Assistant Commissioner of Income Tax, Cochin V. M/s Popular Vehicles & Services Ltd, Cochin

ITA 35/COCH/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 4334 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2010
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2000-2001
• Appeal Filed On: 19-01-2009
• Court: TRIBUNAL
• Department Lawyers: T J VINCENTJR
• Assessee Lawyers: A S NARAYANAMOORTHYCA
• Keywords: Proportionate interest

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.VIJAYAKUMARAN & SHRI SANJAY ARORA I.T.A.NO.35/COCH/2009 ASSESSMENT YEAR:2000-01 THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE 1(3), ERNAKULAM VS. M/S POPULAR VEHICLE & SERVICES LTD, MAMANGALAM, KOCHI-25 (APPELLANT) ( RESPONDENT ) APPELLANT BY SHRI .T.J.VINCENT,JR.D.R RESPONDENT BY SHRI .A.S.NARAYANAMOORTHY,CA O R D E R PER N.VIJAYAKUMARAN,J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(APPEALS)-II, KOCHI DATED 14.11 .2008. THE ASSESSMENT YEAR INVOLVED IS 2000-01. 2. IN THIS APPEAL THE REVENUE HAS RAISED THREE ISSUES, VIZ. (A) ONE BEING THE RE-OPENING WHICH WAS QUASHED BY THE LD. CIT(APPEALS); (B) DELETING THE ADDITIONS ON ACCOUNT OF LOOSE TOOLS AN D CLUB EXPENSES; AND (C) DELETING THE ADDITION ON ACCOUNT OF PROPORTIONATE INTEREST ON DIVERTED FUNDS. ITA NO. 35 /COCH/2009 2 3. AT THE TIME OF HEARING BOTH SIDES SUBMITTED THAT THE ISSUES RAISED IN THIS APPEAL ARE IDENTICAL WITH THA T OF IN ITA NO.1015/COCH/2008 FOR THE ASSESSMENT YEAR 2002-03, WHICH IS DISPOSED OFF BY THE TRIBUNAL VIDE ITS ORDER DATE D 14-4- 2010. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND GONE TH ROUGH OUR OWN ORDER IN ITA NO.1015/COCH/2008 FOR THE ASSE SSMENT YEAR 2002-03 DATED 14-4-2010 AND FIND THAT THESE TH REE ISSUES WERE CONSIDERED BY US IN THAT YEAR. THER EFORE, FOLLOWING THE EARLIER YEARS ORDER IN THE ASSESSEE S OWN CASE, WE GIVE SIMILAR FINDING, VIZ. (A) REGARDING DELETING THE ADDITIONS ON ACCOUNT OF LOOS E TOOLS AND CLUB EXPENSES BY REOPENING THE ASSESSMENT U/S.147, THE ISSUE IS DECIDED IN FAVOUR OF THE REVENUE FOLLOWING THE DECISIONS OF THE APEX COURT I N THE CASE OF RAJESH JHAVERI STOCK BROKERS (P) LTD. 291 ITR 500, SUN ENGINEERING LTD. -198 ITR 297 AND V. JAGANMOHAN RAO & OTHERS VS. CIT AND EXCESS PROFITS TAX - 75 ITR 373. B) REGARDING DELETION OF PROPORTIONATE INTEREST ON DIVERTED FUNDS, FOLLOWING THE ORDER OF THE TRIBUNAL IN ITA NO. 35 /COCH/2009 3 THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2004-05 IN ITA NO.668/COCH/2007 ORDER DATED 10- 09-2008 WE HAVE DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE AND AGAINST THE DEPARTMENT BY FOLLOWING THE DECISIONS OF THE HONBLE SUPREME COURT IN THE CASE OF SA BUILDERS -288 ITR 01 AND IN THE CASE OF MUNJAL SALES CORPORATION VS. COMMISSIONER OF INCOME-TAX -298 ITR 298 . ACCORDINGLY WE CONFIRM THE FINDINGS OF THE LD. CIT(APPEALS) ON THIS ISSUE . 5. IN THE RESULT, REVENUES APPEAL IS PARTLY ALLOWE D. SD/- SD/- (SANJAY ARORA) (N.VIJAYKUMARAN) ACCOUNTANT MEMBER JUDICIAL M EMBER ERNAKULAM, DATED THE 30 TH JUNE,2010. PM. COPY FORWARDED TO: 1. M/S POPULAR VEHICLES & SERVICES LTD, MAMANGALAM, KOCHI-25. 2. ASSIST.COMMISSIONER OF INCOME-TAX, CIR-1(3), ERN AKULAM 3. CIT(A)-II,KOCHI 4. CIT,KOCHI. 5. D.R.