THE DY. CIT- CENTRAL CIRCLE, RAIPUR (CG) V. SPIN PACKAGING LTD., BILASPUR(CG)

ITA 25/BIL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1395 (ITAT-RAIPUR)
• Duration Of Justice: 2 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 15-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K JAIN
• Assessee Lawyers: G S AGRAWAL
• Keywords: Tax effect
• Section: 14A; 6

Judgement Text

ITA NO . 2 5 / RPR /201 4 ASSESSMEN T Y EAR: 2009 - 10 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, SMC , RAIPUR [CORAM : PRAMOD KUMAR AM ] ITA NO . 25 / RPR /201 4 AS SESSMENT Y EAR : 20 09 - 10 THE DY. C IT , .APPELLANT CENTRAL CIRCLE RAIPUR [C.G] VS. SPIN PACKAGING LTD AGRAWAL BHAWAN V I DYA NAGAR BILASPUR (C.G.) . ... . RESPONDENT APPEARANCES BY: D.K. JAIN , FOR THE A PPELLANT G.S. AGRAWAL , F OR THE RE SPONDENT DATE OF CONCLUDING THE HEARING : JUNE 2 1 ST , 201 6 DATE OF PRONOUNCING THE ORDER : JUNE 21 ST , 201 6 O R D E R 1 . BY WAY OF THIS APPEAL, THE ASSESSING OFFICER HAS CHALLENGED CORRECTNESS OF THE ORDER DATED 21 ST OCTOBER , 201 3 , PASSED BY THE L EARNED CIT(A), FOR THE ASSESSMENT YEAR 20 0 9 - 10 , ON THE FOLLOWING GROUNDS : - 1. WHETHER IN LAW AND ON FACTS AND CIRCUMSTANCES O F THE CASE, T HE LD. CIT(A) HAS ERRED IN RESTRICTING THE DISALLOWANCE OF RS. 15,32,164/ - U/S 14A OF THE I.T. ACT, 1961 ON ACCOUNT OF INTEREST PAID TO BANKS TO RS. 2,64,020/ - . 2. WHETHER IN LAW AND ON FACTS AND CIRCUMSTANCES OF THE CASE, T HE LD. CIT(A) HAS ERRED IN HOLDING THAT PART OF THE INVESTMENT IN SHARES HAS BEEN MADE FROM SHARE APPLICATION MONEY RECEIVED WITHOUT LOOKING INTO THE NEXUS BETWEEN THEM. 3. WHETHER IN LAW AND ON FACTS AND CIRCUMSTANCES OF THE CASE, T HE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 9,10,067/ - MADE BY THE AO ON ACCOUNT OF INSURANCE PAID IN MARCH FOR NEXT ONE YEAR . ITA NO . 2 5 / RPR /201 4 ASSESSMEN T Y EAR: 2009 - 10 PAGE 2 OF 2 4. WHETHER IN LAW AND ON FACTS AND CIRCUMSTANCES OF THE CASE, T HE LD. CIT(A) HAS ERRED IN OVERLOOKING THE FACT TAH ASSESSEE FOLLOWS MERCANTILE SYSTEM OF ACC OUNTING AND HENCE EXPENDITURE DUE FOR THE AY IN QUESTION IS ALLOWABLE AS DEDUCTION . 2. I HAVE NOTICED THAT THE TAX EFFECT INVOLVED IN THIS APPEAL IS LESS THAN RS.10,00,000/ - . IN VIEW OF THIS UNDISPUTED FACT AND IN THE LIGHT OF CBDT CIRCULAR NO.21/20 15 DATED 10 TH DECEMBER, 2015, I AM OF THE CONSIDERED VIEW THAT THIS APPEAL IS LIABLE TO BE DISMISSED AS WITHDRAWN FOR THE SIMPLE REASON THAT TAX EFFECT INVOLVED IN THE APPEAL IS LESS THAN RS.10,00,000/ - . 3. IN THE RESULT, THE APPEAL IS DISMISSED. PRONOU NCED IN THE OPEN COURT ON THIS 21 ST DAY OF JUNE , 2016. SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) DATED: THE 21 ST DAY OF JUNE, 2016 . PBN/* COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR