Shree Gopinath WeaversCo-operative Spinning Millsd Ltd, Balasore V. ACIT, Balasore

ITA 196/CTK/2007

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4430 (ITAT-CUTTACK)
• Duration Of Justice: 3 year(s) 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 13-01-2012
• Assessment Year: 1992-1993
• Appeal Filed On: 07-06-2007
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M R
• Assessee Lawyers: SIDHESWAR MALLIK
• Keywords: Opportunity of being heard

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK ( ) BEFORE . . , , HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER. /AND . . . , S HRI K.S.S.PRASAD RAO , JUDICIAL MEMBER / I.T.A.NO. 196/CTK/2007 / ASSESSMENT YEAR 1992 - 93 SHREE GOPINATH WCS MILLS LIMITED, DEBHOG SINGLA BALIAPAL, BALASORE. - - - VERSUS - ASST.COMMISSIONER OF INCOME - TAX, BALASORE. ( /APPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI SIDHESWAR MALLIK, AR / FOR THE RESPONDENT: / SHRI M.R.PANIGRAHI, DR / ORDER . . , , SHRI K.K.GUPTA, ACCOUNTANT MEMBER. THIS APPEAL BY THE ASSESSEE AGITAT ES THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) CONFIRMING THE DISALLOWANCES COMPUTED BY THE ASSESSING OFFICER UNDER THE PRO VISIONS OF SECTION 143(3)/254 IS NOW BEFORE US ON THE HONBLE ORISSA HIG H COURTS DIRECTION VIDE ITS ORDER DT.14.1.2011. 2. THE BRIEF FACTS ARE THAT THE ASSESSEE BEING A CO - OPERATIVE SOCIETY CLOSED ITS BUSINESS FACING FINANCIAL CRUNCH AND WAS SUBJECTED TO ASSESSMENTS WHEN ADDITIONS AND DISALLOWANCES WERE APPEALED AGAINST BEFO RE THE FIRST AND SECOND APPELLATE AUTHORITIES. THE TRIBUNAL RESTORED THE ISSUES TO THE FILE OF THE ASSESSING OFFICER FOR CONSIDERATION AFRESH AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSING OFFICER ON THE BASIS OF DIRECTIN O F THE TRIBUNAL PASSED THE ORDER CONFIRMING THE DISALLOWANCE OF INTEREST ON TERM LOAN CLAIMED AT 53,33,535 U/S.43B AS THE ASEESSEE COULD NEITHER PRODUCE EVIDENCES OF HAVING PAID THE SAME IN THE SUBSEQUENT YEAR. TRAVELLING EXPENSES, GUEST HOUSE EXPENSES AND MISC. EXPENSES WERE ALSO DENIED TO THE ASSESSEE FOR WANT OF EVIDENCES EVEN AFTER AFFORDING OPPO RTUNITY I.T.A.NO. 196/CTK/2007 2 TO IT. BEFORE THE FIRST APPELLATE AUTHORITY, THE MAJOR DISALLOWANCE OF 53,33,535 WAS VERIFIED BY THE LEARNED CIT(A) WHO HELD THAT THE AMOUNT IS OUTSTANDING AND MAY BE THE REASON FOR THE FINANCIAL CRUNCH RESULTING IN THE ASSESSEE NOT ENTITLED FOR C LAIMING DEDUCTION IN THE SUBSEQUENT YEAR AS WELL. WITH RESPECT TO THE TRAVELLING EXPENSES AND MISC. EXPENSES AND GUEST HOUSE EXPENSES, THE LEARNED CIT(A) PARTLY ALLOWED THE CLAIM. THE RESIDUAL AMOUNT CONFIRMED BY THE LEARNED CIT(A) AND THE DISALLOWANCE OF INTEREST U/S.43B AMOUNTING TO 53,33,535 IS BEFORE THE TRIBUNAL FOR ADJUDICATION ON THE DIRECTION OF THE HONBLE ORISSA HIGH COURT AS MENTIONED ABOVE. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE DETAILS AS FURNISHED ON PAGE 1 OF THE PAPER BOOK CLEARLY INDICATE THAT THE A MOUNT OF 53,33,535 WAS CHARGED TO THE PROFIT & LOSS ACCOUNT BUT WAS NOT PAID IN THE IMPUGNED ASSESSMENT YEAR HAS NOT BEEN PAID TILL NOW WAS CLAIMED UNDER THE MISIN TERPRETATION OF LAW AND NOT ON THE BASIS OF EVIDENCES HAVING BEEN PAID EARLIER AS NOTED. WIT H RESPECT TO THE REMAINING GROUNDS FOR EXPENDITURE ON TRAVELLING AND GUEST HOUSE EXPENSES WERE WHOLLY INCURRED FOR ASSESSEES BUSINESS AND DISALLOWANCE OF SUCH EXPENDITURE WAS REASONABLE. THE LEARNED COUNSEL FOR THE ASSESSEE HAS PRAYED FOR NOT PRESSING THE SAME AS NOTED BY HIM ON THE BODY OF THE GROUNDS OF APPEAL ATTACHED WITH FORM 36. 4. THE LEARNED DR SUBMITTED THAT THE TRIBUNAL HA D ALREADY CONSIDERED THIS ASPECT IN DETAIL EARLIER AND HAD DISPOSED OF THE ASSESSEES APPEAL WHEN AFTER SEVERAL OPPORTUNITIES GRANTED BY THE TRIBUNAL NONE HAD APPEARED ON THE DATE OF HEARING WAS EXPARTE OF WITHOUT THE PRESENCE OF EITHER THE ASSESSEE OR ITS AUTHORISED REPRESENTATIVE. ALL FACTS REMAINING THE SAME WHICH THE LEARNED COUNSEL FOR THE ASSESSEE HAS NOW CONCEDED BY NOT P RESSING FOR THE PART DISALLOWANCE OF EXPENSES DOES NOT REQUIRE ANY FURTHER DELIBERATION. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL I.T.A.NO. 196/CTK/2007 3 AVAILABLE ON RECO RD. THE LEARNED COUNSEL FOR THE ASSESSEE HAS NOT BEEN ABLE TO SUBSTANTIATE THE CLAIM FOR ALLOWING THE INTEREST PAID OF 53,33,535 AS CONSIDERED BY THE AUTHORITIES BELOW AND THE TRIBUNAL EARLIER IN COMPLIANCE TO THE PROVISIONS OF SECTION 43B. THE LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE SAME HAS NOT BEEN PAID TILL THE DATE THEREFORE, WAS RIGHTLY CONSIDERED AND UPHELD FOR DISALLOWANCE EARLIER. THE LEARNED COUNSEL FOR THE ASSESSEE HAS ALSO NO TED FOR NOT PRESSING THE GROUND RELATING TO DISALLOW ANCE OF TRAVELLING EXPENSES, GUEST HOUSE EXPENSES WHEN THE DISALLOWED MISC. EXPENSES HAVE BEEN ALLOWED BY THE LEARNED CIT(A) IN THE FIRST PLACE. FINDING NO INFIRMITY IN THE ORDERS OF THE AUTHORITIES BELOW, WE HAVE NO HESITATION IN DISMISSING THE APPEAL FIL ED BY THE ASSESSEE ON MERITS INSOFAR AS THE LEARNED COUNSEL FOR THE ASSESSEE HAS AGREED TO THE PROPOSITION THAT IT HAD NO FURTHER MATERIAL TO CONTROVERT THE FINDINGS OF THE ASSESSING OFFICER AND THE APPELLATE AUTHORITIES. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT. 28 TH APRIL, 2011 S D/ - S D/ - ( . . . ) , ( K.S.S.PRASAD RAO), JUDICIAL MEMBER ( . . ) , , (K.K.GUPTA) , ACCOUNTANT MEMBER. ( ) DATE: 28 TH APRIL, 2011 - COPY OF THE ORDER FORWARDED TO: 1 . / THE APPELLANT : SHREE GOPINATH WC S MILLS LIMITED, DEBHOG SINGLA BALIAPAL, BALASORE. 2 / THE RESPONDENT: ASST.COMMISSIONER OF INCOME - TAX, BALASORE. 3 . / THE CIT, 4 . ( )/ THE CIT(A), ( ), ( H.K.PADHEE ), SENIOR.PRIVATE SECRETARY. I.T.A.NO. 196/CTK/2007 4 5 . / DR, CUTTACK BENCH 6 . GUARD FILE . / TRUE COPY, / BY ORDER, [ ] SENIOR PRIVATE SECRETARY