Surendra Kumar Agarwal , Howrah V. ACIT, Circle - 46, , Kolkata

ITA 2210/KOL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2784 (ITAT-KOLKATA)
• Duration Of Justice: 10 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 28-08-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 22-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.2210/KOL/2018 ASSESSMENT YEAR:2013-14 SURENDRA KUMAR AGARWAL, C/O PROP. M/S JBS TUBE (INDIA), 122, J.N. MUKHERJEE ROAD, GHUSURI, HOWRAH-711 104 [ PAN NO.ADCPA 8603 L ] / V/S . ACIT, CIRCLE-46, 3, GOVT. PLACE, KOLKTA-700 001 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI SUBASH AGARWAL, ADVOCATE /BY RESPONDENT SHRI SATYAJIT MANDAL, ADDL. CIT -DR /DATE OF HEARING 28-08-2019 /DATE OF PRONOUNCEMENT 30-08-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2013-14 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-14, KOLKATAS ORDER DATED 23.08.2018 PASSED IN CASE NO.185/CIT(A)-14/CIR-46/2017-18, INVOLVING PROCEEDINGS U/S. 154 R.W.S.143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE CHALL ENGERS CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION DISALLOWING INTEREST AMOU NT PAID ON UNSECURED LOANS TOTALING TO 12,89,778/-. THE ASSESSING OFFICER ADMITTEDLY FR AMED HIS REGULAR ASSESSMENT IN ASSESSEES CASE ON 22.03.2016 DISALLOWING THE ALLEG ED EXCESS INTEREST OF 6,51,597/- U/S 40A(2) OF THE ACT. HE THEREAFTER TOOK RECOURSE THE RECTIFICATION IN QUESTION U/S154 ITA NO.2210/KOL/2018 A.Y. 2013 -14 SURENDRA KR. AGARWAL VS. ACIT, CIR-4 6,KOL. PAGE 2 OF THE ACT ON THE GROUND THAT HE HAD COMMITTED A MI STAKE IN ALLOWING INTEREST ON UNSECURED LOAN AMOUNTING TO 12,89,778/- SINCE IT WAS AN INSTANCE OF DOUBLE DEDUCTION AS THE VERY CLAIM HAD BEEN ACCEPTED IN CA SE OF THE TAXPAYERS PROPRIETORSHIP BUSINESS M/S J.B.S. TUBES (INDIA). THE ASSESSING OF FICER ACCORDINGLY DISALLOWED THE IMPUGNED SUM AS AFFIRMED IN LOWER APPELLATE PROCEED INGS. 3. I HAVE GIVEN MY THOUGHTFUL CONSIDERATION TO RIVA L CONTENTIONS. IT EMERGES FIRST OF ALL THAT THE ASSESSING OFFICERS FORMER ROUND OF REGULAR ASSESSMENT FRAMED HAD ADMITTEDLY EXAMINED THE ISSUE WHILST DISALLOWING EX CESS INTEREST PAID (SUPRA). COUPLED WITH THIS, MR. AGARWAL INVITED MY ATTENTION TO ASSESSEES DETAILED PAPER BOOK RUNNING INTO 54 PAGES AND MORE PARTICULARLY HIS COM PUTATION OF INCOME IN PERSONAL ACCOUNT UNDER BUSINESS HEAD COMPUTING THE IMPUGNED INTEREST SUM, PROFIT AND LOSS ACCOUNT AND BALANCE-SHEET. THE REVENUES CASE ON TH E OTHER HAND IS THAT THE ASSESSING OFFICER HAD NOTICED THE IMPUGNED DOUBLE DEDUCTION A S PER THE ASSESSEES RELEVANT FIGURES IN THE RETURN ITSELF WHICH HAD TO BE TAKEN AS THE FINAL FIGURES. HE FAILS TO DISPUTE THE CLINCHING FACT THAT ASSESSEES BALANCE-SHEET AS WELL AS PROFIT AND LOSS ACCOUNT DEPICT THE TRUE PICTURE OF THE INTEREST AMOUNT IN Q UESTION NOT CLAIMING ANY DOUBLE DEDUCTION. I THEREFORE CONCLUDE THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN INITIATING THE IMPUGNED RECTIFICATION PROCEEDINGS RAISING AN I SSUE ALREADY EXAMINED DURING THE COURSE OF REGULAR ASSESSMENT AS WELL AS ON MERITS I N MAKING THE INTEREST DISALLOWANCE FORMING SUBJECT-MATTER OF TAXPAYERS SOLE GRIEVANCE ON MERITS. I THEREFORE ACCEPT THE ASSESSEES CONTENTION ON THESE TWIN ASPECTS. 4. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 30/08/2019 SD/- (S.S. GODARA) JUDICIAL MEMBE R KOLKATA, *DKP/SR.PS - 30/08/2019 ITA NO.2210/KOL/2018 A.Y. 2013 -14 SURENDRA KR. AGARWAL VS. ACIT, CIR-4 6,KOL. PAGE 3 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-SURENDRA KR. AGARWAL C/O PROP: M/S JBS T UBE (INDIA) 112, J.N.MUKHERJEE ROAD, GHUSURI, HOWRAH-711 104 2. /RESPONDENT-ACIT, CIR-46 3, GOVT. PLACE, KOLKATA-70 0 001 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ ',