The Jind Cooperative Sugar Mills Ltd, Haryana V. ACIT,

ITA 329/DEL/2009

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9745 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 27-08-2009
• Assessment Year: 2005-2006
• Appeal Filed On: 29-01-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANOOP KUMA R SINGH
• Assessee Lawyers: R R SINGLA
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH `D : NEW DELHI) BEFORE SHRI D.R. SINGH, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.329/DEL./2009 (ASSESSMENT YEAR : 2005-06) THE JIND COOP. SUGAR MILLS LTD., VS. ACIT, BHIWANI RANGE, VILLAGE JHANJ, BHIWANI. DISTT. JIND (HARYANA). (PAN/GIR NO.AABFT6124H) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.R. SINGLA, FCA. REVENUE BY : SHRI ANOOP KUMAR SINGH, SR.DR ORDER PER A.K. GARODIA: AM THIS IS AN ASSEESSEES APPEAL DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), ROHTAK, DATED 15.12.2008 FOR ASSESSMENT YEAR 2005-06. THE ONLY EFFECTIVE GROUND RAISED BY THE ASSESSEE READS AS UN DER: ON FACTS, IN LAW & CIRCUMSTANCES OF THE CASE, THE LD. C.I.T. (APPEALS) HAS ERRED IN LAW AND FACTS BY UPHOLDING THE ADDITION OF RS.10,87 ,177/- ON ACCOUNT OF NOTIONALLY INTEREST CALCULATED ON DOUBTFUL & STICKY ADVANCES MADE OUT OF INTEREST FREE FUNDS IN EARLIER YEARS WHICH HAVE NO NEXUS WIT H BORROWED FUNDS DURING THE YEAR. 2. IT IS SUBMITTED BY THE LD.AR OF THE ASSESSEE T HAT COMMISSIONER OF INCOME-TAX (APPEALS) HAS FOLLOWED HIS OWN ORDER IN EARLIER YEA RS FOR ASSESSMENT YEAR 2003-04 AND 04-05. IT IS SUBMITTED THAT IN THESE TWO YEARS, SI MILAR ADDITION WAS MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE COMMISSIONER OF INCOM E-TAX (APPEALS), BUT THE TRIBUNAL HAS RESTORED THIS MATTER BACK TO THE FILE OF THE AS SESSING OFFICER FOR FRESH DECISION AND IN THIS REGARD, HE SUBMITTED A COPY OF THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEARS 2003-04 AND 04-05 IN I.T.A. NOS.24 33 & 2434/DEL./2008 DATED 2.6.2009. IT WAS SUBMITTED THAT BY FOLLOWING THIS TRIBUNAL DECISION IN THE PRESENT YEAR I.T.A. NO.329/DEL./2009 (A.Y. : .2005-06) 2 ALSO, THE ISSUE SHOULD BE RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH DECISION. LD.DR OF THE REVENUE SUPPORTED THE ORDE RS OF THE AUTHORITIES BELOW. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL ON RECORD AND HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BEL OW AND THE TRIBUNAL DECISION CITED BY THE LD.AR OF THE ASSESSEE. WE FIND THAT IN THE PRE SENT YEAR, THE COMMISSIONER OF INCOME-TAX (APPEALS) HAS FOLLOWED HIS ORDER IN EARL IER YEARS, I.E. ASSESSMENT YEAR 2003- 04 & 04-05 AND AFTER THAT HE HAS DELETED THE DISALL OWANCE ON ACCOUNT OF M/S BHUNA COOP. SUGAR MILLS UNDER WINDING UP AND HAS CONFI RMED THE DISALLOWANCE ON ACCOUNT OF OTHER MILL I.E. PANIPAT COOP. SUGAR MILLS LTD. IN THE EARLIER YEAR, WE FIND THAT THE DISPUTE WAS REGARDING BHUNA COOP. SUGAR MILLS LTD. AND PANIPAT SUGAR MILLS LTD. SINCE IN THE EARLIER YEARS, THIS ISSUE HAS BEEN SET ASIDE BY THE TRIBUNAL TO THE FILE OF THE ASSESSING OFFICER FOR FRESH DECISION, WE ARE IN AGREEMENT WIT H THE LD.AR OF THE ASSESSEE THAT IN THE PRESENT YEAR ALSO, THIS ISSUE SHOULD BE RESTORED BA CK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH DECISION. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE COMMISSIONER OF INCOME- TAX (APPEALS) ON THIS ISSUE AND RESTORE THIS MATER BACK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH DECISION WITH SIMILAR DIRECTION. THE ASS ESSEE SHOULD SUBMIT PROPER EXPLANATION BEFORE THE ASSESSING OFFICER AND THE ASSESSING OFFI CER SHOULD PASS NECESSARY ORDER AS PER LAW AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING H EARD TO THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSE. 5. ORDER PRONOUNCED IN OPEN COURT ON 11.09.2009. (D.R. SINGH ) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: SEPT. 11, 2009. *SKB* COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A), ROHTAK. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. AR/ITAT I.T.A. NO.329/DEL./2009 (A.Y. : .2005-06) 3