ITO, UDAIPUR V. M/s. Chetna Medicals, UDAIPUR

ITA 56/JODH/2013

• Counselvise Citation: 5623314 RSA 2013
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 07-08-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 08-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G R KOKANI
• Keywords: Notional interest

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K. SAINI, ACCOUNTANT MEMBER. I.T.A. NO. 56/JODH/2013 ASSESSMENT YEARS:2008-09 THE INCOME-TAX OFFICER VS M/S CHETN A MEDICALS, WARD-2(1), UDAIPUR, HOSPITAL ROAD, UDAIPUR. PAN NO. AABFM5781F [APPELLANT] [RESPONDENT] DEPARTMENT BY : SHRI G.R. KOKANI (D.R.) ASSESSEE BY : SHRI AMIT KOTHARI. DATE OF HEARING : 07/08/2013. DATE OF PRONOUNCEMENT : 07/08/2013 O R D E R PER N.K. SAINI, A.M. : THIS IS AN APPEAL BY THE DEPARTMENT AGAINST THE OR DER DATED 29/11/2012 OF LD. CIT(A), CENTRAL, JAIPUR. THE ONLY GROUND RAISED IN THIS APPEAL READS AS UNDER: ON THE FACTS AND IN THE PRESENT CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OUT OF INTEREST PAID, ON ACCOUNT OF IN TEREST FREE ADVANCES GIVEN TO PARTNERS. 2. FACTS OF THE CASE IN BRIEF, ARE THAT THE ASSESSI NG OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS OBSERVED THAT THE ASSESSEE HAD GIVEN ADVANCES OF RS. 1,06,98,866/- (RS. 72,95,761/- IN T HE NAME OF SURENDRA AND 2 SHUSHIL CONSTRUCTION ACCOUNT AND RS. 34,03,105/- IN THE NAME OF SURENDRA AND SHUSHIL LOAN ACCOUNT). HE FURTHER OBSERVED THAT THE ASSESSEE HAD CLAIMED INTEREST EXPENSES TO THE RUNE OF RS. 5,48,3 16/- IN ITS PROFIT AND LOSS ACCOUNT ON ACCOUNT OF INTEREST PAID TO PARTNERS AND ON UNSECURED LOANS. THE ASSESSING OFFICER MADE AN ADDITION OF RS. 12,83,863 /- BY CHARGING THE NOTIONAL INTEREST @ 12% ON THE AFORESAID ADVANCES. 3. THE ASSESSEE CARRIED THE MATTER TO THE LEARNED C IT(A), WHO DELETED THE ADDITION BY FOLLOWING THE DECISION OF THE JURIS DICTIONAL ITAT IN ASSESSEES OWN CASE FOR THE IMMEDIATELY PRECEDING ASSESSMENT Y EAR 2007-08. NOW THE DEPARTMENT IS IN APPEAL. 4. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PA RTIES AND THE MATERIAL ON RECORD, IT IS NOTICED THAT THE ISSUE UNDER CONSI DERATION IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE V IDE ORDER DATED 15/12/2011 OF THIS BENCH OF THE TRIBUNAL IN ASSESSE ES OWN CASE IN I.T.A. NO. 433/JODH/2010 FOR THE ASSESSMENT YEAR 2007-08 WHERE IN THE RELEVANT FINDINGS HAVE BEEN GIVEN IN PARA 7 OF THE SAID ORDE R, WHICH READS AS UNDER:- AFTER CONSIDERING THE ORDERS OF THE ASSESSING OFF ICER AND LD. CIT(A), WE FIND THAT ISSUE IS SQUARELY COVERED BY THE DECIS ION OF THE TRIBUNAL IN CASE OF ASSESSEE ITSELF. SIMILAR DISALLOWANCE WAS M ADE FOR ASSESSMENT YEAR 2001-02 TO 2006-07. THE LD. CIT(A) DELETED THE ADDITION AND ORDER OF LD. CIT(A) HAS BEEN AFFIRMED BY THE TRIBUNAL. TH EREFORE, IN VIEW OF THE CONSISTENCY, WE HOLD THAT LD. CIT(A) WAS JUSTIFIED IN ALLOWING THE CLAIM OF THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION. A CCORDINGLY, WE CONFIRM THE ORDER OF LD. CIT(A) ON THE ISSUE. 3 5. SINCE THE FACT OF THE PRESENT CASE ARE SIMILAR T O THE FACTS INVOLVED IN THE IMMEDIATELY PRECEDING YEAR. SO RESPECTFULLY FOL LOWING THE AFORESAID REFERRED TO ORDER DATED 15/12/2011 IN ASSESSEES OW N CASE IN I.T.A. NO. 433/JODH/2010 (SUPRA), WE DO NOT SEE ANY MERIT IN T HE APPEAL OF THE DEPARTMENT. 6. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS D ISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 07/08/2013) . SD/- SD/- (HARI OM MARATHA) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTA NT MEMBER DATED: 07/08/2013 *RANJAN COPY TO : 1. THE APPELLANT- THE INCOME-TAX OFFICER, WARD-2(1) , UDAIPUR. 2. THE RESPONDENT- M/S CHETNA MEDICAL, UDAIPUR. 3. THE CIT 4. THE CIT(A) 5. THE DR 6. THE GUARD FILE I.T.A. NO.56/JODH/2013. ASSISTANT REGISTRAR