABN A MRO BANK LTD. 15. AT THE TIME OF HANDING OVER THE DOCUMENTS/LOA NS/SECURITIES ETC. STATE BANK OF INDIA AND STATE BANK OF HYDERABAD INSISTED ON PAYME NT OF PRE-PAYMENT CHARGES DUE TO PRE-CLOSURE OF THE LOAN ACCOUNTS. ACCORDINGLY, THE COMPANY HAD TO PAY PRE-PAYMENT CHARGES OF RS.12,84,000/- TO STATE BANK OF INDIA AN D RS.7,68,000/- TO STATE BANK OF HYDERABAD IN ORDER TO EFFECT THE SWITCH OVER THE AM OUNT OUTSTANDING AGAINST THE LOANS TO ABN AMRO BANK. 16. THE COMPANY TOOK A CONSCIENTIOUS DECISION IN S HIFTING THE ACCOUNTS TO ABN AMRO BANK AND MAKING THE PREPAYMENT CHARGES OF RS.2 0,52,419/- (COMPRISING RS.12,84,000/- TO STATE BANK OF INDIA AND RS.7,68,0 00/- TO STATE BANK OF HYDERABAD) SINCE THE INTEREST CHARGED BY ABN AMRO BANK WAS LOW ER IN COMPARISON TO THAT CHARGED BY STATE BANK OF INDIA, STATE BANK OF HYDERABAD AND ING VYSYA BANK LTD. 17. THE DETAILS OF INTEREST THAT WOULD HAVE BEEN PA ID BY THE COMPANY TO STATE BANK OF INDIA. STATE BANK OF HYDERABAD AND ING VYSY A BANK LTD. (IN CASE THE ACCOUNTS HAD CONTINUED WITH THE CONSORTIUM) ARE ENCLOSED HER EWITH AND THE DETAILS OF INTEREST ALREADY PAID BY THE COMPANY TO ABN AMRO BANK AGAINS T THE TERM LOAN OF RS. 14.24 CRORES SANCTIONED BY THEM (ALSO ENCLOSED HEREWITH) GO TO SHOW THAT THE COMPANY HAS MADE A CLEAR SAVING OF RS.93,27,714/-. INTEREST THAT WOULD HAVE BEEN PAYABLE TO THE CONSOR TIUM BANKS. NAME OF BANK LOAN AMOUNT (RS.) INTEREST (RS.) FRO M 12.12.05 OVER 35 MONTHS STATE BANK OF INDIA 6,42,00,000.00 1,34,88,878.88 STATE BANK OF 3,84,20,945.00 60,92,463.90 HYDERABAD ING VYSYA BANK 3,97,79,055.00 63,07,821.59 LTD. 14,24,00,000.00 2,58,89,164.37 LESS INTEREST PAID TO 1,65,61,450.00 STATEMENT O F A/C ABN AMRO BANK LEDGER ENCLOSED. 93,27,714.00 18. EVEN AFTER CONSIDERING THE AMOUNT OFRS.20,52,4 19/- PAID AS PRE-PAYMENT CHARGES, THE COMPANY IS STILL BENEFITED BY A SUM OF RS.72,75,295/- ON ACCOUNT OF REDUCTION IN COST OF INTEREST DUE TO SHIFTING OF TH E LOAN ACCOUNTS TO ABN AMRO BANK. 10 19. THE SHIFTING OF THE LOANS AGAINST THE FLOATING CRANE FROM CONSORTIUM OF BANKS (WITH STATE BANK OF INDIA, STATE BANK OF HYDERABAD AND ING VYSYA BANK LTD.) TO ABN AMRO BANK IS THEREFORE FULLY JUSTIFIED. PROCESSING FEE FOR SANCTION OF LOAN CAN ALSO BE TRE ATED AS INTEREST FOR THE PURPOSES OF SEC.36(1)(III) CHINTAMONI HATCHERIES (P) LTD. -V S- DEPUTY COMMISSIONER OF INCOME- TAX [(2000) 17 DTC 262 {PUNE-TRIB.)] 9.1. ON FURTHER ENQUIRY FROM THE BENCH, THE LD. COU NSEL FOR ASSESSEE HAS FILED THE CORRESPONDENCE WITH ABN-AMRO BANK AND THE BALANCE S HEETS AS ON 31.03.2003, 