ACIT, Villupuram V. M/s. Kallakurichi Co-operative Sugar Mills Ltd., Kallakurichi

ITA 2185/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5686 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 06-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN
• Section: 43B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , !, # $% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI SANJAY ARORA, ACCOUNTANT MEMBER ./ ITA NOS.2185 & 2186/MDS/2017 ( )( / ASSESSMENT YEARS : 2014-15 & 2013-14 THE ASSISTANT COMMISSIONER OF INCOME TAX, VILLUPURAM CIRCLE, VILLUPURAM 605 602. V. M/S KALLAKURICHI CO-OP. SUGAR MILLS LTD., UNIT-II, KACHIRAPALAYAM, KALLAKURICHI, VILLUPURAM 606 207. PAN : AAAAK 0655 Q (+,/ APPELLANT) (-.+,/ RESPONDENT) ./ ITA NOS.2184 & 2187/MDS/2017 ( )( / ASSESSMENT YEARS : 2013-14 & 2014-15 THE ASSISTANT COMMISSIONER OF INCOME TAX, VILLUPURAM CIRCLE, VILLUPURAM 605 602. V. M/S KALLAKURICHI CO-OP. SUGAR MILLS LTD., UNIT-1, MOONGILTHURAI PATTU, VILLUPURAM 605 702. PAN : AAAAT 3677 M (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI N. MADHAVAN, ADDL.CIT -.+, / 0 / RESPONDENTS BY : SHRI S. VENUGOPALAN, CA SHRI B. GOWTHAMAN, CA 1 / 2# / DATE OF HEARING : 28.11.2017 3 ) / 2# / DATE OF PRONOUNCEMENT : 30.11.2017 2 I.T.A. NOS.2184 TO 2187/MDS/17 / O R D E R PER BENCH: ALL THE FOUR APPEALS OF THE REVENUE IN RESPECT O F TWO INDEPENDENT ASSESSEES ARE DIRECTED AGAINST THE RESP ECTIVE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS), PUDUCH ERRY, DATED 30.06.2017 FOR THE ASSESSMENT YEARS 2013-14 AND 201 4-15. SINCE COMMON ISSUE ARISES FOR CONSIDERATION IN ALL THESE APPEALS, WE HEARD THESE APPEALS TOGETHER AND DISPOSING OF THE S AME BY THIS COMMON ORDER. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IN ALL T HESE APPEALS IS DISALLOWANCE MADE BY THE ASSESSING OFFICER UNDER SE CTION 43B OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT') IN RE SPECT OF INTEREST PAYMENT. 3. WE HEARD SHRI N. MADHAVAN, THE LD. DEPARTMENTAL REPRESENTATIVE AND SHRI S. VENUGOPALAN AND SHRI B. GOWTHAMAN, THE LD. REPRESENTATIVES OF THE ASSESSEES. THE ASSE SSEE-CO- OPERATIVE SOCIETIES WERE ALLOTTED WORKING CAPITAL B Y GOVERNMENT OF TAMIL NADU. IN FACT, NATIONAL CO-OPERATIVE DEVELOP MENT CORPORATION HAS SANCTIONED THE LOAN UNDER CORPORATI ON SPONSORED SCHEME TO GOVERNMENT OF TAMIL NADU. THE PAYMENT OF INTEREST 3 I.T.A. NOS.2184 TO 2187/MDS/17 WAS DISALLOWED BY THE ASSESSING OFFICER UNDER SECTI ON 43B OF THE ACT. THE ASSESSING OFFICER WAS UNDER THE IMPRESSIO N THAT THE LOAN WAS SANCTIONED BY A FINANCIAL INSTITUTION, NAMELY, NATIONAL CO-OP. DEVELOPMENT CORPORATION, NEW DELHI. REFERRING TO A GOVERNMENT ORDER IN RCNO.16890/CANE-1/2001 DATED 15.03.2002, T HE LD. REPRESENTATIVES OF THE ASSESSEES BROUGHT TO THE NOT ICE OF THE BENCH THAT THE LOAN WAS SANCTIONED TO GOVERNMENT OF TAMIL NADU WHICH IS TO BE UTILISED AS WORKING CAPITAL BY CO-OPERATIVE S UGAR MILLS IN THE STATE. THEREFORE, ACCORDING TO THE LD. REPRESENTAT IVES, THE REPAYMENT HAS TO BE MADE TO GOVERNMENT OF TAMIL NAD U BY THE ASSESSEES AND NOT TO NATIONAL CO-OP. DEVELOPMENT CO RPORATION. 4. AN IDENTICAL ISSUE CAME BEFORE THIS TRIBUNAL IN THE ASSESSEES OWN CASE FOR ASSESSMENT YEARS 2008-09, 2 009-10, 2010-11 AND 2012-13. THIS TRIBUNAL BY PLACING ITS RELIANCE ON ANOTHER ORDER OF THIS TRIBUNAL IN DCIT V. THE KALLA KURICHI CO-OP. SUGAR MILLS LTD., UNIT-II IN I.T.A. NO.1079/MDS/201 2 DATED 14.12.2012, FOUND THAT THE REPAYMENT OF LOAN BY THE ASSESSEE TO GOVERNMENT OF TAMIL NADU WOULD NOT FALL UNDER SECTI ON 43B OF THE ACT. SINCE THE FACTS ARE IDENTICAL TO THAT OF ASSE SSMENT YEARS 2008- 09, 2009-10, 2010-11 AND 2012-13 IN THE ASSESSEES OWN CASE, THIS 4 I.T.A. NOS.2184 TO 2187/MDS/17 TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE DECI SION OF THE CO- ORDINATE BENCH OF THIS TRIBUNAL DATED 28.09.2016 IS SQUARELY APPLICABLE TO THE FACTS OF THE CASE. IN VIEW OF TH E ABOVE, THE CIT(APPEALS) HAS RIGHTLY FOLLOWED THE ORDER OF THIS TRIBUNAL. HENCE, THIS TRIBUNAL DOES NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CON FIRMED. 5. IN THE RESULT, ALL THE FOUR APPEALS FILED BY THE REVENUE STAND DISMISSED. ORDER PRONOUNCED ON 30 TH NOVEMBER, 2017 AT CHENNAI. SD/- SD/- ( ! ) ( . . . ) (SANJAY ARORA) (N.R.S. GANESAN) # / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 30 TH NOVEMBER, 2017. KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A), PUDUCHERRY 4. PRINCIPAL CIT, PUDUCHERRY 5. 7: -2 /DR 6. ;( < /GF.