M/s. LMJ Overseas Ltd., Kolkata V. ITO, Ward-8(3), Kolkata, Kolkata

ITA 1947/KOL/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 100237 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 20-10-2014
• Court: TRIBUNAL
• Department Lawyers: RAJENDRA PRASAD
• Assessee Lawyers: N O N E
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC C BENC H: KOLKATA [BEFORE SHRI MAHAVIR SINGH, JM] I.T.A NO.1947/KOL/2014 ASSESSMENT YEAR: 2007-08 M/S. LMJ OVERSEAS LTD. VS. INCOME-TAX OFFICER, WD-8(3), KOLKATA (PAN:AAACL4426A) ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 07.12.2015 DATE OF PRONOUNCEMENT: 11.12.2015 FOR THE APPELLANT: N O N E FOR THE RESPONDENT: SHRI RAJENDRA PRASAD, JCIT, SR. DR ORDER THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-VIII, KOLKATA VIDE APPEAL NO. 306/CIT(A)-VIII/KOL/09-10 DATED 19.08.2014. ASSESS MENT WAS FRAMED BY ITO, WD-8(3), KOLKATA U/S. 143(3) OF THE INCOME-TAX ACT, 1961 (HE REINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2007-08 VIDE HIS ORDER DATED 31.12. 2009. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF CIT(A) CONFIRMING THE ACTION OF AO IN DISALLOWING THE INTEREST EXPENSES A MOUNTING TO RS.10,18,139/-. 3. I HAVE HEARD LD. SR. DR AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. I FIND THAT THE ASSESSEE HAS BORROWED A SUM OF RS.1.5 CR. FROM THE BANK AND TRANSFERRED THE SAME TO A SISTER CONCERN LMJ DISTRIBUTORS PVT. LTD. WITHOUT CHARGING ANY INTEREST. THE ASSESSEE CLAIMED BEFORE THE AO AS WELL AS BEFORE CIT(A) THAT THIS LO AN IS GIVEN OUT OF BUSINESS EXPEDIENCY BUT HE FAILED TO PRODUCE ANY EVIDENCE. I FIND THAT THE AS SESSEE FILED EVIDENCES BEFORE ME IN RESPECT TO LOAN ADVANCED TO SISTER CONCERN LMJ DISTRIBUTORS PV T. LTD. AND PURPOSE OF THE SAME. AS THESE EVIDENCES ARE NEW EVIDENCES AND THESE REQUIRE VERIF ICATION, HENCE, THIS ISSUE NEEDS RECONSIDERATION AT THE LEVEL OF AO. HENCE, I SET A SIDE THE ISSUE TO THE FILE OF AO FOR RECONSIDERATION. APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. ORDER IS PRONOUNCED IN THE OPEN COURT ON 11.12.2 015 SD/- (MAHAVIR SINGH) JUDICIAL MEMBER DATED : 11TH DECEMBER, 2015 JD.(SR.P.S.) 2 ITA NO.1947/K/2014 LMJ OVERSEAS LTD. AY 2007-08 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT M/S. LMJ OVERSEAS LTD., 30, JAWAHAR LAL NEHRU ROAD, 2 ND FLOOR, KOLKATA-16. 2 RESPONDENT ITO, WD-8(3), KOLKATA. 3. THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .