TIL Healthcare Private Limited, CHENNAI V. ACIT, CHENNAI

ITA 2057/CHNY/2015

• Counselvise Citation: 205721714 RSA 2015
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 14-10-2015
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: G BASKAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI . . . , . ! , ' # $ [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ] ./ I.T.A.NO.2057/MDS/2015 / ASSESSMENT YEAR : 2009-10 M/S TIL HEALTHCARE PVT. LTD [FORMERLY TIL EXPORTS PVT. LTD] RAJA ANNAMALAI BUILDING, IV FLOOR 72, MARSHALLS ROAD CHENNAI 600 008 VS. THE ASSTT. COMMISSIONER OF INCOME-TAX COMPANY CIRCLE 2(4) CHENNAI [PAN AABCT 0985 H ] ( %& / APPELLANT) ( '(%& /RESPONDENT) / APPELLANT BY : SHRI G BASKAR, ADVOCATE /RESPONDENT BY : SHRI P RADHAKRISHNAN, JCIT / DATE OF HEARING : 30 - 1 1 - 2015 ! / DATE OF PRONOUNCEMENT : 11 - 1 2 - 2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-11, CHENN AI, DATED 28.9.2015 AND PERTAINS TO ASSESSMENT YEAR 2009-1 0. 2. SHRI G BASKAR, LD. COUNSEL FOR THE ASSESSEE SUBMITT ED THAT THE ASSESSEE IS A SHAREHOLDER OF M/S TAGROS CHEMIC ALS (INDIA) PVT. LTD. HOWEVER, IN GROUND NO.5, THE ASSESSEE HAS RA ISED A GROUND AS IF ITA NO.2057/15 :- 2 -: IT IS NOT A SHAREHOLDER. SINCE ADMITTEDLY, THE AS SESSEE IS A SHAREHOLDER, THE ASSESSEE INSTRUCTED ITS COUNSEL N OT TO PRESS GROUND NO.5 RAISED BEFORE THIS TRIBUNAL. IN VIEW OF THE S UBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE, GROUND NO.5 IS DISMISSED AS NOT PRESSED. 3. NOW COMING TO THE REMAINING GROUNDS, ACCORDING TO T HE LD. COUNSEL, THERE WAS A RUNNING ACCOUNT ON DAILY BASIS BETWEEN THE ASSESSEE AND M/S TAGROS CHEMICALS (INDIA) PVT. LTD. THE LD. COUNSEL HAS PRODUCED A COPY OF THE EXTRACT FROM THE ACCOUNT S OF THE ASSESSEE- COMPANY IN THE NAME OF M/S TAGROS CHEMICALS (INDIA) PVT. LTD AND SUBMITTED THAT ALWAYS THERE WAS A DEBIT BALANCE IN THE ACCOUNT OF M/S TAGROS CHEMICALS (INDIA) PVT. LTD., THEREFORE, WHAT WAS RECEIVED BY THE ASSESSEE IS REPAYMENT OF THE AMOUNT BY M/S TAG ROS CHEMICALS (INDIA) PVT. LTD. AND IT IS NOT A LOAN OR ADVANCE, THEREFORE, THE PROVISIONS OF SECTION 2(22)(E) OF THE ACT IS NOT AP PLICABLE. THIS FACTUAL ASPECT WAS NOT CONSIDERED BY BOTH THE LOWER AUTHORI TIES. THEREFORE, THE ACTUAL FACT OF DEBIT BALANCE NEEDS TO BE APPREC IATED. ON A QUERY FROM THE BENCH, THE LD. COUNSEL CLARIFIED THAT SINC E THE MATTER WAS NOT EXAMINED BY THE LOWER AUTHORITIES, THE MATTER MAY B E REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER FOR REEXAMINATION . 4. ON THE CONTRARY, SHRI P RADHAKRISHNAN, LD. DEPARTME NTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSING OFFICER FOUND THAT THERE ITA NO.2057/15 :- 3 -: WAS NO BUSINESS TRANSACTION BETWEEN THE TWO COMPANI ES AND NO INSTANCE OF ASSESSEE HAD ANY TRANSACTION WITH M/S TAGROS CHEMICALS (INDIA) PVT. LTD. THE COPIES OF THE BOOKS OF ACCOU NT NOW PRODUCED BEFORE THE TRIBUNAL WAS NOT AVAILABLE BEFORE THE AS SESSING OFFICER THEREFORE, HE HAS NO OCCASION TO EXAMINE THE SAME. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. TH E ASSESSEE BY PRODUCING THE COPY OF THE ACCOUNTS NOW CLAIMS THAT ALWAYS THERE WAS A DEBIT BALANCE IN THE BOOKS OF ACCOUNT OF THE ASS ESSEE AND WHAT WAS PAID BY M/S TAGROS CHEMICALS (INDIA) PVT. LTD. IS A MOUNT DUE TO THE ASSESSEE AND NOT A LOAN OR ADVANCE. THIS IS APPARE NTLY A NEW CLAIM MADE BEFORE THIS TRIBUNAL AND BOTH THE AUTHORITIES BELOW HAD NO OCCASION TO EXAMINE THE CLAIM OF THE ASSESSEE. TH EREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE MATT ER NEEDS TO BE REEXAMINED BY THE ASSESSING OFFICER AFTER VERIFYING THE BOOKS OF ACCOUNT OF THE RESPECTIVE COMPANIES. ACCORDINGLY, THE ORDERS OF THE LOWER AUTHORITIES ARE SET ASIDE AND THE ISSUE OF DE EMED DIVIDEND IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL EXAMINE THE BOOKS OF ACCOUNT AND OTHE R MATERIAL AVAILABLE ON RECORD AND THEREAFTER DECIDE THE SAME IN ACCORDA NCE WITH LAW AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. ITA NO.2057/15 :- 4 -: 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH DECEMBER, 2015, AT CHENNAI. SD/- SD/- ( . ! ) (A. MOHAN ALANKAMONY) ' / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED: 11 TH DECEMBER, 2015 RD &' ()*) / COPY TO: 1 . / APPELLANT 4. + / CIT 2. / RESPONDENT 5. ),- . / DR 3. +/' / CIT(A) 6. -01 / GF