DCIT, CHENNAI V. M/s. India Cements Investment Services Ltd., CHENNAI

ITA 1691/CHNY/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4781 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 29-06-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 11-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P B SEKARAN
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH B, CHENNAI B E F O R E DR. O.K.NARAYANAN, VICE PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER .. ITA NO.1691(MDS)/2010 ASSESSMENT YEAR: 2004-05 THE DEPUTY COMMISSIONER OF M/S.INDIA CEMENTS I NVESTMENT INCOME-TAX, VS. SERVICES LTD., 38-STERLIN G ROAD, COMPANY CIRCLE II(3), CHENNAI 600 034. CHENNAI. PAN - AAACA3197M. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.B.SEKAR AN, CIT-DR RESPONDENT BY: SHRI SAROJ KUMAR P ARIDA, ADVOCATE. O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE REVENUE. THE RELEVAN T ASSESSMENT YEAR IS 2004-05. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-II I AT CHENNAI DATED 28-7-2010 AND ARISES OUT OF THE ASSESSMENT CO MPLETED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961. ITA NO.1691(MDS)/2010 2 2. THE GROUND RAISED BY THE REVENUE IN THE PRESENT APPEAL IS THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) ERR ED IN ALLOWING THE INTEREST EXPENDITURE OF ` 24 LAKHS. IT IS THE CASE OF THE REVENUE THAT INSPITE OF SEVERAL OPPORTUNITIES GRANTED, THE ASSES SEE HAD FAILED TO FURNISH THE DETAILS OF THE LOAN TAKEN, AGREEMENT TO PAY INTEREST, RATE OF INTEREST AND THE RELEVANT EVIDENCES BEFORE THE ASSE SSING OFFICER. IT IS ALSO ARGUED BY THE REVENUE THAT IN THE LIGHT OF RUL E 46A OPPORTUNITY OUGHT TO HAVE BEEN GIVEN TO THE ASSESSING OFFICER T O SUBMIT REPORT ON EVIDENCES NOT PRODUCED DURING THE COURSE OF ASSESSM ENT PROCEEDINGS. 3. WE CONSIDERED THE MATTER IN DETAIL. THE COMMIS SIONER OF INCOME-TAX(APPEALS) HAS DEALT WITH THE MATTER IN GR EAT DETAIL EXPLAINING ON THE EVIDENCES PRODUCED BY THE ASSESSE E IN SUPPORT OF PAYMENT OF INTEREST MADE BY THE ASSESSEE. THE ASSE SSEE HAS ALSO PRODUCED ALL THE NECESSARY DETAILS BEFORE THE COMMI SSIONER OF INCOME-TAX(APPEALS). WHEN THE DETAILS WERE PLACED BEFORE THE COMMISSIONER OF INCOME-TAX(APPEALS), HE FORWARDED A LL THE MATERIALS TO THE ASSESSING AUTHORITY CALLING FOR A REMAND REP ORT. BUT, INSPITE OF MORE THAN ONE REMINDER, THE ASSESSING AUTHORITY DID NOT FILE ANY ITA NO.1691(MDS)/2010 3 REMAND REPORT BEFORE THE COMMISSIONER OF INCOME-TAX (APPEALS). THEREFORE, THE GRIEVANCE OF THE REVENUE THAT THE CO MMISSIONER OF INCOME-TAX(APPEALS) HAD APPRECIATED THE EVIDENCE ON THE BACK OF THE ASSESSING AUTHORITY, IS UNFOUNDED. ON THE OTHER HA ND, THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS GIVEN AMPLE OPPORTUNITY TO THE ASSESSING AUTHORITY TO PROVE THE CASE OTHERW ISE, IF IT WAS SO. THE COMMISSIONER OF INCOME-TAX(APPEALS) ACCEPTED TH E CONTENTION OF THE ASSESSEE ON THE BASIS OF ACCEPTABLE EVIDENCE S PRODUCED BEFORE HIM AND AS AN APPELLATE AUTHORITY HAVING POW ERS CO-TERMINUS WITH THAT OF THE ASSESSING AUTHORITY, HE HAS RIGHTL Y ACTED UPON THE EVIDENCES PRODUCED BEFORE HIM. 4. IN RESULT THIS APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON WEDNESDAY, THE 29 TH DAY OF JUNE, 2011 AT CHENNAI. SD/- SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 29 TH JUNE, 2011. V.A.P. COPY TO: (1) APPELLANT (2) RESPOND ENT (5) D.R. (3) CIT (4) CIT(A) (6) G.F.