ITO, New Delhi V. M/s. The Basti Sugar Mills Co. Ltd., New Delhi

ITA 3961/DEL/2010

• Counselvise Citation: 396120114 RSA 2010
• Duration Of Justice: 2 year(s) 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 29-11-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 24-08-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MRS MEETA SINHA SENIOR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH H : NEW DELHI) SHRI R.P. TOLANI, JUDICIAL MEMBER AND BEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.3961/DEL./2010 (ASSESSMENT YEAR : 2007-08) ITO, WARD 16 (3), VS. M/S. THE BASTI SUGAR MILLS CO.LTD., NEW DELHI. 207, ESSEL HOUSE, 10, ASAF ALI ROAD, NEW DELHI 110 006. (PAN : AAACT0490Q) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI PRATAP GUPTA, CA REVENUE BY : MRS. MEETA SINHA, SENIOR DR O R D E R PER B.C. MEENA, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE REVENUE EMANATES FROM THE ORDER OF CIT (APPEALS)-XIX, NEW DELHI DATED 25.05.2010 FOR THE ASSESSMENT YEAR 2007-08. 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUF ACTURING OF SUGAR. THE GROUND OF APPEAL READS AS UNDER :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT (A) HAS ERRED IN DELETING THE DISALLOWANCE OF RS.24,04,026/ - BEING INTEREST ATTRIBUTABLE TO INTEREST BEARING LOANS/ADVANCES GIV EN AS INTEREST FREE LOANS/ADVANCES TO BODY CORPORATES WHICH ARE THE ASS ESSEES OWN GROUP COMPANIES. 3. AT THE OUTSET OF THE HEARING, THE LD. AR SUBMITT ED THAT DISALLOWANCES AT THE LEVEL OF ASSESSING OFFICER WAS MADE FOR THE REASONS RECORDED IN THE ASSESSMENT ORDERS FOR ASSESSMENT YEARS 2002-03 TO 2006-07. THE MATTER HA S BEEN TRAVELED UP TO HON'BLE DELHI ITA NO.3961/DEL./2010 2 HIGH COURT IN THE ASSESSMENT YEARS 1999-00 AND 2003 -04 WHERE THE SUBSTANTIAL QUESTION BEFORE THE HON'BLE HIGH COURT WAS AS UNDER :- WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE THE INCOME TAX APPELLATE TRIBUNAL WAS CORRECT IN LAW IN DELETING T HE ADDITION MADE ON ACCOUNT OF ALLEGED DIVERSION OF FUNDS TO VARIOUS AS SOCIATED CONCERNS WITHOUT CHARGING ANY INTEREST THEREON? HON'BLE HIGH COURT HAS REMITTED THE MATTER BACK TO THE ASSESSING OFFICER TO DECIDE THE ISSUE AFRESH IN THE LIGHT OF JUDGMENT OF HON'BLE SU PREME COURT IN THE CASE OF SA BUILDERS 288 ITR 1. HE SUBMITTED THAT THE ISSUE INVOLVED IN THE REVENUES APPEAL MAY ALSO BE RESTORED TO THE FILE OF THE ASSESSING OFFICER TO BE DECIDED AFRESH IN VIEW OF THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE ASSESSEES OWN CASE IN ITA NOS.1248/2007, 646/2009 & 652/2009. A COPY OF THE ORDER WAS ALSO PLACED ON RECORD. 4. THE LD. DR WAS NOT HAVING ANY OBJECTION TO THIS. 5. AFTER HEARING, WE FIND IT APPROPRIATE TO REMIT T HE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER TO DETERMINE THE ISSUE AFRESH IN THE LIGHT OF JUDGMENT OF HON'BLE SUPREME COURT IN THE CASE OF SA BUILDER, CITED SUPR A. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THIS 29 TH DAY OF NOVEMBER, 2012 AFTER THE CONCLUSION OF THE HEARING . SD/- SD/- (R.P. TOLANI) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 29 TH DAY OF NOVEMBER, 2012/TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XIX, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.