Shri Girish Kumar Tayal, Indore V. The Addl. CIT, Indore

ITA 477/IND/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2812 (ITAT-INDORE)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2010
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 09-10-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: APARNA KARAN
• Assessee Lawyers: PIYUSH MANDOVRA
• Keywords: Depreciation
• Section: 80IB

Judgement Text

PAGE 1 OF 5 - I.T.A.NOS. 476, 477 & 478/IND/2009 VIKAS COTTON FIBER AND OTHERS. IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH : INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI V.K. GUPTA, ACCOUNTANT MEMBER PAN NO. : AACFV5632R I.T.A.NO.476/IND/2009 A.Y. : 2006-07 M/S.VIKAS COTTON FIBER, ADDL. CIT, 202, PRINCE PALACE, VS RANGE 5, 6, JANKI NAGAR, INDORE. INDORE. APPELLANT RESPONDENT PAN NO. : AATPT-3581D I.T.A.NO.477/IND/2009 A.Y. : 2006-07 SHRI GIRISHKUMAR TAYAL, PROP. M/S. PRADEEP COTEX INDUSTRIES, 4, DURGA NAGAR, INDORE. ADDL. CIT, RANGE 5, INDORE. VS APPELLANT RESPONDENT PAN NO. : AATPT-3580H I.T.A.NO.478/IND/2009 A.Y. : 2006-07 SHRI KISHOREKUMAR TAYAL, PROP. M/S. KUNAL COTTON INDUSTRIES, 4, DURGA NAGAR, INDORE ADDL. CIT, 5(1), INDORE. VS PAGE 2 OF 5 - I.T.A.NOS. 476, 477 & 478/IND/2009 VIKAS COTTON FIBER AND OTHERS. APPELLANT RESPONDENT APPELLANTS BY : SHRI PIYUSH MANDOVRA, ADV. RESPONDENT BY : SMT. APARNA KARAN, SR. DR DATE OF HEARING : 25.05.2010 O R D E R PER V.K. GUPTA, A.M. THESE APPEALS BELONG TO THE CONNECTED ASSESSEES AND INVOLVE COMMON ISSUES, HENCE, THEY ARE BEING HEARD TOGETHER AND DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. WE HAVE HEARD BOTH THE PARTIES AND HAVE ALSO PERUSE D THE MATERIAL AVAILABLE ON RECORD. 3. THE COMMON ISSUES INVOLVED IN ALL THESE APPEALS IS REGARDING CONSIDERATION OF INTEREST RECEIVED FROM DEBTORS ON DELAYED PAYMENTS FOR COMPUTING DEDUCTION U/S 80-IB AND EXCLUSION OF NET INTEREST I.E. INTEREST RECEIVED LESS INTEREST PAID FROM THE PROFITS OF ELI GIBLE INDUSTRIAL UNDERTAKING U/S 80IB OF THE ACT. THESE ISSUES ARE O F RECURRING NATURE AND THE ASSESSEE HAS CITED THE DECISIONS OF THE TRIBUNA L IN ASSESSEES OWN CASE AS WELL AS IN OTHER CASES IN THIS REGARD. HOWEVER, FOR THE SAKE OF CONVENIENCE, WE REPRODUCE THE FINDINGS OF THE ORDER OF THE TRIBUNAL DATED 25 TH MAY, 2010, IN THE CASE OF SHRI SHYAM SUNDER MOHANL AL TAYAL IN PAGE 3 OF 5 - I.T.A.NOS. 476, 477 & 478/IND/2009 VIKAS COTTON FIBER AND OTHERS. I.T.A.NO. 481/IND/2009, WHEREIN ALL EARLIER DECISIO NS HAVE BEEN CONSIDERED. THE FINDINGS OF THE TRIBUNAL IN THE SAI D ORDER ARE AS UNDER :- 5. WE FIND THAT THIS IS A RECURRING ISSUE AND THE T RIBUNAL HAS ALLOWED NETTING OF INTEREST PROVIDED THE ASSESSEE P ROVES THE NEXUS BETWEEN THE INTEREST RECEIVED AND INTEREST PA ID AND IT HAS ALSO BEEN HELD THAT INTEREST FROM DEBTORS ON DE LAYED PAYMENT HAS TO BE CONSIDERED AS