Assistant Commissioner of Income Tax, Trivandrum V. Travancore Titanium Products Ltd, Trivandrum

ITA 247/COCH/2009

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52285 (ITAT-COCHIN)
• Duration Of Justice: 2 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 15-12-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 04-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAYAPRABHA
• Assessee Lawyers: V DEVARAJAN

Judgement Text

1 ITA NO.247-COCH-2009 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHI BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI SANJAY ARO RA (AM) I.T.A. NO.247/COCH/2009 (ASSESSMENT YEAR 2003-04) ASSIST.COMMISSIONER OF INCOME-TAX, VS TRAVANCORE T ITANIUM PRODUCTS CIRCLE 1(1), TRIVANDRUM TRIVANDRUM PAN : AAAT8543J (APPELLANT) (RESPONDENT) APPELLANT BY : MS VIJAYAPRABHA RESPONDENT BY : SHRI V DEVARAJAN DATE OF HEARING : 15-12-2011 DATE OF PRONOUNCEMENT: 30-12-2011 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME-TAX(A)-I, TRIVANDRUM DATED 26-12-2008 AND PERTAINS TO ASSESSMENT YEAR 2003-04. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS DISAL LOWANCE OF INTEREST ON LOAN ADVANCED BY THE ASSESSEE TO M/S KERALA CERAMICS LTD TO THE EXTENT OF RS. 19,84,000. 3. WE HEARD THE LD.DR, MS. VIJAYAPRABHA AND THE LD. REPRESENTATIVE FOR THE ASSESSEE, SHRI V DEVARAJAN. 4. IT IS BROUGHT TO THE NOTICE OF THE BENCH THAT TH E VERY SAME ADVANCE MADE TO KERALA CERAMICS LTD TO THE EXTENT OF RS.1.24 CRORE WAS SUBJECT MATTER OF APPEAL BEFORE THIS TRIBUNAL FOR THE ASSESSMENT YEAR 1992-9 3 IN THE ASSESSEES OWN CASE. THIS TRIBUNAL BY MAJORITY OPINION FOUND THAT THE AS SESSEE HAS NO ENFORCEABLE RIGHT 2 ITA NO.247-COCH-2009 TO RECEIVE THE INTEREST. THEREFORE, THE QUESTION O F ACCRUAL OF INTEREST INCOME IN THIS CASE DOES NOT ARISE. ADMITTEDLY, INTEREST ON THE VERY SAME ADVANCE OF RS.1.24 CRORE TO KERALA CERAMICS LTD IS SUBJECT MATTER OF A PPEAL BEFORE THIS TRIBUNAL. SINCE THIS TRIBUNAL, BY MAJORITY OPINION, FOUND THA T NO INTEREST WAS ACCRUED ON THE ABOVE ADVANCE AND THE ASSESSEE HAS NO ENFORCEABLE R IGHT OVER THE INTEREST, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AU THORITY. BY FOLLOWING THE ORDER OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR THE AS SESSMENT YEAR 1992-93 IN ITA NO.823/COCH/2004 REPORTED IN (2009) 121 ITD 513 (CO CH) WE UPHOLD THE ORDER OF COMMISSIONER OF INCOME-TAX(A). 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH DECEMBER, 2011 SD/- SD/- (SANJAY ARORA) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER ERNAKULAM, DT : 30 TH DECEMBER, 2012 PK/ COPY FORWARDED TO: 1. ASSIST.COMMISSIONER OF INCOME-TAX, CIR.1(1), TRIVA NDRUM 2. TRAVANCORE TITANIUM PRODUCTS, TRIVANDRUM 3. THE COMMISSIONER OF INCOME-TAX(A)-I, TRIVANDRUM 4. THE COMMISSIONER OF INCOME-TAX, TRIVANDRUM 5. THE DR (TRUE COPY) BY ORDER ASSTT.REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN