DCIT, Circle1(1)(1), Ahmedabad V. M/s.Arvind Products Ltd.,(Now merged with Arvind Ltd.,), Ahmedabad

ITA 2107/AHD/2015

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1424 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 15-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR SHYAM PRASAD
• Keywords: Depreciation; Double taxation relief; Earning of tax free income; Non-deduction of tax; Third party statement; Revised return; Unabsorbed depreciation; TDS; Rule 8D
• Section: 143(3); 14A; 115JB; 40(a)(ia); 195; 143(2); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (CONDUCTED THROUGH VIRTUAL COURT) BEFORE: SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEM BER DCIT, CIRCLE-1(1)(1), AHMEDABAD (APPELLANT) VS M/S. ARVIND PRODUCTS LTD. (NOW MERGED WITH ARVIND LTD.), ARVIND MILLS PREMISES, NARODA ROAD, AHMEDABAD-380025 PAN: AABCA2391L (RESPONDENT) M/S. ARVIND PRODUCTS LTD. (NOW MERGED WITH ARVIND LTD.), ARVIND MILLS PREMISES, NARODA ROAD, AHMEDABAD-380025 PAN: AABCA2391L (APPELLANT) VS DCIT, CIRCLE-1(1)(1), AHMEDABAD (RESPONDENT) REVENUE BY: DR. SHYAM PRASAD, SR. D.R. ASSESSEE BY: SHRI VARTIK CHOKSHI, A .R. DATE OF HEARING : 27-04-2021 DATE OF PRONOUNCEMENT : 30-06-202 1 ITA NOS. 2107, 2108 & 2816 /AHD/2015 ASSESSMENT YEARS 2009-10, 2010-11 & 2011-12 CROSS OBJECTION NOS. 159, 160 & 191/AHD/2015 (IN ITA NOS. 2107, 2108 & 2816 /AHD/2015) ASSESSMENT YEARS 2009-10, 2010-11 & 2011-12 I.T.A NO. 2107, 2108 & 2816/AHD/2015 & CO NOS. 159, 160 & 191/AHD/2015 PAGE NO DCIT VS. M/S. ARVIND PRODUCTS LTD. (NOW MERGED ARVI ND LTD.) 2 /ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- THESE THREE APPEALS FILED BY REVENUE AND THREE CROS S OBJECTIONS FILED BY ASSESSEE FOR A.Y. 2009-10 TO 2011-12, ARISE FROM ORDER OF THE CIT(A)-1, AHMEDABAD DATED 06-04-2015, IN PROCEEDINGS UNDER SE CTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE BRIEF FACT OF THE CASE IS THAT RETURN OF INC OME DECLARING TOTAL LOSS OF RS. -13,59,35,856/- WAS FILED ON 24 TH SEP, 2009. THE CASE WAS SUBJECT TO SCRUTINY ASSESSMENT AND NOTICE U/S. 143(2) OF THE A CT WAS ISSUED ON 23 RD AUGUST, 2010. ASSESSMENT U/S. 143(3) OF THE ACT WA S FINALIZED ON 28 TH DECEMBER, 2011 AND TOTAL LOSS OF THE ASSESSEE WAS A SSESSED AT RS. - 11,49,38,164/- AFTER MAKING VARIOUS ADDITIONS BY TH E ASSESSING OFFICER. THE ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A) AGA INST THE DISALLOWANCE AND ADDITIONS MADE BY THE ASSESSING OFFICER. THE LD. C IT(A) HAS PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. FURTHER FACTS OF THE CASE ARE DISCUSSED WHILE ADJUDICATING THE GROUNDS OF APPEALS FILED BY REVENU E AS UNDER. ITA NO. 2107/AHD/2015 A.Y. 2009-10 FILED BY REVENUE & C.O. 159/AHD/2015 FILED A.Y. 2009-10 FILED BY ASSESSEE GROUND NO. 1(DISALLOWANCE DELETED BY CIT(A) U/S. 14 A OF RS. 20,381/- & GROUND NO. 1 OF C.O. (DISALLOWANCE CONFIRMED BY C IT(A) U/S. 14A OF RS. 2,58,478/-)) 3. DURING THE COURSE OF ASSESSMENT, THE ASSESSING O FFICER NOTICED THAT ASSESSEE EARNED DIVIDEND INCOME TO THE AMOUNT OF RS . 1,92,663/-. THE ASSESSING OFFICER FURTHER NOTICED THAT ASSESSEE HAS EARNED DIVIDEND INCOME I.T.A NO. 2107, 2108 & 2816/AHD/2015 & CO NOS. 159, 160 & 191/AHD/2015 PAGE NO DCIT VS. M/S. ARVIND PRODUCTS LTD. (NOW MERGED ARVI ND LTD.) 3 FROM THE INVESTMENT OF RS. 36,24,000/- MADE IN THE EQUITY SHARES OF M/S ATUL LIMITED. ON QUERY, THE ASSESSEE EXPLAINED TH AT IT HAD NOT MADE ANY NEW INVESTMENT IN THE YEARS UNDER CONSIDERATION AND INVESTMENT WAS MADE FROM ITS OWN FUNDS. IT WAS ALSO SUBMITTED THAT NO ADMINISTRATION EXPENDITURE SHOULD BE DISALLOWED SINCE THE ASSESSEE COMPANY HAS MADE LONG TERM INVESTMENT IN THE GROUP COMPANIES WHICH DID NOT REQ UIRE DAY TO DAY MONITORING OF THE INVESTMENT. THE ASSESSING OFFIC ER HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE AND COMPUTED THE DISALL OWANCE AS PER PROVISION OF SECTION 14A AND RULE 8D OF THE I.T. RULE, 1962 T O THE AMOUNT OF RS. 2,78,859/-. 4. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE L D. CIT(A). THE LD. CIT(A) HAS RESTRICTED THE DISALLOWANCE TO THE EXTEN T OF RS. 2,58,478/- AFTER NETTING OF INTERST. 5. DURING THE COURSE OF APPELLATE PROCEEDINGS, LD. DEPARTMENTAL REPRESENTATIVE HAS SUPPORTED THE ORDER OF LOWER AUT HORITIES. ON THE OTHER HAND, THE LD. COUNSEL HAS CONTENDED THAT ASSESSEE H AS EARNED EXEMPT INCOME IN THE FORM OF DIVIDEND OF RS. 1,92,663/-. HE HAS FURTHER SUBMITTED THAT LOOKING TO THE VARIOUS DECISIONS OF ITAT AHMEDABAD DISALLOWANCE CANNOT BE MADE MORE THAN THE EXEMPT INCOME. 6. HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. IT IS UNDISPUTED FACT THAT DURING THE YEAR UNDER CONSIDER ATION THE ASSESSEE COMPANY HAS EARNED EXEMPT INCOME IN THE FORM OF DIV IDEND TO THE AMOUNT OF RS. 1,92,663/- ONLY. HOWEVER, THE LD. CIT(A) HAS SUSTAINED THE ADDITION I.T.A NO. 2107, 2108 & 2816/AHD/2015 & CO NOS. 159, 160 & 191/AHD/2015 PAGE NO DCIT VS. M/S. ARVIND PRODUCTS LTD. (NOW MERGED ARVI ND LTD.) 4 TO THE EXTENT OF RS. 2,58,487/-. AFTER CONSIDERING THE DECISION OF JIVRAJ TEA LTD. VS. DCIT ITA NO. 886/AHD/2012 DATED 28-05-2014 WHEREIN IT IS HELD THAT DISALLOWANCE U/S. 14A CANNOT BE EXCEEDED THE E XEMPT INCOME WE RESTRICT THE DISALLOWANCE TO THE EXTENT OF THE EXEM PT INCOME IN THE FORM OF DIVIDEND EARNED BY THE ASSESSEE DURING THE YEAR UND ER CONSIDERATION TO THE AMOUNT OF RS. 1,92,663/-. ACCORDINGLY, THIS GROUND OF APPEAL OF THE REVENUE IS DISMISSED AND THE CROSS OBJECTION FILED BY ASSES SEE IS PARTLY ALLOWED. GROUND NO. 2 (ADDITION DELETED BY THE LD. CIT(A) IN COMPUTING BOOK PROFIT U/S. 115JB OF RS. 2,78,859/-) FILED BY REVEN UE 7. