The ACIT, Circle-4, Baroda V. Synbiotics Limited, Baroda

ITA 1992/AHD/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 2401 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2002-2003
• Appeal Filed On: 08-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S SHUKLA
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH 'D' BEFORE SHRI MUKUL SHRAWAT,JM & SHRI A N PAHUJA,AM ITA NO.1992/AHD/2010 (ASSESSMENT YEAR:-2002-03) ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-4, 4 TH FLOOR,AAYAKAR BHAWAN, RACE COURSE CIRCLE, BARODA V/S M/S SYNBIOTICS LIMITED, WADI WADI, BARODA PAN: AACCS 9831 Q [APPELLANT] [RESPONDENT] REVENUE BY :- SHRI S S SHUKLA, DR ASSESSEE BY:- NONE O R D E R A N PAHUJA: THIS APPEAL BY THE REVENUE AGAINST AN ORDER DATED 22- 02-2010 OF THE LD. CIT(A)(APPEALS)-III, BARODA, RA ISES THE FOLLOWING GROUNDS:- 1 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LEARNED CIT(A) ERRED IN DELETING THE INTEREST OF RS.3,05,000/- OVE RLOOKING THE PROVISIONS OF SECTION 43B OF THE INCOME-TAX ACT, 1961, AND THE FACT THAT THE ASSESSEE HAD NOT PAID THE INTEREST WITHIN THE STIPU LATED TIME. 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LEARNED CIT(A) ERRED IN DELETING THE PF ADMINISTRATION AND EDLI CH ARGES AMOUNTING TO RS.1,53,944/- THOUGH IT IS SUO-MOTO NOT OFFERED TO TAX BY THE ASSESSEE. 3 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LEARNED CIT(A) ERRED IN DELETING THE PROVISION FOR MUNICIPAL TAX A MOUNTING TO RS.1,82,226/-, THOUGH THE ASSESSEE HAD NOT DISALLOW ED RS.93,513/- SUO-MOTTO NOR PRODUCED ANY EVIDENCE FOR PAYMENT OF RS.88,173/-. 4 THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR ALTER THE ABOVE GROUNDS AS MAY BE DEEMED NECESSARY. 2 NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE S ERVICE OF NOTICE [AD ON RECORD]. CONSIDERING THE NATUE OF DIS ALLOWANCES, WE THEREFORE, DECIDED TO DISPOSE OF THE APPEAL AFTER H EARING THE LEARNED DEPARTMENTAL REPRESENTATIVE. ITA N O.1992/AHD/2010 2 3 ADVERTING TO GROUND NOS.1 TO 3 IN THE APPEAL, F ACTS, IN BRIEF AS PER RELEVANT ORDERS ARE THAT THE RETURN DECLARING LOSS OF RS.1,88,15,234/-. FILED ON 28-10-2002 BY THE ASSES SEE, ENGAGED IN THE BUSINESS OF MANUFACTURE OF BULK DRUGS, AFTER BE ING PROCESSED U/S 143(1)(A) OF THE INCOME-TAX ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT], WAS SELECTED FOR SCRUTINY WITH THE SERVICE OF A NOTICE U/S 143(2) OF THE ACT ON 28-10-2003. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO, INTER ALIA, DISALLOWED THE FOLLOWING AMOUNTS:- A INTEREST ON TERM LOAN - RS.3,05,000 B PF ADMINISTARTION & EDLI CHARGES - RS.1,53,944 C PROVISION FOR MUNICIPAL TAXES RS. 1.82,226 ---------------- ON THE GROUND THAT THESE WERE NOT PAID ON OR BEFOR E THE DUE DATE OF FILING THE RETURN OF INCOME. 