Magna Advertising & Marketing, Kolkata V. ITO, Ward - 35(4), Kolkata, Kolkata

ITA 2097/KOL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9288 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 07-03-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 22-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K PRAMANICK
• Assessee Lawyers: ARVIND AGARWAL

Judgement Text

, . . , , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH : KOLKATA ( ) . . , [BEFORE HONBLE SHRI B.R.MITTAL, JUDICIAL MEMBER] / I.T.A NO. 2097/KOL/2010 ! ! ! ! / ASSESSMENT YEAR : 2006-07 MAGNA ADVERTISING & MARKETING , KOLKATA -VS.- INCOME TAX OFFICER, WARD-35(4), KOLKATA (PAN : AAJFM 1259 Q) ( '# '# '# '# /APPELLANT ) ( $%'# $%'# $%'# $%'# / RESPONDENT ) '# '# '# '# / FOR THE APPELLANT : SHRI ARVIND AGARWAL, A.R. $%'# $%'# $%'# $%'# / FOR THE RESPONDENT : SHRI A.K. PRAMANICK, D.R. &' &' &' &' / ORDER THE ASSESSEE HAS FILED THIS APPEAL FOR ASSESSMENT YEAR 2006-07 AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME-TAX (APPEALS)-XX, KOLKATA DA TED 27.08.2010 ON THE FOLLOWING GROUNDS :- (1) BECAUSE THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN LAW AS WELL AS IN FACTS IN UPHOLDING THE ADDITION O F RS.55,356/- ON ACCOUNT OF INTEREST ON LOAN AS ADDED BACK BY THE LD. INCOME TAX OFFICER ON THE ALLEGED GROUND THAT NO INTEREST HAS BEEN CHARGED IN RESPECT OF THE LOAN GIVEN AND NO NEXUS HAS BEEN PROVED THAT THE UNSECUR ED LOAN TAKEN WAS USED IN BUSINESS ONLY, AND HIS SUCH CONCLUSIONS ARE BASED ON HIS SURMISES AND GUESSES AND ARE CONTRARY TO THE FACTS AND MATER IAL ON RECORD. (2) BECAUSE THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) OUGHT TO HAVE ACCEPTED THAT THE INTEREST PAID WERE ON THE LOAN WHICH WAS UTILIZED F OR BUSINESS PURPOSE OF THE APPELLANT FIRM. (3) BECAUSE THAT THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN LAW AS WELL AS IN FACTS IN HOLDING THE LEVY OF INTE REST UNDER SECTION. 234D OF RS.2,980/-. 2. I HAVE HEARD THE LD. REPRESENTATIVES OF THE PART IES AND PERUSED THE ORDERS OF AUTHORITIES BELOW. ITA NO.2097/KOL./2010 2 3. AT THE TIME OF HEARING, THE LD. AUTHORIZED REPRE SENTATIVE OF THE ASSESSEE REFERRED PAGE 2 OF THE ASSESSMENT ORDER OF ASSESSING OFFICER AND SU BMITTED THAT THE LOANS IN RESPECT OF WHICH THE INTEREST HAS BEEN DISALLOWED IS BROUGHT FORWARD FROM EARLIER YEAR AND IN THE EARLIER YEARS THE DEPARTMENT HAS ALLOWED THE PAYMENT OF INTEREST AS D EDUCTION AS THE CONTENTION OF THE ASSESSEE, THAT THE LOANS WERE TAKEN FOR BUSINESS PURPOSES, WA S ACCEPTED. THE LD. DEPARTMENTAL REPRESENTATIVE HAS NOT DISPUTED THE ABOVE CONTENTIO N OF THE LD. A.R. I ALSO OBSERVE THAT THE LOANS ARE BROUGHT FORWARD ON WHICH THE INTEREST IN THE ASSESSMENT YEAR UNDER CONSIDERATION HAS BEEN CLAIMED. IN VIEW OF THE ABOVE SUBMISSIONS OF T HE PARTIES, I HOLD THAT THE DISALLOWANCE OF INTEREST AGGREGATING RS.55,356/- IS NOT JUSTIFIED I N THE ASSESSMENT YEAR UNDER CONSIDERATION. HENCE, I DELETE THE SAME BY ALLOWING GROUNDS NO. 1 & 2 OF THE APPEAL TAKEN BY THE ASSESSEE. 4. AT THE TIME OF HEARING, THE LD. A.R. SUBMITTED T HAT GROUND NO. 3 IN RESPECT OF LEVY OF INTEREST UNDER SECTION 234D OF RS.2,980/- IS CONSEQ UENTIAL TO GROUNDS NO. 1 & 2 OF THE APPEAL. IN VIEW OF THE ABOVE, THE GROUND NO. 3 OF THE APPEA L DOES NOT REQUIRE SPECIFIC ADJUDICATION AS I HAVE ALLOWED GROUNDS NO. 1 & 2 OF THE APPEAL. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11.03.2011. SD/- [ B.R. MITTAL / . . ] JUDICIAL MEMBER/ DATED : 11/ 03 / 2011 COPY OF THE ORDER FORWARDED TO: 1. M/S. MAGNA ADVERTISING & MARKETING, C/O. G.P. AGRAW AL & ASSOCIATES, 7A, KIRAN SHANKAR RAY ROAD, 2 ND FLOOR, KOLKATA-1. 2 ITO, WARD-35(4), KOLKATA. 18, RABINDRA SARANI, PODD AR COURT, KOLKATA-1. 3. CIT(A)- ,KOLKATA 4. CIT, KOLKATA- 5. DR, KOLKATA BENCHES, KOLKATA (TRUE COPY) BY ORDER ASSISTANT REGISTRAR, I.T.A.T., KOLKATA LAHA, SR. P.S.