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFOR E US AT THE OUTSET THE LD. COUNSEL HAS SUBMITTED THAT NO ADDITION OF DISAL LOWANCE MADE U/S. 14A CAN BE MADE WHILE COMPUTING BOOK PROFIT U/S. 115JB OF THE ACT AS HELD BY SPECIAL BENCH DECISION OF DELHI ITAT IN THE CASE OF ACIT VS. VINEET INVESTMENT PVT. LTD. (2017) 165 ITD 27/82 TAXMANN.C OM. THE LD. COUNSEL IS FAIR ENOUGH NOT TO CONTROVERT THIS UNDISPUTED FA CT THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF SPECIA L BENCH OF THE ITAT DELHI AS REFERRED ABOVE. THEREFORE, WE DO NOT FIND ANY M ERIT IN THE APPEAL OF THE REVENUE, THEREFORE, THE SAME STANDS DISMISSED. GROUND NO. 3 (DISALLOWANCE DELETED BY CIT(A) U/S. 4 0(A)(IA) OF RS. 41,87,539/-) FILED BY REVENUE & GROUND NO. 2 OF C.O . (DISALLOWANCE CONFIRMED BY CIT(A) OF RS. 4,05,359/-) 8. DURING THE COURSE OF ASSESSMENT ON VERIFICATION OF THE DETAIL FILED THE ASSESSING OFFICER OBSERVED THAT ASSESSEE COMPANY HA S NOT DEDUCTED TAX AT SOURCE UNDER THE HEAD FREIGHT CHARGES AND PORT/TERM INAL HANDLING CHARGES BY I.T.A NO. 2107, 2108 & 2816/AHD/2015 & CO NOS. 159, 160 & 191/AHD/2015 PAGE NO DCIT VS. M/S. ARVIND PRODUCTS LTD. (NOW MERGED ARVI ND LTD.) 5 CLAIMING THE SAME AS REIMBURSEMENT OF EXPENSES. ON QUERY, THE ASSESSEE EXPLAINED THAT ALL THESE PAYMENTS MADE TO SIX PARTI ES MENTIONED AT PAGE NO. 9 OF THE ASSESSMENT ORDER WERE IN THE NATURE OF REI MBURSEMENT OF EXPENSES THEREFORE PROVISION OF DEDUCTION OF TAX AT SOURCE W AS NOT APPLICABLE TO REIMBURSEMENT OF ACTUAL EXPENDITURE. THE ASSESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE. HE WAS O F THE VIEW THAT THE PAYMENT MADE BY THE ASSESSEE WAS IN THE NATURE OF F EES FOR TECHNICAL SERVICES AS PER PROVISIONS OF ARTICLE 7 OF DTAA AND DEEMED TO ACCRUE IN THAT CONTRACTING STATE WHEN THE PAYER IS THE RESIDE NT OF THAT CONTRACTING STATE. THEREFORE, PAYMENT OF RS. 22,33,260/- MADE TO THE N ON-RESIDENTS WAS CONSIDERED IN THE NATURE OF FEES FOR INCLUDED SERVI CES/FEES FOR TECHNICAL SERVICES ON WHICH TAX WAS REQUIRED TO BE DEDUCTED A S PER PROVISION OF SECTION 195 OF THE ACT. ACCORDINGLY, THE ASSESSING OFFICER HAS DISALLOWED THE TOTAL AMOUNT OF PAYMENT OF RS.23,59,638/- MADE TO THE CLEARING AND FORWARDING AGENTS AS PER PROVISION OF