31.03.2004, 31.03.2005 AND 31.03.2007 AND IT IS OBS ERVED THAT THIS IS ONLY THE CHANGING OVER OF THE TERM LOAN FROM THE CONSORTIUM BANKS I.E. STATE BANK OF INDIA, STATE BANK OF HYDERABAD AND ING VYSYA BANK LTD. TO ABN AMRO BANK WHICH WAS APPARENT FROM SCHEDULE-C ATTACHED TO THE BALANCE SH EET AS ON 31.03.2005. KEEPING IN VIEW OF THESE FACTS SINCE THE ASSESSEE HAS ALREADY CAPITALIZED THE INITIAL LOAN EXPENDITURE ALONG WITH THE INTEREST THERE IS NO NEE D TO FURTHER CAPITALIZE RS.14,24,000/- BEING UPFRONT FEE FOR TERM LOAN AND RS.20,56,019/- BEING PREPAYMENT PENALTY CHARGES AND THE EXPENDITURE OF THE CONSORTIUM I.E. STATE BA NK OF INDIA, VIZAG, STATE BANK OF HYDERABAD, VIZAG AND ING VYSYA BANK LTD. VIZAG CANN OT BE CAPITALIZED SINCE ASSESSEE HAS NOT ACQUIRED ANY FURTHER ADDITIONAL AS SET OF ENDURING NATURE. THEREFORE HE REQUESTED TO SET ASIDE THE ORDERS OF THE REVENUE AU THORITIES AND DIRECT THE AO TO ALLOW THE CLAIM OF ASSESSEE THAT THE UPFRONT FEE FOR TERM LOAN AS WELL AS PREPAYMENT PENALTY CHARGES AS REVENUE EXPENDITURE. 10. ON THE OTHER HAND THE LD. DR APPEARING ON BEHAL F OF THE REVENUE RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES AND THE OBSERVATI ONS MADE BY AO AS WELL AS THE LD. CIT(A). 11. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CARE FUL PERUSAL OF MATERIALS AVAILABLE ON RECORD, IT IS OBSERVED THAT FROM THE C ORRESPONDENCE OF ABN AMRO BANK FILED BY THE LD.COUNSEL FOR ASSESSEE THE FOLLOWING TERMS AND CONDITIONS ARE AS UNDER :- 1. SECURITY : EXCLUSIVE CHANGE ON THE FLOATING CR ANE AND ASSOCIATED COMPONENTS. 2. PURPOSE : TO TAKE OVER THE EXISTING TERM LOAN O F INR 152.44 MILLION FROM THE EXISTING TERM LOAN LENDERS OF THE FLOATING CRANE. 11 3. CLAUSES : FLOATING CRANE TO BE COMPREHENSIVELY INSURED BY THE BORROWER AND ABN AMRO BANK N.V. SHALL BE MARKED AS A LOSS PAYEE. 11.1. IT IS FURTHER OBSERVED FROM THE BALANCE SHEET S AS ON 31.03.2003, 31.03.2004, 31.03.2005 AND 31.03.2007 AT SCHEDULE-C FILED BY T HE LD.COUNSEL THE PARTICULARS ARE AS UNDER :- SECURED LOANS AS AT 31.03.2003 AS AT 31.03.2002 TERM LOAN FROM : STATE BANK OF INDIA, VISHAKAPATNAM 91,944,973.58 85,704,648.77 STATE BANK OF HYDERABAD,VISHAKAPATNAM 59,898,749.55 51,447,852.10 ING VYSYA BANK LTD,. VISHAKAPATNAM 56,590,384.36 5 5,183,542.53 SECURED LOANS AS AT 31.03.2004 AS AT 31.03.2003 TERM LOAN FROM : STATE BANK OF INDIA, VISHAKAPATNAM 95,525,000.00 91,944,973.58 STATE BANK OF HYDERABAD,VISHAKAPATNAM 59,528,446.85 59,898,749.55 ING VYSYA BANK LTD,. VISHAKAPATNAM 60,722,664.04 5 6,590,384.36 NOTES : 1) TERM LOANS FROM STATE