ITO 9(1)(4), MUMBAI V. GENTEK AGRO P.LTD, MUMBAI

ITA 5488/MUM/2013

• Counselvise Citation: 548819914 RSA 2013
• Duration Of Justice: 1 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 29-04-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 16-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR BORA
• Assessee Lawyers: RAJESH N VORA
• Keywords: Revenue expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH G, MUMBAI BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER ITA NO.5488/M/2013 ASSESSMENT YEAR: 2006-07 INCOME TAX OFFICER 9(1)(4), ROOM NO.224, AAYAKAR BHAVAN, M.K. MARG, MUMBAI 400 020 VS. M/S. GENTEK AGRO PVT. LTD., 105, HEERA PANNA INDUSTRIAL ESTATE, GOREGAON (E), MUMBAI 400 063 PAN: AABCG 7275M (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI RAJESH N. VORA, A.R. REVENUE BY : SHRI VIJAY KUMAR BORA, D.R. DATE OF HEARING : 07.05.2015 DATE OF PRONOUNCEMENT : .2015 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER DATED 03.06.2013 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [(HEREINAFTER REFERRED TO AS CIT(A)] RELEVANT TO ASSESSMENT YEAR 2006-07. 2. THE REVENUE HAS TAKEN FOLLOWING GROUNDS OF APPEA L: 1. WHETER, ON THE FACTS AND CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD. CIT(A) WAS RIGHT IN DELETING THE ADDITION OF RS.18, 48,187/- MADE BY THE ASSESSING OFFICER BY INVOKING SECTION 41(1) OF THE I.T. ACT 1 961, WITHOUT APPRECIATING THE FACT THAT THE PROVISIONS OF SECTION 41(1) WOULD BE ATTRA CTED IF A LIABILITY IS WRITTEN OFF IN THE BOOK OF ACCOUNT? 2. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY OF THE GROUNDS ADD A NEW GROUND WHICH MAY BE NECESSARY. 3. THE REVENUE IN THIS APPEAL IS AGGRIEVED BY ACTI ON OF LD. CIT(A) IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER U/S 41 OF THE ACT TREATING ITA NO.5488/M/2013 M/S. GENTEK AGRO PVT. LTD. 2 THE LOAN AMOUNT WAIVED BY THE BANK IN ONE TIME SETT LEMENT AS CESSATION OF LIABILITY. THE LD. CIT(A) IN THE IMPUGNED ORDER HA S OBSERVED THAT THE LOAN WAS OBTAINED BY THE ASSESSEE FOR THE PURCHASE OF CA PITAL ASSET. THE ASSESSEE HAS EVEN NEVER CLAIMED THE INTEREST ON THE LOAN AMOUNT AS REVENUE EXPENDITURE. THE SAID AMOUNT OF INTEREST WAS CAPITALIZED IN THE FIXED ASSET SCHEDULE AND NOT ROUTED THROUGH P&L ACCOUNT AND WAS NOT CLAIMED AS D EDUCTION IN ANY EARLIER ASSESSMENT YEAR, SO THE PROVISIONS OF SECTION 41 OF THE ACT WERE NOT ATTRACTED IN THIS CASE. THE LD. CIT(A) WHILE DELETING THE IMPUGN ED ADDITION HAS RELIED UPON VARIOUS CASE LAWS IN HIS DETAILED AND WELL REASONED ORDER. WE DO NOT FIND ANY INFIRMITY IN THE IMPUGNED ORDER OF THE LD. CIT(A) A ND THE SAME IS ACCORDINGLY UPHELD. 4. THE APPEAL OF THE REVENUE IS THEREFORE DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 30.06.2015. SD/- SD/- (R.C. SHARMA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 30.06.2015. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.