SECTION 40(A) (IA) OF THE ACT. 9. THE ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT (A). THE LD. CIT(A) HAS ALLOWED THE CLAIM OF THE ASSESSEE EXCEPT RESTRI CTING THE DISALLOWANCE TO THE EXTENT OF RS. 4,05,359/- STATING THAT M/S. CHIN UBHAI KALIDAS AND BROTHERS TO WHOM ASSESSEE PAID RS. 19,54,279/-, NO OTHER PAR TY HAS RAISED DIFFERENT INVOICES FOR REIMBURSEMENT OF EXPENSES. THEREFORE, OUT OF THE TOTAL DISALLOWANCE OF RS. 23,59,638/-, THE LD. CIT(A) HAS DELETED PAYMENT OF RS. 19,54,279/- MADE TO M/S. CHINUBHAI KALIDAS & BROTHE RS. 10. HEARD BOTH THE SIDES AND PERUSED THE MATERIAL O N RECORD. WITHOUT REITERATING THE FACTS AS ELABORATED ABOVE, THE LD. CIT(A) HAS RESTRICTED I.T.A NO. 2107, 2108 & 2816/AHD/2015 & CO NOS. 159, 160 & 191/AHD/2015 PAGE NO DCIT VS. M/S. ARVIND PRODUCTS LTD. (NOW MERGED ARVI ND LTD.) 6 DISALLOWANCE U/S. 40(A)(IA) OF THE ACT ON ACCOUNT O F NON-DEDUCTION OF TAX TO THE EXTENT OF RS. 4,05,359 AFTER VERIFYING THAT ASS ESSEE HAS NOT FILED SUPPORTING DETAILS AND INVOICES OF REIMBURSEMENT OF EXPENDITURE. IN THIS REGARD, IT IS OBSERVED THAT LD. CIT(A) HAS NOT DEMO NSTRATED THE SPECIFIC DEFICIENCIES IN THE DETAILS FILED BY THE OTHER PART IES IN RESPECT OF PAYMENT MADE OF RS. 4,05,359/-, THEREFORE, WE RESTORE THIS ISSUE TO THE FILE OF ASSESSING OFFICER FOR ADJUDICATING AFRESH AFTER VER IFICATION OF SPECIFIC DETAIL AND THE CLAIM OF PAYMENT OF TAXES BY PAYEE. ACCOR DINGLY, THE APPEAL OF THE REVENUE IS DISMISSED AND CROSS OBJECTION FILED BY T HE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 2107/AHD/2015 FILED BY REVENUE GROUND NO. 4 ( DELETION OF DISALLOWANCE U/S. 36(I)( III) OF RS. 1.56 CRORES. 11. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, TH E ASSESSING OFFICER OBSERVED THAT ASSESSEE HAS GIVEN INTEREST FREE LOAN OF RS. 13 CRORES TO M/S. LALBHAI REALTY FINANCE LTD. AN ASSOCIATED CONCERN O F THE ASSESSEE COMPANY. ON QUERY, THE ASSESSEE EXPLAINED THAT IT HAS ADVANC ED THE LOAN TO ITS SISTER CONCERN OUT OF THE INTEREST FREE FUNDS AND NO DISAL LOWANCE SHOULD BE MADE. THE ASSESSING OFFICER HAS NOT AGREED WITH THE SUBMI SSION OF THE ASSESSEE STATING THAT ASSESSEE HAS NOT PRODUCED ANY EVIDENCE THAT THE FUNDS WERE GIVEN FROM INTEREST FREE FUNDS, THEREFORE, THE ASSE SSING OFFICER HAS COMPUTED INTEREST @ 12% ON THE AMOUNT OF ADVANCE GI VEN TO THE SISTER CONCERN AND ADDED RS. 1.56 CRORES U/S. 36(1)(III) O F THE ACT TO THE TOTAL INCOME OF THE ASSESSEE COMPANY. 