3. ON APPEAL, THE LD. CIT(A) DELETED THE DISALL OWANCE ON ACCOUNT OF INTEREST ON THE GROUND THAT INTEREST WAS PAID ON BORROWINGS FROM PRIVATE PARTIES AND NOT FROM ANY PUBLIC FINANCIAL I NSTITUTION, STATE FINANCIAL CORPORATION OR A STATE INDUSTRIAL INVESTMENT CORPOR ATION AS CONTEMPLATED U/S. 43B(D) OR FROM A SCHEDULED BANK AS CONTEMPLATED U/S . 43B(E) OF THE ACT. 3.1 AS REGARDS AMOUNT OF RS. 1,53,944/-ON ACC OUNT OF PF ADMINISTRATION AND EDLI CHARGES, THE LD. CIT(A) DELETED THE DISALLOWAN CE, THE AMOUNT HAVING ALREADY BEEN OFFERED TO TAX IN THE RETURN BY THE ASSESSEE 3.2 FOR THE AMOUNT OF RS.1,82,226/- ON ACCOUNT O F PROVISION FOR MUNICIPAL TAXES, THE LD. CIT(A) DELETED THE DISALLOWANCE, THE AMOUN T OF RS.93,513/- HAVING ALREADY BEEN OFFERED TO TAX IN THE RETURN WHILE TH E REMAINING AMOUNT OF RS.88,173/- HAD BEEN PAID BY THE ASSESSEE BEFORE FI LING THE RETURN. ITA N O.1992/AHD/2010 3 4. THE REVENUE IS NOW IN APPEAL BEFORE US AGAINST T HE AFORESAID FINDINGS OF THE LD. CIT(A). THE LEARNED DR MERELY S UPPORTED THE ORDER OF THE AO. 5. WE HAVE HEARD THE LEARNED DR AND GONE THROUGH TH E FACTS OF THE CASE. INDISPUTABLY, INTEREST OF RS. 3,05,000/- DISALLOWED BY THE AO RELATED TO THE BORROWINGS FROM THE PRIVATE PART IES AND NOT ON BORROWINGS FROM ANY PUBLIC FINANCIAL INSTITUTION, S TATE FINANCIAL CORPORATION OR A STATE INDUSTRIAL INVESTMENT CORPORATION AS CONTEMPL ATED U/S. 43B(D) OR FROM A SCHEDULED BANK AS CONTEMPLATED U/S. 43B(E) OF THE A CT. BESIDES, THE AMOUNT OF RS. 1,53,944/-ON ACCOUNT OF PF ADMINISTRATION AN D EDLI CHARGES AS ALSO THE AMOUNT OF RS.93,513/- ON ACCOUNT OF MUNICIPAL TAXE S HAVE ALREADY BEEN OFFERED TO TAX WHILE THE REMAINING AMOUNT OF RS.88,173/- H AD BEEN PAID BY THE ASSESSEE BEFORE FILING THE RETURN. IN THESE CIRCUMSTANCES, ESPECIALLY WHEN THE REVENUE HAVE NOT BROUGHT TO OUR NOTICE ANY MATERIAL ,CONTRO VERTING THE AFORESAID FINDINGS OF FACTS RECORDED BY THE LD. CIT(A), WE ARE NOT IN CLINED TO INTERFERE. THEREFORE, GROUND NOS. 1 TO 3 IN THE APPEAL ARE DISMISSED. . 6. NO ADDITIONAL GROUND HAVING BEEN RAISE IN TERM S OF THE RESIDUARY GROUND NO.4 IN THE APPEAL, ACCORDINGLY, THIS GROUND IS DISMISSED. 7. IN THE RESULT, APPEAL IS DISMISSED ORDER PRONOUNCED IN THE COURT TODAY ON 7 -01-2011 SD/- SD/- (MUKUL SHRAWAT) JUDICIAL MEMBER (A N PAHUJA) ACCOUNTANT MEMBER DATED : 7 -01-2011 COPY OF THE ORDER FORWARDED TO: ITA N O.1992/AHD/2010 4 1. M/S SYNBIOTICS LIMITED, WADI WADI, BARODA 2. ACIT, CIRCLE-4, BARODA 3. CIT CONCERNED 4. CIT(A)-III, BARODA 5. DR, ITAT, AHMEDABAD BENCH-D, AHMEDABAD 6. GUARD FILE BY ORDER DEPUTY REGISTRAR ASSISTANT REGISTRAR