Mrs. Chandrikaben K. Patel, Ahmedabad V. The Income Tax Officer, Ward-2(1)(1), Ahmedabad

ITA 1955/AHD/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5286 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 31-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Assessee Lawyers: P B PARMAR
• Section: 143(3)

Judgement Text

, SMC IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR ./ I.T.A. NO. 1955/AHD/2017 ( ASSESSMENT YEAR : 2014-15) CHANDRIKABEN K. PATEL 4, SATYADEEP APARTMENT, OPP. 132 FT. RING ROAD, NARANPURA, AHMEDABAD / VS. ITO, WARD 2(1)(1), AHMEDABAD ./ ./ PAN/GIR NO. : ABEPP0542M ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI P. B. PARMAR, A.R. / RESPONDENT BY : SMT. SONIA KUMAR, SR.D.R. DATE OF HEARING 21/01/2019 !'# / DATE OF PRONOUNCEMENT 29/01/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-2, AHMEDAB AD (CIT(A) IN SHORT), DATED 31.07.2017 ARISING IN THE ASSESSMENT ORDER DATED 16.12.2016 PASSED BY THE ASSESSING OFFICER (AO) UND ER S. 143(3) OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AY 20 14-15. ITA NO. 1955/AHD/17 [CHANDRIKABEN K. PATEL VS. ITO] A.Y. 2014-15 - 2 - 2. THE SOLITARY ISSUE IN THE CAPTIONED APPEAL FI LED BY THE ASSESSEE IS TOWARDS DISALLOWANCE OF INTEREST EXPENDITURE OF RS. 1,69,687/- UNDER S. 37 OF THE ACT. 3. WHEN THE MATTER WAS CALLED FOR HEARING, THE LEA RNED AR FOR THE ASSESSEE SUBMITTED AT THE OUTSET THAT THE ASSESSEE HAD OBTAINED LANDS FROM TWO PARTIES NAMELY; (I) JITENDRA R. PARIKH (HU F) AND (II) CHIRAG V. PATEL, WHICH WAS NOT FOUND TO BE GENUINE BY THE AO IN AY 2012- 13. AS A COROLLARY, INTEREST THEREON AMOUNTING TO RS.1,69,687/- IN AGGREGATE CLAIMED DURING THE AY 2014-15 IN QUESTION WAS ALSO DISALLOWED. 4. THE LEARNED AR FOR THE ASSESSEE THEREAFTER SUBMI TTED THAT THE AFORESAID ISSUE ON BONAFIDES / GENUINENESS OF LOAN FROM THE ABOVE REFERRED TWO PARTIES WAS CARRIED BEFORE THE TRIBUNA L IN THE PRECEDING AY 2012-13. THE ITAT IN ITA NO. 3638/AHD/2015 CONC ERNING AY 2012-13 SET ASIDE THE ISSUE TO THE FILE OF THE AO. THE LEARNED AR THEREAFTER REFERRED TO THE ORDER OF THE AO PASSED U NDER S.143(3) R.W.S. 254 OF THE ACT DATED 17.12.2018 AND SUBMITTED THAT THE GENUINENESS OF LOAN FROM THE AFORESAID TWO PARTIES WERE ACCEPTED A FTER VERIFICATION AND NO ADDITION ON THIS COUNT HAS BEEN SUSTAINED BY THE AO IN THE SECOND ROUND OF PROCEEDINGS. IN THIS BACKGROUND, T HE LEARNED AR SUBMITTED THAT ONCE THE GENUINENESS OF LOAN IN THE PRECEDING AY 2012- 13 HAS BEEN ULTIMATELY ACCEPTED, THE INTEREST EXPEN SES INCURRED BY THE ASSESSEE IN THE SUBSEQUENT ASSESSMENT YEAR ON THESE LOANS REQUIRES TO BE ACCEPTED AS CLAIMED AND NO DISALLOWANCE THEREWIT H IS CALLED FOR. 5. THE LEARNED DR RELIED UPON THE ORDERS OF THE LOW ER AUTHORITIES. 6. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. IN VIEW OF THE NARRATIVE DRAWN ON BEHALF OF THE ASSESSEE, WE D O NOT SEE ANY JUSTIFIABLE REASON FOR DISALLOWANCE OF INTEREST EXP ENDITURE WHERE THE ITA NO. 1955/AHD/17 [CHANDRIKABEN K. PATEL VS. ITO] A.Y. 2014-15 - 3 - LOANS GIVING RISE TO SUCH INTEREST BURDEN HAS BEEN ULTIMATELY ADMITTED BY THE REVENUE TO BE GENUINE. THEREFORE, WE SET AS IDE THE ACTION OF THE REVENUE AND DIRECT THE AO TO REVERSE THE DISALL OWANCE ON ACCOUNT OF IMPUGNED INTEREST. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . SD/- SD/- (MAHAVIR PRASAD) (PRADIP KUMA R KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 29/01/2019 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 29/01/20 19