M/s. Sambhav Media Ltd., Ahmedabad V. The Dy.CIT, Circle-8, Ahmedabad

ITA 36/AHD/2015

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4346 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 09-06-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 05-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P SHARMA
• Assessee Lawyers: ANKIT TALSANIA
• Keywords: Set aside

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRAMOD KUMAR, HONBLE VICE PRESIDENT & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO. 36/AHD/2015 ( / ASSESSMENT YEAR: 2011-12) M/S SAMBHAAV MEDIA LTD. SAMBHAAV HOUSE, OPP. JUDGES BUNGALOWS, PREMCHAND NAGAR ROAD, VASTRAPUR, AHMEDABAD- 380015 / VS. DCIT CIRCLE-8 AHMEDABAD- 380015 ./ ./ PAN/GIR NO. : AAB CP1 464 F ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : ANKIT TALSANIA, AR / RESPONDENT BY : O. P. SHARMA, CIT DR / DATE OF HEARING 03/01/2019 !'# / DATE OF PRONOUNCEMENT 22 /03/2019 $%/ O R D E R PER MAHAVIR PRASAD - JM: THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAI NST THE ORDER OF LD. CIT(A) APPEAL NO. CIT(A)-XIV/DCIT/CIR.-8/527 /2013-14 DATED 28.10.2014 ARISING FROM OUT OF ASSESSMENT ORD ER DATED 12.03.2014. 2. IN THIS CASE GROUND NO. 1, 2 AND 4 ARE NOT PRESS ED. NOW, REMAINING EFFECTIVE GROUND IS TO BE ADJUDICATED IS THAT CIT(A) HAS ERROR IN LAW ON FACTS OF THE CASE IN CONFIRMING THE DISALLOWANCE OF INTEREST OF RS. 8,40,000/- U/S. 36(1)(III) OF THE A CT OUT OF TOTAL DISALLOWANCE OF INTEREST OF RS. 23,64,468/- MADE BY LD. AO. ITA NO.36/AHD/2015 [M/S SAMBHAAV MEDIA LTD. VS. DCIT] A.Y. 2011-12 - 2 - 3. THEREAFTER ASSESSEE PREFERRED FIRST STATUTORY AP PEAL BEFORE THE LD. CIT(A) WHO CONFIRMED THE ACTION OF THE LD. AO. 4. WE HAVE GONE THROUGH THE RELEVANT RECORD AND IMP UGNED ORDER LD. AR STATED THAT IN CASH FLOW STATEMENT AS GIVEN BALANCE SHEET ON PAGE NO. 41 WHICH DEMONSTRATE THAT DURING THE YEAR UNDER CONSIDERATION APPELLANT HAD CASH OPERATING PROFIT O F RS. 11,02,98,462/, OUT OF WHICH TOTAL LOAN AND ADVANCES OF RS. 87,61,4 28/- HAS BEEN MADE. IT IS FURTHER POINTED OUT THAT OUT OF TOTAL LOAN AND ADVANCES OF RS. 87,61,428/- INCLUDES ADVANCES OF RS. 70,00,000/ - SAME IS PART OF BALANCE SHEET OF PAGE NO. 28 AND FURTHER SUBMITTED THAT SHARE CAPITAL RESERVE AND SURPLUS AS ON 31.03.2001 STOOD AT 45,88 ,83,505/- AT ITS DISPOSAL. AND LD. AR FURTHER SUBMITTED THAT APPELL ANT HAS SUFFICIENT FUND AS WELL AS INTEREST FREE FUNDS AT ITS DISPOSAL TO MAKE IMPUGNED ADVANCES, QUESTION OF DISALLOWANCE OF INTEREST U/S 36(1)(III) OF THE ACT DOES NOT ARISE. 5. IN VIEW OF THE ABOVE CONTENTION OF THE LD. AR WE SET ASIDE THIS MATTER BACK TO THE FILE OF THE LD. AO WHO WILL EXAM INE THE CLAIM OF THE ASSESSEE AFTER GOING THROUGH THE BALANCE SHEET AND OTHER DOCUMENTARY EVIDENCES IN RESPECT OF ITS CONTENTION AND THEREAFTER DECIDE THE MATTER AS PER PROVISIONS OF THE LAW. 6. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN THE TERMS AS STATED ABOVE. SD/- SD/- (PRAMOD KUMAR) (MAH AVIR PRASAD) VICE PRESIDENT JUDICI AL MEMBER AHMEDABAD: DATED 22/03/2019 TANMAY TRUE COPY !' #' / COPY OF ORDER FORWARDED TO:- 1. / REVENUE THIS ORDER PRONOUNCED IN OPEN COURT ON 22/03/ 2019 ITA NO.36/AHD/2015 [M/S SAMBHAAV MEDIA LTD. VS. DCIT] A.Y. 2011-12 - 3 - 2. $ / ASSESSEE 3. ) *+ , / CONCERNED CIT 4. ,- / CIT (A) 5. 012 33*+, *+#, 56$)$ / DR, ITAT, AHMEDABAD 6. 289 : / GUARD FILE. BY ORDER / $% , ;/5 *+#, 56$)$ < 1.DATE OF DICTATION ON 14.03.2019 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 18.03.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 22.03.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 22.03.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 22.03.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 22.03.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER