TRIMURTY BUILDCON P LTD, Jaipur V. DCIT, Jaipur

ITA 313/JPR/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2112 (ITAT-JAIPUR)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 28-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA CIT DHK
• Keywords: Commercial expediency
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 293/JP/2016 & 313/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12 & 12-13. TRIMURTY BUILDCON P. LTD., 601, GEETA ENCLAVE, VINOBHA MARG, C-SCHEME, JAIPUR. CUKE VS. THE ACIT, CENTRAL CIRCLE-3, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AABCT 7285 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI RAJEEV SOGANI (CA) AND SHRI ROHAN SOGANI (CA JKTLO DH VKSJ LS@ REVENUE BY : SHRI VARINDER MEHTA (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 18.08.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 29/08/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THESE TWO APPEALS BY THE ASSESSEE ARE FILED AGAINST TWO SEPARATE ORDERS OF LD. CIT (A)-4, JAIPUR DATED 01.01.2016 AND 07.02.20 17 PERTAINING TO ASSESSMENT YEARS 2011-12 & 12-13. IDENTICAL ISSUES ARE INVOLV ED IN BOTH THESE APPEALS, THEREFORE, THEY ARE TAKEN UP TOGETHER AND ARE BEING DISPOSED OFF BY WAY OF A CONSOLIDATED ORDER, FOR THE SAKE OF CONVENIENCE. F IRST, WE TAKE UP ASSESSEES APPEAL IN ITA NO. 293/JP/2016 PERTAINING TO ASSESSMENT YEA R 2011-12. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE C ASE, THE CIT (A) OUGHT TO HAVE DELETED THE ADDITION MADE BY THE AO U /S 40A(2)(B) OF 2 ITA NO. 293/JP/2016 & 313/JP/2017 M/S. TRIMURTY BUILDCON P. LTD., JAIPUR. THE INCOME TAX ACT, 1961 SINCE THE PAYMENT IS NEITH ER EXCESSIVE NOR UNREASONABLE UNDER THE PECULIAR FACTS AND CIRCUMSTA NCES OF THE CASE. 2. IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE CAS E, THE CIT (A) OUGHT TO HAVE FURTHER HELD THAT SINCE THE AO HAVING FAILED TO BRING ANY COGENT EVIDENCES TO THAT JUSTIFY THAT INTEREST PAID AT 15% IS EXCESSIVE OR UNREASONABLE, THE CONDITION PRECEDENT FOR INVOKI NG SECTION 40A(2) IS NOT SATISFIED. 3. IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE CAS E, THE CIT (A) OUGHT TO APPRECIATED FROM THE DETAILS SUBMITTED BEF ORE THE AO THAT THE INTEREST PAYMENT COMMENSURATE WITH THE PREVAILING I NDUSTRY NORMS AND SINCE 40A(2)(B) IS NOT BEING A CHARGING SECTION , THE IMPUGNED ADDITION IS CONTRARY TO THE LAW. 4. IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE CAS E, THE CIT (A) HAS GROSSLY ERRED IN CONFIRMING THE IMPUGNED ADDITI ON OF RS. 9,63,673/- OF INTEREST PAID U/S 40A(2)(B) OF THE AC T ALLEGING THE LACK OF COMMERCIAL EXPEDIENCY. THE IMPUGNED ADDITION IS THE REFORE CONTRARY TO THE SCOPE OF PROVISION OF SECTION 40A(2)(B) OF THE INCOME TAX ACT, 1961. 5. IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE CAS E, THE CIT (A) OUGHT TO HAVE INTER ALIA APPRECIATED THAT SINCE THE AO HAVING EXAMINED THE LEGITIMACY OF THE PAYMENT OF INTEREST PAID BY T HE APPELLANT TO THESE PARTIES IN THE PAST ASSESSMENTS, THE LEARNED CIT (A ) OUGHT TO HAVE THEREFORE DELETED THE SAID ADDITION. 6. THE APPELLANT CRAVES THE RIGHT TO ADD TO OR ALTE R, AMEND, SUBSTITUTE, DELETE OR MODIFY ALL OR ANY OF THE ABOV E GROUNDS OF APPEAL. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E CASE OF THE ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMEN T WAS FRAMED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS THE ACT) VIDE ORDER DATED 27.03.2014. WHILE FRAMING THE ASSESSMENT, TH E AO MADE DISALLOWANCE OF INTEREST EXPENSES BY INVOKING THE PROVISIONS OF SEC TION 40A(2)(B) OF THE ACT. AGAINST THIS ORDER, THE ASSESSEE PREFERRED AN APPEAL BEFORE LD. CIT (A), WHO AFTER 3 ITA NO. 293/JP/2016 & 313/JP/2017 M/S. TRIMURTY BUILDCON P. LTD., JAIPUR. CONSIDERING THE SUBMISSIONS CONFIRMED THE ADDITION. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE THIS TRIBUNAL. 3. THERE IS ONLY ONE EFFECTIVE GROUND IN THIS APPEA L AGAINST THE ADDITION OF RS. 28,08,245/- UNDER SECTION 40A(2)(B) OF THE ACT. 3.1. THE LD. COUNSEL FOR THE ASSESSEE REITERATED TH E SUBMISSIONS AS MADE IN THE WRITTEN SUBMISSIONS. THE LD. COUNSEL SUBMITTED THA T FIRSTLY THE AO WAS NOT JUSTIFIED IN INVOKING THE PROVISIONS OF SECTION 40A(2)(B). HE SUBMITTED THAT THE PAYMENT IS NOT MADE TO THE DIRECTOR OF THE COMPANY BUT THE COMPANY ITSELF. HE DREW OUR ATTENTION TO THE PAPER BOOK PAGES 3 AND 4 TO DEMONSTRATE THAT SECTION 40A(2)(B) IS NOT APPLICABLE. 3.2. ON THE CONTRARY, THE LD. D/R SUPPORTED THE ORD ERS OF THE AUTHORITIES BELOW. 3.3. WE HAVE HEARD RIVAL CONTENTIONS, PERUSED THE M ATERIAL ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE AO HAS DECIDED THIS ISSUE IN PARA 4.3 OF HIS ORDER AS UNDER :- 4.3. I HAVE CONSIDERED THE REPLY OF THE ASSESSEE CAREFULLY AND NOT FOUND SATISFACTORY. THE SUBMISSION OF THE ASSESSEE IN SUMMARY IS THAT THESE LOANS WERE PRIMARILY AVAILED FOR UPCOMING PRO JECTS AND WERE FOR COMMERCIAL EXPEDIENCY. IT HAS FURTHER BEEN SUBMITTE D THAT DUE TO MARKET POSITION ALL OVER COUNTRY THE ASSESSEE WAS N OT ABLE TO GET FUNDS EASILY AND WAS COMPELLED TO TAKE LOANS FROM THE SIS TER CONCERNS. THE SUBMISSION OF THE ASSESSEE DOES NOT CARRY MUCH WEIG HT. EVEN IF IT IS ACCEPTED THAT LOANS WERE OBTAINED FOR COMMERCIAL EX PEDIENCY AND IT WAS COMPELLED TO TAKE LOANS FROM DIRECTORS DUE TO M ARKET POSITION IT DOES NOT JUSTIFY THE AVAILING OF LOANS BY THE ASSES SEE FROM ITS DIRECTORS AND SISTERS CONCERNS AT A VERY HIGHER RATE. IT IS S EEN THAT DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE HAS SHOWN AMO UNT OF RS. 4 ITA NO. 293/JP/2016 & 313/JP/2017 M/S. TRIMURTY BUILDCON P. LTD., JAIPUR. 15,81,62,030/- AS ADVANCES GIVEN AND RS. 11,56,33,3 84/- AS LOANS TAKEN. DURING THE YEAR UNDER CONSIDERATION THE ASSE SSEE HAS NOT MADE ANY BUSINESS TRANSACTION. IT HAS NEITHER MADE PURCH ASE OF LAND NOR HAD MADE ANY SALE OF PROPERLTY, THEREFORE, TAKING THE L OAN DURING THE YEAR CAN NOT BE TERMED AS BUSINESS EXPEDIENCY. HAD THERE BEEN BUSINESS EXPEDIENCY AS CLAIMED BY THE ASSESS3EE BUT NO PRUDE NT BUSINESSMAN WILL TAKE LOANS ON HIGHER INTEREST RATE AND GIVE LO ANS ON LOW INTEREST RATE. THEREFORE, IT CAN NOT BE SAID TO BE BUSINESS PRUDENCE TO AVAIL LOANS AT HIGHER RATE FROM THE PERSONS COVERED U/S 4 0A(2)(B) OF THE IT ACT, 1961 AND TO GIVE LOANS AT LOWER RATE TO THE PE RSONS AGAIN COVERED U/S 40A(A)(B) OF THE IT ACT, 1961. THUS, THE ASSESS EE ON THE ONE HAND HAD RECEIVED LOAN AT HIGHER INTEREST RATE FROM ITS SISTER CONCERN AND GIVEN IT TO OTHER SISTER CONCERN AT LOWER INTEREST RATE. THEREFORE, IT IS CLEAR THAT THE ASSESSEE MADE PAYMENT OF INTEREST ON HIGHER SIDE TO THE ABOVE PERSON SPECIFIED U/S 40A(2)(B) WHICH IS ALLOW ABLE TO EXTENT OF 12.50% AS PREVAILING IN THE MARKET AND THE ASSESSEE COMPANY ITSELF RECEIVED INTEREST ON RATE OF 12.50%. HENCE, INTERE ST CALCULATED @ 12.50 PER ANNUM ON INTEREST PAID TO SHRI UDAI KANT MISHRA AND M/S. TRIMURTY LANDCON INDIA PVT. LTD. IS ALLOWED AND BAL ANCE INTEREST PAID TO THEM IS DISALLOWED AND ADDED BACK TO THE TOTAL INCO ME OF THE ASSESSEE. THIS WOULD RESULT AN ADDITION OF RS. 28,08,245/- WH ICH IS WORKED OUT AS UNDER :- S.NO. NAME OF THE PERSONS TO WHOM INTEREST PAID AMOUNT OF INTEREST PAID RATE OF INTEREST PAID AMOUNT OF INTEREST ALLOWABLE TO THE EXTENT OF 12.50% DISALLOWANCE OF INTEREST. 1. M/S. TRIMURTY LANDCON INDIA PVT. LTD. RS.77,69,825/- 17.50% RS.55,49,875/- RS.22,19,950/- 2. SHRI UDAI KANT MISHRA RS.19,25,330/- 18.00% RS.1 3,37,035/- RS. 5,88,295/- TOTAL RS.28,08,245/- THE LD. CIT (A) CONFIRMED THE SAME BY OBSERVING AS UNDER :- 5 ITA NO. 293/JP/2016 & 313/JP/2017 M/S. TRIMURTY BUILDCON P. LTD., JAIPUR. 3.1.2. I HAVE DULY CONSIDERED ASSESSEES SUBMISSION AND CAREFULLY GONE THROUGH ASSESSMENT ORDER PASSED BY T HE AO. I HAVE ALSO TAKEN A NOTE OF FACTUAL MATRIX OF THE CAS E AS WELL AS APPLICABLE CASE LAWS RELIED UPON BY THE ASSESSEE. I N THIS CASE AGAINST NET LOSS OF RS. 13,909/- DECLARED IN THE RE TURN OF INCOME FOR THE YEAR, AO COMPLETED THE ASSESSMENT ORDER ON 27.03.2014 AT A TOTAL INCOME AT RS. 27,89,843/- AFTER MAKING T HE ADDITION OF RS. 28,08,245/- TOWARDS INTEREST BY INVOKING THE PR OVISION OF SECTION 40A(2) OF THE ACT WHEREIN AO HELD THAT THE INTEREST PAID TO PERSON SPECIFIED U/S 40A(2)(B) OF THE ACT IS ALL OWABLE TO THE EXTENT OF 12.5% WHICH IS MARKET RATE. IN VIEW OF TH IS FINDING, AO DISALLOWED EXCESS OF INTEREST OVER 12.5% WHICH IS M ARKET RATE. IN VIEW OF THIS FINDING, AO DISALLOWED EXCESS OF INTER EST OVER 12.5% IN FOLLOWING TWO CASES AND ADDED TO THE TOTAL INCOM E OF THE ASSESSEE. SL NAME OF PERSON TO WHOM INTEREST PAID AMOUNT OF INTEREST PAID RATE OF INTEREST AMOUNT OF INTEREST ALLOWED TO THE EXTENT OF 12.50% BALANCE INTEREST DISALLOWED OVER 12.50% 1 UDAI KANT MISHRA RS. 19,25,330 18.00% RS. 13,37,035 RS. 5,88,295 2 M/S TRIMURTY LANDCON INDIA P. LTD RS. 77,69,825 17.50% RS. 55,49,875 RS. 22,19,950 AGGRIEVED ASSESSEE IS IN APPEAL AGAINST THE ASSESSM ENT ORDER PASSED AND RELIED UPON FOLLOWING JUDICIAL PRO NOUNCEMENTS: GUJARAT GAS FINANCIAL SERVICES LTD (GUJ) ENVIRO CONTROL ASSOCIATED (P) LTD RAMAVATAR GARG (ITAT JAIPUR) UDAIPUR DISTILLERY CO. LTD (RAJASTHAN) SUBHASH CHANDRA (SOT ASR) SA BUILDERS LTD (C) BANSILAR GUPTA (SOT ASR) ALFA RUBBER INDUSTRIES (ASR) CHAMBA MAL ROOPCHAND (ASR) HYNOUP FOOD & OIL INDUSTRIES PVT LTD(AHD) 6 ITA NO. 293/JP/2016 & 313/JP/2017 M/S. TRIMURTY BUILDCON P. LTD., JAIPUR. IT HAS BEEN REPEATEDLY HELD BY HONBLE APEX COURTS THAT THE EXPRESSION FOR THE PURPOSE OF BUSINESS IS WIDER I N SCOPE THAN THE EXPRESSION FOR THE PURPOSE OF BUSINESS FOR EARNI NG PROFIT. THEREFORE, IT IS REQUIRED TO BE EXAMINED THE PURPOSE FOR WHICH THE ASSESSEE ADVANCED MONEY TO ITS SISTER CONCERNS, AND WHAT THE SISTER CONCERN DID WITH THE MONEY, IN ORDER TO DECIDE WHETHER IT WAS F OR COMMERCIAL EXPEDIENCY. BUT HERE IT IS PERTINENT TO MENTION THA T IN CASE OF ADDL CIT VS. M/S TULIP STAR HOTELS LTD IN ITA NO. 43/2009, 5 05/2010 & 562/2010, THERE JUDGES BENCH OF HONBLE SUPREME COURT HAVE HE LD AS UNDER: IN OUR VIEW, S.A. BUILDERS LTD. VS. COMMISSIONER O F INCOME-TAX (APPEALS) AND ANOTHER, REPORTED IN 288 I TR 1 NEEDS RECONSIDERATION ... IN VIEW OF HONBLE APEX COURTS OBSERVATION, IN THI S CASE, THERE IS A NEED OF THE HOUR TO CLEARLY ESTABLISH THE PRINCIP LE OF COMMERCIAL EXPEDIENCY. BUT, ASSESSEE HAS FAILED ESTABLISH THE SAME BEFORE THE AO AND ALSO DURING THE APPELLATE PROCEEDING. AS SESSEES SUBMISSION IS NOT BASED ON FACTS TO ESTABLISH ITS C LAIM OF COMMERCIAL EXPEDIENCY. ACCORDING, THE SAME IS EXAMI NED IN PARA BELOW. HERE, IT IS PERTINENT TO MENTION THAT SH UDAI KANT MISHRA IS THE KEY PERSON AND CMD OF THE THE TRIMURTY GROUP. M/S TRIMURTY BUILDCON P LTD AND M/S TRIMURTY LANDCON IN DIA P LTD ALSO BELONG TO THIS TRIMURTY GROUP. ON