Income Tax Officer, Kanpur V. M/s D.K.G. Securities Pvt. Ltd., Kanpur

ITA 416/LKW/2015

• Counselvise Citation: 41623714 RSA 2015
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 15-09-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 23-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SWARN SINGH

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.416/LKW/2015 ASSESSMENT YEAR: 2008 09 ITO WARD 6 (2), KANPUR VS. M/S D. K. G. SECURITIES PVT. LTD., 60/1, NAYAGANJ, KANPUR - 208001 PAN:AABCD8837A (APPELLANT) (RESPONDENT) ASSESSEE BY SRI SWARN SINGH, C. A, REVENUE BY SHRI AMIT NIGAM, SR. DR DATE OF HEARING 15/09/2015 DATE OF PRONOUNCEMENT 14/10/2015 O R D E R PER A. K. GARODIA, A.M. THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORD ER OF LEARNED CIT (A) II, KANPUR DATED 17.03.2015 FOR A. Y. 2008 09. 2. THE ONLY OF THE GRIEVANCE OF THE REVENUE IS ABOU T DELETION OF PENALTY OF RS. 6.20 LACS IMPOSED BY THE A.O. U/S 271 (1) (C ) OF THE I. T. ACT. 3. LEARNED DR OF THE REVENUE SUPPORTED THE PENALTY ORDER. LEARNED AR OF THE ASSESSEE SUPPORTED THE ORDER OF CIT (A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIN D THAT IT IS NOTED BY LEARNED CIT (A) IN PARA 4.1 OF HIS ORDER THAT AS PE R LEARNED AR OF THE ASSESSEE, LOAN TO SHRI DILIP KUMAR GUPTA WAS GIVEN OUT OF INTEREST FREE FUNDS IN THE SHAPE OF CAPITAL AND RESERVES. AMOUNT OF LOA N GIVEN IS RS. 133.75 LACS AND AMOUNT OF CAPITAL & RESERVES AND SURPLUS I S RS. 292.98 LACS AS 2 NOTED BY CIT (A) IN PARA 4.4 OF HIS ORDER. HE HAS C ONSIDERED THE JUDGMENTS OF HONBLE ALLAHABAD HIGH COURT RENDERED IN CIT VS. PREM HEAVY ENGG. WORKS, 285 ITR 544 AND IN THE CASE OF CIT VS. RADIC O KHAITAN LTD., 274 ITR 354. AS PER THESE JUDGMENTS, IF OWN FUNDS ARE MORE THAN INTEREST FREE ADVANCES GIVEN, NO DISALLOWANCE IS CALLED FOR OUT O F INTEREST EXPENDITURE ON THIS BASIS THAT INTEREST FREE ADVANCES WERE GIVEN. IN THE PRESENT CASE, THE ASSESSEE HAS NOT DISPUTED THE DISALLOWANCE IN QUANT UM PROCEEDINGS BUT THIS DOES NOT AFFECT THE DECISION IN PENALTY PROCEEDINGS BECAUSE BOTH ARE INDEPENDENT. IN VIEW OF THE FACTS OF THE PRESENT CA SE AS DISCUSSED ABOVE, PENALTY IS NOT JUSTIFIED. HENCE, WE DECLINE TO INTE RFERE IN THE ORDER OF CIT (A). 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD. SD. (SUNIL KUMAR YADAV) ( A. K. GAROD IA ) JUDICIAL MEMBER ACCOUNTANT MEM BER DATED:14/10/2015 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGIST RAR