12. THE ASSESSEE HAS FILED APPEAL BEFORE THE LD. CI T(A). THE LD. CIT(A) HAS ALLOWED THE APPEAL OF THE ASSESSEE. I.T.A NO. 2107, 2108 & 2816/AHD/2015 & CO NOS. 159, 160 & 191/AHD/2015 PAGE NO DCIT VS. M/S. ARVIND PRODUCTS LTD. (NOW MERGED ARVI ND LTD.) 7 13. HEARD BOTH THE SIDES AND PERUSED THE MATERIAL O N RECORD. THE ASSESSING OFFICER HAS MADE ADDITION OF RS. 1.56 CRO RES AFTER COMPUTING INTEREST @ 12% ON INTEREST FREE LOAN OF RS. 13 CROR ES ADVANCED TO ITS SISTER CONCERN M/S. LALBHAI REALTY FINANCE LTD. THE LD. CIT(A) HAS DELETED THE DISALLOWANCE AFTER VERIFICATION OF UNDISPUTED FACT THAT ASSESSEE WAS HAVING SUFFICIENT INTEREST FREE FUNDS TO THE AMOUNT OF RS. 75.25 CRORES IN THE FORM OF SHARE CAPITAL AND RESERVES AND SURPLUS. THE REVENU E HAD NOT DISPROVED THESE UNDISPUTED FACT THAT ASSESSEE WAS HAVING SUFFICIENT INTEREST FREE FUND OUT OF WHICH THE IMPUGNED LOAN WAS ADVANCED TO ITS SISTER CONCERN. IN THE LIGHT OF THE ABOVE FACTS AND FINDINGS, WE DO NOT FIND ANY IN FIRMITY IN THE DECISION OF LD. CIT(A), THEREFORE, THE APPEAL OF THE REVENUE STANDS DISMISSED. ITA NO. 2107/AHD/2015 FILED BY REVENUE GROUND NO. 5 (CARRY FORWARD LTC LOSS OF RS. 1,60,45 ,749/- AS ASSESSEE HAD NOT FILED REVISED RETURN OF INCOME REVISING CLA IM ) 14. DURING THE COURSE OF ASSESSMENT, THE ASSESSEE H AS SUBMITTED REVISED WORKING OF LOSS OF RS. 1,60,45,749/- ON SALE OF SHA RES OF ANOOP ENGINEERS AND REQUESTED THE ASSESSING OFFICER TO ALLOW CARRY FORWARD LOSS OF RS. 14,08,73,426/- INSTEAD OF RS. 13,59,35,856/-. HOWE VER, THE ASSESSING OFFICER HAS NOT DEALT WITH THIS ISSUE IN THE ASSESS MENT ORDER. 15. THE ASSESSEE HAS FILED APPEAL BEFORE THE LD. CI T(A). THE LD. CIT(A) HAS DIRECTED THE ASSESSING OFFICER TO VERIFY SUCH B USINESS LOSS/UNABSORBED DEPRECIATION/CAPITAL GAIN LOSSES OF EARLIER YEARS A ND PASS AN APPROPRIATE ORDER WITH CARRY FORWARD OF THE SAME IN THE ORDER GIVING EFFECT TO THIS APPEAL ORDER. I.T.A NO. 2107, 2108 & 2816/AHD/2015 & CO NOS. 159, 160 & 191/AHD/2015 PAGE NO DCIT VS. M/S. ARVIND PRODUCTS LTD. (NOW MERGED ARVI ND LTD.) 8 16. HEARD BOTH THE SIDES AND PERUSED THE MATERI AL ON RECORD. IN VIEW OF THE DIRECTION OF THE LD. CIT(A) TO THE ASSESSING OF FICER TO ALLOW THE CLAIM OF THE ASSESSEE AFTER VERIFYING THE REVISED WORKING, W E DO NOT FIND ANY REASON TO INTERFERE IN THE FINDING OF LD. CIT(A). THEREFO RE, THIS GROUND OF APPEAL OF REVENUE IS DISMISSED. CO 159/AHD/2015 A.Y. 2009-10 FILED BY ASSESSEE GROUND NO. 3 (SUSTAINING THE ADDITION OF RS. 5,25,9 35/- U/S. 41(1) OF THE ACT) 17. DURING THE COURSE OF ASSESSMENT, THE ASSESSIN G OFFICER HAS MADE ADDITION OF RS. 5,25,935/- IN RESPECT OF SUNDRY CRE DITORS STANDING IN THE NAME OF SARVESH COTTON MILLS LTD. AS THIS TRADING LIABIL ITY WAS OUTSTANDING SINCE 2006-07. THE ASSESSING OFFICER HAS