BANK OF INDIA, VIZ AG, STATE BANK OF HYDERABAD, VIZAG & ING VYSYA BANK LTD., VIZAG ARE FULLY SECURED AGAINS T MULIPLE MOBILE CONVEYOR SYSTEM, HOPPERS AND FLOATING CRANE BY WAY OF FIRST CHARGE & GODOWNS SITUATED AT VPT LEASED AREA BY WAY OF SECOND CHARGE. SECURED LOANS AS AT 31.03.2004 AS AT 31.03.2003 TERM LOAN FROM : STATE BANK OF INDIA, VISHAKAPATNAM 77,625,000.00 95,525,000.00 STATE BANK OF HYDERABAD,VISHAKAPATNAM 46,575,000.00 59,528,446.85 ING VYSYA BANK LTD,. VISHAKAPATNAM 50,689,787.64 6 0,772,664.04 NOTES : 1) TERM LOANS FROM STATE BANK OF INDIA, VIZ AG, STATE BANK OF HYDERABAD, VIZAG & ING VYSYA BANK LTD., VIZAG ARE FULLY SECURED AGAINS T MULIPLE MOBILE CONVEYOR SYSTEM, HOPPERS AND FLOATING CRANE BY WAY OF FIRST CHARGE & GODOWNS SITUATED AT VPT LEASED AREA BY WAY OF SECOND CHARGE. SECURED LOANS AS AT 31.03.2007 AS AT 31.03.2006 TERM LOAN FROM: ABN AMRO BANK 78,749,545.54 126,577,776.00 NOTES : I) TERM LOANS FROM ABN AMRO BANK IS FULLY S ECURED AGAINST FLOATING CRANE. 11.2. ON CAREFUL PERUSAL OF THE ABOVE MATERIAL, WE ARE OF THE VIEW THAT THERE IS NO NEED TO FURTHER CAPITALIZE THE UPFRONT FEE FOR TERM LOAN IN CONNECTION WITH THE TRANSFER OF THE LOANS FROM ONE BANK TO ANOTHER AGAINST PREPA YMENT PENALTY CHARGES PAID TO THE 12 EXISTING BANKS. ESPECIALLY WHEN THE SUBSEQUENT LOAN AS BEARING IS HAVING LESS RATE OF INTEREST I.E. 10% AS AGAINST THE EXISTING TERM LOAN OF THREE BANKS WHICH IS 15%. (AS RECORDED BY THE AO IN THE ASSESSMENT ORDER). UNDER THESE CIRCUMSTANCES THOUGH BY A NOMENCLATURE THE EXPENDITURE MAY BE CAPITALIZED IN THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE, WE ARE OF THE VIEW THAT THERE IS NO J USTIFICATION ON THE PART OF THE REVENUE TO CAPITALIZE THE SAID EXPENDITURE. THEREFORE WE SE T ASIDE THE ORDERS OF THE REVENUE AUTHORITIES AND DIRECT AO TO DELETE THE ADDITION OF RS.34,80,019/-. 12. IN THE RESULT THE APPEAL OF ASSESSEE IS ALLOWED . 13. IN THE RESULT THE APPEAL OF THE REVENUE IS DIS MISSED AND THE APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 31.05.2012. SD/- SD/- , , , , MAHAVIR SINGH, JUDICIAL MEMBER . .. . ! ! ! !. .. . , ,, , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 31.05.2012. '7 2 0% 8'%*9- COPY OF THE ORDER FORWARDED TO: 1. M/S.SARAT CHATTERJEE & CO.(VSP)PVT.LTD., SEVEN BRO THERS LODGE, P.O.BUROSHIBTALA, P.S.CHINSURAH, DIST.HOOGHLY PIN:7 12106. 2 THE A.C.I.T., CIRCLE-9, KOLKATA. 3. THE CIT, 4. THE CIT(A)-VIII, KOLKATA. 5. DR, KOLKATA BENCHES, KOLKATA 1% 0/ TRUE COPY, '7(4/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES R.G.(.P.S.) 13