ACIT, Jaipur V. SHRI GOVERDHAN PD. SINGHAL, Jaipur

ITA 415/JPR/2010

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7782 (ITAT-JAIPUR)
• Duration Of Justice: 4 year(s) 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-11-2010
• Assessment Year: 2007-2008
• Appeal Filed On: 30-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D C SHARMA
• Assessee Lawyers: SHAMBHU LAL GUPTA
• Section: 10B

Judgement Text

ITA 415/JP/2010 ACIT VS. GOVERDHAN PD. SINGHAL 1 IN THE INCOMETAX APPELLATE TRIBUNAL JAIPUR BENCH: JAIPUR (BEFORE SHRI R.P. TOLANI AND SHRI T.R. MEENA) ITA NO. 415/JP/2010 ASSTT. YEAR : 2007-08. PAN NO. ACVPS 0236 P THE ACIT, CIRCLE-6, VS. SHRI GOVERDHAN PRASAD SINGHA L, JAIPUR. GOLE MARKET, JAWAHAR NAGAR, JAIPUR. (APPELLANT) (RESPONDENT) DEPARTMENT BY : SHRI D.C. SHARMA RESPONDENT BY : SHRI SHAMBHU LAL GUP TA DATE OF HEARING : 01/09/2014 DATE OF PRONOUNCEMENT : 05/09/2014 O R D E R PER: T.R. MEENA, A.M. IN THIS CASE, ORIGINALLY ORDER WAS PASSED BY THIS B ENCH ON 20/5/2011. THE DEPARTMENT FILED TWO ADDITIONAL GROUND S, BUT GROUND NO. IV OF THE REVENUES APPEAL WAS NOT DECIDED BY THIS BENC H. THE REVENUE FILED M.A. AGAINST THIS ORDER VIDE M.A. NO. 58/JP/2011 FO R A.Y. 2007-08, WHICH WAS DECIDED BY THIS BENCH ON 11/7/2014 AND THE REVEN UES M.A. WAS ALLOWED. THE CASE WAS RE-FIXED FOR HEARING AND WHICH WAS HEARD AND LEARNED AR FOR THE ASSESSEE ARGUED THAT THE ASSESSE E ALREADY REDUCED INTEREST INCOME FROM DERIVED PROFIT FOR CALCULATING DEDUCTION U/S 10A AND ITA 415/JP/2010 ACIT VS. GOVERDHAN PD. SINGHAL 2 10B OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). HE PARTICULARLY DREW OUR ATTENTION ON PAGE NO. 33 OF THE PAPER BOOK, WHIC H IS P&L ACCOUNT OF JAIPUR UNIT. NET INTEREST OF RS. 10,54,876 AND COMM ISSION OF RS. 2,50,000/- HAS BEEN CREDITED. HE AGAIN DREW OUR ATTE NTION ON PAGE NO. 25 OF THE PAPER BOOK WHEREIN DEDUCTION U/S 10B OF THE A CT FOR JAIPUR UNIT HAD BEEN CALCULATED. THE AUDITOR HAD REDUCED INTERES T AND COMMISSION AT RS. 13,04,676/- FROM THE DERIVED PROFIT AND GAIN FR OM 100% EXPORT ORIENTED UNDERTAKING, THUS, HE REQUESTED THAT THE R EVENUES APPEAL MAY PLEASE BE DISMISSED. IT IS FURTHER ARGUED THAT THE LEARNED ASSESSING OFFICER VERIFIED THE NEXUS OF INTEREST, WHICH HAD BEEN ACCOU NTED ON NET BASIS DURING THE COURSE OF ASSESSMENT PROCEEDINGS. THE APP ELLANT HAD MADE MAJOR INVESTMENT OUT OF OVER DRAFT ALLOWED BY THE BA NK ON WHICH INTEREST EARNED. THE INTEREST PAID ON SUCH OVER DRAFT HAD BEE N REDUCED FROM THE INTEREST RECEIVED. THE ASSESSEE HAD ALSO EXCESS FUND , WHICH HAS BEEN ALSO USED BY THE ASSESSEE TO ADVANCING MONEY ON INTEREST , WHICH HAS DIRECT NEXUS WITH THE BUSINESS AS EXCESS FUND GENERATED TO THE BUSINESS ONLY. THE LEARNED CIT(A) HAS ALSO THOROUGHLY EXAMINED THIS ISSUE BEFORE ALLOWING THE NET INTEREST. THE LEARNED DR SUPPORTED THE ORDER OF THE ASSESSING OFFICER. 2. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN AUDIT REPORT, THE AUDIT OR HAD REDUCED INTEREST ITA 415/JP/2010 ACIT VS. GOVERDHAN PD. SINGHAL 3 AND COMMISSION INCOME OF RS. 13,04,676/- FROM DERIV ED PROFIT AND GAIN. FURTHER THE LEARNED CIT(A) HAD ANALYZED THE INTEREST RECEIVED AND INTEREST PAID DURING THE YEAR UNDER CONSIDERATION IN HIS ORD ER AND HAD GIVEN DETAILED FINDINGS ON THIS ISSUE. THE ASSESSEE HAS T AKEN INTEREST AND COMMISSION INCOME IN TOTAL AT RS. 13,04,672/- UNDER HEAD BUSINESS AND PROFESSION AND INCLUDED IN THE INCOME OF THE YEAR U NDER CONSIDERATION. THEREFORE, WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF THE LEARNED CIT(A). 3. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED ON THIS GROUND. ORDER PRONOUNCED IN THE OPEN COURT ON 05/09/2014. SD/- SD/- (R.P. TOLANI) (T.R. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR, DATED : 05 TH SEPTEMBER, 2014 * RANJAN COPY FORWARDED TO :- 1. THE ACIT, CIRCLE-6, JAIPUR. 2. SHRI GOVERDHAN PRASAD SINGHAL, JAIPUR. 3. THE CIT (A) 4. THE CIT 5. THE D.R GUARD FILE (I.T.A. NO. 415/JP/2010) BY ORDER, AR ITAT JAIPUR.