Spinks India, Delhi V. ACIT, Circle-63(1), New Delhi

ITA 6062/DEL/2018

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 6982 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2015-2016
• Appeal Filed On: 23-09-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘G’ NEW DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND DR. BRR KUMAR, ACCOUNTANT MEMBER ITA No.6062/Del/2018 Assessment Year: 2015-16 Spinks India C/o M.K. Bhatt & Co., E-10-12, 302 Triveni Complex, Jawahar Park, Laxmi Nagar, Delhi Pin: 1100 92 Vs. ACIT, Circle-63(1), New Delhi. PAN :AABFS0535R (Appellant) (Respondent) ORDER PER SAKTIJIT DEY, JUDICIAL MEMBER: This is an appeal by the assessee against order dated 30.07.2018 of learned Commissioner of Income-Tax (Appeals)-20 New Delhi for the assessment year 2015- 16. 2. When the matter was called for hearing, none appeared on behalf of the assessee to represent the case. On perusal of record, it is noticed, though, the appeal was fixed for hearing on several occasions earlier, the assessee did not comply with the notice Appellant by None Respondent by Shri H.K.Chaudhary, CIT DR Date of hearing 07.03.2022 Date of pronouncement 14.03.2022 2 ITA No.6062/Del.2018 of hearing and each time the appeal got adjourned due to absence of the assessee. This fact clearly reveals lack of interest of the assessee in pursuing the appeal. In this view of the matter, we proceed to dispose of the appeal ex parte qua the assessee after hearing the learned Departmental Representative and based on material available on record. 3. Briefly, the facts are that assessee is a resident partnership firm stated to be engaged in trading of inks, plates, blades, pads, mould and machines. For the year under dispute, assessee filed its return of income on 24.09.2015, declaring income of Rs.2,09,83,980. In course of assessment proceedings, Assessing Officer noticing that certain related parties to whom assessee had paid interest @ 18% called upon the assessee to prove the reasonableness of such payments, considering the high rate of interest. Though, the assessee offered explanation justifying the rate of interest paid, however, Assessing Officer was not convinced. Thus, invoking the provisions of Section 40A(2) of the Act, he held that interest paid @ 18% is high and excessive considering the fact that the reasonable rate of interest is 12%. Accordingly, he disallowed the excess interest paid of Rs.11,87,678. Further, based on AIR CBEC data, Assessing Officer noticed that the assessee has claimed excess customs duty of Rs.23,969. Accordingly, he disallowed such claim of the assessee. 3. Contesting the aforesaid disallowance, assessee filed an appeal before learned Commissioner (Appeals). However, learned Commissioner (Appeals) upheld the disallowances. 3 ITA No.6062/Del.2018 4. We have heard learned Departmental Representative and perused the material on record. After perusing respective orders of the departmental authorities, we have noted that while the assessee had paid interest of 12% to the partners, it has paid interest @ 18% to some other related parties. In the submissions made before the departmental authorities, assessee has failed to justify the excess interest paid to related parties. 5. Before us also, the assessee has not furnished any evidence/material to controvert the finding of the departmental authorities. 6. In view of the aforesaid, we uphold the decision of learned Commissioner (Appeals) on the issue of disallowance of interest expenditure. In so far as issue relating to claim of excess custom duty, nothing has been brought on record before us by the assessee to controvert the factual finding of the departmental authorities. Therefore, we uphold the decision of learned Commissioner (Appeals) on the issue. Grounds raised by the assessee are dismissed. 7. In the result, the appeal is dismissed. Order pronounced in the open court on 14 th March, 2022 Sd/- Sd/- ( DR. BRR KUMAR ) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 14 th March, 2022. Mohan Lal Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi 4 ITA No.6062/Del.2018 Sl. No. Particulars Date 1. Date of dictation (Order drafted through Dragon software): 08.03.2022 2. Date on which the draft of order is placed before the Dictating Member: 08.03.2022 3. Date on which the draft of order is placed before the other Member: 08.03.2022 4. Date on which the approved draft of order comes to the Sr. PS/PS: 08.03.2022 5. Date of which the fair order is placed before the Dictating Member for pronouncement: 6. Date on which the final order received after having been singed/pronounced by the Members: 14.03.2022 7. Date on which the final order is uploaded on the website of ITAT: 8. Date on which the file goes to the Bench Clerk 14.03.2022 9. Date on which files goes to the Head Clerk: 10. Date on which file goes to the Assistant Registrar for signature on the order: 11. Date of dispatch of order: