Balex Pvt.Ltd., Baroda V. The ACIT.,Circle-1(1)(1), Baroda

ITA 47/AHD/2022

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 3636 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-02-2024
• Assessment Year: 2006-2007
• Appeal Filed On: 13-02-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ “‘ए’“, अहमदाबाद अहमदाबादअहमदाबाद अहमदाबाद । ।। । IN THE INCOME TAX APPELLATE TRIBUNAL “ A ” BENCH, AHMEDABAD ] ] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.47/Ahd/2022 Assessment Year : 2006-07 Balex Pvt.Ltd. A-5, Nandavan Soceity Sussen Textile Road Vadodara – 391 240 (Gujarat) Vs The ACIT Circel-1(1)(1) Vadodara – 390 007 PAN: AAACB 7665 B / (Appellant) / (Respondent) Assessee by : Shri P.B. Parmar, AR Revenue by : Ms. Saumya Pandey Jain, Sr.DR /Date of Hearing : 23 /02/2024 /Date of Pronouncement: 28 /02/2024 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER This appeal filed by the Assessee is directed against the order of Learned Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as “Ld. CIT(A)” for short] dated 16/12/2021 passed for Assessment Year (AY) 2006-07. 2. The assessee has raised the following grounds of appeal:- ITA No.47/Ahd/2022 Balex Private Ltd. vs. ACIT Asst.Year 2006-07 2 “1.00 On the facts and circumstances of your appellant case and in law, Id. CIT(A) erred in dismissing the appeal for the year under review on the ground that quantum addition for earlier assessment year is already upheld vide his separate order dated 02.12.2021, the consequential disallowance of interest for the year under review is accordingly upheld. 2.00 Your appellant submits that each assessment year is separate from the other and the additions / disallowances made need to be adjudicated for that assessment year based on the relevant facts and circumstances attached to each such addition / disallowance and without prejudice to what has been decided for earlier or subsequent assessment year.” 3. At the outset, the ld.counsel for the assessee submitted that the solitary issue in the present appeal relates to disallowance of interest expenses amounting to Rs.1,43,127/- allegedly paid on unsecured loan taken by the assessee. It was pointed out from the assessment order that this interest was claimed to have been paid by the assessee on a loan taken from one M/s.Shanti Metals Pvt.Ltd. amounting to Rs.33,35,000/-. The loan was taken in the immediately preceding assessment year; i.e. AY 2005- 06. The order of the Assessing Officer reveals that the impugned loan was treated as unexplained credit and added to the income of the assessee in AY 2005-06 and for this reason, the interest claimed thereon was disallowed. The Assessing Officer in his order noted that the disallowance of the addition of unsecured loan in AY 2005-06 had been confirmed by the Ld.CIT(A), but the ITAT has restored back the issue to the Assessing Officer for reconsideration. That in the second round before the Assessing Officer in AY 2005-06, the addition of the unsecured loan treating it as unexplained credit, had been reiterated by the Assessing Officer. Accordingly, the Assessing Officer disallowed the interest expenses claimed by the assessee on the same and this was confirmed by the Ld.CIT(A). ITA No.47/Ahd/2022 Balex Private Ltd. vs. ACIT Asst.Year 2006-07 3 4. Now before us, the ld.counsel for the assessee contended that the addition made by the Assessing Officer of the unsecured loans in AY 2005- 06 had again travelled upto the ITAT, who had again restored the issue back to the Assessing Officer for reconsideration afresh in the appeal of the assessee in ITA No.28/Ahd/2022 vide order dated 06/05/2022 (copy of the order was placed before us). His contention therefore before us was that since the determination of the nature of the unsecured loan was still in flux and pending before the Assessing Officer, therefore, the issue of disallowance of claim of the interest charged thereon cannot be decided at this stage and he therefore prayed that the same be also restored to the Assessing Officer to be decided along with determination of the nature of unsecured loan on which was charged by the Assessing Officer for the AY 2005-06. 5. The Ld.DR fairly agreed with the same. 6. In view of the same, this appeal is restored back to the Assessing Officer for reconsideration and is directed to be decided along with/ after taking into consideration the appeal of the assessee for AY 2005-06 since the issue in this year is directly related that in AY 2005-06, wherein nature of the loan is to be determined whether a genuine unsecured loan or unexplained cash credit and only thereafter the claim of interest charged thereon can be adjudicated. ITA No.47/Ahd/2022 Balex Private Ltd. vs. ACIT Asst.Year 2006-07 4 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 28 th February, 2024 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER (ANNAPURNA GUPTA ACCOUNTANT MEMBER Ahmedabad, Dated 28/02/2024 . ी. य , . . ./T.C. NAIR, Sr. PS ! "# /Copy of the Order forwarded to : 1. "!ी $% / The Appellant 2. &य$% / The Respondent. 3. '(')* य य + / Concerned CIT 4. य य + )"!ी (/ The CIT(A)- (NFAC) 5. . /ीय )* , य "!ी य ")* , ज /DR,ITAT, Ahmedabad, 6. / 12 3 /Guard file. / BY ORDER, //True Copy// &य ! // ह य !'जी (Asstt. Registrar) य "!ी य ")* , ITAT, Ahmedabad 1. Date of dictation (pad attached with the file) : 23.02.2024 2. Date on which the typed draft is placed before the Dictating Member. : 26 02.2024 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 28.2.24 7. Date on which the file goes to the Bench Clerk. : 28.2.24 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order :