DCIT, New Delhi V. M/s Uniproducts India Ltd., New Delhi

ITA 3675/DEL/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69635 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2009-2010
• Appeal Filed On: 07-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMEER SHARMA SENIOR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH H : NEW DELHI) SHRI U.B.S. BEDI, JUDICIAL MEMBER AND BEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.3675/DEL./2013 (ASSESSMENT YEAR : 2009-10) DCIT, CIRCLE 18 (1), VS. M/S. UNIPRODUCTS INDIA L TD., NEW DELHI. KHASRA NO.360-61, VILLAGE JONAPUR, MEHRAULI, NEW DELHI 110 047. (PAN : AAACU0224D) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SANJIV RAI MEHRA, CA REVENUE BY : SHRI SAMEER SHARMA, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE REVENUE EMANATES FROM THE ORDER OF CIT (APPEALS)-XXI, NEW DELHI DATED 26.03.2013. 2. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF FLOOR COVERINGS, NON-WOVEN LIGHT WEIGHTS AND NOISE AND TRADING OF IMPORTED CARPETS INTERLININGS AND WOODEN FLOORINGS. THE ASSE SSING OFFICER MADE AN ADDITION OF RS.13,60,800/- ON ACCOUNT OF ASSESSEES INVESTMENT OF RS.1,13,40,000/- IN SHARE OF JOINT VENTURE COMPANY, M/S. JUKEN UNIPRODUCTS PVT. LTD. SIMILAR ADDITION WAS ALSO MADE IN ASSESSM ENT YEAR 2006-07 AND ITA NO.3675/DEL./2013 2 2008-09. IN THOSE YEARS, THE MATTER TRAVELED UP TO THE ITAT AND THE ISSUE WAS REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER HAS NOT MADE ANY ADDITION IN THE REMAND PROCEEDINGS IN THOSE YEARS AFTER CONSIDERING THE ASSESSEES REPLIES. THE CIT (A) HAS DELETED THE ADDITION RELYING ON THESE FACTS OF THE CASE. THE RELEVANT PA RA OF THE CIT (A) READ AS UNDER :- 3. WITH REGARD TO GROUND NO. 1 IT HAS BEEN SUBMITT ED THAT ON THE SAME ISSUE HON'BLE ITAT, DELHI HAS SET ASIDE TH E ISSUE TO THE FILE OF A.O. VIDE ORDER DATED 21.10.2011, IN COMPLI ANCE TO WHICH TWO ORDERS HAVE BEEN PASSED FOR ASSESSMENT YEAR 200 6-07 BY ITO, WARD 18(1), NEW DELHI AND FOR ASSESSMENT YEAR 2008-09 BY DCIT, CIRCLE 18(1), NEW DELHI. IN BOTH THE CASES WITH REGARD TO INVESTMENT IN M/S. JUKEN UNIPRODUCTS PVT. LTD, A O HAS ACCEPTED THE ASSESSEE'S PLEA AND HAS NOT MADE ANY A DDITION ON THIS ACCOUNT. AS ISSUE PERTAINS TO THE SAME DISALLO WANCE ON ACCOUNT OF INTEREST DISALLOWED AMOUNTING TO RS.13,6 0,800/-, WHICH HAS BEEN ALLOWED BY THE AO IN THE ASSESSMENT PROCEEDINGS IN FOLLOW UP OF THE ITA T DIRECTION. IN VIEW OF THE ABOVE DECISION, THIS GROUND OF APPEAL DESERVES TO B E ALLOWED. 3. NOW, THE REVENUE IS DISPUTING THIS ISSUE IN APPE AL BEFORE US BY TAKING THE FOLLOWING GROUND :- 1. LD. CIT (A) ERRED IN LAW AND ON THE FACTS OF TH E CASE IN DELETING THE ADDITION OF RS.13,60,800/- MADE BY THE AO BY DISALLOWING THE INTEREST PAID ON THE FUNDS NOT UTIL IZED FOR THE PURPOSE OF BUSINESS OF THE ASSESSEE. 2. THE APPELLANT CRAVES, LEAVE OR RESERVING THE RIG HT TO AMEND, MODIFY, ALTER, ADD, OR FOREGO ANY GROUND(S) OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEA L. 4. AFTER HEARING BOTH THE SIDES, WE FIND THAT THE F ACTS OF THE CASE IN THE CURRENT YEAR ARE SAME AS IN THE ASSESSMENT YEAR 200 6-07 AND 2008-09. IN ITA NO.3675/DEL./2013 3 THOSE YEARS, THE ITAT HAS SET ASIDE THE ISSUE TO TH E FILE OF THE ASSESSING OFFICER AND WHILE FINALIZING THE SET ASIDE PROCEEDI NG, THE ASSESSING OFFICER HAS NOT MADE ANY ADDITIONS. IN A WAY, ASSESSING OFF ICER HAS ACCEPTED ASSESSEES PLEADINGS. WITH REGARD TO THE FACTS, BOT H THE SIDES HAVE STATED THAT THE FACTS ARE SIMILAR TO THOSE EARLIER YEARS. THERE FORE, IN VIEW OF THESE FACTS, WE FIND NO MERITS IN THE REVENUES APPEAL AND WE DI SMISS THE REVENUES APPEAL. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 11 TH DAY OF DECEMBER, 2013. SD/- SD/- (U.B.S. BEDI) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 11 TH DAY OF DECEMBER, 2013 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXI, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.