ELIGIBLE FOR COMPUT ING DEDUCTION U/S 80IA/80IB. HENCE, FOR VERIFICATION OF RELEVANT FACTS RELATING TO THESE ASPECTS, WE RESTORE THE MAT TER TO THE FILE OF AO , WHO SHALL DECIDE THESE ISSUES IN TERMS OF THE DIRECTIONS GIVEN BY THE TRIBUNAL IN I.T.A.NOS. 415 AND 416/IND/2008. ACCORDINGLY, GROUND NO. 1(A) STANDS R ESTORED TO THE FILE OF AO. 4. THUS, FOLLOWING THE ABOVE RATIO, WE RESTORE THE ISS UES RAISED IN GROUND NO. 1(A) IN ALL THE APPEALS TO THE FILE OF A O TO BE DECIDED ON SIMILAR LINES. 5. NOW, WE SHALL TAKE UP REMAINING GROUNDS IN I.T.A.NO . 476/IND/2009. 6. IN GROUND NO. 1(B), THE ISSUE IS REGARDING DISALLOW ANCE OF RS. 1 LAKH MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CIT(A) OUT PAGE 4 OF 5 - I.T.A.NOS. 476, 477 & 478/IND/2009 VIKAS COTTON FIBER AND OTHERS. OF KAPAS EXPENSES COMPRISING MAINLY OF LABOUR CHARG ES FOR WANT OF COMPLETE VERIFICATION AND SPECIFIC DEFECTS POINTED OUT BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER. IN THE COURSE OF H EARING, THE ASSESSEE WAS ASKED TO CONTROVERT THE FINDINGS OF THE AO BY ADDUC ING NECESSARY EVIDENCES TO SHOW THAT NAME OF LABOURERS WERE MENTI ONED IN THE VOUCHERS AND THEY WERE DULY SIGNED BY THEM. HOWEVER, THE LEA RNED COUNSEL FOR THE ASSESSEE COULD NOT SUBMIT THE SAME AND MERELY PREF ERRED TO RELY ON THE SUBMISSIONS MADE BEFORE THE LD. CIT(A). WE FIND TH AT THE LD. CIT(A) HAS CONFIRMED THE ACTION OF THE AO FOR THE REASON THAT THE FINDINGS OF THE AO COULD NOT BE REBUTTED BY THE ASSESSEE BEFORE HIM AN D THE SAME IS POSITION BEFORE US. HENCE, WE DO NOT FIND ANY MERIT IN THIS GROUND OF THE ASSESSEE. ACCORDINGLY, THE SAME IS DISMISSED. 7. IN GROUND NO.1(B) OF I.T.A.NO. 477/IND/2009 IS RELA TING TO AD HOC DISALLOWANCE OF RS. 1 LAKH OUT OF KAPAS EXPENSE S, OIL MILL WAGES, WEEKLY GINNING EXPENSES ETC. FOR WANT OF VERIFICATI ON OF THESE EXPENSES. IN THE EARLIER YEAR ALSO, THE SIMILAR DISALLOWANCE WAS MADE AND TRIBUNAL ALSO CONFIRMED A PART THEREOF. HOWEVER, IN THE YEAR UNDER CONSIDERATION, THE LEARNED COUNSEL FOR THE ASSESSEE HAS NOT BEEN A BLE TO SHOW THAT HOW THE QUANTUM OF THIS AD HOC DISALLOWANCE WAS UNJUSTI FIED AND, IN SUM AND SUBSTANCE, HE HAS NOTHING TO PLEAD. ACCORDINGLY, WE CONFIRM THIS AD HOC DISALLOWANCE MADE BY THE ASSESSING OFFICER. PAGE 5 OF 5 - I.T.A.NOS. 476, 477 & 478/IND/2009 VIKAS COTTON FIBER AND OTHERS. 8. GROUND NO. 1(C) RELATING TO DISALLOWANCE OUT OF CAR EXPENSES AND DEPRECIATION WAS NOT PRESSED, HENCE, DISMISSED AS NOT PRESSED. 9. TO SUM UP, ASSESSEES APPEALS IN I.T.A.NO. 476/IND/ 2009 AND I.T.A.NO. 477/IND/2009 ARE PARTLY ALLOWED FOR STATI STICAL PURPOSES AND APPEAL IN I.T.A.NO. 478/INDS/2009 IS ALLOWED FOR ST ATISTICAL PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 26 TH MAY, 2010. SD/- SD/- (JOGINDER SINGH) (V. K. GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 26 TH MAY, 2010. CPU* 255