DISALLOWED THE O UTSTANDING LIABILITY U/S. 41(1) OF THE ACT ON THE REASONING THAT AS PER THE P ROVISIONS OF THE LIMITATION ACT THE LIABILITY TO PAY ITS DEBT HAS CEASED TO EXI ST. 18. THE ASSESSEE HAS FILED APPEAL BEFORE THE L D. CIT(A). THE LD. CIT(A) HAS SUSTAINED THE ADDITION STATING THAT ASSESSEE FA ILED TO PROVIDE CONTRA CONFIRMATION FROM THE PARTY TO SUBSTANTIATE THAT TH IS LIABILITY WAS STILL EXISTING. 19. HEARD BOTH THE SIDES AND PERUSED THE MATER IAL ON RECORD. CONSIDERING THE FACT THAT AUDITOR HAS REMARKED IN THE AUDIT REP ORT IN FORM NO. 3CD THAT THE SAID LIABILITY WAS STILL EXISTED SUBJECT TO CON FIRMATION WE RESTORE THIS ISSUE TO THE FILE OF ASSESSING OFFICER TO ADJUDICAT E AFRESH AFTER GIVING OPPORTUNITY TO THE ASSESSEE TO MAKE COMPLIANCE AS R ECOMMENDED IN THE I.T.A NO. 2107, 2108 & 2816/AHD/2015 & CO NOS. 159, 160 & 191/AHD/2015 PAGE NO DCIT VS. M/S. ARVIND PRODUCTS LTD. (NOW MERGED ARVI ND LTD.) 9 AUDIT REPORT. THEREFORE, THIS GROUND OF APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 2108/AHD/2015 A.Y. 2010-11 FILED BY REVENUE & C.O. 160/AHD/2015 A.Y. 2010-11 FILED BY ASSESSEE 20. AS THE FACTS AND ISSUES INVOLVED IN GROUNDS OF APPEAL VIDE ITA NO. 2107/AHD/2015 ASSESSMENT YEAR 2009-10 ARE SIMILAR A S IN ITA NO. 2708/AHD/2015 ASSESSMENT YEAR 2010-11 THEREFORE AFTER APPLYING THE DECISION ADJUDICATED VIDE ITA NO. 2107 /AHD/2015 AS SUPRA IN THIS ORDER, THIS APPEAL OF THE REVENUE IS DISALLOWED. 21. THE GROUND NO. 1 OF CROSS OBJECTION OF THE ASSE SSEE REGARDING DISALLOWANCE CONFIRMED BY CIT(A) U/S 14A OF RS. 11, 77,806/- IS PARTLY ALLOWED BY RESTRICTING THE DISALLOWANCE U/S. 14A UP TO THE EXEMPT INCOME IN THE FORM OF DIVIDEND OF RS. 1,92,6 63/- EARNED DURING THE YEAR UNDER CONSIDERATION. THE GROUND NO . 2 OF CROSS OBJECTION IS NOT PRESSED THEREFORE THE SAME STANDS DISMISSED. GROUND NO. 3 OF THE CROSS OBJECTION PERTAINED TO NO T GRANTING CREDIT FOR TDS AMOUNTING TO RS. 2,55,328/- 22. HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD CONNECTED WITH THE ISSUE FILED BY THE ASSESSEE DURI NG THE COURSE OF ASSESSMENT PROCEEDINGS AND APPELLATE PROCEEDINGS . SINCE THIS ISSUE OF GRANTING CREDIT FOR TDS HAS NOT BEEN SPECI FICALLY I.T.A NO. 2107, 2108 & 2816/AHD/2015 & CO NOS. 159, 160 & 191/AHD/2015 PAGE NO DCIT VS. M/S. ARVIND PRODUCTS LTD. (NOW MERGED ARVI ND LTD.) 10 ADJUDICATED BY THE LOWER AUTHORITY, THEREFORE, WE R ESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR DECI DING AFRESH AFTER VERIFICATION OF THE SUPPORTING MATERIAL AFTER PROVI DING DUE OPPORTUNITY TO THE ASSESSEE. ACCORDINGLY, THIS GRO UND OF THE CROSS OBJECTION IS ALLOWED FOR STATISTICAL PURPOSES . ITA NO. 2816/AHD/2015 A.Y. 2011-12 FILED BY REVENUE & CO NO. 191/AHD/2015 FILED BY THE ASSESSEE 23. AS THE FACTS AND ISSUES INVOLVED IN GROUNDS OF APPEAL NO 1 TO 3 VIDE ITA NO. 2107/AHD/2015 ASSESSMENT YEAR 2009-10 ARE S IMILAR AS IN ITA NO. 2816/AHD/2015 ASSESSMENT YEAR 2011-12 TH EREFORE AFTER APPLYING THE DECISION ADJUDICATED VIDE ITA NO . 2107/AHD/2015 AS SUPRA IN THIS ORDER, THESE GROUNDS OF APPEAL OF THE REVENUE IS DISMISSED. THE GROUND NO. 1 OF THE C ROSS OBJECTION OF THE ASSESSEE REGARDING DISALLOWANCE CONFIRMED BY LD. CIT(A) OF RS. 14,90,330/- IS PARTLY ALLOWED BY RESTRICTING THE DISALLOWANCE U/S. 14A UP TO THE EXEMPT INCOME IN TH E FORM OF DIVIDEND OF RS. 2,57,000/- EARNED DURING THE YEAR U NDER CONSIDERATION AS ADJUDICATED IN THE GROUND OF CROSS OBJECTION REFERRED ABOVE. GROUND NO. 4 (PROVISION FOR NOT REDUCED WHILE CALCU LATING THE BOOK PROFIT OF RS. 15,04,672/-) 24. THE ASSESSING OFFICER HAS CALCULATED BOOK PR OFIT U/S. 115JB AT RS. 31,59,677/- WHILE CALCULATING BOOK PROFIT, THE ASSE SSING OFFICER HAS NOT I.T.A NO. 2107, 2108 & 2816/AHD/2015 & CO NOS. 159, 160 & 191/AHD/2015 PAGE NO DCIT VS. M/S. ARVIND PRODUCTS LTD. (NOW MERGED ARVI ND LTD.) 11 GIVEN EFFECT OF PROVISION FOR DOUBTFUL DEBT WRITTEN BACK OF RS. 15,04,671/- IN COMPUTING BOOK PROFIT. 25. THE ASSESSEE HAS FILED APPEAL BEFORE THE L D. CIT(A). THE LD. CIT(A) HAS DIRECTED THE ASSESSING OFFICER TO VERIFY THE CO NTENTION OF THE ASSESSEE THAT THE PROVISION WAS MADE IN ASSESSMENT YEAR 2010 -11 AND SAME WAS ADDED WHILE COMPUTING BOOK PROFIT U/S. 115JB OF THE ACT AND THE SAME WAS REVERSED IN THE YEAR UNDER CONSIDERATION, IF IT IS FOUND CORRECT, THE ASSESSING OFFICER IS DIRECTED TO REDUCE BOOK PROFIT AT RS. 15 ,04,671/-. AFTER HEARING BOTH THE SIDES AND TAKING INTO CONSIDERATION THE DE TAILED FINDING OF THE LD. CIT(A), WE DO NOT FIND ANY INFIRMITY IN THE DECISI ON OF LD. CIT(A) IN DIRECTING THE ASSESSING OFFICER TO CONSIDER THE CLA IM OF THE ASSESSEE AFTER VERIFICATION OF THE FACTS AVAILABLE ON THE RECORD. ACCORDINGLY, THIS GROUND OF APPEAL OF REVENUE STANDS DISMISSED. 26. IN THE RESULT, APPEAL ITA 2107, 2108 AND 2816 /AHD/2015 FILED BY REVENUE ARE DISMISSED AND C.O. 159, 160 & 191/AHD/2 015 FILED BY ASSESSEE ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30-06-2021 SD/- SD/- (MAHAVIR PRASAD) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 30/06/2021 I.T.A NO. 2107, 2108 & 2816/AHD/2015 & CO NOS. 159, 160 & 191/AHD/2015 PAGE NO DCIT VS. M/S. ARVIND PRODUCTS LTD. (NOW MERGED ARVI ND LTD.) 12 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,