ITO, New Delhi V. M/s. SABMiller India Ltd., New Delhi

ITA 4518/DEL/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91267 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 26-06-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 23-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY CHADDHA ACIT
• Assessee Lawyers: SHAILESH KUMAR
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SH. GEORGE GEORGE K. , JM ITA NO. 4518/DEL/2012 : ASSTT. YEAR : 2008 - 09 INCOME TAX OFFICER, WARD - 7(1 ), NEW DELHI VS M/S SAB MILLER I NDIA LTD. C/O AMARCHAND MANGALDAS & SURESH & CO., NO. - 13, ABUL FAZAL ROAD, BENGALI MARKET NEW DELHI - 110001 (APPELLANT) (RESPONDENT) PAN NO. AA ECS8102L ASSESSEE BY : SH SHAILESH KUMAR , ADV. REVENUE BY : SH . VIJAY CHADDHA, ACIT DATE OF HEARING : 26 . 06 .2015 DATE O F PRONOU NCEMENT : 26 .06 .2015 ORDER PER N.K . SAINI , A.M. THIS IS AN APPEAL BY THE DEPARTMENT AGAINST THE ORDER DATED 31.05.2012 OF THE L D. CIT(A) - X , NEW DELHI . 2. THE ONLY EFFECTIVE GROUND RAISED IN THIS APPEAL READS AS UNDER: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) ERRED IN LAW AND ON FACTS OF THE CASE IN DIRECTING THE AO TO TAKE THE INTEREST INCOME OF RS. 13,42,311/ - AS INCOME FROM BUSINESS. 3. FACTS OF THE CASE IN BRIEF ARE THA T THE ASSESSEE FILED THE RETURN OF INCOME ON 29.09.2008 DECLARING NIL INCOME ITA NO.4518 /DE L/201 2 SAB MILLER INDIA LTD. 2 WHICH WAS PROCESSED U/S 143(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). LATER ON, THE CASE WAS SELECTED FOR SCRUTINY. DURING THE COURSE OF ASSESSMENT PROC EEDINGS, THE AO NOTICED THAT THE ASSESSEE EARNED INTEREST INCOME OF RS. 32,36,296/ - WHICH INCLUDED INTEREST ON THE AMOUNT DEPOSITED IN ESCROW ACCOUNT AMOUNTING TO RS. 13,42,311/ - . THE SAID AMOUNT WAS CONSIDERED BY THE AO AS INCOME FROM OTHER SOURCES INST EAD OF INCOME FROM BUSINESS CLAIMED BY THE ASSESSEE. 4. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO ALLOW ED THE CLAIM OF THE ASSESSEE BY OBSERVING THAT THE AO WHILE GIVING EFFECT TO THE DIRECTION OF THE ITAT FOR THE ASSESSMENT YEARS 2003 - 04 AND 2006 - 07 H AS TREATED THE INTEREST ON ESCROW ACCOUNT AS BUSINESS INCOME. 5 . NOW THE DEPARTMENT IS IN APPEAL. THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET SUBMITTED THAT FOR THE ASSESSMENT YEARS 2003 - 04 AND 2006 - 07, THE SIMILAR STAN D WAS TAKEN BY THE AO AND THE INTEREST EARNED ON ESCROW ACCOUNT WAS TREATED AS INCOME FROM OTHER SOURCES. ITA NO.4518 /DE L/201 2 SAB MILLER INDIA LTD. 3 HOWEVER, THE ITAT DELHI BENCH H , NEW DELHI VIDE ORDER DATED 26.06.2009 IN ITA NO. 735 2 /DEL/2009 FOR THE ASSESSMENT YEAR 2006 - 07 AND ITAT DELHI BENCH H , NEW DELHI VIDE ORDER DATED 30.04.2009 IN ITA NO. 285/DEL/2007 FOR THE ASSESSMENT YEAR 2003 - 04 SET ASIDE THE ISSUE TO THE FILE OF THE AO WHO VIDE SEPARATE ORDERS EACH DATED 30.04.2010 FOR THE ASSESSMENT YEARS 2003 - 04 AND 2006 - 07 CONSIDERED THE INTERES T ON ES CROW ACCOUNT AS BUSINESS INCOME (COPIES OF THE SAID ASSESSMENT ORDER WERE FURNISHED WHICH ARE PLACED ON RECORD), THEREFORE, THERE IS NO MERIT IN THE APPEAL OF THE DEPARTMENT. 6 . IN HIS RIVAL SUBMISSIONS THE LD. DR ALTHOUGH SUPPORTED THE ORDER OF TH E AO BUT COULD NOT CONTROVERT THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 7 . WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT IS AN ADMITTED F ACT THAT ON THE DIRECTIONS OF THE ITAT IN THE AFORESAID REFERRED TO ORDERS EACH DATED 30.04.2010 FOR THE ASSESSMENT YEA RS 2003 - 04 AND 2006 - 07, T HE AO HIMSELF HAD CONSIDERED THE INTEREST EARNED ON THE AMOUNT DEPOSITED IN ESCROW ITA NO.4518 /DE L/201 2 SAB MILLER INDIA LTD. 4 ACCOUNT AS INCOME FROM BUS INESS AND THE FACTS FOR THE YEAR UNDER CONSIDERATION ARE IDENTICAL TO THE FACTS INVOLVED IN THE EARLIER YEARS I.E. THE ASSESSMENT YEARS 2003 - 04 AND 2006 - 07. THEREFORE, WE ARE OF THE CONFIRMED VIEW THAT THE LD. CIT(A) WAS FULLY JUSTIFIED IN ACCEPTING THE C LAIM OF THE ASSESSEE THAT THE INTEREST EARNED ON THE DEPOSIT IN ESCROW ACCOUNT WAS INCOME FROM BUSINESS . WE, THEREFORE, DO NOT SEE ANY MERIT IN THIS APPEAL OF THE DEPARTMENT. 8 . IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISMISSED . ( ORDER PRON OUNCED IN THE COURT ON 26 /0 6 / 2015) . SD/ - SD/ - (GEORGE GEORGE K. ) ( N. K. SAINI ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 26 /06 /2015 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASS ISTANT REGISTRAR