T Ramachandra Prabhu, Guntur V. ACIT, Guntur

ITA 206/VIZ/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 9198 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 30-04-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S S GOPINATH
• Keywords: Notional interest

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH: VISAKHAPATNAM BEFORE: SRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SRI B.R. BASKARAN, ACCOUNTANT MEMBER I.T.A. NO.206VIZAG/2009 ASSESSMENT YEARS : 2005-06, T. RAMACHANDRA PRABHU, GUNTUR VS. ACIT, CIRCLE-2(1), GUNTUR (APPELLANT) (RESPONDENT) PAN NO.ABCPT 4938 R APPELLANT BY : SHRI G.V.N. HARI, CA RESPONDENT BY : SHRI G.S.S. GOPINATH , DR O R D E R PER B..R. BASKARAN, ACCOUNTANT MEMBER : 1. THE APPEAL FILED AT THE INSTANCE OF THE ASSE SSEE IS DIRECTED AGAINST THE ORDER DATED 30.01.2009 PASSED BY LD CIT(A), GUNTUR AND IT RELATES TO THE ASSESSMENT YEAR 2005-06. 2. THE ISSUES AGITATED IN THIS APPEAL ARE STATE D BELOW:- A) DISALLOWANCE OF INTEREST CLAIMED IN THE FINANCE DIV ISION OF CHANDRA TRANSPORTS FOR THE REASON THAT THE INVESTME NT MADE FROM THE LOAN BORROWED DID NOT YIELD INCOME. B) ADDITION OF NOTIONAL INTEREST OF RS.9,59,055/- ON T HE SUNDRY DEBTORS BALANCES IN THE BUSINESS CONCERN VIZ., COAS TAL PACKAGINGS. 3. AT THE TIME OF HEARING, BOTH THE PARTIES AGR EED THAT THE ISSUES AGITATED IN THIS APPEAL IS IDENTICAL WITH THE APPEALS FILED BY THE ASSESSEE FOR THE ASSESSMENT 2 YEARS 1998-99, 2003-04 TO 2004-05 IN ITA NOS. 482 & 483/VIZAG/2006 AND ITA NO.509/VIZAG/2007. IN THOSE CASES, THE TRIBUNAL, V IDE ITS ORDER DATED 11.11.2009, HAD SET ASIDE THE FIRST ISSUE TO THE FI LE OF THE ASSESSING OFFICER AND GRANTED RELIEF TO THE ASSESSEE ON THE SECOND ISSUE. THERE IS NO DISPUTE THAT BOTH THE ISSUES ARE IDENTICAL IN NATURE AND ALSO REVOLVE AROUND ON SAME SET OF FACTS. HENCE, FOR THE DETAILED REASONING GIVEN IN OUR ORDE R DATED 11.11.2009, WE SET ASIDE THE FIRST ISSUE TO THE FILE OF THE ASSESSING OFFICER TO CONSIDER THE ISSUE AFRESH IN ACCORDANCE WITH THE DIRECTIONS GIVEN BY THE TRIB UNAL IN ITS EARLIER ORDER. SIMILARLY, FOR THE DETAILED REASONS GIVEN IN THE EA RLIER ORDER, WE DIRECT THE AO TO DELETE THE NOTIONAL INTEREST ADDED TO THE TOTAL INC OME. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSES SEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED ACCORDINGLY ON 07-01-2010. SD/- SD/- (SUNIL KUMAR YADAV) (B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE : 7 TH JANUARY, 2010 A COPY OF THIS ORDER IS FORWARDED TO : 01 SHRI T. RAMACHANDRA PRABHU, C/O. M/S. V. RAO & G OPI, CHARTERED ACCOUNTANTS, 26-1-77, 1 ST FLOOR, NAGARAMPALEM, GUNTUR-4 02 THE ACIT, CIRCLE(2)1, GUNTUR 03 THE CIT (A), GUNTUR, 04 THE CIT, GUNTUR 05 THE DR, ITAT, VISAKHAPAATNAM 06 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY ITAT, VISAKHAPATNAM BENCH