PERUSAL OF A SSESSMENT ORDER AND SUBMISSION OF THE ASSESSEE, IT IS SEEN TH AT ASSESSEE IS MAKING ADVANCE TO VARIOUS PERSON AT INTEREST RATE O F @ 12.50% WHEREAS IT IS PAYING INTEREST ON LOAN TAKEN FOR GIV ING ABOVE ADVANCES @ 18% TO SH UDAI KANT MISHRA AND @ 17.50% TO M/S TRIMURTY LANDCON INDIA PVT LTD. THUS, THE MARKET RA TE OF INTEREST IS 12.5% WHEREAS ASSESSEE IS MAKING PAYMENTS TO ABO VE PERSONS AT HIGHER RATE AND THEREFORE PAYMENT OF INTEREST TO ABOVE MENTIONED PERSON IS EXCESSIVE AND UNREASONABLE. THE VARIOUS CASES REFERRED BY THE AR ARE DISTINGUISHABLE ON FAC TS AS IN THESE CASES THE RATE OF INTEREST CHARGED WAS MUCH MORE TH AN THE RATE OF INTEREST PAID. THEREFORE AO HAS CORRECTLY, DISAL LOWED THE CLAIM OF INTEREST TO RS. 28,08,245/=. ASSESSEES APPEAL I N GR NO. 1 & 2 FAILS. 7 ITA NO. 293/JP/2016 & 313/JP/2017 M/S. TRIMURTY BUILDCON P. LTD., JAIPUR. FROM THE ABOVE FINDINGS OF THE AUTHORITIES BELOW, I T IS CLEAR THAT BOTH THE AUTHORITIES BELOW HAVE NOT COMMENTED UPON AS TO HOW THE COMPANY , NAMELY, TRIMURTY LANDCON INDIA P. LTD. WOULD BE COVERED UNDER THE PROVISIONS OF SECTION 40A(2)(B). HAVING SEEN THE PATTERN OF SHAREHOLDING, WE FIND THAT PROV ISIONS OF SECTION 40A(2)(B) ARE NOT APPLICABLE IN THIS CASE AS NEITHER THE ASSESSEE COMPANY NOR TRIMURTY LANDCON INDIA P. LTD. FALLS UNDER THE LIST OF PERSONS SPECI FIED IN SECTION 40A(2)(B), NONE OF THEM HOLD SUBSTANTIAL INTEREST I.E. MORE THAN 20% O F THE SHARES IN THE OTHER COMPANY. THE LD. D/R HAS NOT BROUGHT ANY CONTRARY M ATERIAL TO CONTROVERT THE SUBMISSIONS OF THE ASSESSEE. THEREFORE, AFTER TAKI NG INTO CONSIDERATION THE TOTALITY OF FACTS AND JUDICIAL PRONOUNCEMENTS, WE ARE OF THE CONSIDERED VIEW THAT THE REASONABLE RATE OF INTEREST OUGHT TO HAVE BEEN ADOP TED AT 14% AGAINST 12.5% AS ADOPTED BY THE AO IN VIEW OF THE FACT THAT THE AMOU NT SO RECEIVED BEING UNSECURED LOAN. MOREOVER, THE AO HAS NOT GIVEN ANY FINDING W ITH REGARD TO THE MARKET VALUE OF THE INTEREST WHICH IS SINE QUA NON FOR MAKING DISAL LOWANCE UNDER SECTION 40A(2)(B) OF THE ACT. IN VIEW OF THE ABOVE OBSERVATION, THE AO IS HEREBY DIRECTED TO RE- COMPUTE THE DISALLOWANCE. THE GROUND OF THE ASSESS EES APPEAL IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. 5. NOW TAKE UP THE APPEAL IN ITA NO. 313/JP/2017. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER :- 1. IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE C ASE, THE CIT (A) OUGHT TO HAVE DELETED THE ADDITION MADE BY THE AO U /S 40A(2)(B) OF THE INCOME TAX ACT 1961 SINCE THE PAYMENT IS NEITHE R EXCESSIVE NOR UNREASONABLE UNDER THE PECULIAR FACTS AND CIRCUMSTA NCES OF THE CASE. 2. IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE CAS E, THE CIT (A) OUGHT TO HAVE FURTHER HELD THAT SINCE THE AO HAVING FAILED TO BRING ANY 8 ITA NO. 293/JP/2016 & 313/JP/2017 M/S. TRIMURTY BUILDCON P. LTD., JAIPUR. COGENT EVIDENCES TO THAT JUSTIFY THAT INTEREST PAID AT 15% IS EXCESSIVE OR UNREASONABLE, THE CONDITION PRECEDENT FOR INVOKI NG SECTION 40A(2) IS NOT SATISFIED. 3. IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE CAS E, THE CIT (A) OUGHT TO APPRECIATED FROM THE DETAILS SUBMITTED BEF ORE THE AO THAT THE INTEREST PAYMENT COMMENSURATE WITH THE PREVAILING I NDUSTRY NORMS AND SINCE 40A(2)(B) IS NOT BEING A CHARGING SECTION , THE IMPUGNED ADDITION IS CONTRARY TO THE LAW. 4. IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE CAS E, THE CIT (A) HAS GROSSLY ERRED IN CONFIRMING THE IMPUGNED ADDITI ON OF RS. 9,63,673/- OF INTEREST PAID U/S 40A(2)(B) OF THE AC T ALLEGING THE LACK OF COMMERCIAL EXPEDIENCY. THE IMPUGNED ADDITION IS THE REFORE CONTRARY TO THE SCOPE OF PROVISION OF SECTION 40A(2)(B) OF THE INCOME TAX ACT, 1961. 5. IN LAW AND IN FACTS AND CIRCUMSTANCES OF THE CAS E, THE CIT (A) OUGHT TO HAVE INTER ALIA APPRECIATED THAT SINCE THE AO HAVING EXAMINED THE LEGITIMACY OF THE PAYMENT OF INTEREST PAID BY T HE APPELLANT TO THESE PARTIES IN THE PAST ASSESSMENTS, THE LEARNED CIT (A ) OUGHT TO HAVE THEREFORE DELETED THE SAID ADDITION. 6. THE APPELLANT CRAVES THE RIGHT TO ADD TO OR ALTE R, AMEND, SUBSTITUTE, DELETE OR MODIFY ALL OR ANY OF THE ABOV E GROUNDS OF APPEAL. 6. THE EFFECTIVE GROUND RAISED IN THIS APPEAL IS AG AINST ADDITION OF RS. 9,63,673/- UNDER SECTION 40A(2)(B) OF THE ACT. 7. WE HAVE ALREADY ADJUDICATED THE IDENTICAL GROUND IN ITA NO. 293/JP/2016 OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2011-12. SINC E THE FACTS AND CIRCUMSTANCES ARE SIMILAR IN BOTH THE CASES, FOLLOWING THE DECISI ON ARRIVED THEREIN, WE DIRECT THE AO ADOPT INTEREST RATE AS APPLIED IN ITA NO. 293/JP/2 016 AND DELETE THE ADDITION ACCORDINGLY. THE AO IS, THEREFORE, DIRECTED TO RE-C OMPUTE THE DISALLOWANCE ACCORDINGLY. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 9 ITA NO. 293/JP/2016 & 313/JP/2017 M/S. TRIMURTY BUILDCON P. LTD., JAIPUR. 9. IN TOTALITY, BOTH THE APPEALS ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 29.08.2 017. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 29/08/2017. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- M/S. TRIMURTY BUILDCON PVT. LTD. , JAIPUR. 2. THE RESPONDENT THE ACIT CENTRAL CIRCLE-3, JAIP UR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 293/JP/2016 & 313/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 10 ITA NO. 293/JP/2016 & 313/JP/2017 M/S. TRIMURTY BUILDCON P. LTD., JAIPUR.