ACIT, Trivandrum V. Kerala State Electronics Dev. Corpn Ltd, Trivandrum

ITA 347/COCH/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64801 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 1999-2000
• Appeal Filed On: 12-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S PRAVEEN
• Assessee Lawyers: SHRI
• Keywords: Revised return
• Section: 43B; 148

Judgement Text

1 ITA NO.347/COCH/2011 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKARA N(AM) I.T.A NO. 347/COCH/2011 (ASSESSMENT YEAR 1999-2000) THE A.C.I.T., CIR.1(1) VS M/S KERALA STATE ELECT RONICS TRIVANDRUM DEVELOPMENT CORPORATION LTD KELTRON HOUSE, VELLAYAMBALAM TRIVANDRUM-33 PAN : AABCK1319E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S PRAVEEN RESPONDENT BY : SHRI PANKAJAKSHAN C DATE OF HEARING : 23-08-2012 DATE OF PRONOUNCEMENT : 07-09-2012 O R D E R PER N.R.S. GANESAN (JM) BEING AGGRIEVED BY THE ORDER OF COMMISSIONER OF IN COME-TAX(A), THE REVENUE IS CHALLENGING THE ORDER OF THE COMMISSIONE R OF INCOME-TAX(A) DATED 09- 02-2011 FOR THE ASSESSMENT YEAR 1999-2000. 2. SHRI S PRAVEEN, THE LD.DR SUBMITTED THAT IN THE ORIGINAL RETURN OF INCOME FILED BY THE TAXPAYER AN AMOUNT OF RS.5,33,95,809 W AS DISALLOWED U/S 43B OF THE ACT TOWARDS PROVISIONS FOR INTEREST ON TERM LOAN FR OM THE FINANCIAL INSTITUTIONS. HOWEVER, IN THE RETURN FILED IN RESPONSE TO NOTICE U/S 148 OF THE ACT, THE TAXPAYER 2 ITA NO.347/COCH/2011 HAS NOT DISALLOWED ANY PROVISION. THE TAXPAYER CON TENDED BEFORE THE ASSESSING AUTHORITY THAT ONE TIME SETTLEMENT AGREEMENT WAS RE ACHED WITH FINANCIAL INSTITUTIONS AND THE FINANCIAL INSTITUTIONS AGREED FOR WAIVER OF THE INTEREST ARREARS. THE LD.DR FURTHER SUBMITTED THAT THE CUT OFF DATE F OR ONE TIME SETTLEMENT WAS MARCH 31, 1999. HOWEVER, THE ASSESSEE ENTERED INTO AGREEMENT FOR ONE TIME SETTLEMENT IN MARCH, 2000 AFTER THE END OF THE RELE VANT PREVIOUS YEAR. THEREFORE, THE LIABILITY TO PAY THE INTEREST TO THE FINANCIAL INSTITUTION EXISTS AS ON 31-03-1999. THEREFORE, THE CONTENTION OF THE TAXPAYE R THAT THE PROVISION FOR INTEREST WAS NOT DISALLOWED IN THE REVISED RETURN I N VIEW OF THE AGREEMENT FOR ONETIME SETTLEMENT AND WAIVER OF INTEREST IS TENABL E. 3. ON THE CONTRARY, SHRI PANKAJAKSHAN C, THE LD.REPRE SENTATIVE FOR THE TAXPAYER SUBMITTED THAT THE TAXPAYER HAS NOT CLAIME D ANY DEDUCTION U/S 43B OF THE ACT. IN FACT, THE PROVISION FOR PAYMENT OF INT EREST WAS DISALLOWED IN THE RETURN FILED BY THE TAXPAYER. DUE TO ONETIME SETTL EMENT ENTERED INTO WITH THE FINANCIAL INSTITUTIONS AND THE WAIVER OF SUBSTANTIA L PORTION OF THE INTEREST, THE SAID PROVISION FOR PAYMENT WAS NOT PROVIDED IN THE AUDIT ED STATEMENT. THEREFORE, IT WAS NOT DISALLOWED. ACCORDING TO THE LD.REPRESENTA TIVE, THE INTEREST AMOUNT WAS NOT INCLUDED IN THE AUDITED ACCOUNTS. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND ALS O PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS NOT IN DISPUTE THAT THE INTEREST TO THE EXTENT OF RS.5,33,95,809 WAS NOT INCLUDED IN THE AUDITED ACCO UNTS. THE ASSESSEE HAS ALSO NOT CLAIMED ANY DEDUCTION U/S 43B OF THE ACT. THER EFORE, THERE IS NO QUESTION OF ANY DISALLOWANCE. THIS TRIBUNAL DO NOT FIND ANY IN FIRMITY IN THE ORDER OF THE LOWER AUTHORITY. ACCORDINGLY, THE SAME IS CONFIRMED. 3 ITA NO.347/COCH/2011 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 07 TH SEPTEMBER, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 07 TH SEPTEMBER, 2012 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH