The DCIT, Circle-5, Ahmedabad V. Ravi Raj Foils Ltd., Ahmedabad

ITA 3655/AHD/2007

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0440 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-11-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-11-2009
• Assessment Year: 2004-2005
• Appeal Filed On: 07-09-2007
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOVIND SINGHAL
• Assessee Lawyers: P M MEHTA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, A-BENCH, AHMEDABAD. BEFORE: SHRI R.V. EASWAR, VICE PRESIDENT, AND SHRI M.V. NAYAR, ACCOUNTANT MEMBER. ITA NO.3655/AHD/2007 (ASSESSMENT YEAR 2004-2005) DCIT, CIR-5, 2 ND FLOOR, C.U.SHAH COLLEGE BLDG., ASHRAM ROAD, AHMEDABAD. VERSUS RAVI RAJ FOILS LTD., 702, SAFFRON BLDG., 7 TH FLOOR, PANCHVATI, AHMEDABAD. (APPELLANT) (RESPONDENT) CO NO.356/AHD/2007 RAVI RAJ FOILS LTD., 702, SAFFRON BLDG., 7 TH FLOOR, PANCHVATI, AHMEDABAD. VERSUS DCIT, CIR-5, 2 ND FLOOR, C.U.SHAH COLLEGE BLDG., ASHRAM ROAD, AHMEDABAD. (CROSS OBJECTOR) (RESPONDENT) PAN: AAACR 7333 J FOR THE APPELLANT: SHRI GOVIND SINGHAL, SR. DR FOR THE RESPONDENT SHRI P.M. MEHTA, AR ORDER PER SHRI M.V. NAYAR: THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE CIT(A)-XI, AHMEDABAD, IN APPEAL NO. CIT(A)-X I/291/2006-07, VIDE ORDER DATED 12/07/2007. THE GROUNDS OF THE R EVENUES APPEAL ARE AS GIVEN BELOW. 1. THE LD. COMMISSIONER OF INCOME TAX(A)-XI, AHMED ABAD HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION MADE OF RS. 2 ITA NO.3655/AHD/2007 ( ASSESSMENT YEAR 2004-05 ) CO NO.356/AHD/2007 11,74,428/- ON ACCOUNT OF DISALLOWANCE OF SUNDRY BA LANCES WRITTEN OFF. 2. THE LD. COMMISSIONER OF INCOME TAX(A)-XI, AHMEDA BAD HAS ERRED IN LAW AND ON FACTS IN LAW AND ON FACTS IN DE LETING THE ADDITION MADE OF RS. 13,16,255/- ON ACCOUNT OF DISA LLOWANCE OF INTEREST EXPENSES. 3. THE LD. COMMISSIONER OF INCOME TAX(A)-XI, AHMEDA BAD HAS ERRED IN LAW AND ON FACTS IN REDUCING THE ADDITION MADE ON ACCOUNT OF INTEREST EXPENSES CAPITALIZED FROM RS.26,64,261/ - TO RS. 18,00,000/-. 4. ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE, T HE LD. COMMISSIONER OF INCOME TAX(A)-XI AHMEDABAD OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 2. SHRI. P.M. MEHTA, AR, APPEARED FOR THE ASSESSEE. HE POINTED OUT THAT THE RETURNED INCOME OF THE ASSESSEE WAS A LOSS OF RS. 3,63,73,594/- AND THE ASSESSED INCOME OF THE ASSESSEE WAS THE LOS S OF RS. 3,12,18,639/-. HE POINTED OUT THAT THE REVENUE INVOLVED WAS LESS T HEN RS. 2,00,000/- THEREFORE THE DEPARTMENT SHOULD NOT HAVE FILED IN A PPEAL. HE FURTHER RELIED ON THE RULING OF THE HON'BLE DELHI HIGH COUR T IN THE CASE OF COMMISSIONER OF INCOME TAX VS. MANGLAM RICINUS LIMI TED (2008) 174 TAXMAN 186 (DEL.) 3 ITA NO.3655/AHD/2007 ( ASSESSMENT YEAR 2004-05 ) CO NO.356/AHD/2007 3. THE AR ALSO AGREED NOT TO PRESS THE CROSS OBJECT ION FILED BY THE ASSESSEE. 4. SHRI. GOVIND SINGHAL, SR. DR, APPEARED FOR THE R EVENUE. HE RELIED ON THE ORDER OF THE ASSESSING OFFICER. 5. FOLLOWING THE ORDER OF THE DELHI HIGH COURT REFE RRED TO ABOVE, WE DISMISS THE APPEAL OF THE REVENUE. THE CROSS OBJEC TION FILED BY THE ASSESSEE IS ALSO DISMISSED. THE ORDER WAS PRONOUNCED IN THE OPEN COURT ON DATED 11 TH NOVEMBER, 2009 AT THE TIME OF HEARING. SD/- SD/- (R.V. EASWAR) (M .V. NAYAR) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD; DATED: 11/11/2009 ANKIT* COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) CONCERNED 4. THE CIT, 5. THE DR, AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER, ASSTT. REGISTRAR/ DEPUTY REGISTRAR ITAT, AHMEDABAD BENCHES, AHMEDABAD.