DCIT, UDAIPUR V. M/s. Chetna Medicals, UDAIPUR

ITA 433/JODH/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54398 (ITAT-JODHPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 14-12-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 16-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G R KOKANI
• Keywords: Notional interest

Judgement Text

1 ITA 433-10 IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH JODHPUR. ( BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ) ITA NO. 433/JODH/2010 ASSTT. YEAR : 2007-08. THE DCIT, CENTRAL CIRCLE-2, VS. M/S. CHETNA MEDI CALS, UDAIPUR. HOSPITAL ROAD, UDAIPUR. PAN: AAAFM 5781F (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G.R. KOKANI RESPONDENT BY : SHRI AMIT KOTHARI DATE OF HEARING : 14.12.2011. DATE OF PRONOUNCEMENT : 15.12.2011. ORDER DATED : 15/12/2011. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY DEPARTMENT AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2007-08. 2. THE DEPARTMENT IS OBJECTING IN DELETING THE ADDI TION OF RS. 11,58,055/- MADE ON ACCOUNT OF INTEREST ON ADVANCES GIVEN FOR NON BUSIN ESS PURPOSE. 3. A FURTHER GROUND HAS BEEN TAKEN BY THE DEPARTMEN T THAT THOUGH IN EARLIER YEAR THE TRIBUNAL HAS DELETED SIMILAR ADDITION, BUT THE ORDE R OF TRIBUNAL HAS NOT BEEN ACCEPTED BY THE DEPARTMENT. 4. THE ASSESSING OFFICER MADE ADDITION OF RS. 11,58 ,055/- ON ACCOUNT OF NOTIONAL INTEREST ON THE AMOUNT OF ADVANCE OF LOAN OF RS. 70 ,92,155/- IN THE NAME OF SURENDRA AND 2 SUSHIL CONSTRUCTION A/C AND RS. 25,58,306/- IN THE NAME OF SURENDRA AND SUSHIL LOAN A/C. SINCE ASSESSEE HAS NOT CHARGED INTEREST ON THESE AM OUNTS, THEREFORE, ASSESSING OFFICER MADE ADDITION BY CHARGING THE INTEREST @ 12% ON THE TOTAL ADVANCES. IT WAS SUBMITTED BEFORE LD. CIT (A) THAT IN EARLIER YEARS I.E. 2001- 02 TO 06-07 THE ASSESSING OFFICER HAS ADDED THE AMOUNTS ON ACCOUNT OF NOTIONAL INTEREST. HOWEVER, THE TRIBUNAL HAS DELETED THE ADDITION MADE. THE LD. CIT (A) FOLLOWING THE ORDER OF TRIBUNAL DECIDED ON 24.7.2009 ALLOWED THE APPEAL OF THE ASSESSEE FOR THE YEAR UND ER CONSIDERATION ALSO. 5. THE LD. D/R HAS PLACED RELIANCE ON THE ORDER OF ASSESSING OFFICER. FURTHER RELIANCE HAS BEEN PLACED ON A DECISION REPORTED IN 60 ITD 19. 6. ON THE OTHER HAND, THE LD. COUNSEL OF THE ASSESS EE PLACED RELIANCE ON THE ORDER OF LD. CIT (A). 7. AFTER CONSIDERING THE ORDERS OF THE ASSESSING OF FICER AND LD. CIT (A) WE FIND THAT ISSUE IS SQUARELY COVERED BY THE DECISION OF THE TR IBUNAL IN CASE OF ASSESSEE ITSELF. SIMILAR DISALLOWANCE WAS MADE FOR ASSESSMENT YEARS 2001-02 TO 06-07. THE LD. CIT (A) DELETED THE ADDITION AND ORDER OF LD. CIT (A) HAS B EEN AFFIRMED BY THE TRIBUNAL. THEREFORE, IN VIEW OF THE CONSISTENCY, WE HOLD THAT LD. CIT (A) WAS JUSTIFIED IN ALLOWING THE CLAIM OF THE ASSESSEE FOR THE YEAR UNDER CONSID ERATION. ACCORDINGLY, WE CONFIRM THE ORDER OF LD. CIT (A) ON THE ISSUE. 8. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMI SSED. 9. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 15. 12.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JODHPUR, 3 COPY FORWARDED TO :- THE DCIT, CENTRAL CIRCLE-2, UDAIPUR. M/S. CHETNA MEDICALS, UDAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 433/JODH/2010) BY ORDER, AR ITAT JODHPUR.