ACIT, Trivandrum V. Kerala Tourism Dev. Corporation Ltd, Trivandrum

ITA 54/COCH/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64730 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2012
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 17-01-2011
• Court: TRIBUNAL
• Department Lawyers: VANI RAJ
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND B.R.BASKAR AN, AM I.T.A NOS. 53 & 54/COCH/2011 ASSESSMENT YEARS: 2005-06 & 2007-08 THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-1(1), TRIVANDRUM VS. M/S. KERALA TOURISM DEVELOPMENT CORPN. LTD., PB NO. 5424, MASCOT SQUARE, PALAYAM,TRIVANDRUM. [PAN:AABCK 0385J] (REVENUE-APPELLANT) (ASSESSEE - RESPONDENT) C.O. NOS. 04 & 05/COCH/2011 (ARSG. OUT OF I.T.A NOS. 53 & 54/COCH/2011 ASSESSMENT YEARS: 2005-06 & 2007-08 M/S. KERALA TOURISM DEVELOPMENT CORPN. LTD., PB NO. 5424, MASCOT SQUARE, PALAYAM, TRIVANDRUM. [PAN:AABCK 0385J] VS. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-1(1), TRIVANDRUM (ASSESSEE -APPELLANT) (REVENUE- RESPONDENT) REVENUE BY MS. VANI RAJ, JR. DR ASSESSEE BY NONE DATE OF HEARING 09/08/2012 DATE OF PRONOUNCEMENT 10/08/2012 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE APPEALS OF THE REVENUE AND THE CROSS OBJECTION S FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDERS PASSED BY LD C IT(A)-1, TRIVANDRUM AND THEY RELATE I.T.A. NOS. 53 & 54/COCH/2011 & C.O. 04 & 05/COCH/2011 2 TO THE ASSESSMENT YEARS 2005-06 AND 2007-08. NONE APPEARED ON BEHALF OF THE PARTY AND HENCE WE PROCEED TO DISPOSE OF THESE APPEALS EX -PARTE, QUA THE ASSESSEE. 2. THE REVENUE IS CONTESTING THAT THE LD CIT(A) HAS ERRED IN HOLDING THAT THE PROVISIONS OF SEC. 43B SHALL NOT APPLY TO THE INTER EST PROVIDED ON LOAN TAKEN FROM STATE GOVERNMENT, WHILE THE AO HAS NOT INVOKED THE SAID P ROVISIONS FOR MAKING THE DISALLOWANCE. IN THE CROSS OBJECTIONS, THE ASSESSE E IS SUPPORTING THE ORDERS PASSED BY LD CIT(A). 3. WE HAVE HEARD THE LD D.R AND PERUSED THE REC ORD. FROM THE ASSESSMENT ORDERS, WE NOTICE THAT THE AO DID NOT INVOKE THE PROVISIONS OF SEC. 43B FOR MAKING THE CLAIM OF INTEREST PROVISION MADE ON THE GOVERNMENT LOANS. O N THE CONTRARY, THE AO HAS NOTICED THAT THE ASSESSEE HAS REQUESTED THE GOVERNMENT TO C ONVERT THE LOAN AND INTEREST INTO SHARE CAPITAL AND HENCE THE AO THOUGHT IT FIT TO DI SALLOW THE INTEREST PROVISION. ACCORDINGLY, WE ARE OF THE VIEW THAT THE LD CIT(A) HAS ERRED IN ASSUMING THAT THE ISSUE RELATES TO THE PROVISIONS OF SEC. 43B. ACCORDINGLY , THIS ISSUE NEEDS RECONSIDERATION AT THE OF LD CIT(A). IN VIEW OF THE FOREGOING, WE SET ASIDE THE ORDERS PASSED BY LD CIT(A) ON THIS ISSUE AND RESTORE IT TO HIS FILE WIT H THE DIRECTION TO EXAMINE THE ISSUE AFRESH IN ACCORDANCE WITH LAW. 4. SINCE THE APPEALS OF THE REVENUE ARE SET ASI DE TO THE FILE OF AO, THE CROSS OBJECTIONS FILED BY THE ASSESSEE IN SUPPORT OF THE ORDERS OF LD CIT(A) ARE DISMISSED. 5. IN THE RESULT, THE APPEALS OF THE REVENUE AR E TREATED AS ALLOWED FOR STATISTICAL I.T.A. NOS. 53 & 54/COCH/2011 & C.O. 04 & 05/COCH/2011 3 PURPOSES AND THE CROSS OBJECTIONS FILED BY THE ASSE SSEE ARE DISMISSED. PRONOUNCED ACCORDINGLY ON 10-08-2012 SD/- SD/- (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 10TH AUGUST, 2012 GJ COPY TO: 1. M/S. KERALA TOURISM DEVELOPMENT CORPN. LTD., PB NO. 5424, MASCOT SQUARE, PALAYAM,TRIVANDRUM. 2. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE -1(1), TRIVANDRUM. 3. THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, TRIV ANDRUM. 4. THE COMMISSIONER OF INCOME-TAX, TRIVANDRUM. 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) ITAT, COCHIN