Impulse Marketing, New Delhi V. ACIT, New Delhi

ITA 4427/DEL/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5764 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 12-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJAT SHARMA
• Keywords: Opportunity of being heard; Notional interest; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES C : DELHI BEFORE SHRI BHAVNESH SAINI, J.M. & SHRI O.P. KANT, A.M. ITA.NO.4427/DEL./2016 ASSESSMENT YEAR 2012-2013 M/S. IMPULSE MARKETING, 609, ABW ELEGANCE TOWER, JASOLA DISTRICT CENTRE, NEW DELHI- 110025. PAN AABFI1861L VS. THE ACIT, CIRCLE 28 (1), NEW DELHI. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI RAJAT SHARMA, C.A. FOR REVENUE : SHRI AMIT KATOCH, SR. D.R. DATE OF HEARING : 09.05.2019 DATE OF PRONOUNCEMENT : 10.05.2019 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-10, NEW DELHI, DATED 09.04.2015, FOR THE A.Y. 2012-2013, CHALLENGING THE ADDITION OF RS.34,41,209/- ON ACCOUNT OF NOTIONAL INTEREST. 2. THE A.O. NOTED THAT ASSESSEE IS A PARTNERSHIP FIRM AND IS ENGAGED IN THE BUSINESS OF TRADING OF EDUCATIONAL BOOKS AND ELECTRONIC ITEMS. THE ASSESSEE FIRM 2 ITA.NO.4427/DEL./2016 M/S. IMPULSE MARKETING, NEW DELHI. HAS SIX PARTNERS. THE A.O. NOTED THAT ASSESSEE HAD DEBITED RS.2,13,633/- IN P & L A/C. UNDER THE HEAD BANK INTEREST. PERUSAL OF THE DETAILS SHOWS THAT ASSESSEE HAS RECEIVED LOAN FROM BANK AND PAID INTEREST THEREON. HOWEVER, ASSESSEE HAS GIVEN ADVANCE TO FOUR PARTNERS OF THE FIRM WITHOUT CHARGING INTEREST IN A SUM OF RS.2,78,43,412/-. THE EXPLANATION OF ASSESSEE WAS CALLED FOR. HOWEVER, IT WAS REJECTED. THE A.O. NOTED THAT IN PRECEDING A.Y. 2010-2011 ON THE SAME ISSUE, INTEREST WERE DIRECTED TO BE APPLIED @ 14% ON THE AMOUNT OF THE LOAN FOR MAKING THE ADDITION. THE ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A) WHO VIDE ORDER DATED 29.08.2014 RESTRICTED THE RATE OF INTEREST TO 12% ONLY. THE A.O. ACCORDINGLY MADE THE ADDITION OF RS.33,41,209/-. THE LD. CIT(A) FOLLOWING THE ORDER OF THE LD. CIT(A) FOR A.Y. 2010-2011 DISMISSED THE APPEAL OF ASSESSEE. 3. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN A.Y. 2010-2011, ITAT, DELHI C-BENCH, NEW DELHI IN THE CASE OF THE SAME ASSESSEE IN ITA.NO.5791/DEL./2014 FOR THE A.Y. 2010-2011 VIDE ORDER DATED 16.04.2018 RESTORED THE 3 ITA.NO.4427/DEL./2016 M/S. IMPULSE MARKETING, NEW DELHI. IDENTICAL MATTER BACK TO THE FILE OF A.O. FOR RECONSIDERATION ON THE BASIS OF THE EVIDENCES TENDERED BY THE ASSESSEE. COPY OF THE ORDER IS PLACED ON RECORD. 4. THE LD. D.R. DID NOT DISPUTE THE SAME. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION AS DIRECTED BY THE TRIBUNAL IN A.Y. 2010-2011 VIDE ORDER DATED 16.04.2018. SINCE THE ISSUE IS SAME AS WAS CONSIDERED IN A.Y. 2010-2011 AND FOLLOWING THE ORDER FOR THE A.Y. 2010- 2011 FOR MAKING THE ADDITION. FURTHER WHEN THE IDENTICAL MATTER IN A.Y. 2010-2011 HAVE BEEN RESTORED TO THE A.O. THEREFORE, WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THE MATTER IN ISSUE TO THE FILE OF A.O. WITH A DIRECTION TO RE-DECIDE THIS ISSUE AS IS DIRECTED BY THE TRIBUNAL IN A.Y. 2010-2011 (SUPRA). A.O. SHALL GIVE REASONABLE, SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, APPEAL OF ASSESSEE ALLOWED FOR STATISTICAL PURPOSES. 4 ITA.NO.4427/DEL./2016 M/S. IMPULSE MARKETING, NEW DELHI. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (O.P.KANT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 10 TH MAY, 2019 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT C BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.