Shri Jayantilal M.Jain, Ahmedabad V. The Income tax Officer,Ward-11(4), Ahmedabad

ITA 3511/AHD/2010

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5993 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 10-04-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 31-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P L KUREEL SRDR

Judgement Text

, , , , B, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, B BENCH . .. . . .. . , !' !' !' !', , , , #$ %&'( #$ %&'( #$ %&'( #$ %&'(, , , , )* + ) ' )* + ) ' )* + ) ' )* + ) ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.3511/AHD/2010 [ASSTT.YEAR : 2007-2008] JAYANTILAL M. JAIN PROP. OF SHAH MOTILAL BHAWARLAL 296, 1 ST FLOOR, NEW CLOTH MARKET O/S.RAIPUR GATE, AHMEDABAD. PAN : AATPJ 5344 D /VS. ITO, WARD-11(4) AHMEDABAD. ( (( (-. -. -. -. / APPELLANT) ( (( (/0-. /0-. /0-. /0-. / RESPONDENT) 1& 2 3 )/ ASSESSEE BY : SHRI PRITESH SHAH + 2 3 )/ REVENUE BY : SHRI P.L. KUREEL, SR.DR 5 2 &(*/ DATE OF HEARING : 10 TH APRIL, 2014 678 2 &(*/ DATE OF PRONOUNCEMENT : 02-05-2014 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2007-2008 IS DIRECTED AGAINST T HE ORDER OF THE CIT(A). 2. THE GROUND OF THE APPEAL OF THE ASSESSEE IS AS U NDER: 1. THE LD.CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.85,166/- OF A.Y.2007-08 BY NOT CONSIDERING THE PROPER AND SU FFICIENT MATERIALS AND RECORDS SUBMITTED. THIS EXPENDITURE WAS MADE FOR THE PURPOSE OF BUSINESS. IT IS SUBMITTED THAT THE SAME EXPENDITURE OF INTEREST OF RS.85,166/- MAY KINDLY BE ALLOWED. ITA NO.3511/AHD/2010 -2- 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ONLY ISSUE IN THE GROUND OF THE APPEAL OF THE ASSESSEE IS REGARDI NG DISALLOWANCE OF INTEREST OF RS.85,166/- PERTAINING TO THREE CREDITO RS VIZ. ARVIND SHARMA, KRISHNA TRADING CO., AND VIVEK AGENCIES. HE SUBMIT TED THAT THE ADDITION OF THE CREDIT ENTRIES MADE IN THE EARLIER ASSESSMEN T YEARS 2004-05, 2005-06 AND 2006-07 IN THE CASE OF ASSESSEE HAS BEEN DELETE D IN APPEAL BY THE CIT(A) WITH REGARD TO THESE THREE CREDITORS, AND TH EREFORE, THE INTEREST PERTAINING TO THESE THREE CREDITORS COULD NOT BE DI SALLOWED FOR THE RELEVANT ASSESSMENT YEARS. HE SUBMITTED THAT THE ORDER OF T HE CIT(A) FOR THE ASSTT.YEARS 2004-05, 2005-06 AND 2006-07 OF THE ASS ESSEE HAS BECOME FINAL. THE LEARNED DR HAS RELIED ON THE ORDERS OF THE AO AND THE CIT(A). 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS. WE FIND T HAT THE SINCE THE ADDITION OF THE CREDIT ENTRIES PERTAINING TO THE AB OVE NAMED THREE CREDITORS IN THE ASSESSMENT OF THE ASSESSEE FOR THE ASSTT.YEA RS 2004-05, 2005-06 AND 2006-07 HAS BEEN DELETED IN APPEAL BY THE LEARNED C IT(A), AND THE ORDER OF THE CIT(A) HAS ALREADY BECOME FINAL, THE VERY BA SIS FOR DISALLOWING THE INTEREST RELATING TO THESE THREE CREDITORS FOR THE RELEVANT ASSTT.YEARS 2004- 05, 2005-06 AND 2006-07, DOES NOT SURVIVE, AND THER EFORE, THE INTEREST PERTAINING TO THESE CREDITORS BEING ALLOWABLE, THE ISSUE IS DECIDED IN FAVOUR OF THE ASSESSEE AND THE GROUND NO.1 OF THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %&'( %&'( %&'( %&'( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( .. /G.C. GUPTA ) !' !' !' !' /VICE-PRESIDENT