DCIT, Villupuram V. M/s. Kallakurichi Co-op. Sugar Mills Ltd., Villupuram

ITA 2990/CHNY/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4614 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 17-04-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 21-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S VENOGOPALAN
• Section: 43B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , !.. # $%, ' () BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NO.2990/MDS/2016 + ,+ / ASSESSMENT YEAR : 2012-13 THE DEPUTY COMMISSIONER OF INCOME TAX, VILLUPURAM CIRCLE, VILLUPURAM 605 602. V. M/S KALLAKURICHI CO.OP. SUGAR MILLS LTD., UNIT II, KACHIRAPALAYM, KALLAKURICHI T.K., VILLUPURAM DISTRICT. PAN : AAAAK 0655 Q (.// APPELLANT) (01.// RESPONDENT) ./ 2 3 / APPELLANT BY : SHRI SASIKUMAR, JCIT 01./ 2 3 / RESPONDENT BY : SHRI S. VENOGOPALAN, FCA # 2 4' / DATE OF HEARING : 17.04.2017 56, 2 4' / DATE OF PRONOUNCEMENT : 04.05.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)- PUDUCHERR Y, CHENNAI, DATED 05.07.2016 AND PERTAINS TO ASSESSMENT YEAR 20 12-13. 2. SHRI SASIKUMAR, THE LD. DEPARTMENTAL REPRESENTAT IVE, SUBMITTED THAT THE ASSESSEE-CO-OPERATIVE SOCIETY ES TABLISHED AND 2 I.T.A. NO.2990/MDS/16 RUNNING A SUGAR MILL. ACCORDING TO THE LD. D.R., D URING THE YEAR UNDER CONSIDERATION, THE ASSESSING OFFICER DISALLOW ED ` 1,79,81,500/- BEING THE INTEREST PAYABLE ON LOANS F ROM NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION UNDER SECTION 43B OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). HOWEVER , ACCORDING TO THE LD. D.R., THE CIT(APPEALS) DELETED THE ADDITION MAD E BY THE ASSESSING OFFICER ON THE BASIS OF THE ORDER OF THIS TRIBUNAL IN THE ASSESSEE'S OWN CASE IN I.T.A. NO. 1079/MDS/2012 DAT ED 14.12.2012 FOR THE ASSESSMENT YEAR 2006-07. ACCORDING TO THE LD. D.R., THE INTEREST WAS PAID TO NATIONAL CO-OPERATIVE DEVELOPM ENT CORPORATION AND NOT TO STATE GOVERNMENT. THEREFORE , THE CIT(APPEALS) OUGHT NOT TO HAVE DELETED THE ADDITION . 3. ON THE CONTRARY, SHRI S. VENUGOPALAN, THE LD. RE PRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT NATIONAL CO-OPERAT IVE DEVELOPMENT CORPORATION SANCTIONED LOAN TO THE STAT E OF TAMIL NADU AND RELEASED TO THE EXTENT OF ` 50 CRORES WHICH IS OBVIOUS FROM THE LETTER OF NATIONAL CO-OPERATIVE DEVELOPMEN T CORPORATION. BY LETTER DATED 31.07.2004, THE DIRECTOR OF SUGAR D ISTRIBUTED THE LOAN AMOUNT ON THE BASIS OF THE SANCTION GRANTED BY THE STATE GOVERNMENT TO VARIOUS CO-OPERATIVE SUGAR MILLS FOR CLEARING THE 3 I.T.A. NO.2990/MDS/16 CANE PRICE ARREARS AS ON 30.09.2003. THIS TRIBUNAL EXAMINED THIS ISSUE IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEA R 2006-07 AND FOUND THAT GOVERNMENT OF INDIA PERMITTED THE GOVERN MENT OF TAMIL NADU TO GO FOR OPEN MARKET AND RAISE FUNDS. AFTER AVAILING LOAN FROM NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION, GOVERNMENT OF TAMIL NADU DISTRIBUTED THE AMOUNT TO VARIOUS CO- OPERATIVE SUGAR MILLS IN THE STATE OF TAMIL NADU. THE GOVERNMENT O F TAMIL NADU, IN FACT, RECOVERED INTEREST FROM THE RESPECTIVE CO-OPE RATIVE SUGAR MILLS. THEREFORE, THIS TRIBUNAL FOUND THAT INTEREST PAID T O THE GOVERNMENT IS NOT SUBJECT PROVISIONS OF SECTION 43B OF THE ACT . 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. WE HAVE ALSO GONE THROUGH THE ORDER OF THIS TRIBUNAL IN THE ASSE SSEE'S OWN CASE FOR ASSESSMENT YEAR 2006-07. SINCE FACTS ARE IDENT ICAL FOR YEAR UNDER CONSIDERATION, THIS TRIBUNAL IS OF THE CONSID ERED OPINION THAT THE CIT(APPEALS) HAS RIGHTLY FOLLOWED THE ORDER OF THIS TRIBUNAL. THEREFORE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SA ME IS CONFIRMED. 4 I.T.A. NO.2990/MDS/16 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS DISMISSED. ORDER PRONOUNCED ON 04 TH MAY, 2017 AT CHENNAI. SD/- SD/- ( ! . . # $% ) ( . . . ) (D.S. SUNDER SINGH) (N.R.S. GANESAN) ' / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 8 /DATED, THE 04 TH MAY, 2017. KRI. 2 04$9 :9,4 /COPY TO: 1. ./ /APPELLANT 2. 01./ /RESPONDENT 3. # ;4 () /CIT(A)-PUDUCHERRY, CHENNAI 4. PRINCIPAL CIT, PUDUCHERRY 5. 9< 04 /DR 6. !+ = /GF.